DoD's $11.25M IT contract with TYTO GOVERNMENT SOLUTIONS INC shows fair value, but limited competition
Contract Overview
Contract Amount: $11,249,514 ($11.2M)
Contractor: Tyto Government Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2007-02-15
End Date: 2008-09-14
Contract Duration: 577 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RCMS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.2 million to TYTO GOVERNMENT SOLUTIONS INC for work described as: RCMS Key points: 1. Contract value appears reasonable given the scope of custom programming services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the contract data. 4. Performance period of approximately 1.5 years is standard for this type of service. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The contract was awarded as a Delivery Order under a larger IDIQ, indicating a phased approach.
Value Assessment
Rating: good
The contract's total value of $11.25 million for custom computer programming services over 577 days appears to be within a reasonable range for similar government IT projects. Without specific details on the deliverables and labor hours, a precise benchmark is difficult. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the work is completed as specified. Compared to other custom programming contracts of similar duration and scope, the pricing seems competitive, especially given the full and open competition.
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 a bid. The data does not specify the number of bids received, but the designation suggests a robust competitive environment. A full and open competition generally leads to better price discovery and ensures that the government receives offers from a wide range of qualified vendors, potentially driving down costs and improving service quality.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader pool of innovative solutions. This process helps ensure that government funds are used efficiently by fostering a market where contractors must offer competitive terms to win awards.
Public Impact
The primary beneficiary is the Department of Defense, which receives custom computer programming services to support its operations. The services delivered are custom software development and programming, tailored to specific military requirements. The geographic impact is likely within the operational areas of the Department of the Army, where these services are deployed. Workforce implications include employment for skilled IT professionals at TYTO GOVERNMENT SOLUTIONS INC and potentially within the DoD for system integration and oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
- The duration of the contract (577 days) is relatively short for complex custom programming, raising questions about the depth of the solution.
- No information is provided on potential cost overruns or change orders, which could impact the final value.
Positive Signals
- Awarded under full and open competition, indicating a fair and transparent procurement process.
- Firm Fixed Price contract type shifts cost risk to the contractor, potentially benefiting the government.
- The contractor, TYTO GOVERNMENT SOLUTIONS INC, has a track record of performing government contracts, suggesting some level of established capability.
Sector Analysis
The Information Technology (IT) sector, particularly custom computer programming services (NAICS code 541511), is a significant area of federal spending. This contract represents a small portion of the overall IT services market, which is characterized by rapid technological advancements and a diverse range of service providers. Comparable spending benchmarks for custom programming vary widely based on complexity, duration, and specific technologies used. The government frequently procures these services to develop, maintain, and enhance its complex IT systems.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small business participation may be limited unless TYTO GOVERNMENT SOLUTIONS INC voluntarily includes them in their subcontracting efforts. The impact on the small business ecosystem would be minimal unless subcontracting plans are implemented.
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 obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- IT Services
- Custom Software Development
- Department of Defense IT Procurement
- Delivery Orders under IDIQs
Risk Flags
- Potential for scope creep due to the nature of custom development.
- Reliance on contractor performance without detailed public metrics.
- Limited visibility into specific deliverables and quality assurance processes.
Tags
it-services, custom-computer-programming, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, delivery-order, information-technology, tyto-government-solutions-inc, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to TYTO GOVERNMENT SOLUTIONS INC. RCMS
Who is the contractor on this award?
The obligated recipient is TYTO GOVERNMENT SOLUTIONS 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 $11.2 million.
What is the period of performance?
Start: 2007-02-15. End: 2008-09-14.
What is the track record of TYTO GOVERNMENT SOLUTIONS INC in delivering similar custom computer programming services to the federal government?
TYTO GOVERNMENT SOLUTIONS INC has a history of performing various IT services for the federal government, including contracts related to custom computer programming, IT support, and telecommunications. Their performance history, as reflected in contract databases, indicates a range of contract values and durations across different agencies. While specific details on the quality and timeliness of past projects are not always publicly available, their continued awards suggest a generally satisfactory performance record. Analyzing past performance evaluations, if accessible, would provide a more granular understanding of their capabilities and reliability in delivering complex IT solutions.
How does the pricing of this $11.25 million contract compare to similar custom programming services awarded by the Department of Defense?
Benchmarking the pricing of this $11.25 million contract requires comparing it against similar custom computer programming services awarded by the Department of Defense (DoD) over a comparable timeframe and with similar scope. Given that this is a firm fixed-price contract for a duration of 577 days, the average annual value is approximately $7.05 million. Without detailed statements of work and labor hour breakdowns, a precise comparison is challenging. However, the full and open competition suggests that the pricing is likely competitive. If other DoD custom programming contracts of similar scale and complexity were awarded at significantly lower or higher price points, it would indicate whether this contract represents particularly good or fair value.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential scope creep, contractor underperformance, and technological obsolescence. Scope creep could occur if the requirements evolve significantly beyond the initial statement of work, potentially leading to cost increases or delays, although the firm fixed-price nature aims to mitigate this. Contractor underperformance is a risk that is typically managed through contract oversight, performance monitoring, and defined deliverables. Technological obsolescence is a concern in IT projects; however, the contract's duration of 577 days suggests it may focus on specific, defined programming tasks rather than long-term system development where rapid obsolescence is more critical. Mitigation strategies would involve clear communication, robust project management by both the government and the contractor, and adherence to the contract's terms and conditions.
How effective has the Department of the Army been in leveraging custom computer programming services through contracts like this to meet its operational needs?
The effectiveness of the Department of the Army in leveraging custom computer programming services through contracts like this is generally assessed by the extent to which the delivered solutions meet stated operational needs, improve efficiency, and enhance mission capabilities. Awards for custom programming indicate a reliance on tailored software solutions rather than off-the-shelf products. The success of such contracts hinges on clear requirements definition, effective project management, and successful integration of the developed software into existing systems. While this specific contract's outcome isn't detailed, the repeated procurement of such services suggests they are considered essential for addressing unique Army requirements that cannot be met by standard IT offerings.
What are the historical spending patterns for custom computer programming services within the Department of Defense, and how does this contract fit?
The Department of Defense (DoD) historically spends billions of dollars annually on IT services, including custom computer programming. This spending is driven by the need for highly specialized software to support complex military operations, intelligence gathering, logistics, and administrative functions. Contracts for custom programming are common across various branches, including the Army, Navy, and Air Force. This $11.25 million contract with TYTO GOVERNMENT SOLUTIONS INC represents a typical expenditure for a specific project within this broad category. It fits into the pattern of the DoD outsourcing specialized IT development to private sector firms to leverage expertise and manage workload, aligning with broader trends in federal IT procurement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AT&T Inc. (UEI: 108024050)
Address: 1900 GALLOWS ROAD, VIENNA, VA, 22182
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,249,514
Exercised Options: $11,249,514
Current Obligation: $11,249,514
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4507G
IDV Type: FSS
Timeline
Start Date: 2007-02-15
Current End Date: 2008-09-14
Potential End Date: 2008-09-14 00:00:00
Last Modified: 2021-12-10
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