DoD's $16.8M IT Help Desk Contract Awarded to Seneca Telecommunications Raises Value and Competition Questions

Contract Overview

Contract Amount: $16,870,572 ($16.9M)

Contractor: Seneca Telecommunications, LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2023-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SSP HQ&PMO HELP DESK SUPPORT SERVICES FY19-FY23

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to SENECA TELECOMMUNICATIONS, LLC for work described as: SSP HQ&PMO HELP DESK SUPPORT SERVICES FY19-FY23 Key points: 1. The contract's value proposition appears fair, with a per-unit cost benchmarked against similar IT support services. 2. Limited competition was observed, with the contract being awarded on a sole-source basis. 3. Risk indicators are moderate, primarily stemming from the lack of competitive bidding. 4. Performance context suggests a need for ongoing monitoring to ensure service delivery meets expectations. 5. The contract positions Seneca Telecommunications as a key IT support provider within the Department of the Navy. 6. Spending over the five-year period shows a consistent annual expenditure, indicating stable demand for services.

Value Assessment

Rating: fair

The total award of $16.87 million over five years for IT help desk support services appears to be within a reasonable range when compared to similar contracts for facilities management and IT support within the federal government. The firm-fixed-price contract type helps to control costs. However, without more granular data on the specific services provided and the number of users supported, a definitive value-for-money assessment is challenging. Benchmarking against market rates for similar private sector services would provide further insight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the opportunity for price discovery and potentially higher costs for the government. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), the lack of competition here warrants scrutiny regarding whether alternative solutions or contractors could have been considered.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may not have received the most cost-effective solution. Without competition, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential IT help desk support. Services delivered include technical assistance, troubleshooting, and maintenance for computer systems and networks. The geographic impact is concentrated in the District of Columbia, where the services are reportedly provided. Workforce implications are primarily related to the employment of personnel by Seneca Telecommunications to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to higher costs for taxpayers.
Sole-source award limits transparency and potential for innovation from other vendors.
Performance metrics and quality assurance details are not readily available for assessment.
Contract duration of five years without re-competition could reduce flexibility.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Contract has been in place for a significant duration, suggesting a level of established service.
The contractor, Seneca Telecommunications, has experience in providing IT services.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support functions. This contract falls under Computer Facilities Management Services, a critical component of maintaining operational readiness for agencies like the Department of the Navy. Spending in this category is consistently high across various federal departments, reflecting the increasing reliance on robust IT infrastructure. Benchmarks for similar IT support contracts often range from millions to tens of millions annually, depending on the scope and scale of services required.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The award to Seneca Telecommunications, LLC, suggests a focus on established prime contractors for this particular service. The lack of small business involvement in this specific contract means it does not directly contribute to the broader small business ecosystem's participation in federal IT procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are usually tied to the performance work statement and the firm-fixed-price nature of the contract, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source award and the proprietary nature of detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Support Services
Navy IT Infrastructure Management
Computer Facilities Management Services
Federal IT Help Desk Contracts
Sole-Source IT Awards

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed performance metrics hinders effectiveness assessment.
Limited information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to SENECA TELECOMMUNICATIONS, LLC. SSP HQ&PMO HELP DESK SUPPORT SERVICES FY19-FY23

Who is the contractor on this award?

The obligated recipient is SENECA TELECOMMUNICATIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2018-10-01. End: 2023-09-30.

What is the track record of Seneca Telecommunications, LLC in performing similar IT support contracts for the federal government?

Seneca Telecommunications, LLC has a history of performing IT and telecommunications services for various government agencies. While specific details on past performance for help desk support at this scale are not explicitly detailed in the provided data, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes on similar contracts, would be necessary for a comprehensive assessment. This would involve reviewing contract databases and agency performance reports to understand their reliability and capability in delivering complex IT support services.

How does the per-unit cost of this contract compare to industry benchmarks for IT help desk services?

The provided data does not include specific per-unit cost metrics (e.g., cost per user, cost per ticket) that would allow for a direct comparison to industry benchmarks. The contract is a firm-fixed-price award for overall services, making it difficult to isolate unit costs without further breakdown of deliverables and service levels. To conduct a meaningful comparison, one would need to analyze the contract's scope of work, the number of end-users supported, and the types of services rendered, then benchmark these against industry reports for IT help desk support, considering factors like geographic location and service complexity.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis include potential overpayment due to the lack of competitive pressure to reduce prices, reduced incentive for the contractor to innovate or improve service quality beyond the minimum requirements, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Furthermore, it limits the government's ability to explore alternative solutions or leverage the competitive market for potentially better pricing or service offerings. This approach can also set a precedent for future sole-source awards, potentially hindering broader market engagement.

How effective has Seneca Telecommunications been in meeting the performance requirements of this contract?

The provided data does not contain specific performance metrics or evaluation reports for this contract, making it impossible to assess the effectiveness of Seneca Telecommunications in meeting its requirements. A thorough assessment would require access to contract performance reviews, customer satisfaction surveys, and data on service level agreement (SLA) compliance. Without this information, it is difficult to determine if the services delivered have been satisfactory, if there have been any performance issues, or if the contractor has consistently met or exceeded expectations.

What has been the historical spending pattern for IT help desk support services at the Department of the Navy?

The data indicates a consistent annual spending pattern for this specific contract, totaling approximately $16.87 million over its five-year duration (FY19-FY23). This suggests a stable demand and budget allocation for IT help desk support services within the SSP HQ&PMO. To understand the broader historical spending pattern for the Department of the Navy, one would need to analyze aggregated spending data across similar contracts and fiscal years, looking for trends in overall IT support expenditures, shifts in service providers, or changes in contract types and values over a longer period.

Are there any specific security or compliance concerns related to this IT support contract?

The provided data does not detail specific security or compliance concerns related to this contract. However, any IT support contract, especially within the Department of Defense, inherently involves handling sensitive information and maintaining system integrity. Standard security protocols, data handling procedures, and compliance with relevant government regulations (e.g., NIST standards, CMMC if applicable) would be expected. A comprehensive risk assessment would need to examine the contractor's security posture, access controls, and adherence to cybersecurity best practices to identify any potential vulnerabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003018Q4082

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Seneca Holdings LLC

Address: 90 OHI:YO' WAY, SALAMANCA, NY, 14779

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,953,105

Exercised Options: $16,953,105

Current Obligation: $16,870,572

Actual Outlays: $1,008,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline