DoD's $21.6M Navy Contract for Computer Facilities Management Services Awarded to DYNAMIC NETWORK ENTERPRISES, INC
Contract Overview
Contract Amount: $21,663,628 ($21.7M)
Contractor: Dynamic Network Enterprises, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-22
End Date: 2010-09-30
Contract Duration: 2,199 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20398
Plain-Language Summary
Department of Defense obligated $21.7 million to DYNAMIC NETWORK ENTERPRISES, INC. for work described as: Key points: 1. Contract value of $21.6M over 6 years. 2. Awarded under full and open competition after exclusion of sources. 3. Potential risk associated with long-term contracts and fixed-price structure. 4. IT sector spending with a focus on facilities management.
Value Assessment
Rating: fair
The contract value of $21.6M over approximately 6 years suggests a moderate annual spend. Benchmarking against similar Computer Facilities Management Services contracts would be necessary to fully assess pricing fairness.
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,' indicating a competitive process but with specific source exclusions. This method aims for competitive pricing but the exclusions could limit the pool of bidders.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure fair market value for the services.
Public Impact
Ensures continued IT infrastructure support for the Department of the Navy. Supports operational readiness through reliable computer facilities management. Potential for job creation within the IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6 years) may not adapt to rapidly changing IT needs.
- Fixed-price contract could lead to contractor profit if costs are lower than anticipated.
- Exclusion of sources in competition might limit optimal pricing.
Positive Signals
- Awarded through a competitive process.
- Provides essential IT infrastructure services.
- Long-term contract offers stability for service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer facilities management. Annual spending on IT services by the federal government is substantial, and this contract represents a portion of that expenditure for the Department of the Navy.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, implying oversight from this agency. The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly restrict competition.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if market prices increase significantly.
- Risk of technological obsolescence over the contract's 6-year term.
- Limited competition due to source exclusions.
- Lack of transparency on small business participation.
Tags
computer-facilities-management-services, department-of-defense, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to DYNAMIC NETWORK ENTERPRISES, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DYNAMIC NETWORK ENTERPRISES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2004-09-22. End: 2010-09-30.
What was the justification for excluding specific sources in this full and open competition?
The justification for excluding specific sources in a 'full and open competition after exclusion of sources' typically relates to national security, proprietary technology, or unique capabilities that only certain vendors possess. Without specific documentation, it's difficult to ascertain the precise reasons, but such exclusions must be rigorously justified to ensure they do not arbitrarily limit competition and potentially inflate costs for the government.
How does the $21.6M contract value compare to industry benchmarks for similar IT facilities management services?
Benchmarking the $21.6M contract value against industry standards for Computer Facilities Management Services requires detailed analysis of the specific services included, contract duration, and geographic location. Factors like the number of facilities managed, service level agreements, and required expertise influence pricing. A comprehensive comparison would involve reviewing data from similar government and commercial contracts to determine if the price is competitive and reflects fair market value.
What are the potential risks associated with a 6-year fixed-price contract for IT facilities management?
A 6-year fixed-price contract for IT facilities management carries risks of price escalation if market costs rise significantly, potentially eroding contractor profit margins or leading to requests for modification. Conversely, if technology or needs change rapidly, the fixed scope may become outdated, requiring costly adjustments. The government also risks overpaying if the contractor achieves efficiencies not anticipated at the time of award, while the contractor risks underperforming if costs exceed projections.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17 GRAY BIRCH COURT, STAFFORD, VA, 07
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-22
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-08-10
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