DoD awards $5.1M task order for software support to Chesapeake Technology International, Corp

Contract Overview

Contract Amount: $5,135,046 ($5.1M)

Contractor: Chesapeake Technology International, Corp.

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-26

Contract Duration: 729 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SBIR PHASE III WSD SOFTWARE SUPPORT ENGINEERING SERVICES TASK ORDER 001

Place of Performance

Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.1 million to CHESAPEAKE TECHNOLOGY INTERNATIONAL, CORP. for work described as: SBIR PHASE III WSD SOFTWARE SUPPORT ENGINEERING SERVICES TASK ORDER 001 Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price efficiencies and market-driven value. 3. Limited competition increases the risk of paying above-market rates for services. 4. The duration of the contract is two years, suggesting a need for ongoing support. 5. The task order falls under the Software Publishers NAICS code, indicating a focus on software-related services. 6. The awardee, Chesapeake Technology International, Corp., is a known entity in the defense contracting space.

Value Assessment

Rating: questionable

Benchmarking the value of this specific task order is challenging without detailed cost breakdowns and comparison to similar software support contracts. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and do not exceed initial estimates. Without competitive bidding, it's difficult to ascertain if the pricing reflects market value or if there's an opportunity for cost savings through a more competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source, 'not competed' action. This means that only one vendor, Chesapeake Technology International, Corp., was solicited for this specific task order. While sole-source awards can be justified for various reasons, such as unique capabilities or urgent needs, they typically result in less price competition compared to full and open solicitations.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the most cost-effective pricing that could have been achieved through a bidding process. This can potentially lead to higher overall spending for the government.

Public Impact

The Department of the Navy benefits from specialized software support engineering services. This contract ensures the continued functionality and maintenance of critical software systems. The services are likely to support naval operations and readiness. The geographic impact is primarily within California, where the contractor is located, but the services support a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost-plus-fixed-fee contracts require diligent oversight to control costs.
Transparency on the specific software systems supported is limited.

Positive Signals

Award to an established contractor with potential domain expertise.
Task order provides necessary support for ongoing defense operations.
Clear contract duration and defined end date.

Sector Analysis

This contract falls within the Information Technology sector, specifically under the Software Publishers NAICS code (513210). The market for software support and engineering services is robust, with numerous companies offering specialized solutions. Federal spending in this area is substantial, driven by the need to maintain and upgrade complex IT systems across various agencies. This task order represents a small portion of the overall federal IT spending, focusing on specialized support for a specific defense application.

Small Business Impact

This contract was not set aside for small businesses, and the awardee is not identified as a small business. There is no indication of subcontracting plans for small businesses within the provided data. Therefore, this award does not directly contribute to small business set-aside goals or foster subcontracting opportunities within the small business ecosystem for this specific task order.

Oversight & Accountability

Oversight for this task order would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Software Development Contracts
IT Support Services
Naval Systems Engineering
Software Maintenance and Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of detailed public cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.1 million to CHESAPEAKE TECHNOLOGY INTERNATIONAL, CORP.. SBIR PHASE III WSD SOFTWARE SUPPORT ENGINEERING SERVICES TASK ORDER 001

Who is the contractor on this award?

The obligated recipient is CHESAPEAKE TECHNOLOGY INTERNATIONAL, CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-26.

What specific software systems or applications will Chesapeake Technology International, Corp. be supporting under this task order?

The provided data does not specify the exact software systems or applications that Chesapeake Technology International, Corp. will be supporting. This information is typically detailed within the Statement of Work (SOW) for the task order, which outlines the scope of services, deliverables, and the specific systems requiring support. Understanding the nature of these systems (e.g., operational, administrative, intelligence-related) would provide crucial context for assessing the necessity and value of the support being procured.

How does the cost-plus-fixed-fee pricing structure compare to market rates for similar software support services?

Cost-plus-fixed-fee (CPFF) contracts aim to provide a fixed profit margin for the contractor while allowing for reimbursement of allowable costs. Benchmarking CPFF rates for software support is complex as it depends heavily on the specific technical skills required, the criticality of the systems, and the contractor's overhead. Without access to the detailed cost proposal and a comparison group of similar CPFF contracts for comparable services, it is difficult to definitively assess if the pricing is at market rates. However, the inherent risk of cost escalation in CPFF contracts means that rigorous oversight is essential to ensure value for money.

What is the track record of Chesapeake Technology International, Corp. in delivering similar software support services to the Department of Defense?

Chesapeake Technology International, Corp. has a history of contracting with the Department of Defense, suggesting some level of established capability and familiarity with government requirements. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract completion history, and any documented issues or successes on previous similar task orders or contracts. This information, often available through contract databases or past performance questionnaires, is critical for evaluating the contractor's reliability and ability to meet the current task order's objectives.

What are the potential risks associated with awarding this task order on a sole-source basis?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a higher price than if multiple vendors had competed. This can also reduce the incentive for the contractor to innovate or provide the most cost-effective solutions. Additionally, sole-source awards can limit opportunities for new or smaller businesses to enter the market and demonstrate their capabilities. Without a competitive process, there's also a reduced ability to benchmark against alternative solutions or contractors, potentially leading to suboptimal choices.

How does this $5.1 million task order fit into the broader context of Department of the Navy IT spending?

A $5.1 million task order for software support is a relatively modest amount within the overall IT spending of the Department of the Navy, which often runs into billions of dollars annually. This specific award likely addresses a niche requirement for specialized software engineering services for a particular system or platform. Its significance lies in ensuring the operational readiness and effectiveness of that specific system, rather than representing a major strategic investment or a significant portion of the department's total IT budget. Understanding its place requires comparing it to the scale of other IT procurements within the Navy.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6890924R7611

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 44191 AIRPORT RD, CALIFORNIA, MD, 20619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,135,046

Exercised Options: $5,135,046

Current Obligation: $5,135,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: M6890924D7611

IDV Type: IDC

Timeline