DoD's $13.1M IT Services Contract with Cybercore Technologies Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $13,110,442 ($13.1M)
Contractor: Cybercore Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-07
End Date: 2009-09-10
Contract Duration: 1,464 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: 200512!000354!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS35F0566N !C!N! !N!SP010305FA154! !20050907!20060910!002740723!002740723!002740723!N!CYBERCORE TECHNOLOGIES, LLC !1954 GREEN SPRING DR #300 !TIMONIUM !MD!21093!78050!005!24!TIMONIUM !BALTIMORE !MARYLAND !+000002911214!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541618!E! !6! ! ! ! ! !20200930!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!Y!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: LUTHERVILLE TIMONIUM, BALTIMORE County, MARYLAND, 21093
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to CYBERCORE TECHNOLOGIES LLC for work described as: 200512!000354!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS35F0566N !C!N! !N!SP010305FA154! !20050907!20060910!002740723!002740723!002740723!N!CYBERCORE TECHNOLOGIES, LLC !1954 GREEN SPRING DR #300 !TIMONIUM !MD!21093!78050!005!24!TIMONIUM !BALT… Key points: 1. The contract awarded to Cybercore Technologies LLC for Automated Information System Design & Integration Services appears to be priced above market benchmarks. 2. Competition was listed as 'Full and Open,' but the limited duration and specific nature of the services may have restricted true market engagement. 3. Potential risks include overpayment due to a lack of robust price competition and the possibility of suboptimal service delivery. 4. The IT services sector, particularly for specialized system integration, can command high prices, but transparency in pricing is crucial.
Value Assessment
Rating: questionable
The contract's total value of $13.1M for a 4-year period, with a per-unit cost of $78,050, seems high when compared to industry averages for similar IT system integration services. Further analysis of the specific deliverables is needed to justify this pricing.
Cost Per Unit: $78,050
Competition Analysis
Competition Level: full-and-open
While advertised as 'Full and Open Competition,' the contract's specific requirements for Automated Information System Design & Integration Services might have inadvertently limited the pool of qualified bidders. This could have impacted the government's ability to secure the most competitive pricing.
Taxpayer Impact: Taxpayer funds may have been used inefficiently if the pricing was not adequately driven down by robust competition, potentially leading to millions in overspending over the contract's life.
Public Impact
Citizens expect government contracts to deliver maximum value for taxpayer dollars, especially in critical areas like defense IT. Transparency in contract awards and pricing is essential for public trust and accountability in government spending. The effectiveness of IT system integration directly impacts the operational capabilities of defense agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential overpricing
- Limited effective competition
- Lack of detailed cost breakdown
Positive Signals
- Contract awarded to a specific company
- Services align with defense needs
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on automated information system design and integration services for the Department of Defense. Spending in this area is substantial, with benchmarks varying widely based on complexity and duration.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further investigation is needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight of this contract should focus on ensuring the services delivered meet the specified requirements and that the pricing remains competitive throughout its duration. Regular performance reviews and cost audits are recommended.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- High per-unit cost compared to benchmarks
- Potential for limited effective competition
- Lack of detailed service breakdown for cost validation
- Contract duration may not align with long-term system needs
- Need for further analysis on incentive structure effectiveness
Tags
computer-and-software-stores, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to CYBERCORE TECHNOLOGIES LLC. 200512!000354!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS35F0566N !C!N! !N!SP010305FA154! !20050907!20060910!002740723!002740723!002740723!N!CYBERCORE TECHNOLOGIES, LLC !1954 GREEN SPRING DR #300 !TIMONIUM !MD!21093!78050!005!24!TIMONIUM !BALTIMORE !MARYLAND !+000002911214!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541618!E! !6! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is CYBERCORE TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $13.1 million.
What is the period of performance?
Start: 2005-09-07. End: 2009-09-10.
What specific system integration services were provided, and how do they justify the $13.1M cost over four years?
The contract specifies 'Automated Information System Design & Integration Services.' A detailed breakdown of the scope of work, including system architecture, software development, hardware integration, testing, and deployment phases, is necessary to evaluate the cost justification. Without this granular detail, it's difficult to ascertain if the $13.1M represents fair market value for the complexity and duration of the integration effort.
Were there any limitations or barriers that prevented a wider range of qualified vendors from bidding on this contract, despite being advertised as 'Full and Open'?
While advertised as 'Full and Open,' the specialized nature of 'Automated Information System Design & Integration Services' for defense applications may have inherently limited the pool of potential bidders to those with specific clearances, technical expertise, and past performance. Factors such as stringent security requirements, unique technical specifications, or short response times could also have deterred broader participation, impacting the level of price competition achieved.
How effectively did the 'Fixed Price Incentive' contract type incentivize Cybercore Technologies to control costs and deliver high-quality services within budget?
The 'Fixed Price Incentive' (FPI) contract type aims to share cost savings or overruns between the government and the contractor. Its effectiveness hinges on clearly defined target costs, incentive formulas, and objective performance metrics. For this contract, understanding the negotiated target price, the sharing ratio for cost variances, and the performance standards is crucial to assess whether it truly incentivized cost control and quality delivery, or if it allowed for significant cost growth.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
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
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1954 GREENSPRING DRIVE, SU, TIMONIUM, MD, 21093
Business Categories: Category Business, Small Business, Woman Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F0566N
IDV Type: FSS
Timeline
Start Date: 2005-09-07
Current End Date: 2009-09-10
Potential End Date: 2009-09-10 00:00:00
Last Modified: 2021-12-08
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