DoD's $10M contract for EDW/EVV/RBC O&M services awarded to OM GROUP, INC

Contract Overview

Contract Amount: $10,013,185 ($10.0M)

Contractor: OM Group, Inc

Awarding Agency: Department of Defense

Start Date: 2023-06-05

End Date: 2027-01-04

Contract Duration: 1,309 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: S23-0006 EDW/EVV/RBC O&M

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to OM GROUP, INC for work described as: S23-0006 EDW/EVV/RBC O&M Key points: 1. The contract value of $10.01 million for IT services appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is expected over approximately 3.5 years, indicating a medium-term engagement. 5. The contractor, OM GROUP, INC., has secured this award from the Department of the Army. 6. The primary service category is Computer Systems Design Services, a common IT support function.

Value Assessment

Rating: good

The contract value of approximately $10 million over 1309 days (roughly 3.5 years) translates to an estimated daily rate of $7,649. Benchmarking this against similar IT operations and maintenance contracts is challenging without more specific service details. However, for a firm-fixed-price contract of this duration and scope, the pricing appears within a reasonable range, assuming the services are standard IT operations and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests specific criteria or circumstances led to limiting the pool of potential bidders. Further details on the exclusion rationale would be needed to fully assess the competitive landscape. The presence of two bidders indicates some level of competition.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering price discovery and potentially leading to lower costs. However, the exclusion of sources may have limited the extent of this benefit.

Public Impact

The Department of Defense benefits from the continued operation and maintenance of its Enterprise Data Warehouse (EDW), Enterprise λόγω (EVV), and related systems. Essential IT infrastructure support services are delivered, ensuring the availability and reliability of critical data and systems. The geographic impact is primarily within Alabama, where the contract is managed and potentially where services are delivered. The contract supports IT professionals and potentially other roles involved in maintaining complex data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause warrants further investigation to ensure it did not unduly restrict competition.
Lack of detailed service descriptions makes it difficult to fully assess value for money.
The specific nature of EDW/EVV/RBC systems is not detailed, potentially masking unique or high-risk operational requirements.

Positive Signals

Firm-fixed-price contract type shifts cost overrun risk to the contractor.
Full and open competition, even with exclusions, suggests an effort to leverage market capabilities.
The contract duration of over three years provides stability for both the government and the contractor.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. Contracts for operations and maintenance (O&M) of enterprise data warehouses and similar platforms are crucial for agencies managing large volumes of data. Comparable spending benchmarks would typically involve analyzing other O&M contracts for large-scale IT infrastructure within the federal government, particularly those supporting data management and analytics.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem arising from a set-aside. The primary contractor, OM GROUP, INC., is likely a mid-to-large-sized business given the contract value. Opportunities for small businesses would typically arise through subcontracting if the prime contractor chooses to engage them, but this is not mandated by the contract terms provided.

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 structure, requiring the contractor to deliver specified services within the agreed price. Transparency is facilitated by contract databases like FPDS, which provide basic award details. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the scope of the contract.

Related Government Programs

Defense Enterprise Data Warehouse (EDW) Operations
Enterprise Logistics Systems Maintenance
IT Operations and Maintenance Services
Computer Systems Design Services
Department of the Army IT Contracts

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'
Lack of detailed performance metrics in award data
Uncertainty regarding the specific nature and complexity of EDW/EVV/RBC systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to OM GROUP, INC. S23-0006 EDW/EVV/RBC 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 $10.0 million.

What is the period of performance?

Start: 2023-06-05. End: 2027-01-04.

What is the specific nature of the EDW/EVV/RBC systems being maintained, and what are the key performance indicators (KPIs) for this contract?

The provided data does not specify the exact nature of the EDW (Enterprise Data Warehouse), EVV (likely Enterprise Virtualization or a similar system), and RBC (potentially Readiness Business Capability or a similar system) platforms. These are likely critical IT infrastructure components for the Department of the Army. Key Performance Indicators (KPIs) are also not detailed in the award notice. Typically, for O&M contracts of this nature, KPIs would focus on system uptime, response times for issue resolution, data integrity, security compliance, and successful execution of maintenance tasks. Without these specifics, a thorough assessment of performance and value is limited.

How does the awarded price of $10.01 million compare to similar IT O&M contracts for enterprise data systems within the DoD?

Direct comparison of the $10.01 million contract value is difficult without knowing the precise scope, complexity, and service level agreements (SLAs) of the EDW/EVV/RBC systems. However, the contract duration of approximately 3.5 years yields an average annual value of roughly $2.86 million. This figure needs to be contextualized against the criticality and scale of the systems. Larger, more complex enterprise data warehouses or mission-critical systems often command higher O&M costs. Benchmarking would require access to detailed contract data for similar systems, including the number of users, data volume, and specific maintenance requirements. The firm-fixed-price nature suggests a defined scope, which aids in comparison if similar scopes can be identified.

What specific factors led to the 'Exclusion of Sources' in this 'Full and Open Competition After Exclusion of Sources' award?

The 'Full and Open Competition After Exclusion of Sources' designation implies that while the competition was intended to be broad, certain potential sources were intentionally excluded based on specific criteria outlined in the solicitation or relevant regulations. Common reasons for excluding sources include failure to meet mandatory pre-qualification requirements, lack of specific technical capabilities or certifications, past performance issues, or specific security clearances. Without access to the solicitation details or the justification document for excluding sources, the precise reasons remain unknown. This exclusion could potentially limit the number of competitive bids received and may impact the final price achieved.

What is the track record of OM GROUP, INC. in performing similar IT operations and maintenance services for the federal government?

The provided data identifies OM GROUP, INC. as the contractor but does not offer details on their past performance or track record. To assess their suitability for this $10.01 million contract, a review of their contract history within the federal government, particularly for IT operations and maintenance of complex systems like data warehouses, would be necessary. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A strong track record in similar services would increase confidence in their ability to successfully execute this delivery order.

What are the potential risks associated with the long-term maintenance of enterprise data systems like EDW/EVV/RBC, and how are they mitigated by this contract?

Long-term maintenance of enterprise data systems carries risks such as technological obsolescence, evolving cybersecurity threats, data integrity issues, and the potential for vendor lock-in. This contract attempts to mitigate some risks through its firm-fixed-price structure, which places the onus on OM GROUP, INC. to manage costs and deliver services within the agreed budget. The duration of the contract (over 3 years) provides stability but also necessitates careful planning for future technological shifts. Cybersecurity risks are typically addressed through specific contract clauses and government oversight, requiring the contractor to adhere to stringent security protocols. The 'exclusion of sources' might indicate a need for specialized knowledge, potentially mitigating risks related to system complexity but also raising questions about the breadth of available expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $14,577,899

Exercised Options: $10,013,185

Current Obligation: $10,013,185

Actual Outlays: $654,056

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,226,778

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0186

IDV Type: GWAC

Timeline