DoD's $29.6M IT Services Contract Awarded to Target Media-Mid Atlantic Inc. for 5 Years

Contract Overview

Contract Amount: $29,650,785 ($29.7M)

Contractor: Target Media-Mid Atlantic Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-15

End Date: 2011-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SAME AS ITEM 0001 - BASE PERIOD

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to TARGET MEDIA-MID ATLANTIC INC for work described as: SAME AS ITEM 0001 - BASE PERIOD Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of IT services. 4. The contract duration of 1825 days (5 years) provides long-term service delivery. 5. The award was made by the Department of the Navy, a major component of the DoD. 6. The contract was awarded in Pennsylvania, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this Time and Materials contract is challenging without detailed task orders and labor rates. However, the total award amount of $29.6 million over five years averages to approximately $5.93 million per year. This figure needs to be compared against the scope and complexity of the 'Other Computer Related Services' provided. Given the Time and Materials nature, close monitoring of hours and rates is crucial to ensure cost-effectiveness and prevent potential overruns compared to fixed-price contracts for similar IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but this method generally fosters a competitive environment. A robust competition typically leads to better pricing and service offerings as contractors vie for the award. The absence of specific bidder numbers prevents a definitive assessment of the *level* of competition, but the process itself is designed to encourage it.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value through market forces, potentially leading to lower overall costs for the government.

Public Impact

The Department of the Navy benefits from a contracted provider for 'Other Computer Related Services'. This contract supports the operational needs of the Department of Defense. Services are likely delivered within Pennsylvania, impacting the local IT workforce and economy. The specific nature of the computer services impacts various naval operations and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The broad NAICS code (541519) might obscure the specific nature and complexity of the services rendered.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Long contract duration (5 years) provides stability and continuity of services.
Awarded to a single contractor, potentially allowing for specialized expertise development.

Sector Analysis

The Information Technology (IT) sector is a critical component of federal spending, encompassing a wide array of services from software development to network management. Contracts like this, under NAICS code 541519 ('Other Computer Related Services'), fall into a broad category that supports various government functions. The Department of Defense is a significant consumer of IT services, with annual spending in the billions. Benchmarking this $29.6 million contract requires comparison to other IT service contracts of similar scope and duration within the DoD or other federal agencies, considering the specific services provided.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses (ss: false). This suggests that the primary award went to a large business, and there may be limited direct opportunities for small businesses through this specific contract, unless Target Media-Mid Atlantic Inc. voluntarily engages them for subcontracting. The impact on the broader small business ecosystem would depend on the company's overall subcontracting practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DoD IT Services Contracts
Navy IT Support Services
Other Computer Related Services Contracts
Time and Materials IT Contracts
Full and Open Competition IT Awards

Risk Flags

Time and Materials contract type carries inherent cost risk.
Broad NAICS code limits specificity of services.
Lack of bidder count prevents assessment of competition intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to TARGET MEDIA-MID ATLANTIC INC. SAME AS ITEM 0001 - BASE PERIOD

Who is the contractor on this award?

The obligated recipient is TARGET MEDIA-MID ATLANTIC 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 $29.7 million.

What is the period of performance?

Start: 2006-09-15. End: 2011-09-14.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The provided data uses the broad NAICS code 541519, 'Other Computer Related Services.' This code encompasses a wide range of IT services not classified elsewhere, potentially including IT consulting, system integration, custom software development, IT support, and network management. Without access to the detailed Statement of Work (SOW) or task orders associated with this contract, the precise services rendered remain unspecified. Understanding the exact services is crucial for evaluating the contract's necessity, effectiveness, and value for money, as well as for comparing it to similar procurements.

How does the pricing structure of this Time and Materials (T&M) contract compare to industry benchmarks for similar IT services?

Time and Materials contracts are inherently flexible but can be prone to cost escalation if not managed diligently. To benchmark pricing, one would need to analyze the labor rates (by skill level and role) and any material markups specified in the contract against prevailing market rates for comparable IT services in the relevant geographic area (Pennsylvania, in this case). Industry benchmarks from sources like the Bureau of Labor Statistics or private IT consulting firms could be used. A key aspect of T&M value assessment is the government's ability to control the total cost by managing the hours worked and the necessity of the services performed, which is often more challenging than with fixed-price contracts.

What is Target Media-Mid Atlantic Inc.'s past performance record with the federal government, particularly for similar IT service contracts?

Assessing Target Media-Mid Atlantic Inc.'s past performance is critical for understanding the risk associated with this $29.6 million contract. A review of their federal contract history, including any performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would reveal their track record. Key indicators include on-time delivery, quality of services, responsiveness to issues, and adherence to contract terms. A history of successful contract completions suggests a lower risk of performance issues, while a pattern of deficiencies would raise concerns about the government's ability to achieve its objectives with this award.

What were the primary drivers for choosing a Time and Materials contract type over other contract vehicles for these IT services?

Time and Materials (T&M) contracts are typically used when the level of effort or the materials required cannot be estimated with certainty at the time of contract award. This might occur in research and development, or when the scope of IT services is expected to evolve significantly based on emerging requirements or unforeseen technical challenges. The Department of the Navy likely opted for a T&M structure if the precise nature or duration of the 'Other Computer Related Services' was uncertain, allowing flexibility to adapt to changing needs. However, T&M contracts require robust government oversight to manage costs effectively.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended over the past five years, and where does this contract fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a consistent increase over the past five years, driven by the ongoing digitization of government operations and the need for specialized IT support. This $29.6 million contract awarded by the Department of the Navy represents a significant, but not extraordinary, investment within this category. To place it in context, one would examine total federal obligations under NAICS 541519 annually. This contract's value should be compared against the average award size and the total spending within this category to understand its relative scale and significance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 6 STATE RD STE 111, MECHANICSBURG, PA, 10

Business Categories: Category Business, Small Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $32,575,000

Exercised Options: $31,442,437

Current Obligation: $29,650,785

Parent Contract

Parent Award PIID: GS35F0201L

IDV Type: FSS

Timeline