DoD's $22M IT services contract awarded to Al Manarah Communications without competition
Contract Overview
Contract Amount: $22,163,899 ($22.2M)
Contractor: AL Manarah Communications & Information Technology CO Ltd
Awarding Agency: Department of Defense
Start Date: 2015-10-28
End Date: 2019-04-30
Contract Duration: 1,280 days
Daily Burn Rate: $17.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF OFFICE APPLICATIONS MAINTENANCE AND SERVICES
Plain-Language Summary
Department of Defense obligated $22.2 million to AL MANARAH COMMUNICATIONS & INFORMATION TECHNOLOGY CO LTD for work described as: IGF::OT::IGF OFFICE APPLICATIONS MAINTENANCE AND SERVICES Key points: 1. The contract awarded to Al Manarah Communications & Information Technology Co Ltd for IT maintenance and services lacked competitive bidding. 2. The contract's duration of 1280 days suggests a long-term need for these IT services. 3. The firm fixed price contract type indicates a defined scope and cost structure. 4. The absence of competition raises questions about potential overpayment and value for money. 5. This contract falls under the 'All Other Information Services' NAICS code, indicating a broad category of IT support. 6. The contract was awarded by the Department of the Army, a significant component of the Department of Defense.
Value Assessment
Rating: questionable
Without a competitive bidding process, it is difficult to benchmark the value for money of this $22.16 million contract. The firm fixed price structure provides cost certainty, but the lack of comparison to other potential vendors means the government may not have secured the best possible pricing. The duration of the contract (over three years) suggests a substantial investment, further emphasizing the need for competitive sourcing to ensure optimal use of taxpayer funds.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that only one vendor, Al Manarah Communications & Information Technology Co Ltd, was considered for the requirement. The lack of competition limits the government's ability to explore alternative solutions or pricing from the market, potentially leading to higher costs than if multiple bids were solicited.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding environment. The government may have paid a premium for these IT services due to the absence of competing offers.
Public Impact
The Department of the Army benefits from the IT maintenance and services provided under this contract. The services delivered are categorized under 'All Other Information Services', suggesting a range of IT support functions. The geographic impact is likely within the operational areas of the Department of the Army. The contract supports the IT infrastructure necessary for military operations and administrative functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated prices.
- Sole-source award limits transparency in pricing.
- Long contract duration without competition raises value-for-money concerns.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Contract awarded to a specific IT services provider for a defined period.
Sector Analysis
This contract falls within the Information Technology sector, specifically under the 'All Other Information Services' category (NAICS 519190). The IT services market is vast and competitive, with numerous providers offering maintenance and support. However, sole-source awards like this bypass typical market dynamics. Comparable spending benchmarks for IT maintenance and services vary widely based on scope, complexity, and service level agreements, but the absence of competition here makes direct comparison difficult.
Small Business Impact
There is no indication that this contract included small business set-asides or subcontracting requirements. The award to Al Manarah Communications & Information Technology Co Ltd, without specific mention of small business participation, suggests that small businesses were not directly involved in this particular sole-source procurement. This contract does not appear to contribute to the small business ecosystem through set-asides.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and potentially the Inspector General's office, especially given the significant dollar amount. However, the lack of competition and the sole-source nature of the award may reduce the inherent transparency and accountability typically fostered by a competitive process. Specific details on oversight and accountability measures for this particular contract are not provided in the data.
Related Government Programs
- Department of Defense IT Procurement
- Army IT Services Contracts
- Sole-Source IT Contracts
- Information Services Contracts
Risk Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
- Limited Transparency
Tags
it, defense, department-of-defense, department-of-the-army, it-services, maintenance, information-services, sole-source, firm-fixed-price, large-contract, non-competitive
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to AL MANARAH COMMUNICATIONS & INFORMATION TECHNOLOGY CO LTD. IGF::OT::IGF OFFICE APPLICATIONS MAINTENANCE AND SERVICES
Who is the contractor on this award?
The obligated recipient is AL MANARAH COMMUNICATIONS & INFORMATION TECHNOLOGY CO LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2015-10-28. End: 2019-04-30.
What is the track record of Al Manarah Communications & Information Technology Co Ltd with the federal government?
The provided data indicates this is a sole-source award to Al Manarah Communications & Information Technology Co Ltd. Further analysis would be required to determine the company's full federal contracting history, including past performance on other contracts, any prior issues or awards, and their overall experience with government IT services. Without additional data, it's difficult to assess their track record beyond this specific award. A review of contract databases and performance reports would be necessary to build a comprehensive picture of their federal performance.
How does the pricing of this contract compare to similar IT services contracts awarded competitively?
Direct price comparison is challenging due to the sole-source nature of this award. Typically, competitive bidding allows for price discovery and negotiation, leading to potentially lower costs for the government. To assess value for money, one would need to identify comparable IT maintenance and services contracts awarded competitively by the Department of Defense or other agencies with similar scopes of work and service levels. Analyzing the per-unit costs or overall contract value relative to the services provided in those competitive contracts would offer a benchmark. Without such comparisons, it's presumed that the government may not have achieved the most favorable pricing.
What are the primary risks associated with a sole-source IT services contract of this magnitude?
The primary risks associated with a sole-source IT services contract of this magnitude include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or provide exceptional service, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Additionally, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, making future transitions difficult and potentially costly. Ensuring adequate oversight and performance management becomes even more critical in sole-source situations.
What is the historical spending pattern for 'All Other Information Services' by the Department of the Army?
The provided data focuses on a single contract. To understand historical spending patterns for 'All Other Information Services' by the Department of the Army, a broader analysis of federal procurement data over several fiscal years would be necessary. This would involve aggregating spending under NAICS code 519190, identifying major contractors, contract types (competitive vs. sole-source), and trends in spending. Such an analysis could reveal whether this $22.16 million contract is an outlier or part of a consistent spending trend for these types of services within the Army.
What specific IT services are covered under 'All Other Information Services' for this contract?
The NAICS code 519190, 'All Other Information Services,' is a broad category that encompasses a wide array of IT-related services not classified elsewhere. For this specific contract with Al Manarah Communications, the services likely include IT support, maintenance, potentially network management, help desk services, and other information technology infrastructure support. The exact scope would be detailed in the contract's statement of work, which is not provided here. However, the general classification suggests a comprehensive IT operational support role.
Industry Classification
NAICS: Information › Other Information Services › All Other Information 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
Solicitation ID: W90BRJ15R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: OLAYA ST, RIYADH
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $22,163,899
Exercised Options: $22,163,899
Current Obligation: $22,163,899
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-28
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2023-02-08
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