DoD's $40.1M IT Services Contract Awarded to Information Systems Solutions, Inc. for System Administration

Contract Overview

Contract Amount: $40,100,913 ($40.1M)

Contractor: Information Systems Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-27

End Date: 2026-05-26

Contract Duration: 1,460 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SYSTEM ADMINISTRATION SERVICES II (SYS ADMIN II)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to INFORMATION SYSTEMS SOLUTIONS, INC. for work described as: SYSTEM ADMINISTRATION SERVICES II (SYS ADMIN II) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 4 years, indicating a long-term need for these services. 4. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, Information Systems Solutions, Inc., has secured a significant contract, indicating a level of trust and capability. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, which may encompass IT system administration in this context.

Value Assessment

Rating: fair

Benchmarking the value of this $40.1 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) pricing structure means the government pays the contractor's allowable costs plus a fixed fee. While this can be appropriate for research and development or when costs are uncertain, it carries a higher risk of cost growth compared to fixed-price contracts. Without details on the fixed fee percentage or the estimated cost base, a precise value-for-money assessment is difficult. However, the presence of 7 bidders suggests some level of market competition that could influence pricing.

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 a bid. The solicitation resulted in 7 bids, which suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into how effectively competition drove value.

Taxpayer Impact: The full and open competition with 7 bidders is positive for taxpayers, as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The Department of the Navy benefits from essential system administration services to maintain its IT infrastructure. This contract supports the operational readiness and cybersecurity posture of naval systems. The services delivered are critical for the functioning of various naval command and control systems. The geographic impact is likely concentrated around naval facilities where these IT systems are deployed, primarily in California. Workforce implications may include the need for skilled IT professionals to support the contractor's efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value for money delivered.
The NAICS code 'Engineering Services' is broad and may not perfectly align with the specific IT system administration tasks, potentially leading to scope creep or misinterpretation.

Positive Signals

Awarded under full and open competition with 7 bidders, indicating a competitive marketplace.
The contract duration of 4 years suggests a stable, long-term need and commitment from the agency.
Information Systems Solutions, Inc. has been selected, implying they met the technical and capability requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on system administration and support services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. The Engineering Services NAICS code (541330) suggests that the IT support may be integrated with broader engineering or technical services required by the Department of the Navy. Comparable spending benchmarks for IT system administration services vary widely based on scope, complexity, and security requirements, but a $40 million, 4-year contract indicates a substantial engagement.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss': false and 'sb': false. The primary awardee is Information Systems Solutions, Inc. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often engage small businesses for specialized IT support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous oversight of allowable costs to prevent overspending. Transparency is generally provided through contract award databases and reporting mechanisms. The specific Inspector General jurisdiction would be that of the Department of Defense.

Related Government Programs

IT Support Services
System Administration
Cloud Computing Services
Cybersecurity Services
Network Operations

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for insufficient competition if market dynamics change over the 4-year period.
Reliance on contractor's internal cost controls and reporting accuracy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to INFORMATION SYSTEMS SOLUTIONS, INC.. SYSTEM ADMINISTRATION SERVICES II (SYS ADMIN II)

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 $40.1 million.

What is the period of performance?

Start: 2022-05-27. End: 2026-05-26.

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

Information Systems Solutions, Inc. (ISS) has a history of performing work for the U.S. government. While specific details on their entire contract portfolio require deeper database analysis, their ability to win a $40.1 million contract with the Department of the Navy suggests they have a demonstrated capacity to meet federal requirements. Further investigation into their past performance reviews, any past performance issues, and the types of services they have previously provided to DoD agencies would offer a more comprehensive understanding of their track record. Analyzing their win rate and the size of previously awarded contracts can also indicate their experience level and reliability as a federal contractor.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT system administration services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not well-defined or involves significant uncertainty, such as in research and development or complex system integration. For IT system administration, which often involves more predictable tasks, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) are generally preferred by the government as they shift cost risk to the contractor and provide greater cost certainty. CPFF contracts require the government to reimburse allowable costs plus a pre-negotiated fixed fee. While the fee is fixed, the total cost can fluctuate significantly based on actual costs incurred. This makes CPFF less desirable for routine services where performance metrics and costs are more predictable, as it offers less incentive for the contractor to control costs compared to fixed-price arrangements.

What are the key performance indicators (KPIs) used to measure the success of this system administration contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for IT system administration services, typical KPIs often include system uptime/availability (e.g., 99.9% availability for critical systems), response times for service requests and incident resolution (e.g., critical incidents resolved within 1 hour), patch management compliance rates (e.g., 95% of systems patched within 7 days of release), security incident response times, and user satisfaction ratings. The effectiveness of the CPFF structure also relies on the government's ability to monitor and audit the contractor's costs and performance against defined objectives and milestones, even if not explicitly labeled as KPIs in the award data.

What is the historical spending trend for system administration services within the Department of the Navy?

Analyzing the historical spending trend for system administration services within the Department of the Navy requires access to comprehensive federal procurement databases. However, it is generally understood that the Navy, as a major branch of the DoD, has a consistent and substantial requirement for IT support and system administration due to its vast and complex operational infrastructure. Spending in this area typically fluctuates based on modernization initiatives, cybersecurity threats, and the lifecycle of existing systems. Contracts like this $40.1 million award suggest a significant ongoing investment. Trends often show an increasing reliance on specialized IT services, including cybersecurity and cloud integration, reflecting broader technological shifts within the military.

What are the potential risks associated with a 4-year Cost Plus Fixed Fee contract for system administration?

The primary risk with a 4-year Cost Plus Fixed Fee (CPFF) contract for system administration is cost overrun. Since the government reimburses allowable costs, there is less incentive for the contractor to be efficient or find cost savings, as their profit (the fixed fee) is guaranteed regardless of the total cost incurred. This can lead to the government paying more than necessary. Another risk is scope creep, where the definition of 'allowable costs' might expand over the contract's life, increasing the total expenditure. Furthermore, managing and auditing costs over a four-year period requires significant government oversight resources. Finally, if the fixed fee was negotiated based on inaccurate cost estimates, the contractor might be either overcompensated or undercompensated, leading to potential disputes or inefficiencies.

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 › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600121R3504

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 16305 PROMONTORY CT, ROCKVILLE, MD, 20853

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: $53,678,373

Exercised Options: $42,741,472

Current Obligation: $40,100,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7827

IDV Type: IDC

Timeline