DoD Awards $23.5M for IT Support to SUNTIVA LLC, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $23,524,495 ($23.5M)
Contractor: Suntiva LLC
Awarding Agency: Department of Defense
Start Date: 2017-09-01
End Date: 2022-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF PD2 AND SPS SYSTEMS SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $23.5 million to SUNTIVA LLC for work described as: IGF::OT::IGF PD2 AND SPS SYSTEMS SUPPORT Key points: 1. Significant contract value of $23.5M for IT support services. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants scrutiny. 3. Risk of inflated pricing due to limited competition and potential lack of robust price discovery. 4. IT services sector is prone to rapid technological change, impacting long-term value.
Value Assessment
Rating: questionable
The contract value of $23.5M for 'Other Computer Related Services' appears high without clear benchmarks. The pricing assessment is difficult without detailed cost breakdowns, but the competition method raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method can restrict the pool of bidders and potentially lead to less competitive pricing, impacting price discovery.
Taxpayer Impact: Taxpayer funds may be at risk of being spent inefficiently due to the limited competitive environment, potentially leading to higher costs than a fully open competition.
Public Impact
Citizens expect efficient use of taxpayer dollars, and this contract's competitive structure raises concerns. The Department of Defense relies on IT services, making the cost-effectiveness of such contracts crucial for operational readiness. Transparency in government contracting is vital for public trust, and the details of this award require further examination.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Lack of clear value proposition.
- Potential for vendor lock-in.
- Oversight needed on service delivery.
Positive Signals
- Contract awarded to a single entity.
- Definitive contract structure provides some flexibility.
- Fixed price contract can control costs if well-defined.
Sector Analysis
The IT services sector is dynamic, with constant technological advancements. Benchmarking spending requires comparing similar 'Other Computer Related Services' contracts, considering the specific nature of PD2 and SPS systems support.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Analysis of small business participation is not possible from the provided data.
Oversight & Accountability
Oversight of this contract should focus on ensuring SUNTIVA LLC delivers services as specified and that the pricing remains competitive throughout the contract's duration. Accountability for performance and cost management is essential.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of detailed service description hinders value assessment.
- Potential for cost overruns if scope is not tightly managed.
- Dependency on a single vendor for critical IT systems.
- Need for robust performance monitoring.
Tags
other-computer-related-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to SUNTIVA LLC. IGF::OT::IGF PD2 AND SPS SYSTEMS SUPPORT
Who is the contractor on this award?
The obligated recipient is SUNTIVA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2017-09-01. End: 2022-08-31.
What specific services are included under 'PD2 AND SPS SYSTEMS SUPPORT' to justify the $23.5M cost?
The provided data lacks specifics on the 'PD2 AND SPS SYSTEMS SUPPORT.' A detailed breakdown of services, including software development, maintenance, system integration, and technical support, is necessary to assess the value proposition and justify the significant expenditure. Without this, it's difficult to determine if the cost aligns with industry standards for comparable IT support contracts.
How did the 'exclusion of sources' in the competition process impact the final contract price?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open, certain sources were excluded. This exclusion could limit the number of potential bidders, potentially reducing competitive pressure and leading to a higher final price than if all qualified sources were allowed to compete. Further investigation into the reasons for exclusion is warranted.
What metrics are in place to measure the effectiveness and efficiency of SUNTIVA LLC's IT support services?
Effectiveness and efficiency are critical for IT support contracts. Key performance indicators (KPIs) related to system uptime, response times for issue resolution, user satisfaction, and successful implementation of system updates should be established and monitored. Regular performance reviews and audits are necessary to ensure the contractor is meeting objectives and delivering value for taxpayer money.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB17R0019
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7600 LEESBURG PIKE STE 440E, FALLS CHURCH, VA, 22043
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,831,265
Exercised Options: $23,831,265
Current Obligation: $23,524,495
Actual Outlays: $11,901
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-01
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 00:00:00
Last Modified: 2023-03-30
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