DoD's JETS System Sustainment contract awarded to Coggins International Corp for over $33M, spanning 3 years

Contract Overview

Contract Amount: $33,305,987 ($33.3M)

Contractor: Coggins International Corp

Awarding Agency: Department of Defense

Start Date: 2018-05-01

End Date: 2021-07-31

Contract Duration: 1,187 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8505393543!JETS SYSTEM SUSTAINMENT/MAINT

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to COGGINS INTERNATIONAL CORP for work described as: 8505393543!JETS SYSTEM SUSTAINMENT/MAINT Key points: 1. Value for money appears fair given the duration and scope of sustainment services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract duration and fixed-price nature mitigating some financial risks. 4. Performance context involves critical sustainment for a defense system, requiring reliability. 5. Sector positioning places this contract within the IT services for defense sector.

Value Assessment

Rating: fair

The contract's total value of approximately $33.3 million over 1187 days (roughly 3.25 years) suggests an average annual spend of around $10.2 million. Benchmarking this against similar IT sustainment contracts for complex defense systems is challenging without more specific data on system criticality and scope. However, the firm-fixed-price structure aims to control costs, but the overall value proposition depends heavily on the delivered performance and the necessity of the sustainment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With 117 offers received, this suggests a robust competitive environment. A high number of bidders generally supports price discovery and can lead to more favorable pricing for the government, as contractors vie to win the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive bids for essential IT sustainment services.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its personnel who rely on the JETS system for operational capabilities. Services delivered include sustainment, maintenance, and support for the JETS system, ensuring its continued functionality. The geographic impact is likely focused on military installations where the JETS system is deployed and supported. Workforce implications may include specialized IT and maintenance personnel required for system upkeep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if sustainment requirements are not clearly defined and managed.
Dependence on a single contractor for critical system sustainment could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee contractor performance.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
Long-term sustainment contract suggests a recognized need and established relationship for critical system support.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on sustainment and maintenance for defense-related systems. The market for defense IT services is substantial, driven by the continuous need to maintain and upgrade complex technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale sustainment contracts for critical defense platforms, where costs are influenced by system complexity, obsolescence, and required uptime.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit mention of small business set-asides, the large number of bidders (117) could include small businesses. The prime contractor, Coggins International Corp, would be responsible for managing any subcontracting requirements. The impact on the small business ecosystem depends on whether Coggins utilizes small businesses for specialized support or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) through contract officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, with performance expectations likely outlined in the statement of work. Transparency is generally maintained through contract award databases, though specific performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense IT Modernization Programs
Joint Enterprise Defense Infrastructure (JEDI)
Command and Control Systems Sustainment
Logistics Information Systems

Risk Flags

Potential for vendor lock-in if transition planning is inadequate.
Reliance on contractor for critical system uptime.
Cybersecurity risks associated with sustainment activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to COGGINS INTERNATIONAL CORP. 8505393543!JETS SYSTEM SUSTAINMENT/MAINT

Who is the contractor on this award?

The obligated recipient is COGGINS INTERNATIONAL CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2018-05-01. End: 2021-07-31.

What is the specific nature of the JETS system being sustained, and what is its operational importance to the DoD?

The JETS (Joint Enterprise Technology Services) system is a broad initiative within the Department of Defense aimed at modernizing and integrating various IT services and infrastructure across different branches. Its operational importance lies in providing a unified, secure, and efficient technological backbone for military operations, communication, intelligence gathering, and administrative functions. Sustainment of such a system is critical to ensure continuous availability, security updates, and performance optimization, directly impacting the DoD's ability to execute its mission effectively. Without detailed system specifics, it's understood that JETS encompasses a wide range of IT capabilities, making its ongoing support vital for national defense.

How does the $33.3 million contract value compare to historical spending on JETS system sustainment or similar defense IT systems?

Comparing the $33.3 million contract value for JETS system sustainment requires context on the system's lifecycle stage and scope. If JETS is a mature system requiring routine maintenance and updates, this figure over approximately 3.25 years (annual average of ~$10.2M) might be considered reasonable. However, if JETS is a newer, rapidly evolving platform, or if this contract covers significant upgrades or expansions, the value could be seen as modest. Historical data on similar large-scale defense IT sustainment contracts (e.g., for enterprise resource planning systems or network infrastructure) would be needed for a robust comparison. Without such benchmarks, assessing value relative to historical spending is difficult, but the firm-fixed-price nature suggests an attempt to cap costs.

What are the key performance indicators (KPIs) used to measure the success of Coggins International Corp's sustainment services for the JETS system?

Key Performance Indicators (KPIs) for IT sustainment contracts typically focus on system availability, response times for issue resolution, security compliance, and successful implementation of updates or patches. For the JETS system, specific KPIs would likely include metrics such as uptime percentage (e.g., 99.9% availability), mean time to repair (MTTR) for critical incidents, number of security vulnerabilities identified and remediated within defined timelines, and successful completion rates for scheduled maintenance and upgrades. The contract's statement of work (SOW) would detail these KPIs, and performance against them would dictate contractor payment and potential incentives or penalties.

What is the track record of Coggins International Corp in performing similar large-scale IT sustainment contracts for the Department of Defense?

Coggins International Corp's track record in performing large-scale IT sustainment contracts for the DoD is a crucial factor in assessing the risk associated with the JETS system sustainment award. Information on past performance, including successful delivery on previous contracts, adherence to schedules and budgets, and quality of service, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A history of successful, timely, and cost-effective sustainment of complex defense IT systems would indicate a lower risk profile. Conversely, past performance issues, such as missed deadlines, cost overruns, or quality deficiencies, would raise concerns about their ability to meet the requirements of the JETS contract.

Given the 'full and open competition' award, what was the estimated cost savings achieved compared to a sole-source or limited competition scenario?

Estimating cost savings from 'full and open competition' versus sole-source or limited competition requires comparing the awarded price to what might have been negotiated under less competitive conditions. With 117 offers received, the government likely benefited from significant price pressure. While a precise savings figure isn't publicly available without a baseline sole-source estimate, the high number of bidders strongly suggests that the awarded price is substantially lower than what would likely occur if only one or a few contractors were solicited. This competitive dynamic ensures that taxpayer dollars are used more efficiently, as contractors must offer competitive rates to secure the contract.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44 CANAL CTR PLAZA STE 401, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $36,103,715

Exercised Options: $33,305,987

Current Obligation: $33,305,987

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0106

IDV Type: IDC

Timeline