DoD's $6.7M IT Support Contract with Information Delivery Systems Inc. shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $6,718,409 ($6.7M)

Contractor: Information Delivery Systems Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-01

End Date: 2026-08-28

Contract Duration: 2,006 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT SUPPORT & ENGINEERING SERVICES

Place of Performance

Location: BOWIE, PRINCE GEORGES County, MARYLAND, 20720

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to INFORMATION DELIVERY SYSTEMS INC for work described as: IT SUPPORT & ENGINEERING SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. Performance context is limited due to the nature of IT support services. 5. This contract falls within the broader IT services sector, a significant area of federal spending. 6. The duration of the contract (over 5 years) indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $6.7 million over its period of performance appears to be within a reasonable range for IT support and engineering services. Benchmarking against similar contracts for computer facilities management services suggests that the pricing is not excessively high. However, the cost-plus-fixed-fee (CPFF) contract type introduces some risk, as it allows for the reimbursement of costs plus a fixed fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Further analysis of the specific services rendered and the fixed fee percentage would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. This is not a 'sole source' award, but it is also not 'full and open' competition without exclusions. The number of bidders is not explicitly stated in the provided data, but the award type suggests a limited pool of potential offerors. This level of competition may not yield the most competitive pricing, as the pool of eligible contractors was restricted.

Taxpayer Impact: The limited competition may mean taxpayers are not benefiting from the lowest possible prices that could be achieved through a broader, unrestricted competition. This could translate to a higher overall cost for the government.

Public Impact

The Department of the Navy benefits from essential IT support and engineering services. These services are critical for maintaining the operational readiness and efficiency of naval IT infrastructure. The contract supports the IT needs of personnel within the Department of Defense. The geographic impact is likely concentrated around naval facilities where the IT support is provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may incentivize cost overruns.
Limited competition could lead to suboptimal pricing for taxpayers.
Exclusion of sources in competition restricts the potential bidder pool.

Positive Signals

Contract awarded to a single entity, Information Delivery Systems Inc., suggesting a focused relationship.
The contract duration indicates a stable, long-term need for these critical IT services.
The services provided are essential for the operational functioning of the Department of Defense.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on Computer Facilities Management Services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Defense's overall IT spending, which is a significant segment of the federal IT budget. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and complexity, but this contract's value appears moderate for its stated purpose.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the necessary IT support services, and opportunities for small businesses to participate directly or indirectly through subcontracting may be limited under this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting of costs and performance. Transparency is generally facilitated through contract award databases like FPDS, where basic contract information is publicly available. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or financial reporting.

Related Government Programs

IT Operations and Maintenance
Computer Systems Design Services
Information Technology Professional Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Limited competition may impact price.
Cost-plus-fixed-fee structure requires careful oversight.
Exclusion of sources in competition needs justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to INFORMATION DELIVERY SYSTEMS INC. IT SUPPORT & ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is INFORMATION DELIVERY SYSTEMS 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 $6.7 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-08-28.

What is the track record of Information Delivery Systems Inc. with federal contracts, particularly within the Department of Defense?

Information Delivery Systems Inc. has a history of receiving federal contracts, primarily within the Department of Defense. Analyzing their past performance on similar IT support and engineering service contracts is crucial. A review of their contract history would reveal their success in meeting performance requirements, managing budgets, and adhering to delivery schedules. Past performance evaluations, if available, would provide insights into their reliability and capability. Understanding their experience with cost-plus-fixed-fee contracts specifically would also be beneficial in assessing their suitability for this award. Without specific past performance data, it's difficult to definitively assess their track record beyond the fact they were awarded this contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, as is common in IT services. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF generally offers less price certainty for the government and can incentivize higher spending if not carefully managed. However, it provides flexibility. In contrast, Firm-Fixed-Price (FFP) contracts offer greater price certainty but require a well-defined scope. For IT support, FFP might be suitable for routine maintenance, while CPFF could be better for development or complex problem-solving. The 'fair value' assessment depends heavily on the contractor's cost control and the government's oversight of allowable costs.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents specific risks primarily related to competition level and potential pricing. While it's more competitive than a sole-source award, excluding certain sources inherently limits the pool of potential bidders. This restriction can reduce the pressure on the awarded contractor to offer the most competitive pricing. It may also indicate that specific capabilities or past performance were prioritized, potentially at the expense of broader market access. The risk for taxpayers is that the government might not achieve the best possible value due to this narrowed competition. Understanding the rationale behind the exclusion of sources is key to assessing this risk.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract?

Key Performance Indicators (KPIs) for an IT Support & Engineering Services contract like this typically focus on service availability, response times, resolution rates, and customer satisfaction. For example, metrics might include 'uptime percentage' for critical systems, 'average time to respond to incidents,' 'average time to resolve issues,' and 'user satisfaction scores' from surveys. For engineering services, KPIs could relate to project milestones, system performance improvements, or successful implementation of new technologies. The effectiveness of the contract hinges on clearly defined and measurable KPIs, regular performance reviews, and the contractor's ability to meet or exceed these targets, all of which are monitored by the Department of the Navy.

How does this contract's duration and value compare to historical spending patterns for similar IT services within the Department of Defense?

The contract's duration of approximately 5 years (from March 2021 to August 2026) and a total value of $6.7 million place it as a mid-range IT support contract within the Department of Defense. The DoD is a massive consumer of IT services, with annual spending often in the billions. Contracts for IT support can range from short-term, smaller value task orders to multi-year, multi-million or even billion-dollar programs. This specific contract appears to address a sustained need for IT facilities management. Historical spending patterns show a consistent demand for such services, with contract values fluctuating based on agency needs, technological advancements, and competitive bidding environments.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017320RRJ02

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7305 QUETZAL DR, BOWIE, MD, 20720

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

Financial Breakdown

Contract Ceiling: $8,245,317

Exercised Options: $7,567,730

Current Obligation: $6,718,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline