Synergetics Inc. awarded $10.1M for IT services, including product replication and technical support

Contract Overview

Contract Amount: $10,106,851 ($10.1M)

Contractor: Synergetics Incorporated

Awarding Agency: Department of Defense

Start Date: 2007-12-04

End Date: 2012-12-02

Contract Duration: 1,825 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FEDLOG CONTRACT- INCLUDES PRODUCT PREPARATION,PRODUCT REPLICATION,PRODUCT DELIVERY. PROVIDING QUALITY ASSURANCE,INFORMATION INSURANCE,TECHNICAL SUPPORT, CUSTOMER SUPPORT, PROGRAM MANAGEMENT AND DEVELOPMENT

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80524

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to SYNERGETICS INCORPORATED for work described as: FEDLOG CONTRACT- INCLUDES PRODUCT PREPARATION,PRODUCT REPLICATION,PRODUCT DELIVERY. PROVIDING QUALITY ASSURANCE,INFORMATION INSURANCE,TECHNICAL SUPPORT, CUSTOMER SUPPORT, PROGRAM MANAGEMENT AND DEVELOPMENT Key points: 1. Contract focuses on IT services, encompassing product preparation, replication, delivery, quality assurance, and technical support. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans 5 years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Services include program management and development, highlighting a comprehensive IT support role. 6. The award was made by the Defense Logistics Agency, a key procurement arm for the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this $10.1 million contract is challenging without specific performance metrics or comparable contract data. However, the firm fixed-price structure suggests an attempt to control costs by defining a set price for defined services. The duration of 5 years indicates a sustained need, and the breadth of services (product preparation, replication, delivery, QA, support, management, development) suggests a significant scope. Further analysis would require comparing the per-unit costs of specific services against industry benchmarks or similar DoD contracts.

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 presence of 3 bidders suggests a moderate level of competition for this IT services contract. While more than one bidder is positive, a higher number typically leads to more aggressive pricing and better value for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The Department of Defense benefits from comprehensive IT support services, ensuring operational readiness. Services include product replication and delivery, crucial for maintaining necessary equipment and systems. Technical support and quality assurance contribute to the reliability and effectiveness of DoD IT infrastructure. Program management and development aspects ensure the ongoing evolution and maintenance of critical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service definitions are not tightly managed under the fixed-price contract.
Reliance on a single contractor for a broad range of IT services could pose a risk if performance falters.
Ensuring consistent quality across all service areas (preparation, replication, delivery, support) requires robust oversight.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Long-term contract (5 years) allows for stable planning and execution of IT services.
Awarded under full and open competition, indicating a structured procurement process.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a significant segment of the IT services market. This sector encompasses a wide range of activities, from custom software development to IT infrastructure management. The Defense Logistics Agency's spending in this area is typical for supporting the vast and complex IT needs of the military. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by DoD or other federal agencies for similar scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside (SB is false). There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though Synergetics Incorporated's own size and subcontracting practices would determine broader implications.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, where the contractor is responsible for delivering specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FEDLOG, though detailed performance reports are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Computer Systems Design Services
Federal IT Procurement
IT Services for National Security

Risk Flags

Potential for performance issues given the breadth of services.
Risk of cost increases if scope is not tightly managed.
Dependency on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to SYNERGETICS INCORPORATED. FEDLOG CONTRACT- INCLUDES PRODUCT PREPARATION,PRODUCT REPLICATION,PRODUCT DELIVERY. PROVIDING QUALITY ASSURANCE,INFORMATION INSURANCE,TECHNICAL SUPPORT, CUSTOMER SUPPORT, PROGRAM MANAGEMENT AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is SYNERGETICS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2007-12-04. End: 2012-12-02.

What is Synergetics Incorporated's track record with the federal government, particularly with the Department of Defense?

Synergetics Incorporated has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance, including contract awards, completion history, and any reported issues or commendations, is crucial. For this specific contract (awarded in 2007), understanding their performance over the 5-year period would involve reviewing performance evaluations, any contract modifications, and payment histories. A review of their broader federal contract portfolio can indicate their experience level and reliability in delivering complex IT services.

How does the $10.1 million value compare to similar IT service contracts awarded by the Defense Logistics Agency?

The $10.1 million value for a 5-year IT services contract is moderate within the context of large federal procurements. To benchmark effectively, one would compare this contract's value against other DLA or DoD contracts for similar services (e.g., computer systems design, IT support, product replication) awarded around the same period. Factors like the number of bidders, the specific scope of work, and the contract type (Firm Fixed Price) influence pricing. Without access to detailed pricing data for comparable contracts, a precise value-for-money assessment is difficult, but the number of bidders (3) suggests a degree of market interest.

What are the primary risks associated with this contract, given its scope and duration?

Key risks include potential cost overruns if the scope of work expands beyond the initial definition, despite the Firm Fixed Price (FFP) structure, especially if change orders are frequent. Contractor performance risk is also significant; failure to deliver quality services across all specified areas (product preparation, replication, delivery, QA, support, management, development) could impact DoD operations. Furthermore, a long-term reliance on a single vendor for critical IT functions can create dependency. Ensuring robust oversight and clear performance metrics are essential to mitigate these risks.

How effective has the 'full and open competition' process been in ensuring competitive pricing for this contract?

The 'full and open competition' award indicates that the procurement process allowed all eligible vendors to participate, which is a positive step for price discovery. With 3 bidders, there was some level of competition, but the degree of price pressure achieved is unknown without comparing the winning bid to other submitted proposals or to independent cost estimates. While competition is generally beneficial, the effectiveness depends on the number of truly capable bidders and the clarity of the solicitation requirements. A higher number of bidders typically correlates with more competitive pricing.

What is the historical spending trend for similar IT services by the Defense Logistics Agency?

The Defense Logistics Agency consistently spends significant amounts on IT services to support its vast logistical operations. Historical spending trends for DLA in areas like computer systems design, software development, and IT support services are generally substantial and have likely increased over time due to technological advancements and evolving military requirements. Analyzing DLA's budget allocations and contract awards over several fiscal years for similar NAICS codes (like 541512) would reveal patterns of investment and identify periods of increased or decreased spending in this sector.

Industry Classification

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

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SA470508Q0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1520 S COLLEGE AVE, FORT COLLINS, CO, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,328,142

Exercised Options: $10,106,851

Current Obligation: $10,106,851

Parent Contract

Parent Award PIID: GS35F0389K

IDV Type: FSS

Timeline