DoD's $82M IT Support Contract with Jacobs Technology Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $82,066,298 ($82.1M)

Contractor: Jacobs Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-27

End Date: 2012-11-29

Contract Duration: 2,043 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $82.1 million to JACOBS TECHNOLOGY INC. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. The contract, valued at $82.1 million, was awarded to Jacobs Technology Inc. for custom computer programming services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration was 2043 days, spanning from April 2007 to November 2012. 4. The contract type was Cost Plus Fixed Fee (CPFF), which can carry higher risk if not managed properly.

Value Assessment

Rating: good

The contract's value of $82.1 million over approximately 5.6 years suggests a substantial but not exorbitant annual spend for IT support services. Benchmarking against similar large-scale IT support contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to better price discovery compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of the award likely resulted in a more favorable price for taxpayers compared to non-competitive methods.

Public Impact

Taxpayers funded significant IT support services for the Department of Defense over a five-year period. The contract supported custom computer programming services, crucial for military operations and infrastructure. The use of a Cost Plus Fixed Fee contract structure means the government reimbursed Jacobs for allowable costs plus a fixed fee, requiring careful oversight to control expenses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Long contract duration (over 5 years) may not always reflect the most current technological needs or pricing.
Lack of specific performance metrics or outcomes makes it difficult to assess true value for money.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract was for essential IT support services for the Department of Defense.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending benchmarks for similar large-scale IT support contracts with the Department of Defense can vary widely based on scope and complexity, but $82 million over five years is a significant investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there was no direct benefit to small businesses through this specific prime contract award.

Oversight & Accountability

The contract was awarded via definitive contract, suggesting a structured procurement process. However, the Cost Plus Fixed Fee structure necessitates robust oversight from the Department of Defense to ensure costs are reasonable and the fixed fee is justified throughout the contract's life.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No indication of small business subcontracting.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.1 million to JACOBS TECHNOLOGY INC.. INFORMATION TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is JACOBS TECHNOLOGY INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $82.1 million.

What is the period of performance?

Start: 2007-04-27. End: 2012-11-29.

What was the specific scope of 'Custom Computer Programming Services' and how did it align with the DoD's evolving technological needs over the contract's 5-year duration?

The specific scope of 'Custom Computer Programming Services' would detail the types of software development, system integration, and application maintenance undertaken. Given the contract spanned from 2007 to 2012, it likely encompassed support for legacy systems and potentially early adoption of new technologies. A detailed review of contract modifications and deliverables would clarify alignment with evolving DoD needs and ensure the services remained relevant and effective throughout its term.

How effectively did the Cost Plus Fixed Fee structure manage cost growth, and what was the final fee paid relative to the estimated costs?

The effectiveness of the CPFF structure hinges on rigorous oversight. While the fixed fee provides some cost certainty, the 'cost plus' element allows for reimbursement of allowable costs. Without detailed financial reports and audit findings, it's difficult to assess cost growth. Analyzing the ratio of final costs to initial estimates and the contractor's fee as a percentage of total cost would reveal if costs were well-managed or if significant overruns occurred.

What were the key performance indicators (KPIs) used to measure the success and value delivered by Jacobs Technology Inc. under this contract?

Key performance indicators for IT support services typically include system uptime, response times for issue resolution, successful software deployment rates, and user satisfaction. The effectiveness and value delivered would be assessed by comparing Jacobs' performance against these pre-defined KPIs. A review of performance reports, contractor evaluations, and any award-term or incentive clauses would indicate how well the contractor met or exceeded expectations.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 6703 ODYSSEY DR NW STE 303, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $82,066,298

Exercised Options: $82,066,298

Current Obligation: $82,066,298

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline