DoD's $26.7M JETS System Sustainment contract awarded to Rainbow Data Systems, Inc. for IT services

Contract Overview

Contract Amount: $26,782,325 ($26.8M)

Contractor: Rainbow Data Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-11-12

End Date: 2023-12-14

Contract Duration: 1,127 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8507789247!JETS SYSTEM SUSTAINMENT/MAIN

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to RAINBOW DATA SYSTEMS, INC. for work described as: 8507789247!JETS SYSTEM SUSTAINMENT/MAIN Key points: 1. Contract value of $26.7M over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance period spans over 3 years, from November 2020 to December 2023. 5. The North American Industry Classification System (NAICS) code is 541519, Other Computer Related Services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $26.7M for IT system sustainment over three years appears reasonable given the scope of services. Benchmarking against similar IT sustainment contracts within the Department of Defense would provide a more precise value-for-money assessment. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs, but requires careful scope definition to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The data indicates 117 bids were received, signifying a highly competitive environment. This level of competition is generally expected to drive down prices and encourage innovative solutions from contractors.

Taxpayer Impact: A robust competition level like this benefits taxpayers by ensuring the government receives competitive pricing and a wider range of service options, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, which receives IT system sustainment services. Services delivered include maintenance, support, and potentially upgrades for the JETS system. The geographic impact is likely within the operational areas of the Defense Logistics Agency, primarily in Virginia where the contractor is located. Workforce implications include employment for IT professionals at Rainbow Data Systems, Inc. and potentially within the DLA for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT sustainment contracts if not managed tightly.
Reliance on a single contractor for critical system sustainment could pose a risk if performance degrades.
The 'Other Computer Related Services' NAICS code is broad and could encompass a wide range of activities, requiring clear definition of deliverables.

Positive Signals

Awarded under full and open competition with a significant number of bids received.
Firm Fixed Price contract type shifts cost risk to the contractor.
The contract has a defined period of performance, allowing for periodic re-evaluation of needs and contractor performance.

Sector Analysis

The IT services sector is a critical component of federal spending, supporting a vast array of government operations. This contract falls under IT professional services, specifically system sustainment, which is a recurring need for most federal agencies. The market for such services is competitive, with numerous providers ranging from large corporations to specialized small businesses. Comparable spending benchmarks for IT sustainment can vary widely based on system complexity, criticality, and service level agreements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Rainbow Data Systems, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded within the Firm Fixed Price contract terms, requiring the contractor to meet defined performance standards. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT System Maintenance and Operations Contracts

Risk Flags

Potential for undefined scope in 'Other Computer Related Services' NAICS code.
Reliance on contractor for critical system sustainment.
Need for detailed performance metrics (KPIs/SLAs) to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to RAINBOW DATA SYSTEMS, INC.. 8507789247!JETS SYSTEM SUSTAINMENT/MAIN

Who is the contractor on this award?

The obligated recipient is RAINBOW DATA SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2020-11-12. End: 2023-12-14.

What is the specific nature of the 'JETS System' being sustained under this contract?

The provided data does not specify the exact nature or function of the 'JETS System.' JETS could stand for various acronyms within the Department of Defense, such as Joint Enterprise Technology Services, Joint Electronic Warfare Test System, or other mission-specific platforms. Understanding the system's criticality, user base, and operational importance is crucial for a comprehensive assessment of the sustainment contract's value and risk. Further investigation into DoD system inventories or program documentation would be required to identify the specific JETS system.

How does the per-contractor spending of $26.7M compare to similar IT sustainment contracts within the DoD?

Without specific details on the JETS system's complexity and the scope of sustainment services, a direct comparison of the $26.7M contract value to similar DoD IT sustainment contracts is challenging. However, for a three-year period, this amount suggests a moderate-sized contract. Larger, more complex enterprise systems often involve sustainment contracts in the hundreds of millions or even billions of dollars. Smaller, specialized systems might have contracts in the single-digit millions. The 117 bids received indicate a competitive market, which generally helps in achieving fair pricing relative to the market.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a Firm Fixed Price (FFP) contract for IT system sustainment, typical KPIs would likely revolve around system uptime, response times for issue resolution, patch management timeliness, security compliance, and user satisfaction. The effectiveness of the contractor's performance would be measured against these predefined metrics, which are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is Rainbow Data Systems, Inc.'s track record with similar DoD IT sustainment contracts?

Rainbow Data Systems, Inc. has been awarded this $26.7M contract for JETS System Sustainment. To assess their track record, one would need to examine their past performance on similar contracts, particularly within the DoD or for complex IT systems. This includes reviewing past performance evaluations, any contract disputes or terminations, and their experience with the specific technologies or systems relevant to JETS. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a lower risk profile.

What is the historical spending trend for JETS System sustainment or similar IT services within the DLA?

The provided data only covers this specific contract award from November 2020 to December 2023. To understand historical spending trends for JETS System sustainment or similar IT services within the Defense Logistics Agency (DLA), one would need to analyze contract data over several preceding years. This would involve searching for prior contracts related to the JETS system or comparable IT sustainment services awarded by the DLA, noting their values, durations, and contractors. This analysis would reveal whether spending has been consistent, increasing, or decreasing.

What is the potential impact of this contract on cybersecurity posture for the supported system?

The sustainment of any IT system, especially within the Department of Defense, has direct implications for cybersecurity. A well-executed sustainment contract should include provisions for regular security patching, vulnerability management, and adherence to DoD cybersecurity standards. The contractor's expertise in cybersecurity and their commitment to implementing robust security practices are critical. Conversely, inadequate sustainment could leave the JETS system vulnerable to cyber threats, potentially impacting operational readiness and data integrity. The specific cybersecurity requirements within the contract's SOW are key to assessing this impact.

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 › IT AND TELECOM - APLLICATIONS

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: 2358 LAKEVIEW DR STE A, BEAVERCREEK, OH, 45431

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,782,325

Exercised Options: $26,782,325

Current Obligation: $26,782,325

Actual Outlays: $13,022,416

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0097

IDV Type: IDC

Timeline