State Dept. Spends $13.8M on OSIS Services via Not Competed Contract with AMS
Contract Overview
Contract Amount: $13,852,998 ($13.9M)
Contractor: American Management Systems Incorporated
Awarding Agency: Department of State
Start Date: 2008-01-15
End Date: 2010-09-30
Contract Duration: 989 days
Daily Burn Rate: $14.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: OSIS
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $13.9 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED for work described as: OSIS Key points: 1. Significant spending on IT services, highlighting reliance on specialized contractors. 2. Lack of competition raises concerns about potential overpayment and limited innovation. 3. Contract awarded to AMERICAN MANAGEMENT SYSTEMS INCORPORATED, a large business. 4. Spending occurred over a 3-year period, indicating a substantial, ongoing need.
Value Assessment
Rating: questionable
The contract's ceiling of $14.0M and actual spending of $13.8M suggest the government paid close to the maximum authorized amount. Without competitive bidding, it's difficult to assess if this represents fair market value for 'Other Computer Related Services'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely resulted in higher costs than a competed contract, meaning taxpayers may have overpaid for these services.
Public Impact
Taxpayers may have funded inflated costs due to the absence of competitive bidding. Limited transparency into the necessity and effectiveness of the 'OSIS' services procured. Potential for missed opportunities to leverage innovative solutions from a wider market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Contract addressed a stated need for computer related services
Sector Analysis
The Department of State procured 'Other Computer Related Services' (NAICS 541519), a broad category within the IT sector. Spending benchmarks for this category vary widely based on the specific services, but a $13.8M contract without competition warrants scrutiny.
Small Business Impact
The contract was awarded to AMERICAN MANAGEMENT SYSTEMS INCORPORATED, a large business. There is no indication that small businesses were involved in providing these services under this contract.
Oversight & Accountability
The 'NOT COMPETED' status suggests a lack of robust oversight in the procurement process, potentially bypassing standard competitive procedures. Further review is needed to understand the justification for this approach.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency into service details
- No indication of small business participation
- Sole-source award justification unclear
Tags
other-computer-related-services, department-of-state, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $13.9 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED. OSIS
Who is the contractor on this award?
The obligated recipient is AMERICAN MANAGEMENT SYSTEMS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2008-01-15. End: 2010-09-30.
What specific 'OSIS' services were provided, and how did they align with the Department of State's mission objectives?
The provided data does not detail the specific 'OSIS' services. Understanding the exact nature of these 'Other Computer Related Services' is crucial to assess their necessity and value to the Department of State's operations. Without this information, it's difficult to determine if the $13.8M expenditure was justified or if alternative, more cost-effective solutions could have met the agency's needs.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The contract was explicitly marked as 'NOT COMPETED'. A thorough review would require accessing the agency's justification documentation to understand why a sole-source award was deemed necessary. Typically, sole-source contracts are reserved for unique circumstances, and the absence of competition here raises questions about whether the agency explored all avenues for obtaining competitive bids and achieving better value.
How was the performance and effectiveness of AMERICAN MANAGEMENT SYSTEMS INCORPORATED evaluated under this contract?
Performance metrics and evaluation data for AMERICAN MANAGEMENT SYSTEMS INCORPORATED under this specific contract are not provided. Assessing the effectiveness of the 'OSIS' services and the contractor's performance is essential for determining if the $13.8M spent yielded the intended results and represented a good investment for the Department of State.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 4050 LEGATO ROAD, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,852,998
Exercised Options: $13,852,998
Current Obligation: $13,852,998
Parent Contract
Parent Award PIID: SLMAQM03C0072
IDV Type: BOA
Timeline
Start Date: 2008-01-15
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-01-07
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