DoD's Navy awards $19.7M IT support contract to Adsyst Technologies, Inc. for 5 years

Contract Overview

Contract Amount: $19,676,189 ($19.7M)

Contractor: Adsync Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-12

End Date: 2025-06-11

Contract Duration: 1,825 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO PROVIDE NAVSEALOGCEN (N65726) IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT MECHANICSBURG, PA KITTERY, ME AND TO BE DETERMINED LOCATIONS.

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to ADSYNC TECHNOLOGIES, INC. for work described as: TO PROVIDE NAVSEALOGCEN (N65726) IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT MECHANICSBURG, PA KITTERY, ME AND TO BE DETERMINED LOCATIONS. Key points: 1. Contract provides IT systems support, maintenance, architecture, and subject matter expertise. 2. The contract value of $19.7M over five years suggests a moderate annual spend. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 5. Performance locations include Mechanicsburg, PA, and Kittery, ME, with potential for other sites. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. This award represents a significant investment in maintaining critical IT infrastructure for the Navy.

Value Assessment

Rating: fair

The total contract value of $19.7 million over five years equates to approximately $3.9 million annually. Benchmarking this against similar IT support and engineering services contracts within the Department of Defense is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while common, can lead to higher costs for the government if not managed closely, as contractor costs are reimbursed plus a fixed fee. The number of bids received (20) suggests some level of interest, but the final pricing relative to the scope of work requires deeper analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Twenty offers were received, indicating a healthy level of interest from the market. A competitive process like this generally allows for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition awards. The number of bidders suggests that the government had a reasonable selection of qualified contractors to choose from.

Taxpayer Impact: The full and open competition for this IT support contract is beneficial for taxpayers as it likely resulted in a more competitive price. A larger pool of bidders generally drives down costs and ensures the government receives good value for its investment in critical IT systems.

Public Impact

The primary beneficiaries are the Department of the Navy's operations and sustainment, architecture, and systems analysis functions. Services delivered include essential IT systems support and maintenance, ensuring operational readiness. Geographic impact is concentrated in Pennsylvania and Maine, with potential for broader reach. Workforce implications include the potential for direct employment by Adsyst Technologies, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The contract duration of 5 years requires ongoing oversight to ensure performance remains aligned with objectives.
Potential for undefined 'to be determined' locations could introduce scope creep and cost uncertainty.

Positive Signals

Full and open competition with 20 offers suggests a robust market response and potential for competitive pricing.
The contract addresses critical IT systems support and maintenance, vital for naval operations.
The award is to a specific contractor, Adsyst Technologies, Inc., indicating a clear point of accountability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT systems for the Department of Defense. The market for IT support and maintenance services for government agencies is substantial, driven by the need to maintain complex and often legacy systems. Comparable spending benchmarks would typically be found within broader IT services contracts awarded by defense agencies, often measured in the tens to hundreds of millions of dollars annually depending on scope and scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on larger, established prime contractors capable of handling comprehensive IT support and engineering services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy IT Modernization Programs
Defense-wide IT Infrastructure Support
Naval Sea Systems Command (NAVSEA) Contracts
IT Services for Federal Agencies
Engineering Services for Government

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns for the government.
Potential for scope creep due to 'to be determined' locations.
Requires robust government oversight to ensure contractor efficiency and cost reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to ADSYNC TECHNOLOGIES, INC.. TO PROVIDE NAVSEALOGCEN (N65726) IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT MECHANICSBURG, PA KITTERY, ME AND TO BE DETERMINED LOCATIONS.

Who is the contractor on this award?

The obligated recipient is ADSYNC TECHNOLOGIES, 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 $19.7 million.

What is the period of performance?

Start: 2020-06-12. End: 2025-06-11.

What is the track record of Adsyst Technologies, Inc. in performing similar IT support and engineering services for the Department of Defense?

A thorough review of Adsyst Technologies, Inc.'s past performance is crucial for assessing their capability to fulfill this contract. This would involve examining previous DoD contracts, particularly those involving IT systems support, maintenance, operations, sustainment, architecture, and subject matter expertise. Key indicators include on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts is also important, as this contract type requires robust financial management and reporting. Without specific data on prior performance metrics, it's difficult to definitively assess their track record, but the award itself suggests they met initial qualification criteria.

How does the annual cost of this contract compare to similar IT support contracts within the Navy or DoD?

The annual cost of this contract is approximately $3.9 million ($19.7M / 5 years). To benchmark this effectively, one would need to compare it against contracts for similar IT support and engineering services within the Department of the Navy or broader DoD. Factors influencing comparison include the scope of services (operations, sustainment, architecture, expertise), the complexity of the systems supported, the specific locations, and the contract type (CPFF). A higher annual cost might be justified if the services are highly specialized, involve critical infrastructure, or require extensive personnel. Conversely, a lower annual cost relative to comparable contracts could indicate better value. Accessing detailed contract databases and performing a granular analysis of service scope and deliverables is necessary for a precise comparison.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT support service?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT support service is the potential for cost overruns, which shifts a significant portion of the financial risk to the government. While the contractor's fee is fixed, their costs are reimbursed. If the contractor incurs higher-than-expected costs due to inefficiencies, poor planning, or unforeseen technical challenges, the government bears the burden of these increased expenses. Effective oversight, detailed cost tracking, and robust performance management are essential to mitigate this risk. The government must ensure that the contractor is operating efficiently and that all reimbursed costs are reasonable and allocable to the contract.

How effective are the current oversight mechanisms in place to manage this contract and ensure value for taxpayer money?

Oversight for this contract is managed by the Department of the Navy's contracting and program management offices. Effectiveness hinges on the diligence of these offices in monitoring contractor performance, reviewing cost submissions, and ensuring adherence to the contract's scope of work. Key oversight activities would include regular progress meetings, performance reviews, audits of contractor expenditures, and ensuring deliverables meet quality standards. The CPFF structure necessitates particularly close financial oversight. Transparency through public reporting systems like FPDS is a positive aspect, but the true effectiveness lies in the proactive and rigorous application of contractual management principles by the government personnel assigned to the contract.

What is the historical spending trend for similar IT systems support and maintenance contracts within the Department of the Navy?

Analyzing historical spending trends for similar IT systems support and maintenance contracts within the Department of the Navy is crucial for context. This involves examining data from previous years to identify patterns in contract values, durations, and the number of awards. Trends might reveal increasing or decreasing investment in this area, shifts in preferred contract types, or changes in the competitive landscape. Understanding these historical patterns helps in evaluating whether the current $19.7 million award is consistent with past spending, represents an increase or decrease, and aligns with broader DoD IT modernization or sustainment strategies. Without access to specific historical spending data for this category, a precise trend analysis cannot be provided.

What are the implications of the 'to be determined' (TBD) locations mentioned in the contract award?

The inclusion of 'to be determined' (TBD) locations in the contract award introduces a degree of uncertainty regarding the full scope and ultimate cost of the services. While common in large, multi-year contracts to allow for flexibility, TBDs can pose risks if not managed properly. It implies that the government may require services at additional sites not yet specified. This could lead to scope creep, increased logistical challenges, and potential cost adjustments. The contractor's pricing structure and the government's oversight will be critical in managing these TBD locations to ensure that any expansion of services is justified, priced competitively, and aligned with the contract's overall objectives and budget.

Industry Classification

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

Solicitation ID: N6572619R3500

Offers Received: 20

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Adsync Technologies Inc.

Address: 201 SOUTH F STREET, PENSACOLA, FL, 32502

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,390,373

Exercised Options: $20,390,373

Current Obligation: $19,676,189

Actual Outlays: $557,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7040

IDV Type: IDC

Timeline