DoD's $13.1M IT support contract awarded to Computer Technology Associates, Inc. shows fair value

Contract Overview

Contract Amount: $13,110,069 ($13.1M)

Contractor: Computer Technology Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-02-10

End Date: 2012-02-09

Contract Duration: 1,825 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OPERATIONAL TECHNICAL DATA SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to COMPUTER TECHNOLOGY ASSOCIATES, INC. for work described as: OPERATIONAL TECHNICAL DATA SUPPORT Key points: 1. Contract provides essential operational technical data support services. 2. Competition was robust, indicating potential for competitive pricing. 3. Contract duration of 5 years suggests a stable, long-term need. 4. Services are categorized under Computer Systems Design, a common IT sector. 5. The contract was awarded as a Delivery Order, implying it's part of a larger vehicle. 6. No small business set-aside was utilized, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract's total value of $13.1 million over five years averages to approximately $2.6 million annually. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the pricing appears reasonable given the duration and the nature of operational technical data support. The contract was awarded using a Time and Materials pricing structure, which can sometimes lead to cost overruns if not closely managed, but is common for IT services where scope can evolve.

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 offers. The fact that it was a Delivery Order suggests it was likely competed under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The presence of 5 bidders implies a healthy level of competition, which generally benefits the government by driving down prices and encouraging innovation.

Taxpayer Impact: Full and open competition typically leads to better price discovery for taxpayers, as multiple companies vie for the contract, potentially offering more competitive rates.

Public Impact

The Department of the Army benefits from continuous operational technical data support. Essential IT infrastructure and data management services are delivered. Services are likely concentrated in Virginia, where the contractor is located. The contract supports IT professionals and technical staff within the Army. Ensures the smooth functioning of critical data systems for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost uncertainty if not managed effectively.
Lack of specific performance metrics makes it difficult to assess efficiency.
Limited information on the specific technical data supported raises questions about criticality.
No small business subcontracting goals were noted, potentially limiting opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contract duration of 5 years indicates a stable and ongoing requirement.
Contractor's specialization in Computer Systems Design aligns with the service type.
The contract was awarded as a Delivery Order, implying it fits within a broader strategic framework.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading technological infrastructure. This contract represents a portion of the Department of Defense's broader IT spending, aimed at ensuring operational readiness and data management capabilities. Comparable spending benchmarks would typically involve other IT support contracts for government agencies, particularly within defense.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting requirements based on the provided data. This means that large businesses were the primary focus for this procurement. While this allows for a wider pool of potential bidders, it may limit direct opportunities for small businesses to participate in this specific contract, either as prime contractors or as key subcontractors unless they are engaged by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Delivery Order, it is likely governed by the terms of a parent IDIQ contract, which would have its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reviews and specific oversight actions are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
Defense IT Procurement
Operational Support Contracts
Department of the Army IT Spending

Risk Flags

Time and Materials Pricing
Lack of Specific Performance Metrics
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to COMPUTER TECHNOLOGY ASSOCIATES, INC.. OPERATIONAL TECHNICAL DATA SUPPORT

Who is the contractor on this award?

The obligated recipient is COMPUTER TECHNOLOGY ASSOCIATES, 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 $13.1 million.

What is the period of performance?

Start: 2007-02-10. End: 2012-02-09.

What is the track record of Computer Technology Associates, Inc. with federal contracts, particularly within the Department of Defense?

Computer Technology Associates, Inc. (CTA) has a history of securing federal contracts, primarily within the defense sector. While specific details on their overall track record require deeper analysis of contract databases, their award for this $13.1 million IT support contract with the Department of the Army indicates a capacity to meet government requirements. Further investigation into their past performance ratings, any past performance issues, and the types of services they have provided to the DoD would offer a more comprehensive view of their reliability and expertise. Examining their financial stability and any history of contract disputes or terminations would also be crucial for a complete assessment.

How does the average annual cost of this contract compare to similar IT support contracts within the Department of Defense?

The average annual cost for this contract is approximately $2.6 million ($13.1M / 5 years). Benchmarking this figure requires a detailed comparison with other Department of Defense contracts for similar 'Computer Systems Design Services' (NAICS 541512) that were also awarded under full and open competition and span a similar duration. Factors such as the specific scope of work (e.g., help desk, network management, cybersecurity support), the level of technical expertise required, and the geographic location of service delivery significantly influence pricing. Without access to a granular database of comparable contracts with detailed service descriptions and pricing, a precise comparison is difficult. However, for large-scale IT operational support, this annual average appears within a plausible range for government contracts.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support, and how were they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can be exacerbated if the scope of work is not well-defined or if contractor efficiency is low. Mitigation strategies typically include establishing labor hour ceilings, setting fixed price components for certain tasks, implementing robust monitoring and reporting of hours worked, and defining clear deliverables and performance standards. The Department of the Army would have been responsible for closely managing CTA's hours and expenditures, ensuring that the work performed was necessary and efficient to control costs within the overall contract value.

What is the expected effectiveness of the 'OPERATIONAL TECHNICAL DATA SUPPORT' services provided under this contract?

The effectiveness of 'OPERATIONAL TECHNICAL DATA SUPPORT' is crucial for the Department of the Army's ability to manage and utilize its data effectively for mission-critical functions. This support likely encompasses a range of services such as data entry, data validation, database maintenance, system monitoring, and potentially basic data analysis. Effective delivery ensures data integrity, accessibility, and security, which are fundamental for informed decision-making, operational planning, and logistical support. The contract's five-year duration suggests a sustained need for these services, implying they are integral to ongoing Army operations. Measuring effectiveness would typically involve tracking metrics like data accuracy rates, system uptime, response times to data-related issues, and user satisfaction.

How has the Department of the Army's spending on Computer Systems Design Services (NAICS 541512) evolved over the past decade?

Analyzing the Department of the Army's spending evolution on Computer Systems Design Services (NAICS 541512) over the past decade would reveal trends in its IT modernization efforts and reliance on external support. Generally, defense agencies have seen increasing IT expenditures driven by the need to counter evolving cyber threats, modernize legacy systems, and integrate advanced technologies like AI and cloud computing. Spending in this category likely fluctuated based on specific program requirements, budget allocations, and strategic shifts towards different service delivery models (e.g., in-house vs. outsourced). A detailed analysis would require examining annual spending data for this NAICS code across multiple fiscal years to identify growth patterns, significant contract awards, and potential shifts in contracting strategies.

What are the implications of awarding this contract as a Delivery Order under a larger vehicle for overall IT procurement strategy?

Awarding this contract as a Delivery Order (DO) under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies a strategic approach to IT procurement. IDIQs provide agencies with a flexible contracting vehicle to procure a wide range of services or supplies over a set period, often with pre-negotiated terms and pricing. Delivery Orders are then issued against this IDIQ for specific tasks or quantities. This method streamlines the acquisition process, reduces administrative burden, and allows for quicker response to evolving needs. For the Department of the Army, using DOs under an IDIQ for IT support suggests a desire for agility and the ability to adapt to changing technological landscapes and operational requirements without lengthy, standalone procurement cycles for each task.

Industry Classification

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

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 201 12TH ST S., ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,566,635

Exercised Options: $13,183,339

Current Obligation: $13,110,069

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4644G

IDV Type: FSS

Timeline