DoD's $14.5M IT services contract to RGII Technologies shows mixed value and competition

Contract Overview

Contract Amount: $14,540,017 ($14.5M)

Contractor: Itsolutions NET Government Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-29

End Date: 2009-04-30

Contract Duration: 1,583 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::21 2020::TAS 200503!500493!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS35F5165H !C!N! !N!W81XWH05F0134! !20041229!20051231!827006594!827006594!053554382!N!RGII TECHNOLOGIES, INC !1997 ANNAPOLIS EXCHANGE P !ANNAPOLIS !MD!21401!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000002931317!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !000 !* !541511!E! !6! ! ! ! ! !20200930!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!Y!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to ITSOLUTIONS NET GOVERNMENT SOLUTIONS, INC. for work described as: TAS::21 2020::TAS 200503!500493!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS35F5165H !C!N! !N!W81XWH05F0134! !20041229!20051231!827006594!827006594!053554382!N!RGII TECHNOLOGIES, INC !1997 ANNAPOLIS EXCHANGE P !ANNAPOLIS !MD!21401!27200!610!51!FALLS C… Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and benchmarking. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's duration and fixed-price nature present some risk, but the agency's oversight is a mitigating factor. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness. 5. This contract falls within the broader IT services sector, specifically ADP systems analysis. 6. The contract was awarded as a delivery order under a larger IDIQ, indicating a phased approach to IT support. 7. No small business set-aside was utilized, but subcontracting opportunities are not detailed.

Value Assessment

Rating: fair

The total award amount of $14.5 million over its life is substantial for IT services. However, without specific performance metrics or clear deliverables tied to this amount, assessing value for money is challenging. Benchmarking against similar ADP systems analysis contracts is difficult without more granular data on the services provided. The fixed-price nature suggests the government aimed to control costs, but the ultimate value depends on the quality and effectiveness of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a robust competitive environment, which typically leads to better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation implies a significant level of market engagement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to offer their best value.

Public Impact

The primary beneficiaries are likely the Department of the Army and its various commands requiring ADP systems analysis services. The contract delivers essential IT support and analysis, crucial for the operational efficiency of military research and acquisition activities. The geographic impact is primarily within the Department of Defense's operational footprint, with services potentially supporting personnel across various locations. Workforce implications include direct employment for RGII Technologies' staff and potential indirect impacts on government IT personnel who collaborate with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge effectiveness.
Fixed-price contract could lead to scope creep if not managed carefully.
Limited information on specific services provided hinders a full value assessment.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Delivery order under an IDIQ allows for flexibility and phased execution.
Contract duration is defined, providing a clear timeframe for services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the category of ADP Systems Analysis Services. The IT services market is vast and highly competitive, with government contracts often focusing on specialized areas like defense systems, data analysis, and software development. Benchmarking this contract's value is challenging without more specific details on the scope of 'ADP Systems Analysis,' but it represents a segment of the broader IT support services procured by federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, RGII Technologies, likely handled the majority of the work directly or through larger partners. The impact on the small business ecosystem is therefore minimal unless RGII actively engaged small businesses as subcontractors without explicit set-aside requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, requiring delivery of specified services. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Army Research and Development Contracts
ADP Systems Analysis
Information Technology Support Services
Federal IDIQ Contracts

Risk Flags

Limited performance data
Unclear value for money without detailed metrics
Potential for scope creep in fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to ITSOLUTIONS NET GOVERNMENT SOLUTIONS, INC.. TAS::21 2020::TAS 200503!500493!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS35F5165H !C!N! !N!W81XWH05F0134! !20041229!20051231!827006594!827006594!053554382!N!RGII TECHNOLOGIES, INC !1997 ANNAPOLIS EXCHANGE P !ANNAPOLIS !MD!21401!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000002931317!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !000 !* !541511!E

Who is the contractor on this award?

The obligated recipient is ITSOLUTIONS NET GOVERNMENT SOLUTIONS, 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 $14.5 million.

What is the period of performance?

Start: 2004-12-29. End: 2009-04-30.

What specific ADP systems analysis services were provided under this contract?

The provided data indicates the contract was for 'ADP SYSTEMS ANALYSIS SERVICES' under NAICS code 541511 (Custom Computer Programming Services) and 541519 (Other Computer Related Services). However, the exact nature of these services is not detailed. Typically, ADP systems analysis can encompass a wide range of activities, including evaluating existing computer systems, designing new systems, analyzing data processing needs, developing system specifications, and providing recommendations for hardware and software upgrades or replacements. For this specific contract, the services likely supported the U.S. Army Medical Research Acquisition Activity, suggesting a focus on systems related to medical research data, logistics, or administrative processes within that command.

How does the $14.5 million award compare to similar IT services contracts for the Army?

Comparing the $14.5 million award requires context on the contract's duration and scope. This contract spanned from December 2004 to April 2009 (approximately 4.3 years), with a total value of $14,540,016.89. This averages to roughly $3.38 million per year. The U.S. Army procures a vast array of IT services, ranging from large enterprise-wide solutions to smaller, specialized support contracts. For ADP systems analysis, this award appears to be a moderate-sized contract. Larger contracts might involve system-wide implementations or extensive cybersecurity services, while smaller ones could focus on specific software modules or short-term analysis projects. Without knowing the specific deliverables and complexity of the analysis performed, a precise comparison is difficult, but the annual spend is within a common range for specialized IT support.

What were the key risks associated with this contract, and how were they managed?

Key risks for this fixed-price contract likely included scope creep, where the requirements might expand beyond the initial agreement, potentially increasing costs or delaying delivery if not managed. Another risk could be the contractor's ability to deliver the specified analysis effectively, impacting the Army's operational capabilities. The management of these risks would have been through the contract's fixed-price structure, which incentivizes the contractor to control costs. Furthermore, the agency's oversight, including regular progress reviews and clear communication channels, would be crucial. The delivery order mechanism under an IDIQ also allows for phased implementation and review, potentially mitigating risks by addressing issues incrementally.

What is RGII Technologies' track record with federal contracts, particularly within the Department of Defense?

RGII Technologies, Inc. has a history of receiving federal contracts, primarily within the Department of Defense. Data indicates they have been awarded multiple contracts over the years, often in the IT services domain, including areas like ADP systems analysis, IT support, and related professional services. Their performance history, as reflected in contract databases, suggests they have experience fulfilling government requirements. However, a comprehensive assessment of their track record would require examining past performance evaluations, any contract disputes or terminations, and the overall success rate of their awarded projects. This specific $14.5M contract represents one significant engagement within their broader federal contracting portfolio.

How did the 'full and open competition' impact the final price and service quality?

A 'full and open competition' generally implies that the solicitation was made available to all responsible sources, and any responsible source could submit an offer. This broad participation typically fosters a competitive environment where multiple vendors vie for the contract. The expected impact is downward pressure on pricing as contractors offer their most competitive rates to win the award. Furthermore, a wider pool of bidders can lead to higher service quality, as contractors aim to differentiate themselves not only on price but also on their technical approach and past performance. While the specific number of bids isn't detailed here, the designation suggests that the Department of the Army sought to leverage market competition to achieve the best possible outcome for this IT services contract.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interactive Technology Solutions LLC (UEI: 101472970)

Address: 1997 ANNAPOLIS EXCHANGE P # 210, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5165H

IDV Type: FSS

Timeline