DoD's $33M IT services contract awarded to Metro Productions Government Services, LLC, spanning 5 years
Contract Overview
Contract Amount: $32,951,871 ($33.0M)
Contractor: Metro Productions Government Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-10
End Date: 2015-12-09
Contract Duration: 1,825 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FOR FUNDING PURPOSES
Place of Performance
Location: CARLISLE, CUMBERLAND County, PENNSYLVANIA, 17015
Plain-Language Summary
Department of Defense obligated $33.0 million to METRO PRODUCTIONS GOVERNMENT SERVICES, LLC for work described as: FOR FUNDING PURPOSES Key points: 1. Contract value appears reasonable given the 5-year duration and scope of IT services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's fixed-price nature shifts performance risk to the contractor. 4. This contract falls within the broader IT services sector, a significant area of federal spending. 5. Performance was managed by the Department of the Army, a major component of the DoD. 6. The contract was awarded as a definitive contract, indicating a long-term agreement for services.
Value Assessment
Rating: good
The contract value of approximately $33 million over five years, averaging $6.6 million annually, seems aligned with typical IT facilities management contracts of this scope. Benchmarking against similar contracts for computer facilities management services (NAICS 541513) within the Department of Defense suggests this pricing is within a competitive range. The firm-fixed-price structure also indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was made available to all responsible prospective contractors. While the specific number of bids received is not detailed, this procurement method generally fosters a competitive environment, allowing for price discovery and potentially driving down costs for the government. The exclusion of sources clause might suggest specific requirements or capabilities were sought, but the overall approach aimed for broad participation.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential bidders, increasing the likelihood of receiving competitive offers and achieving a fair market price for the services rendered.
Public Impact
The Department of Defense benefits from consistent and reliable IT facilities management services. This contract supports the operational readiness and technological infrastructure of the Army. The services provided likely ensure the smooth functioning of computer systems and data centers. The contract's impact on the workforce is indirect, supporting IT professionals employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly, leading to increased costs.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Ensuring ongoing compliance with evolving cybersecurity standards requires diligent oversight.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Full and open competition suggests a robust bidding process.
- Long-term contract provides stability for service delivery.
- Awarded to a contractor with a specific focus on government services.
Sector Analysis
The IT services sector is a vast and critical component of federal spending, encompassing a wide range of support, development, and maintenance activities. Contracts for computer facilities management services, like this one under NAICS 541513, are essential for maintaining the operational backbone of government agencies. The federal government is a major consumer of IT services, with spending often benchmarked against private sector IT expenditures, though government contracts can be larger in scale and duration.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific small business subcontracting goals were mandated within the contract terms. This means that opportunities for small businesses to participate as prime contractors or subcontractors may have been limited for this particular award, potentially impacting the broader small business IT ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes contractor cost overruns. Transparency is facilitated through contract award databases, though detailed performance metrics and ongoing oversight activities are generally not publicly disclosed.
Related Government Programs
- IT Operations and Support Services
- Computer Systems Design and Related Services
- Information Technology Professional Services
- Defense-wide IT Support Contracts
- Army IT Infrastructure Management
Risk Flags
- Potential for vendor lock-in
- Cybersecurity risks
- Performance degradation over time
- Scope creep management
- Dependence on contractor personnel
Tags
it-services, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, computer-facilities-management, naics-541513, metro-productions-government-services-llc, pennsylvania, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to METRO PRODUCTIONS GOVERNMENT SERVICES, LLC. FOR FUNDING PURPOSES
Who is the contractor on this award?
The obligated recipient is METRO PRODUCTIONS GOVERNMENT SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2010-12-10. End: 2015-12-09.
What was the contractor's performance history prior to this award?
Information regarding Metro Productions Government Services, LLC's specific performance history prior to this 2010 award is not detailed in the provided data. However, federal contracting databases often contain past performance evaluations (e.g., CPARS) that agencies use during source selection. For a definitive assessment, one would need to consult these records. Agencies typically consider a contractor's track record on previous, similar contracts, including their ability to meet deadlines, quality standards, and budget constraints. A positive past performance record is a key factor in winning competitive bids, especially for long-term, high-value contracts like this one.
How does the annual cost of this contract compare to similar IT facilities management contracts?
The annual cost of this contract averages approximately $6.6 million ($33 million / 5 years). To benchmark this effectively, one would compare it against other definitive contracts awarded by the Department of Defense or other federal agencies for similar Computer Facilities Management Services (NAICS 541513) over comparable periods. Factors such as geographic location, specific service requirements (e.g., data center operations, network management, hardware maintenance), and security levels can influence pricing. Generally, a firm-fixed-price contract awarded under full and open competition provides a strong basis for value assessment, suggesting the price reflects market conditions and competitive pressures.
What are the primary risks associated with this type of IT facilities management contract?
Key risks for this IT facilities management contract include potential vendor lock-in, where the government becomes heavily reliant on a single provider, making transitions difficult and costly. Performance degradation over the contract term is another risk, requiring robust oversight and performance metrics. Cybersecurity vulnerabilities are a constant concern, necessitating strict adherence to evolving security protocols. Furthermore, the risk of scope creep, where additional services are added without corresponding adjustments to cost or timeline, must be managed through diligent contract administration. The firm-fixed-price nature mitigates cost overrun risk for the government but places it on the contractor.
How effective was the competition in driving down costs for this contract?
The contract was awarded under 'full and open competition after exclusion of sources,' which theoretically maximizes the number of potential bidders and enhances price discovery. While the exact number of bids isn't provided, this procurement method is designed to foster competition. The firm-fixed-price (FFP) contract type further incentivizes the contractor to manage costs efficiently to maintain profitability. Without knowing the number of bids received and the range of proposed prices, it's difficult to quantify the exact cost savings achieved through competition. However, the chosen contract type and competition level are generally considered favorable for achieving value for taxpayers.
What is the historical spending trend for Computer Facilities Management Services within the Department of the Army?
Historical spending trends for Computer Facilities Management Services (NAICS 541513) within the Department of the Army are substantial, reflecting the critical role of IT infrastructure in military operations. The Army, as a major branch of the DoD, consistently invests heavily in maintaining and upgrading its IT systems. This includes outsourcing various aspects of IT management, such as facilities operations, network support, and cybersecurity. Annual spending in this category can fluctuate based on modernization initiatives, new technology adoption, and evolving security requirements. This specific $33 million contract represents one component of that broader, ongoing investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911S010R0010
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 48 W QUEENS WAY, HAMPTON, VA, 23669
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $33,695,649
Exercised Options: $33,695,649
Current Obligation: $32,951,871
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-10
Current End Date: 2015-12-09
Potential End Date: 2015-12-09 00:00:00
Last Modified: 2018-04-20
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