DoD's $36.75M IT contract with Information Systems Solutions, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $36,750,010 ($36.8M)

Contractor: Information Systems Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-12-27

End Date: 2022-07-31

Contract Duration: 2,042 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF CENTER-WIDE SYSTEMS ADMINISTRATION

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to INFORMATION SYSTEMS SOLUTIONS, INC. for work described as: IGF::OT::IGF CENTER-WIDE SYSTEMS ADMINISTRATION Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of over 2000 days indicates a long-term need. 4. Performance context is IT systems administration, a critical function. 5. Sector positioning is within Defense IT services, a large and active market.

Value Assessment

Rating: good

The contract's total value of $36.75 million over approximately 5.7 years suggests an average annual spend of around $6.4 million. Benchmarking this against similar IT services contracts for the Department of Defense indicates a competitive pricing structure. The cost-plus-fixed-fee (CPFF) pricing type allows for cost reimbursement with a fixed fee, which can be effective for IT projects where scope may evolve, but requires careful oversight to manage costs.

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 offers. The presence of 17 bids suggests a robust level of competition for this requirement. A high number of bidders generally leads to better price discovery and can drive down costs for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in more favorable pricing and a wider range of innovative solutions being considered, ultimately maximizing the value of federal dollars.

Public Impact

The Department of the Navy benefits from essential IT systems administration services. This contract supports the operational readiness and efficiency of naval IT infrastructure. The primary geographic impact is within California, where the contractor is based. Workforce implications include employment for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in CPFF contracts if not closely monitored.
Reliance on a single contractor for critical IT systems administration over an extended period.
Scope creep could increase costs beyond initial projections without adequate controls.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Multiple bidders (17) suggest strong market interest and potential for good value.
Contract duration implies a stable, long-term requirement met by the awardee.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and support. The federal IT services market is substantial, with significant spending across various agencies for system administration, cybersecurity, software development, and infrastructure management. This contract represents a portion of the Department of Defense's broader IT spending, aimed at maintaining and enhancing its complex technological systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, Information Systems Solutions, Inc., is likely a larger entity given the contract value. There is no explicit information on subcontracting plans for small businesses within this award notice. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Department of Defense IT Services
Naval Information Technology Modernization
IT Systems Administration Contracts
Cost Plus Fixed Fee IT Contracts

Risk Flags

Potential for cost overruns in CPFF contracts
Long-term reliance on a single vendor
Need for robust ongoing oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to INFORMATION SYSTEMS SOLUTIONS, INC.. IGF::OT::IGF CENTER-WIDE SYSTEMS ADMINISTRATION

Who is the contractor on this award?

The obligated recipient is INFORMATION SYSTEMS SOLUTIONS, 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 $36.8 million.

What is the period of performance?

Start: 2016-12-27. End: 2022-07-31.

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

Information Systems Solutions, Inc. (ISS) has a history of performing federal contracts, primarily within the IT services domain. While this specific contract is a significant award, ISS has likely held other contracts, potentially smaller in scope or duration, with various government agencies. A deeper dive into their contract history would reveal their performance ratings on past awards, any past performance issues or commendations, and their experience with similar IT systems administration tasks. Understanding their broader federal footprint is crucial for assessing their reliability and capability to fulfill long-term, critical IT functions for the Department of the Navy.

How does the awarded amount of $36.75 million compare to similar IT systems administration contracts within the DoD?

The $36.75 million award over approximately 5.7 years translates to an average annual value of roughly $6.4 million. This figure needs to be benchmarked against comparable IT systems administration contracts awarded by the Department of Defense or other large federal agencies. Factors such as the specific services required (e.g., network management, cybersecurity support, help desk operations), the complexity of the systems being administered, the geographic location of the services, and the contract type (e.g., CPFF, FFP) all influence pricing. If similar contracts for comparable services and durations fall within a similar annual spending range, it suggests the pricing is in line with market rates. Conversely, significant deviations could indicate either exceptional value or potential overpricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this size ($36.75M over ~5.7 years) revolve around cost control and potential for scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If not rigorously managed, costs can escalate beyond initial expectations, even if the fee remains fixed. This necessitates robust oversight from the government to ensure all costs incurred are reasonable, allocable, and allowable. Scope creep is another significant risk; as requirements evolve, the scope of work can expand, leading to increased costs without a corresponding adjustment to the fixed fee, potentially diminishing the overall value proposition for the government if not managed through formal contract modifications.

How effective is full and open competition in ensuring value for money for IT services contracts like this one?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for IT services. By allowing all responsible sources to compete, the government benefits from a wider pool of potential solutions and a more competitive pricing environment. The fact that 17 bids were received for this contract indicates a healthy level of competition, which typically drives down prices and encourages innovation. This process allows the government to select the offer that represents the best overall value, considering not just price but also technical approach, past performance, and other evaluation factors, thereby maximizing the return on taxpayer investment.

What are the implications of awarding a long-term contract (2042 days) for critical IT systems administration?

Awarding a long-term contract, such as this one with a duration of 2042 days (approximately 5.7 years), for critical IT systems administration signifies a stable, ongoing requirement for these services. This provides the contractor with predictability, potentially leading to better resource planning and investment in specialized personnel and tools. For the government, it ensures continuity of essential IT operations, reducing the disruption and costs associated with frequent re-competition. However, it also carries risks, such as locking the government into a specific solution or vendor for an extended period, potentially missing out on newer technologies or more cost-effective alternatives that may emerge. It also places a greater emphasis on the initial selection process and ongoing contract management to ensure performance remains high and costs remain controlled throughout the contract's life.

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: N0002416R3108

Offers Received: 17

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 51 MONROE ST STE 1609, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $36,750,010

Exercised Options: $36,750,010

Current Obligation: $36,750,010

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017812D6903

IDV Type: IDC

Timeline