DoD's $22M IT Support Contract with SPECPRO Technical Services Raises Questions on Competition and Value

Contract Overview

Contract Amount: $22,038,653 ($22.0M)

Contractor: Specpro Technical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-11-21

End Date: 2011-09-30

Contract Duration: 1,409 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SVCS AT NNMC BETHESDA, MD IAW

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78232

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to SPECPRO TECHNICAL SERVICES, LLC for work described as: IT SUPPORT SVCS AT NNMC BETHESDA, MD IAW Key points: 1. Contract awarded to SPECPRO TECHNICAL SERVICES, LLC for IT Support Services. 2. Significant spending of $22,038,652.61 over its duration. 3. Awarded under 'NOT AVAILABLE FOR COMPETITION', raising concerns about market research and price discovery. 4. The NAICS code 541513 indicates Computer Facilities Management Services. 5. Contract duration was 1409 days.

Value Assessment

Rating: questionable

The contract value of $22,038,652.61 for Computer Facilities Management Services needs benchmarking against similar DoD contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded under a sole-source justification ('NOT AVAILABLE FOR COMPETITION'). This limits competitive pressure, potentially leading to higher prices and reduced innovation compared to an open competition.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these IT support services.

Public Impact

Military medical facilities rely on consistent IT support for critical operations. The duration of the contract suggests a long-term need for these services. Lack of transparency in the sole-source award process can erode public trust. Potential for cost overruns due to absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of transparency in procurement.
Potential for inflated pricing.
No small business participation noted.

Positive Signals

Services provided to a critical military medical facility.
Contract was awarded by the Department of Defense.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management. Benchmarks for similar IT support contracts within the DoD can vary widely based on scope and duration, but competitive awards typically yield better value.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure proper justification and fair pricing. The Defense Contract Management Agency's role in overseeing this contract is crucial for accountability.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award raises competition concerns.
Potential for inflated pricing due to lack of competition.
No small business participation identified.
Limited transparency in the procurement process.
Need for detailed justification of sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to SPECPRO TECHNICAL SERVICES, LLC. IT SUPPORT SVCS AT NNMC BETHESDA, MD IAW

Who is the contractor on this award?

The obligated recipient is SPECPRO TECHNICAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2007-11-21. End: 2011-09-30.

What specific justification was provided for awarding this IT support contract on a sole-source basis, and was adequate market research conducted to confirm no other vendors could provide the required

The provided data states the contract was awarded 'NOT AVAILABLE FOR COMPETITION' (ct: 'NOT AVAILABLE FOR COMPETITION'). This designation typically implies a sole-source justification was used. However, the specific reasons for this determination and the extent of market research performed are not detailed in the provided data. Further investigation would be needed to assess the adequacy of the justification and research.

How does the $22 million cost compare to industry benchmarks for similar IT facilities management services, especially considering the absence of competitive bidding?

Benchmarking this $22 million contract against industry standards is challenging without more specific details on the scope of services and contract duration. However, sole-source awards inherently lack the price discovery mechanism of competition, suggesting a higher risk of the cost exceeding what might be achieved through competitive bidding. A detailed cost analysis and comparison with similar competitively awarded contracts would be necessary.

What is the potential impact on the operational effectiveness of NNMC Bethesda if the IT support services provided under this contract are not optimized in terms of cost and quality due to the lack of

If the IT support services are not cost-optimized or of the highest quality due to the sole-source award, the operational effectiveness of NNMC Bethesda could be significantly impacted. Disruptions in IT systems can hinder patient care, administrative functions, and critical data management. This underscores the importance of ensuring value and performance even in non-competitive procurements.

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: N0018908TZ003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation (UEI: 060036357)

Address: 12500 SAN PEDRO AVE, SAN ANTONIO, TX, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,479,194

Exercised Options: $22,038,653

Current Obligation: $22,038,653

Contract Characteristics

Cost or Pricing Data: NO

Timeline