Va's $117.7M National Service Desk Contract Awarded to Adams Communication & Engineering Technology, Inc. for IT Support

Contract Overview

Contract Amount: $117,719,312 ($117.7M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-09-28

End Date: 2015-09-27

Contract Duration: 1,094 days

Daily Burn Rate: $107.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER FOR NATIONAL SERVICE DESK (NSD) OPERATIONS IGF::OT::IGF

Place of Performance

Location: WALDORF, CHARLES County, MARYLAND, 20602, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $117.7 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: TASK ORDER FOR NATIONAL SERVICE DESK (NSD) OPERATIONS IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 1094 days indicates a significant, long-term need for IT support. 3. The firm-fixed-price structure aims to control costs by setting a predetermined price. 4. The award was made under the IT category, aligning with the need for computer systems design services. 5. The contract's value of over $100 million positions it as a substantial investment in IT infrastructure. 6. The absence of small business set-aside flags suggests larger prime contractors were expected to bid.

Value Assessment

Rating: good

The contract value of $117.7 million over approximately three years for national service desk operations appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts for federal agencies suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The firm-fixed-price contract type further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed broadly suggests a healthy market for IT service desk operations. While the exact number of bidders is not provided, full and open competition generally leads to better price discovery and a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices and encourages innovation, ensuring the government receives the best possible value for its investment in critical IT services.

Public Impact

Veterans and VA staff benefit from reliable and efficient IT support services provided by the National Service Desk. The contract ensures the continuous operation and maintenance of critical IT infrastructure supporting VA's mission. Geographic impact is national, as the service desk likely supports users across all VA facilities. Workforce implications include the direct employment of IT professionals by the contractor and potential indirect impacts on VA IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service desk functions become deeply integrated without clear exit strategies.
Reliance on a single contractor for critical IT support could pose risks if performance degrades or the contractor faces financial instability.
Ensuring adequate performance metrics and service level agreements are strictly enforced to maintain service quality.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that should yield good value.
Firm-fixed-price contract type helps manage and control costs for the government.
Long contract duration suggests a stable, long-term partnership for essential IT services.
The contractor, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC., has experience in government contracting, implying a degree of familiarity with federal requirements.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from software development to network management and help desk support. This contract for National Service Desk operations falls within the 'Computer Systems Design Services' NAICS code (541512). Federal spending in this area is consistently high, driven by the need to maintain and modernize aging IT infrastructure, implement new technologies, and ensure cybersecurity. This contract represents a significant portion of spending within the IT support services sub-sector, likely benchmarked against other large-scale service desk contracts awarded to major IT service providers.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. The substantial value of over $117 million suggests that the prime contractor is likely a large business. While there are no explicit subcontracting requirements mentioned in the provided data, large federal contracts often include provisions for small business participation. The absence of a specific set-aside means that opportunities for small businesses would primarily be through subcontracting with the prime awardee, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Performance would be monitored against the contract's terms, including service level agreements (SLAs) and delivery schedules. The firm-fixed-price nature of the contract incentivizes the contractor to meet these requirements efficiently. Transparency is generally maintained through contract award databases and reporting requirements. Depending on the specific oversight structure, an Inspector General's office might also have jurisdiction to investigate potential fraud, waste, or abuse.

Related Government Programs

IT Help Desk Services
Computer Systems Design Services
Federal IT Support Contracts
Department of Veterans Affairs IT Modernization

Risk Flags

Performance Risk
Cost Overrun Risk (mitigated by FFP)
Cybersecurity Risk
Vendor Lock-in Risk
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $117.7 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. TASK ORDER FOR NATIONAL SERVICE DESK (NSD) OPERATIONS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $117.7 million.

What is the period of performance?

Start: 2012-09-28. End: 2015-09-27.

What is the track record of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. with federal contracts, particularly in IT service desk operations?

ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. has a history of federal contract awards, primarily within the IT and engineering services domain. While specific details on their performance for this particular National Service Desk contract require deeper analysis of performance reports and past performance evaluations, their ability to secure a contract of this magnitude from the Department of Veterans Affairs suggests they possess the necessary qualifications and experience. Federal procurement databases would provide a more comprehensive view of their contract history, including past performance ratings, any contract disputes, and the types of services they have delivered to various agencies. Understanding their broader track record can offer insights into their reliability and capability in managing large-scale IT support operations.

How does the $117.7 million contract value compare to similar federal IT service desk contracts awarded in recent years?

The $117.7 million contract value for the VA's National Service Desk operations over approximately three years places it as a significant award within the federal IT services landscape. To benchmark this value, one would compare it to other large-scale IT service desk or help desk contracts awarded by agencies like the Department of Defense, GSA, or HHS. Factors such as the number of users supported, scope of services (e.g., Tier 1, 2, 3 support, specific technologies supported), and contract duration are crucial for a fair comparison. Generally, contracts of this size awarded under full and open competition suggest that the pricing is competitive within the market for comprehensive IT support services. A detailed analysis would involve examining the average cost per user per year or cost per ticket across comparable contracts.

What are the primary risks associated with a large, long-term IT service desk contract like this one?

Key risks associated with a large, long-term IT service desk contract include potential vendor lock-in, where the government becomes overly dependent on a single provider, making transitions difficult and costly. Performance degradation over time is another risk; ensuring consistent service quality requires robust oversight and performance management. Technological obsolescence is also a concern, as the contractor must keep pace with evolving IT trends and security threats. Furthermore, the financial stability of the contractor is critical; a contractor facing financial difficulties could disrupt essential services. Finally, cybersecurity risks are inherent, as the service desk often has privileged access to sensitive systems and data, requiring stringent security protocols and monitoring.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this National Service Desk contract?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money in service desk operations because it shifts the majority of the cost risk from the government to the contractor. Under an FFP contract, the contractor agrees to perform the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control expenses to maximize their profit margin. For a service desk requiring predictable service levels, FFP helps the government establish a clear budget and avoid cost overruns. However, it's crucial that the initial price is well-negotiated and based on realistic cost estimates, as the government loses the ability to adjust the price if the contractor's costs increase unexpectedly.

What are the implications of this contract being awarded under 'full and open competition' for the VA's IT infrastructure?

Awarding this National Service Desk contract under 'full and open competition' signifies that the Department of Veterans Affairs sought bids from all eligible and responsible sources, rather than restricting the competition. This approach is generally preferred as it maximizes the pool of potential offerors, fostering a more competitive environment. For the VA's IT infrastructure, this means they likely received proposals from a diverse range of capable contractors, potentially leading to more innovative solutions and competitive pricing. It suggests that the market for such comprehensive IT support services is robust enough to support multiple providers, allowing the VA to select the best technical solution and value proposition available, thereby strengthening the overall reliability and efficiency of their IT support systems.

How does the geographic scope of the National Service Desk contract impact its management and oversight?

The National Service Desk contract implies a nationwide scope, supporting users across all VA facilities and potentially remote employees. This broad geographic reach presents unique management and oversight challenges. Ensuring consistent service delivery across different time zones, regional IT infrastructures, and diverse user needs requires a well-structured operational plan from the contractor. Oversight must include mechanisms to monitor performance remotely and verify service quality at various locations. The contractor needs robust communication channels and standardized procedures to maintain uniformity. For the VA, oversight involves ensuring the contractor has effective processes for managing a distributed workforce and addressing geographically specific IT issues while maintaining a unified national service standard.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11637 TER DR STE 201, WALDORF, MD, 20602

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $152,935,957

Exercised Options: $117,719,312

Current Obligation: $117,719,312

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1006

IDV Type: IDC

Timeline