DoD's $42.2M IT Services Contract for HPCMP Awarded to ASRC Federal Data Networx
Contract Overview
Contract Amount: $42,244,512 ($42.2M)
Contractor: Asrc Federal Data Networx, LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-02
End Date: 2022-03-16
Contract Duration: 835 days
Daily Burn Rate: $50.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HITS-R IT SERVICES FOR HPCMP
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $42.2 million to ASRC FEDERAL DATA NETWORX, LLC for work described as: HITS-R IT SERVICES FOR HPCMP Key points: 1. Contract value of $42.2M for IT services. 2. ASRC Federal Data Networx, LLC is the awardee. 3. Awarded by the Department of Defense, specifically the Department of the Army. 4. Contract type is Firm Fixed Price. 5. NAICS code 541519 indicates 'Other Computer Related Services'.
Value Assessment
Rating: questionable
Contract value is substantial at $42.2M. Without comparable contract data or pricing details, it's difficult to assess if this represents excellent value. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition limits the government's ability to secure the best possible price, potentially resulting in increased taxpayer expenditure.
Public Impact
High-value IT services contract awarded to a single vendor. Potential for reduced taxpayer value due to limited competition. Impact on the High Performance Computing Modernization Program (HPCMP) operations. Concerns regarding the justification for limited competition in a significant IT services procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of pricing transparency
- Potential for cost overruns
Positive Signals
- Definitive contract awarded
- Firm Fixed Price contract type
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. The value of $42.2M is significant within this sector, and the limited competition raises questions about market competitiveness and pricing benchmarks.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was sound and that the government received fair value for the services rendered.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about value for money.
- Lack of transparency in pricing and justification for limited competition.
- Potential for higher costs to taxpayers due to restricted bidding.
- No small business participation indicated.
Tags
other-computer-related-services, department-of-defense, ms, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to ASRC FEDERAL DATA NETWORX, LLC. HITS-R IT SERVICES FOR HPCMP
Who is the contractor on this award?
The obligated recipient is ASRC FEDERAL DATA NETWORX, 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 $42.2 million.
What is the period of performance?
Start: 2019-12-02. End: 2022-03-16.
What was the specific justification for awarding this contract on a limited competition basis, and was it adequately documented?
The justification for limited competition is crucial for understanding why a full and open bidding process was not pursued. Adequate documentation would typically include market research, a justification for other than full and open competition (JOFOC), and a review by contracting officials to ensure it aligns with federal acquisition regulations. Without this documentation, it's difficult to assess the validity of the limited competition.
How does the per-unit cost or overall pricing of this contract compare to similar IT services contracts awarded competitively by the DoD?
Benchmarking this contract's pricing against similar, competitively awarded IT services contracts is essential for assessing value. If this contract's pricing is significantly higher, it suggests potential overpayment due to the lack of competition. A detailed cost analysis comparing labor rates, overhead, and profit margins would be necessary for a definitive comparison.
What is the expected impact of these IT services on the operational effectiveness and efficiency of the HPCMP?
The effectiveness of the High Performance Computing Modernization Program (HPCMP) is directly tied to the quality and reliability of the IT services provided. Understanding the specific services rendered under this contract and their contribution to HPCMP's mission objectives is key. Positive impacts would include enhanced computing capabilities, improved data analysis, and seamless operations, while negative impacts could arise from service disruptions or inadequate support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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
Solicitation ID: W912DY20R0014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,820,819
Exercised Options: $59,723,019
Current Obligation: $42,244,512
Actual Outlays: $4,620,803
Subaward Activity
Number of Subawards: 116
Total Subaward Amount: $27,066,513
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-12-02
Current End Date: 2022-03-16
Potential End Date: 2022-03-16 00:00:00
Last Modified: 2024-01-18
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