DoD's $33.7M IT Enterprise Application Support Services contract awarded to CTI Resource Management Services, Inc

Contract Overview

Contract Amount: $33,678,029 ($33.7M)

Contractor: CTI Resource Management Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-08

End Date: 2012-03-06

Contract Duration: 1,398 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CNIC IT ENTERPRISE APPLICATION SUPPORT SERVICES

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32814

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to CTI RESOURCE MANAGEMENT SERVICES, INC. for work described as: CNIC IT ENTERPRISE APPLICATION SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT application support for the Navy. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1398 days) indicates a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The award was made by the Department of the Navy, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, which may encompass IT support within this context.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'Enterprise Application Support Services'. However, a 1398-day contract with a value of approximately $33.7 million suggests an average annual spend of around $9.7 million. This figure needs to be compared against similar IT support contracts within the Department of Defense or other federal agencies to assess value for money. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as costs can escalate beyond initial estimates if not rigorously controlled. Without detailed performance metrics or cost breakdowns, a definitive assessment of value is difficult.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the Navy sought the most advantageous offer based on a combination of price and other factors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of contractors to vie for government business, potentially driving down costs.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel who rely on supported enterprise applications for daily operations. Services delivered include crucial IT application support, ensuring the functionality and availability of essential systems. The geographic impact is likely concentrated within Navy installations and facilities where these enterprise applications are utilized. Workforce implications may include the need for specialized IT support personnel, both within the contractor's organization and potentially within the Navy to manage the contract and interface with the support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Lack of specific details on performance metrics makes it difficult to assess the true value for money.
The duration of the contract suggests a long-term reliance, which requires ongoing scrutiny of performance and cost-effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract addresses a critical need for IT enterprise application support within the Department of the Navy.
The contract has a defined period of performance, allowing for periodic review and potential re-competition.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on enterprise application support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading critical systems. The Department of Defense is a major consumer of IT services, seeking solutions for everything from administrative functions to complex operational systems. Benchmarking this contract's value against similar IT support contracts within the federal government would provide further context on its relative size and cost-effectiveness.

Small Business Impact

The provided data indicates that 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 small business set-aside. The primary contractor, CTI RESOURCE MANAGEMENT SERVICES, INC., would be responsible for fulfilling the contract requirements. Any subcontracting would be at their discretion, and there is no explicit requirement noted here for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, although detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Navy Enterprise Resource Planning (ERP) Systems
Federal Civilian IT Services Contracts
IT Application Maintenance and Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of specific performance metrics in summary data hinders detailed value assessment.
The broad nature of 'Enterprise Application Support Services' requires further definition for precise analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to CTI RESOURCE MANAGEMENT SERVICES, INC.. CNIC IT ENTERPRISE APPLICATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CTI RESOURCE MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2008-05-08. End: 2012-03-06.

What specific enterprise applications are covered under this contract?

The provided data does not specify the exact enterprise applications supported by this contract. 'Enterprise Application Support Services' is a broad category that could encompass a wide range of software systems critical to an organization's operations. These might include financial management systems, human resources platforms, logistics and supply chain management software, or mission-specific applications. To understand the full scope, one would need to consult the contract's statement of work (SOW) or performance work statement (PWS), which details the specific applications, required support levels, and deliverables.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is a hybrid arrangement where the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency. CPFF is often used when the scope of work is not well-defined or involves significant uncertainty, allowing flexibility. However, it carries a risk of cost overruns if costs escalate beyond projections, requiring robust government oversight to manage expenditures effectively. For IT support, FFP might be preferred for well-defined maintenance tasks, while CPFF could be used for development or integration projects with inherent unknowns.

What is the historical spending trend for similar IT enterprise application support services within the Department of the Navy?

Analyzing historical spending trends for similar IT enterprise application support services within the Department of the Navy requires access to comprehensive federal procurement data. Without specific historical data for this contract or comparable contracts, it's difficult to establish a trend. However, federal IT spending, particularly within large agencies like the Navy, has generally been substantial and often increasing due to the need for modernization, cybersecurity, and maintaining complex legacy systems. Trends often show a shift towards cloud services and agile development, but core application support remains a significant expenditure. A detailed analysis would involve querying databases like FPDS or USASpending for contracts with similar NAICS codes and service descriptions over several fiscal years.

What performance metrics were likely established for this contract, and how were they measured?

While specific performance metrics are not detailed in the provided summary, contracts for IT enterprise application support typically include metrics related to system availability, response times for issue resolution, user satisfaction, and adherence to service level agreements (SLAs). For a CPFF contract, performance is crucial for justifying the costs incurred. Metrics might include uptime percentages for critical applications, average time to resolve different severity levels of support tickets, and successful implementation of updates or patches. Measurement would likely involve contractor-generated reports, system monitoring tools, and potentially government validation or user feedback mechanisms. Failure to meet key performance indicators could impact the fixed fee or lead to contract modifications.

What is the track record of CTI RESOURCE MANAGEMENT SERVICES, INC. in performing similar government IT contracts?

Assessing the track record of CTI RESOURCE MANAGEMENT SERVICES, INC. requires examining their past performance on government contracts, particularly those involving IT enterprise application support. Publicly available databases like the Federal Procurement Data System (FPDS) or contract award histories can provide insights into their previous awards, contract types, agencies served, and reported performance. A review would look for patterns of successful contract completion, any documented performance issues or disputes, and the types and scale of IT services they have previously provided. Positive past performance is a key factor in source selection for future contracts, indicating reliability and capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3144

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8000 ARLINGTON EXPRESSWAY, JACKSONVILLE, FL, 90

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,270,556

Exercised Options: $34,052,014

Current Obligation: $33,678,029

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017807D5021

IDV Type: IDC

Timeline