DoD's $16.7M ANG Web-Tools and Cloud Support contract awarded to Zantech IT Services, Inc

Contract Overview

Contract Amount: $16,762,200 ($16.8M)

Contractor: Zantech IT Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-28

End Date: 2026-10-31

Contract Duration: 1,768 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANG WEB-TOOLS AND CLOUD SUPPORT SERVICES

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to ZANTECH IT SERVICES, INC. for work described as: ANG WEB-TOOLS AND CLOUD SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of nearly five years indicates a long-term need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Services are concentrated in Maryland, suggesting a specific geographic focus for support. 6. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services.

Value Assessment

Rating: good

The total contract value of approximately $16.7 million over a period of up to 1768 days (roughly 4.8 years) suggests an average annual spend of around $3.5 million. Without specific benchmarks for 'ANG Web-Tools and Cloud Support Services,' it's challenging to provide a precise value-for-money assessment. However, the firm-fixed-price structure generally indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor is experienced and efficient. The number of bids received (5) in a full and open competition also provides some context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a moderate level of competition for this requirement. A higher number of bidders typically suggests greater price discovery and potentially more competitive pricing for the government. The fact that five companies vied for this contract suggests that the market for these services is sufficiently robust.

Taxpayer Impact: The full and open competition and receipt of five bids are positive indicators for taxpayers, suggesting that the government likely received competitive pricing and a good selection of qualified vendors.

Public Impact

The Department of the Army benefits from enhanced web tools and cloud support services. These services are crucial for maintaining and improving the operational capabilities of the Air National Guard (ANG). The primary geographic impact is in Maryland, where the services are likely delivered. The contract supports IT professionals and potentially other roles within Zantech IT Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by Zantech.
Dependence on a single contractor for critical web tools and cloud infrastructure.
Risk of scope creep if requirements are not clearly defined and managed.
Performance issues could impact ANG's digital operations if not addressed promptly.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive environment for pricing.
Long contract duration allows for stable support and potential for relationship building.
Award to an established IT services company with a track record.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud support and web tool development/maintenance. The IT services market is highly competitive and dynamic, with significant government spending allocated to cloud migration, cybersecurity, and digital transformation initiatives. Comparable spending benchmarks would typically involve analyzing other contracts for similar cloud support and web development services awarded by various federal agencies. The size of this contract ($16.7M) is moderate within the context of large federal IT procurements.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The data indicates that the prime contractor is Zantech IT Services, Inc. Further analysis would be needed to determine if Zantech is a small business itself or if there are subcontracting plans that include small businesses. Without explicit information on subcontracting goals, the direct impact on the small business ecosystem is unclear, though the overall contract size could offer opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Army. As a delivery order under a larger contract vehicle (implied by 'AW: DELIVERY ORDER'), oversight might be integrated into the broader management of that vehicle. Transparency is generally provided through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure, where the contractor is responsible for delivering specified services. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cloud Computing Services
IT Professional Services
Web Development Services
Information Technology Support Services
Defense Information Technology Contracting

Risk Flags

Potential for performance issues impacting critical ANG operations.
Risk of vendor lock-in due to specialized knowledge transfer.
Need for vigilant oversight to ensure adherence to contract terms and scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to ZANTECH IT SERVICES, INC.. ANG WEB-TOOLS AND CLOUD SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ZANTECH IT SERVICES, 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 $16.8 million.

What is the period of performance?

Start: 2021-12-28. End: 2026-10-31.

What is Zantech IT Services, Inc.'s track record with the Department of Defense and other federal agencies for similar cloud and web support contracts?

Zantech IT Services, Inc. has a history of performing IT services for various federal agencies, including the Department of Defense. Analyzing their past performance on contracts with similar scopes, such as cloud infrastructure management, web application development, and IT support, is crucial. Publicly available data, such as contract award histories and performance evaluations (if accessible), can shed light on their ability to meet technical requirements, manage projects effectively, and adhere to schedules and budgets. A review of their contract portfolio would reveal the size and complexity of projects they have successfully managed, providing insight into their capacity and expertise relevant to this specific $16.7 million award.

How does the awarded price of $16.7 million compare to market rates for similar web tools and cloud support services?

Benchmarking the $16.7 million contract value requires comparing it against similar services procured by other government agencies or within the private sector. Key factors for comparison include the duration of the contract (nearly five years), the specific services rendered (web tools and cloud support), the labor categories involved, and the geographic location of service delivery. Analyzing data from contract databases for similar IT support contracts, considering inflation and market trends, can help establish a reasonable price range. The firm-fixed-price nature of this contract also implies that Zantech IT Services, Inc. has factored in their expected costs and profit margins. A detailed cost-benefit analysis, if available, would offer further insights into the value proposition.

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

Primary risks include potential performance deficiencies by the contractor, leading to disruptions in ANG's web tools and cloud services. Given the firm-fixed-price structure, the risk of cost overruns is primarily on the contractor, but performance failures could still impact the government. Another risk is vendor lock-in, where the government becomes overly reliant on Zantech's specific expertise or proprietary solutions. Mitigation strategies likely involve robust contract oversight, clearly defined performance metrics and service level agreements (SLAs), regular performance reviews, and contingency planning for service disruptions. The full and open competition also serves as a mitigation factor by ensuring a competitive market.

How effective has Zantech IT Services, Inc. been in delivering comparable IT services in the past, particularly for the Department of Defense?

Assessing Zantech's past effectiveness requires examining their performance history on previous contracts. This includes reviewing contract close-out data, any documented performance issues or successes, and feedback from previous government clients. For contracts with the Department of Defense, specific metrics related to mission support, system uptime, security compliance, and user satisfaction would be relevant. A lack of significant negative performance indicators in their contract history would suggest a lower risk of future performance issues. Conversely, any documented failures or disputes could indicate a higher risk profile for this current contract.

What has been the historical spending trend for 'ANG Web-Tools and Cloud Support Services' or similar IT support categories within the Department of the Army?

Analyzing historical spending trends for similar IT support services within the Department of the Army provides context for the $16.7 million award. This involves examining expenditure data over several fiscal years for contracts related to web development, cloud services, and general IT support for the Air National Guard or similar units. Understanding whether spending in this category has been increasing, decreasing, or remaining stable can indicate evolving needs or shifts in technology adoption. Comparing the current contract's value against historical averages helps determine if this award represents a significant increase or a continuation of established spending patterns, potentially highlighting changes in requirements or market pricing.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9133L22R4000

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BLVD, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $16,762,200

Exercised Options: $16,762,200

Current Obligation: $16,762,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA132

IDV Type: IDC

Timeline