DoD's DHA Spends $46.5M on IT Services with SPN Solutions Inc. via Full and Open Competition
Contract Overview
Contract Amount: $46,511,039 ($46.5M)
Contractor: SPN Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2023-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $42.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 44
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT AND INFORMATION MANAGEMENT SERVICES SME 1, II, III, HELP DESK TECHS PROJECT MANAGERS, WEB DESIGN, PROGRAM MANAGER
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.5 million to SPN SOLUTIONS INC for work described as: IT AND INFORMATION MANAGEMENT SERVICES SME 1, II, III, HELP DESK TECHS PROJECT MANAGERS, WEB DESIGN, PROGRAM MANAGER Key points: 1. Significant contract value of $46.5M awarded to SPN SOLUTIONS INC. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a structured but potentially limited process. 3. The contract covers a broad range of IT services, including help desk, project management, and web design. 4. Risk flags are moderate, with no indication of small business participation or specific concerns about value for money. 5. Sector is IT services within the Defense sector, specifically supporting the Defense Health Agency.
Value Assessment
Rating: fair
The contract value of $46.5M over three years for a broad range of IT services appears within a reasonable range for government contracts of this nature. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while the competition was open, certain sources were excluded, potentially impacting the breadth of competition and price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment, though the exclusion of sources warrants further scrutiny.
Public Impact
Supports critical IT infrastructure for the Defense Health Agency, impacting healthcare services for military personnel. The broad scope of services could affect various aspects of military health IT operations. Contract performance directly influences the efficiency and effectiveness of DoD's health information systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Lack of small business participation
Positive Signals
- Firm Fixed Price contract type
- Full and Open Competition utilized
Sector Analysis
This contract falls within the IT and Information Management Services sector, specifically supporting the Defense Health Agency. Spending benchmarks for similar comprehensive IT support contracts within the DoD can vary widely based on scope and duration.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests a focus on larger prime contractors for this specific requirement, potentially missing opportunities for small business engagement.
Oversight & Accountability
The contract was awarded by the Department of Defense to the Defense Health Agency. Oversight would typically involve contract management offices within the DHA to ensure performance and compliance with contract terms.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- No small business participation.
- Broad scope of services may present management challenges.
- Lack of detailed performance metrics in the provided data.
Tags
all-other-professional-scientific-and-te, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to SPN SOLUTIONS INC. IT AND INFORMATION MANAGEMENT SERVICES SME 1, II, III, HELP DESK TECHS PROJECT MANAGERS, WEB DESIGN, PROGRAM MANAGER
Who is the contractor on this award?
The obligated recipient is SPN SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $46.5 million.
What is the period of performance?
Start: 2020-09-30. End: 2023-09-30.
What was the rationale for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion limit potential cost savings for taxpayers?
The rationale for excluding sources typically relates to specific technical requirements, past performance, or security clearances. Without detailed documentation, it's difficult to ascertain if this exclusion limited competition or potential cost savings. Further investigation into the justification for exclusion is recommended to ensure maximum value for taxpayer dollars.
How does the performance of SPN SOLUTIONS INC. on this contract compare to industry benchmarks for IT services, and are there any indicators of potential cost overruns or underperformance?
Performance data and specific metrics are not provided in the dataset. A comprehensive assessment would require reviewing performance reports, user feedback, and any documented issues or successes. Comparing the delivered services against the contract's statement of work and key performance indicators is crucial for evaluating value and identifying potential risks.
What is the long-term strategy for IT service provision within the Defense Health Agency, and how does this contract align with or deviate from that strategy?
This contract covers a three-year period, suggesting it addresses immediate or medium-term IT service needs. Understanding the DHA's broader IT modernization and service delivery strategy is essential to determine if this contract represents a sustainable solution or a temporary measure. Alignment with strategic goals ensures efficient resource allocation and future readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT001420R0001
Offers Received: 44
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8230 LEESBURG PIKE, SUITE 740, TYSONS CORNER, VA, 22182
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,227,756
Exercised Options: $46,511,039
Current Obligation: $46,511,039
Actual Outlays: $18,677,240
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-30
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-04-22
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