DoD's $26.5M contract for program management support services awarded to Vista Technology Services, Inc. shows fair value

Contract Overview

Contract Amount: $26,489,920 ($26.5M)

Contractor: Vista Technology Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2016-01-31

Contract Duration: 2,586 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMA-201.

Place of Performance

Location: ELKRIDGE, HOWARD County, MARYLAND, 21075

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to VISTA TECHNOLOGY SERVICES, INC. for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMA-201. Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was limited, potentially impacting price discovery. 3. The contractor has a moderate track record with the government. 4. Performance context suggests a stable, long-term need for these services. 5. This contract falls within the broader engineering and professional services sector. 6. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns.

Value Assessment

Rating: fair

The total award amount of $26.5 million over approximately 7 years suggests a moderate annual spend. Benchmarking against similar program management support contracts indicates that the pricing is within an acceptable range, though the cost-plus-fixed-fee (CPFF) structure necessitates careful monitoring to ensure costs remain controlled and do not escalate beyond initial projections. The fixed fee component provides some predictability, but the variable cost component requires diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, leading to a limited competitive environment. With only three bidders identified, the level of competition was not robust, which could have led to less aggressive pricing than a broader competition might have achieved. This limited competition may have reduced the pressure on the contractor to offer the lowest possible price.

Taxpayer Impact: The limited competition means taxpayers may not have received the most cost-effective solution available in the market. The government's ability to secure the best possible price was constrained by the restricted pool of bidders.

Public Impact

The primary beneficiaries are the Department of the Navy and the PMA-201 program, receiving essential program management support. Services delivered include crucial program management functions that enable the effective execution of defense acquisition programs. The geographic impact is primarily within Maryland, where the contract is managed and likely performed. Workforce implications include the employment of skilled professionals in program management, engineering, and administrative support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may incentivize cost increases.
Limited competition could lead to suboptimal pricing for taxpayers.
Contract duration of over 7 years requires ongoing performance monitoring.

Positive Signals

Awarded to a single contractor suggests a focused relationship.
Definitive contract type implies a clear scope of work.
Contract supports a critical defense program.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The federal government is a significant consumer of these services, particularly for complex defense programs. The market size for federal engineering services is substantial, with significant spending allocated annually. This contract represents a portion of the broader federal investment in program management and technical support for defense acquisition.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Vista Technology Services, Inc., likely performed the majority of the work, with limited direct benefit to the small business ecosystem through subcontracting opportunities on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Program Management Support
Engineering Services for Defense Acquisition
Cost-Plus-Fixed-Fee Contracts
PMA-201 Support Services

Risk Flags

Limited competition may have inflated costs.
CPFF contract type carries inherent cost overrun risk.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to VISTA TECHNOLOGY SERVICES, INC.. PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMA-201.

Who is the contractor on this award?

The obligated recipient is VISTA TECHNOLOGY SERVICES, 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 $26.5 million.

What is the period of performance?

Start: 2009-01-01. End: 2016-01-31.

What is Vista Technology Services, Inc.'s overall track record with federal contracts?

Vista Technology Services, Inc. (VTS) has a significant history of receiving federal contracts, primarily with the Department of Defense. Their contract portfolio includes a range of services, often related to IT, engineering, and program management support. Analyzing their past performance ratings, on-time delivery records, and any past performance issues or disputes would provide a clearer picture of their reliability and capability. While this specific contract award indicates they were selected for a substantial program, a broader review of their contract history, including contract values, agencies served, and types of services rendered, is necessary for a comprehensive assessment of their track record.

How does the value of this contract compare to similar program management support contracts?

The total award of $26.5 million over approximately seven years translates to an average annual value of roughly $3.8 million. When compared to similar program management support contracts awarded by the Department of the Navy or other defense agencies for comparable services, this value appears to be within a reasonable range. However, a precise benchmark requires detailed analysis of contract scope, duration, labor categories, and geographic location. Factors such as the complexity of the program supported (PMA-201), the specific deliverables required, and the level of expertise needed can significantly influence pricing. Without direct comparison data for identical services, the current value is assessed as fair, but not exceptionally low or high.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the contractor's costs exceed estimates, the government bears that burden. This structure can incentivize contractors to incur higher costs if not carefully managed, as their fee remains constant regardless of the total cost. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

How effective has Vista Technology Services, Inc. been in delivering program management support for PMA-201?

Assessing the effectiveness of VTS in delivering program management support for PMA-201 requires access to performance reports, user feedback, and program milestone achievements. Publicly available data typically does not detail the day-to-day effectiveness of specific contractors on individual programs. However, the continuation of such contracts over several years often implies satisfactory performance. To fully evaluate effectiveness, one would need to examine metrics related to schedule adherence, budget management, quality of support provided, and the overall contribution to the success of the PMA-201 program's objectives. Without specific performance data, effectiveness is inferred from contract renewal and duration.

What are the historical spending patterns for program management support services within PMA-201 or similar programs?

Historical spending patterns for program management support within PMA-201 or similar naval aviation programs typically show a consistent need for these services throughout the lifecycle of complex acquisition projects. Spending often fluctuates based on program phases, with higher expenditures during development, testing, and initial fielding. Agencies like the Department of the Navy allocate significant budgets to program management to ensure acquisition programs meet technical, schedule, and cost goals. Analyzing past spending trends for PMA-201 specifically, or for comparable programs within NAVAIR, would reveal whether the $26.5 million award is consistent with historical investment levels or represents a significant deviation.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type signifies a procurement process that began with the intent of broad competition but resulted in the exclusion of certain potential offerors. This could occur for various reasons, such as specific technical requirements that only a limited number of firms could meet, or prior performance issues with certain contractors. While it is a form of competition, it is less open than a standard 'Full and Open Competition.' The exclusion of sources inherently limits the competitive pool, potentially impacting the number of bids received and the ultimate price achieved. It suggests a balance between seeking competition and addressing specific program needs or contractor qualifications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042108R0129

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vista Technology Services Inc (UEI: 968336701)

Address: 5920 SPRING LEAF CT, ELKRIDGE, MD, 21075

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,628,254

Exercised Options: $29,628,253

Current Obligation: $26,489,920

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline