DoD's $18.1M IT service management contract awarded to BearingPoint, Inc. shows fair value with limited competition

Contract Overview

Contract Amount: $18,110,410 ($18.1M)

Contractor: Bearingpoint, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-01-01

End Date: 2010-09-19

Contract Duration: 1,722 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: IT

Official Description: NMCI ENTERPRISE IT SERVICE MANAGEMENT SYSTEM (EITSMS) AND NMCI ENTERPRISE TOOL

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to BEARINGPOINT, INC. for work described as: NMCI ENTERPRISE IT SERVICE MANAGEMENT SYSTEM (EITSMS) AND NMCI ENTERPRISE TOOL Key points: 1. The contract's value appears reasonable when benchmarked against similar IT service management contracts. 2. Limited competition may have influenced pricing, though the final award price was within expectations. 3. The contract duration and scope suggest a moderate level of performance risk. 4. This contract supports critical IT infrastructure for the Department of Defense. 5. The IT services sector is characterized by rapid technological change and high demand. 6. The award was made under a full and open competition, indicating broad market access.

Value Assessment

Rating: fair

The contract's total value of $18.1 million over its period of performance appears to be within a reasonable range for enterprise IT service management systems. Benchmarking against similar large-scale IT support contracts within the federal government suggests that the pricing, while not exceptionally low, reflects the complexity and scope of services provided. The cost-no-fee (CNF) pricing structure, though less common for service contracts, implies that the contractor assumed a significant portion of the risk related to cost overruns, which can be a positive indicator for value.

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 offers. While the specific number of bids received is not detailed, the 'full and open' designation suggests a competitive process. The presence of multiple bidders, even if not explicitly stated, generally leads to better price discovery and a more competitive market outcome for the government.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by allowing a wide range of potential contractors to bid, fostering a competitive environment that can drive down costs.

Public Impact

The primary beneficiaries are the Department of Defense personnel who rely on stable and efficient IT services. The contract delivers enterprise IT service management and related tools, crucial for operational effectiveness. The geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications include the potential for IT professionals employed by BearingPoint and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and evolving nature of IT.
Reliance on a single prime contractor for critical enterprise IT functions.
Challenges in ensuring consistent service quality across a large enterprise.
Risk of vendor lock-in if proprietary tools or processes are heavily utilized.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract duration indicates a long-term commitment and potential for stable service delivery.
The contractor, BearingPoint, Inc., has a track record in government contracting.
The contract aims to improve IT service management, a key area for operational efficiency.

Sector Analysis

The Information Technology (IT) sector is a vast and dynamic market, with federal spending on IT services consistently ranking among the largest categories. This contract falls within the IT services sub-sector, specifically focusing on enterprise IT service management (EITSMS) and related tools. The federal government is a major consumer of these services, seeking to modernize infrastructure, enhance cybersecurity, and improve operational efficiency. Comparable spending benchmarks for large-scale IT service management contracts within the federal government typically range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not specify any small business subcontracting goals. Therefore, the direct impact on the small business ecosystem through set-asides is likely minimal. However, BearingPoint, as the prime contractor, may engage small businesses as subcontractors for specialized services, which would contribute indirectly to the small business economy. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense's contracting officers and the Defense Contract Management Agency (DCMA). Accountability measures would be embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Enterprise IT Services
IT Service Management Software
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services
IT Consulting Services

Risk Flags

Potential for vendor lock-in
Complexity of enterprise-wide IT service management
Long contract duration increases risk of technological obsolescence
Cost No Fee structure places financial risk on contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to BEARINGPOINT, INC.. NMCI ENTERPRISE IT SERVICE MANAGEMENT SYSTEM (EITSMS) AND NMCI ENTERPRISE TOOL

Who is the contractor on this award?

The obligated recipient is BEARINGPOINT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2006-01-01. End: 2010-09-19.

What is BearingPoint, Inc.'s track record with federal IT contracts, particularly those of similar scope and value?

BearingPoint, Inc. has a significant history of contracting with the U.S. federal government, including the Department of Defense. Prior to this specific award, the company had secured numerous contracts across various agencies for IT services, consulting, and system integration. Their experience often includes large-scale enterprise solutions. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids suggests a generally positive track record. However, like many large government contractors, they may have faced scrutiny or performance reviews on specific projects. A deeper dive into contract performance reports and past performance questionnaires (PPQs) would provide a more granular understanding of their reliability and effectiveness in delivering complex IT solutions.

How does the $18.1 million award value compare to similar enterprise IT service management contracts within the DoD or other federal agencies?

The $18.1 million award value for the NMCI Enterprise IT Service Management System (EITSMS) and NMCI Enterprise Tool, spanning approximately 4 years (from Jan 2006 to Sep 2010, considering the duration of 1722 days), positions it as a moderately sized contract within the federal IT landscape. Large-scale enterprise IT service management contracts, especially those supporting major commands like the Navy's NMCI, can often reach hundreds of millions of dollars over longer periods. For instance, broader IT infrastructure support contracts can exceed $1 billion. However, when focusing on specific EITSMS components or tool implementations, $18.1 million is a substantial figure, reflecting the complexity and criticality of managing enterprise-level IT services. Compared to contracts for smaller agencies or less comprehensive IT support, this award is significant. Its value is consistent with contracts focused on specialized IT management systems rather than full-scale infrastructure outsourcing.

What are the primary risks associated with this contract, and how were they potentially mitigated?

Primary risks associated with this contract likely include technological obsolescence, given the rapid evolution of IT; potential for cost overruns if not managed effectively, despite the Cost No Fee structure; performance issues related to service delivery and system integration; and security vulnerabilities inherent in managing large IT systems. Mitigation strategies would typically involve robust contract oversight by the DCMA and DoD, clearly defined performance metrics and Service Level Agreements (SLAs), regular technical reviews, and adherence to stringent cybersecurity protocols. The Cost No Fee (CNF) structure itself acts as a risk mitigation tool for the government, placing the financial risk of cost overruns on the contractor, BearingPoint, Inc. Furthermore, the full and open competition likely encouraged the selection of a capable contractor with demonstrated experience in managing such risks.

How effective has BearingPoint, Inc. been in delivering IT service management solutions for the DoD based on available performance data?

Assessing the precise effectiveness of BearingPoint, Inc. on this specific $18.1 million EITSMS contract is challenging without access to detailed performance reports, user feedback, or post-award evaluations. However, the contract's completion within its scheduled timeframe (ending September 2010) suggests a degree of successful execution. BearingPoint's broader experience in the federal IT sector indicates a capacity to deliver complex solutions. Effectiveness in IT service management is typically measured by metrics such as system uptime, response times for service requests, resolution rates, user satisfaction, and adherence to ITIL or similar frameworks. While this contract was awarded under full and open competition, implying a competitive selection process, specific data on how well BearingPoint met or exceeded performance expectations during the contract's life is not readily available in the provided summary.

What are the historical spending patterns for enterprise IT service management systems within the Department of Defense?

Historical spending patterns for enterprise IT service management (EITSMS) systems within the Department of Defense (DoD) show a consistent and significant investment over the years. The DoD, being one of the largest and most complex organizations globally, relies heavily on robust IT infrastructure and management systems to maintain operational readiness and efficiency. Spending in this area has generally trended upwards, driven by the need to modernize aging systems, integrate diverse networks, enhance cybersecurity, and adopt new technologies like cloud computing and AI. Contracts for EITSMS can range from specific software procurements and implementations to comprehensive managed services. The scale of DoD spending means that individual contracts, like the $18.1 million awarded to BearingPoint, are part of a much larger, ongoing investment in maintaining and improving its vast IT ecosystem. Trends also show a shift towards more integrated platforms and service-oriented architectures.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3070

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4020

IDV Type: IDC

Timeline