DoD's $52.4M Data Services Contract with Caelum Research Corporation faces scrutiny over cost and competition
Contract Overview
Contract Amount: $52,375,363 ($52.4M)
Contractor: Caelum Research Corporation
Awarding Agency: Department of Defense
Start Date: 2014-12-01
End Date: 2019-02-28
Contract Duration: 1,550 days
Daily Burn Rate: $33.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF DATA SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $52.4 million to CAELUM RESEARCH CORPORATION for work described as: IGF::OT::IGF DATA SERVICES Key points: 1. The contract awarded to Caelum Research Corporation for data services is substantial at $52.4 million. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract type (Cost Plus Fixed Fee) can pose risks if not managed tightly. 4. The sector is IT, specifically Computing Infrastructure Providers, Data Processing, and Hosting.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, while allowing flexibility, can lead to cost overruns if not closely monitored. Benchmarking against similar IT infrastructure contracts is difficult without detailed cost breakdowns, but the total value suggests a need for rigorous oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific parameters. This method aims for best value but the exclusion aspect warrants understanding.
Taxpayer Impact: The significant taxpayer investment of $52.4 million necessitates ensuring value for money and efficient service delivery.
Public Impact
Taxpayers are funding a large IT services contract for the Department of the Army. The contract's duration and cost raise questions about long-term IT infrastructure planning and efficiency. The specific services provided are critical for data processing and hosting, impacting military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Exclusion of sources in competition
Positive Signals
- Full and open competition utilized
- Long contract duration (1550 days)
Sector Analysis
This contract falls within the IT sector, specifically focusing on data processing and hosting services. Spending in this area is crucial for modern defense operations, with benchmarks varying widely based on service scope and scale.
Small Business Impact
Information on small business participation is not provided in the data. The contract was awarded to Caelum Research Corporation, and further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's duration and cost necessitate robust oversight from the Department of the Army to ensure performance, manage costs, and prevent waste, fraud, and abuse.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts.
- The 'exclusion of sources' aspect warrants further investigation to ensure fair competition.
- Lack of detailed cost breakdown makes independent value assessment difficult.
- Long contract duration may not reflect rapidly evolving IT needs.
Tags
computing-infrastructure-providers-data-, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.4 million to CAELUM RESEARCH CORPORATION. IGF::OT::IGF DATA SERVICES
Who is the contractor on this award?
The obligated recipient is CAELUM RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $52.4 million.
What is the period of performance?
Start: 2014-12-01. End: 2019-02-28.
What specific data services were provided under this contract, and how did they align with the Army's strategic IT goals?
The contract covered computing infrastructure, data processing, and web hosting. These services are fundamental for modern military operations, supporting data storage, analysis, and communication. Alignment with strategic goals would depend on the Army's specific modernization and cloud migration initiatives during the contract period.
What were the key factors leading to the exclusion of certain sources during the 'full and open competition' phase?
Exclusion of sources in a full and open competition typically occurs when specific technical capabilities, security clearances, or past performance are required that only a subset of potential offerors can meet. Understanding these criteria is crucial to assess if the exclusion was justified and did not unduly limit competition.
How was the 'fixed fee' component determined, and what mechanisms were in place to control costs within the 'cost plus' element?
The fixed fee is negotiated upfront and represents the contractor's profit. The 'cost plus' element covers allowable direct and indirect costs incurred by the contractor. Effective oversight would involve rigorous auditing of incurred costs, clear definitions of allowable expenses, and performance metrics tied to fee adjustments.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB12R0006
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 30 W GUDE DR STE 200, ROCKVILLE, MD, 20850
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $60,530,423
Exercised Options: $60,530,423
Current Obligation: $52,375,363
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-12-01
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 00:00:00
Last Modified: 2022-03-14
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