DoD's $13.9M IT Services Contract Awarded to OM GROUP, INC. for Mississippi Operations

Contract Overview

Contract Amount: $13,937,037 ($13.9M)

Contractor: OM Group, Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-12

End Date: 2026-11-11

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: P2 O&M

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to OM GROUP, INC for work described as: P2 O&M Key points: 1. Contract value represents a significant investment in IT operations and maintenance. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Fixed-price contract type may offer cost certainty for the government. 4. Contract duration of five years indicates a long-term need for these services. 5. The award falls within the 'Other Computer Related Services' NAICS code. 6. Geographic focus on Mississippi highlights regional IT support requirements.

Value Assessment

Rating: good

The contract's total value of $13.9 million over five years averages to approximately $2.78 million annually. Benchmarking this against similar IT services contracts for the Department of Defense requires detailed analysis of scope and service levels. However, the firm fixed-price nature suggests an expectation of predictable costs. The award amount appears reasonable for a five-year IT support contract of this scale, assuming the scope aligns with industry standards for 'Other Computer Related Services'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 8 bidders participating, the level of competition appears robust. A higher number of bidders generally contributes to better price discovery and can lead to more favorable pricing for the government. The presence of multiple offers suggests that the market has sufficient capacity and interest in providing these services.

Taxpayer Impact: The full and open competition with 8 bidders is beneficial for taxpayers as it likely drove down costs through competitive pressure, ensuring the government received value for its investment.

Public Impact

The Department of the Army benefits from enhanced IT operations and maintenance capabilities. Services delivered likely include IT support, system maintenance, and potentially network management. The geographic impact is concentrated in Mississippi, supporting regional military installations or facilities. Workforce implications may involve the creation or sustainment of IT-related jobs within the supported region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT infrastructure could pose risks.
Scope creep could lead to cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Award to OM GROUP, INC. indicates a potentially established vendor in the IT services space.

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. This contract, categorized under NAICS code 541519 (Other Computer Related Services), fits within the broader IT services market. Comparable spending benchmarks for IT O&M contracts within the Department of Defense can vary significantly based on the specific services, duration, and geographic location. The $13.9 million value over five years positions this as a mid-sized contract within the federal IT landscape.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan noted (SB: false, SS: false). This suggests that the primary award went to a large business or a business that did not qualify for small business set-aside criteria. The absence of explicit small business participation requirements means that opportunities for small businesses to subcontract on this award may be limited unless OM GROUP, INC. voluntarily engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Army IT Support Services
Information Technology Professional Services
Computer Systems Design and Related Services

Risk Flags

Potential for performance issues if contractor lacks specialized expertise.
Risk of cost increases if contract scope is not clearly defined.
Dependency on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to OM GROUP, INC. P2 O&M

Who is the contractor on this award?

The obligated recipient is OM GROUP, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2021-11-12. End: 2026-11-11.

What is the track record of OM GROUP, INC. with the Department of Defense and other federal agencies?

A review of federal procurement data would be necessary to fully assess OM GROUP, INC.'s track record. This includes examining past performance on similar contracts, any history of contract disputes, timely delivery, and overall customer satisfaction ratings. Understanding their experience with IT Operations and Maintenance (O&M) services, particularly within the defense sector, is crucial. Agencies often maintain past performance information that influences future award decisions. Without specific data on OM GROUP, INC.'s prior federal awards and performance, it's difficult to definitively gauge their reliability and expertise for this $13.9 million contract.

How does the $13.9 million contract value compare to similar IT O&M contracts awarded by the Department of the Army?

To benchmark the $13.9 million value, one would need to compare it against IT O&M contracts of similar scope, duration, and service complexity awarded by the Department of the Army or other DoD components. Factors such as the number of end-users supported, the criticality of the systems maintained, and the specific services included (e.g., help desk, network management, cybersecurity support) heavily influence pricing. If this contract covers a broad range of comprehensive IT O&M services for a significant number of users over five years, the value may be considered competitive. Conversely, if the scope is narrow or the duration shorter than typical benchmarks, it might warrant further scrutiny.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns despite the fixed-price nature. Another risk is contractor underperformance, where OM GROUP, INC. may fail to meet service level agreements, impacting critical IT operations. Vendor lock-in is also a concern if follow-on work is not competitively re-awarded. Mitigation strategies typically involve robust contract management, clear definition of scope and deliverables, performance monitoring through metrics and reporting, and exercising options judiciously. The firm fixed-price structure itself acts as a primary risk mitigation tool for cost certainty.

What is the expected effectiveness of the IT services provided under this contract for the Department of the Army?

The effectiveness hinges on the contractor's ability to meet or exceed the defined service level agreements (SLAs) and performance standards outlined in the contract. Successful execution should result in reliable IT infrastructure, timely resolution of technical issues, and support for the Army's operational mission in Mississippi. Key performance indicators (KPIs) related to system uptime, response times for support requests, and successful implementation of maintenance tasks will be critical measures of effectiveness. The contract's success will ultimately be judged by its contribution to the seamless functioning of the Army's IT environment in the region.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years?

Federal spending on NAICS code 541519, 'Other Computer Related Services,' has generally seen a consistent upward trend over the past five years, reflecting the increasing reliance of government agencies on specialized IT support, consulting, and related services. This category often captures services that don't fit neatly into broader software development or hardware maintenance codes. Factors driving this growth include digital transformation initiatives, cybersecurity enhancements, cloud migration efforts, and the need for expert advice on complex IT systems. The total federal obligation for this category likely runs into billions of dollars annually, underscoring its significance.

What is the significance of the 'MISSISSIPPI' location for this IT services contract?

The specification of 'MISSISSIPPI' as the primary location for this contract indicates that the IT services are intended to support Department of the Army operations, facilities, or personnel within that state. This could involve maintaining IT infrastructure at military bases, providing support to regional commands, or enabling communication networks essential for state-level military readiness. The geographic focus helps define the scope of work and logistical considerations for the contractor, OM GROUP, INC., ensuring that IT support is localized and tailored to the specific needs of the Army's presence in Mississippi.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 KNIGHTSBRIDGE RD STE 525 OFC 259, PISCATAWAY, NJ, 08854

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,937,037

Exercised Options: $13,937,037

Current Obligation: $13,937,037

Actual Outlays: $1,543,840

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,693,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA017

IDV Type: IDC

Timeline