DoD's $94M IT Support Contract with Jacobs Technology Inc. Awarded via Not Competed Method
Contract Overview
Contract Amount: $94,427,185 ($94.4M)
Contractor: Jacobs Technology Inc.
Awarding Agency: Department of Defense
Start Date: 2008-04-30
End Date: 2012-11-13
Contract Duration: 1,658 days
Daily Burn Rate: $57.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
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 $94.4 million to JACOBS TECHNOLOGY INC. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Significant contract value of $94.4 million for IT support services. 2. Jacobs Technology Inc. is the sole awardee, raising questions about competition. 3. The contract spans over 4 years, indicating a substantial, long-term need. 4. Custom Computer Programming Services (NAICS 541511) is the primary service area.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded using a 'NOT COMPETED' method, indicating a sole-source or limited competition scenario. This approach bypasses the typical price discovery mechanisms of full and open competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract suggests a critical, ongoing need for these IT services within the Army. Reliance on a single vendor for such a large IT support contract could pose risks if the vendor faces performance issues or financial instability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration without clear justification for sole-source award
Positive Signals
- Awarded to a specific vendor for a defined IT support need
- Contract is definitive, suggesting a clear scope of work
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. IT support services are crucial for government operations, and benchmarks for similar contracts vary widely based on scope and complexity. The $94M value over four years is substantial.
Small Business Impact
The data indicates this contract was not competed and the small business status is false. There is no indication of small business participation in this specific award, which could be an area for improvement in future contracting strategies.
Oversight & Accountability
The 'NOT COMPETED' award method warrants further scrutiny to ensure proper justification and adherence to procurement regulations. Oversight should focus on the cost controls and performance metrics within this sole-source agreement.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- CPFF contract type poses cost control risks.
- Long contract duration without clear competitive justification.
- Potential for vendor lock-in.
- Lack of small business participation.
Tags
custom-computer-programming-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.4 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 $94.4 million.
What is the period of performance?
Start: 2008-04-30. End: 2012-11-13.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why full and open competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), outlining the necessity for a specific vendor, unique capabilities, or urgent requirements. Without this information, it's difficult to assess if taxpayer funds were used efficiently or if alternative, more competitive approaches could have yielded better value.
How does the Cost Plus Fixed Fee structure impact cost control and potential for contractor profit in this IT support contract?
The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While it facilitates acquiring services when cost is uncertain, it can incentivize cost increases as the contractor's profit is fixed regardless of the final cost. Robust oversight is essential to scrutinize costs and ensure the fixed fee remains a fair profit for the services rendered.
What performance metrics and deliverables were established to ensure the effectiveness and value of these IT support services?
Effective oversight of any IT support contract, especially a sole-source CPFF agreement, relies heavily on clearly defined performance metrics and deliverables. These should align with the agency's needs and allow for objective measurement of the contractor's performance. Without transparency into these metrics, it's challenging to ascertain if the $94 million investment is yielding the expected value and meeting the Department of the Army's operational requirements.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 1525 PERIMETER PKWY, SUITE 510, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $94,427,185
Exercised Options: $94,427,185
Current Obligation: $94,427,185
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-04-30
Current End Date: 2012-11-13
Potential End Date: 2012-11-13 00:00:00
Last Modified: 2016-12-12
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