DoD awards $36.7M IT services contract to UMYUAQ TECHNOLOGY LLC, with performance through 2025

Contract Overview

Contract Amount: $36,719,981 ($36.7M)

Contractor: Umyuaq Technology LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-15

End Date: 2025-09-30

Contract Duration: 1,476 days

Daily Burn Rate: $24.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION MANAGEMENT/INFORMATION TECHNOLOGY SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to UMYUAQ TECHNOLOGY LLC for work described as: INFORMATION MANAGEMENT/INFORMATION TECHNOLOGY SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market fairness. 2. The fixed-price contract type suggests a defined scope, but performance risks remain. 3. Limited competition may lead to higher prices than a fully competed contract. 4. The contract duration of nearly four years indicates a significant, ongoing need for these IT services. 5. The specific IT service category (Computer Facilities Management) is crucial for operational support. 6. Geographic performance in Texas suggests a focus on a specific regional installation or base.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and lack of detailed cost breakdowns. Without comparison to similar, competed contracts for Computer Facilities Management Services, it's difficult to definitively assess if the $36.7 million represents a fair market price. The firm fixed-price structure provides some cost certainty, but the absence of competitive pressure could mean taxpayers are not receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. This typically occurs when only one responsible source can provide the required services. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive rates, potentially impacting the final price.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete and can result in higher costs for taxpayers compared to contracts that undergo a competitive bidding process.

Public Impact

The Department of the Army benefits from essential IT infrastructure management services. This contract ensures the continuity of computer facilities management, supporting military operations. Services are likely to be delivered within Texas, impacting the local IT workforce and economy. The contract supports the operational readiness of military personnel by maintaining critical IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Performance risks associated with a single vendor are not mitigated by market alternatives.
Transparency in pricing and cost justification is limited due to sole-source award.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long-term contract duration suggests a stable and predictable IT support environment.
Award to a specific company indicates a potentially established relationship or specialized capability.

Sector Analysis

The Information Management/Information Technology Services sector is a critical component of modern government operations. This contract falls under Computer Facilities Management Services, a sub-sector focused on maintaining the hardware, software, and network infrastructure that supports an organization's IT needs. The total federal spending in this broad IT services category is substantial, with many contracts awarded annually. This specific award represents a portion of the Department of Defense's significant IT expenditure, aiming to ensure robust and reliable computing environments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, UMYUAQ TECHNOLOGY LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus of this award is not on fostering small business participation, and opportunities for small businesses to engage in subcontracting may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is somewhat limited due to the sole-source nature of the award. The Inspector General's office for the Department of Defense may conduct audits or investigations if specific concerns regarding performance, cost, or compliance arise.

Related Government Programs

Information Technology Professional Services
IT Operations and Support
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award
Lack of competitive benchmarking
Potential for inflated pricing
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to UMYUAQ TECHNOLOGY LLC. INFORMATION MANAGEMENT/INFORMATION TECHNOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is UMYUAQ TECHNOLOGY 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 $36.7 million.

What is the period of performance?

Start: 2021-09-15. End: 2025-09-30.

What is the track record of UMYUAQ TECHNOLOGY LLC in performing similar government contracts?

Information regarding UMYUAQ TECHNOLOGY LLC's specific track record with government contracts is not detailed in the provided data. As this is a sole-source award, it implies the agency identified this specific entity as capable of meeting the requirements. Further investigation into the contractor's past performance, including previous awards, client feedback, and any documented issues, would be necessary to fully assess their reliability and expertise in Computer Facilities Management Services. Without this historical data, it's difficult to gauge their proven ability to deliver on similar projects.

How does the awarded price compare to market rates for similar IT facilities management services?

Direct comparison of the $36.7 million award to market rates for similar IT facilities management services is challenging without more specific data on the scope of work and service levels. Given the sole-source nature of this contract, there was no competitive bidding process to establish a market-driven price. To assess value, one would typically benchmark against contracts awarded through full and open competition for comparable services, considering factors like geographic location, contract duration, and specific service inclusions. The absence of such comparative data makes it difficult to definitively state whether this price is advantageous or disadvantageous for the government.

What are the primary risks associated with awarding this IT contract on a sole-source basis?

The primary risks associated with awarding this IT contract on a sole-source basis include potential overpayment due to a lack of competitive pricing, reduced incentive for the contractor to innovate or optimize performance, and limited options if the contractor fails to meet performance expectations. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, the government's reliance on a single vendor can create vulnerabilities if that vendor experiences financial difficulties, operational disruptions, or decides to exit the market. The absence of alternative providers also limits the government's leverage in negotiating future terms or addressing performance issues.

How effective is the firm fixed-price contract type in managing IT service delivery risks for the Department of Defense?

The firm fixed-price (FFP) contract type is generally effective in managing cost risks for the Department of Defense, as it shifts the responsibility for cost overruns to the contractor. This provides budget certainty for the government. However, for complex IT services like facilities management, an FFP contract can introduce performance risks if the scope is not precisely defined or if unforeseen technical challenges arise. The contractor may be incentivized to cut corners to maintain profitability, potentially impacting service quality or reliability. Effective oversight and clear performance metrics are crucial to mitigate these risks and ensure the government receives the intended value and service levels.

What is the historical spending trend for Computer Facilities Management Services within the Department of the Army?

Analyzing the historical spending trend for Computer Facilities Management Services within the Department of the Army requires access to comprehensive historical contract data. While this specific $36.7 million award provides a data point for 2021-2025, it does not reveal broader trends. Generally, federal spending on IT services, including facilities management, has been substantial and often increasing due to the growing reliance on digital infrastructure and evolving technological needs. Factors such as modernization efforts, cybersecurity investments, and the expansion of digital services influence these spending patterns. A detailed analysis would involve examining annual obligations for this service category over several fiscal years.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9124J21R0043

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Choggiung Ltd.

Address: 2722 W BITTERS RD STE 118, SAN ANTONIO, TX, 78248

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,888,927

Exercised Options: $36,848,927

Current Obligation: $36,719,981

Actual Outlays: $2,314,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline