DoD's $18.78M Contract for ISIS Systems Support Awarded to Foreign Entity with No Competition

Contract Overview

Contract Amount: $18,777,252 ($18.8M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2010-10-31

End Date: 2015-10-30

Contract Duration: 1,825 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ISIS SYSTEMS SUPPORT AND MAINTENANCE

Plain-Language Summary

Department of Defense obligated $18.8 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: ISIS SYSTEMS SUPPORT AND MAINTENANCE Key points: 1. Significant spending on foreign awardee for IT systems support. 2. Lack of competition raises concerns about price discovery and value. 3. Contract duration of 5 years suggests long-term reliance. 4. Fixed-price contract type offers some cost certainty. 5. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $18.78M over 5 years for computer systems design services is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition likely hindered effective price discovery and may have resulted in a higher price than could have been achieved through a competitive process.

Taxpayer Impact: The absence of competition for an $18.78M contract potentially means taxpayers paid more than necessary for these IT support services.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Reliance on a single, foreign awardee for critical IT systems support could pose security or geopolitical risks. The long contract duration raises questions about the ongoing need and potential for future cost increases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Foreign awardee
No small business participation

Positive Signals

Firm Fixed Price contract type

Sector Analysis

This contract falls under Computer Systems Design Services, a segment of the broader Information Technology sector. Spending in this area is critical for government operations, but competitive procurement is essential to ensure value for money.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates a missed opportunity to support small businesses and potentially leverage their specialized capabilities.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation into the justification for limiting competition. Oversight should focus on ensuring such limitations are rare and well-documented.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Sole source award
Foreign awardee
Potential for overpayment
No small business involvement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to MISCELLANEOUS FOREIGN AWARDEES. ISIS SYSTEMS SUPPORT AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2010-10-31. End: 2015-10-30.

What was the specific justification for awarding this contract on a limited/non-competitive basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require accessing the contract's justification and approval (J&A) documentation. This document should detail the reasons why full and open competition was not feasible, such as a unique capability requirement, urgent need, or sole source provider.

What are the potential risks associated with awarding a significant IT support contract to a foreign entity without competition?

Awarding a substantial IT support contract to a foreign entity without competition introduces several risks. These include potential data security vulnerabilities, challenges in enforcing contract terms or intellectual property rights, geopolitical dependencies, and difficulties in oversight and communication. The lack of competition exacerbates these risks by limiting the government's ability to vet multiple providers.

How does the firm fixed price (FFP) contract type mitigate or exacerbate the value concerns given the lack of competition?

The Firm Fixed Price (FFP) contract type provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. While this is generally positive, in a non-competitive scenario, it means the government is locked into a potentially inflated price without the benefit of competitive pressure to drive it down. Thus, FFP here mitigates cost overrun risk but does not address the fundamental value concern of an uncompetitive price.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,777,252

Exercised Options: $18,777,252

Current Obligation: $18,777,252

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline