Army's $12.1M IT Services Contract Awarded to Caelum Research Corp. for Test and Evaluation Command

Contract Overview

Contract Amount: $12,128,128 ($12.1M)

Contractor: Caelum Research Corporation

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2025-12-31

Contract Duration: 305 days

Daily Burn Rate: $39.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) TASK ORDER FOR U.S. ARMY TEST AND EVALUATION COMMAND (ATEC)

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to CAELUM RESEARCH CORPORATION for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) TASK ORDER FOR U.S. ARMY TEST AND EVALUATION COMMAND (ATEC) Key points: 1. Contract aims to provide essential IT support services to the Army Test and Evaluation Command. 2. The contract utilizes a Time and Materials pricing structure, which can pose cost control challenges. 3. Awarded under full and open competition, suggesting a potentially competitive bidding process. 4. The duration of the contract is approximately 10 months, indicating a focused period of service. 5. This award falls within the broader category of IT infrastructure and data processing services. 6. The contractor, Caelum Research Corporation, will be responsible for critical computing and hosting needs.

Value Assessment

Rating: fair

The contract's value of $12.1 million for a 10-month period for IT support services appears within a reasonable range for specialized government IT needs. However, the Time and Materials (T&M) pricing model warrants careful monitoring. T&M contracts can sometimes lead to higher costs if not managed diligently, as they reimburse actual labor hours and material costs. Benchmarking against similar IT support contracts for Department of Defense entities of comparable scope and duration would be necessary for a more definitive value assessment. Without specific performance metrics or detailed cost breakdowns, it's difficult to definitively assess the value for money.

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,' which indicates that the solicitation was made available to all responsible sources, but specific exclusions were applied. While this suggests a competitive process, the 'after exclusion of sources' clause implies that certain potential bidders were not considered. The number of bidders is not specified, but the full and open nature generally promotes price discovery and allows for a wider range of potential solutions to be considered, which can be beneficial for the government.

Taxpayer Impact: The full and open competition, even with exclusions, aims to ensure that the government receives competitive pricing and the best available services. This approach helps taxpayers by fostering an environment where multiple companies vie for the contract, potentially driving down costs and improving service quality.

Public Impact

The U.S. Army Test and Evaluation Command (ATEC) will benefit from enhanced IT infrastructure and support services. Services delivered will likely include computing infrastructure, data processing, and web hosting, crucial for ATEC's mission. The geographic impact is primarily focused on the locations where ATEC operates, supporting its testing and evaluation activities. Workforce implications may include the need for specialized IT personnel to manage and maintain the systems under this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model can lead to cost overruns if not closely managed.
The 'exclusion of sources' in the competition could limit the pool of potential bidders and potentially impact price competitiveness.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's potential performance risks.
The contract duration is relatively short (10 months), which might lead to transition costs or continuity concerns if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a structured and potentially fair bidding process.
The contractor, Caelum Research Corporation, is likely experienced in providing IT services to the federal government.
The contract addresses critical IT support needs for a vital Army command, ensuring operational continuity.
The contract is for a defined period, allowing for reassessment of needs and contractor performance at its conclusion.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services, computing infrastructure, data processing, and web hosting. The North American Industry Classification System (NAICS) code 518210, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' categorizes this spending. The federal government is a significant consumer of such services, with substantial annual spending across various agencies to maintain and upgrade its IT capabilities. This contract represents a portion of the Department of the Army's investment in ensuring robust IT operations for its test and evaluation functions.

Small Business Impact

The provided 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 impacts on the small business ecosystem stemming from a set-aside requirement. However, as a large contract awarded through full and open competition, it is possible that Caelum Research Corporation may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not mandated by the award details.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Test and Evaluation Command (ATEC) through its contracting officer and contract specialists. Accountability measures will be tied to the performance work statement and the terms of the Time and Materials contract, requiring detailed reporting of hours and costs. Transparency is generally facilitated through federal contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Support Services
Department of Defense IT Modernization
Army Command and Control Systems
Test and Evaluation Infrastructure
Cloud Computing Services for Government

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition if 'exclusion of sources' significantly reduces bidder pool.
Need for strong government oversight to manage T&M contract effectively.
Contract duration is relatively short, potentially impacting long-term planning or transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to CAELUM RESEARCH CORPORATION. INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) TASK ORDER FOR U.S. ARMY TEST AND EVALUATION COMMAND (ATEC)

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 $12.1 million.

What is the period of performance?

Start: 2025-03-01. End: 2025-12-31.

What is Caelum Research Corporation's track record with the Department of Defense, particularly in IT support services?

Caelum Research Corporation has a history of performing contracts with the Department of Defense (DoD). While specific details on their IT support service performance for the DoD are not fully elaborated in the provided data, their selection for this $12.1 million task order suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations, client feedback, and any documented issues or successes on similar IT service contracts within the DoD, would provide a more comprehensive understanding of their reliability and capability. Reviewing their performance on previous Army or other DoD contracts would be crucial for assessing their suitability for this current requirement.

How does the $12.1 million value compare to similar IT support contracts for Army test and evaluation commands?

The $12.1 million value for approximately 10 months of IT support services for the Army Test and Evaluation Command (ATEC) needs to be benchmarked against comparable contracts. Without access to a database of similar ATEC or other Army test command IT support contracts, a precise comparison is difficult. However, for specialized IT infrastructure and support services within the federal government, this value is not unusually high, especially considering the critical nature of ATEC's mission. Factors such as the scope of services (computing infrastructure, data processing, web hosting), the number of users supported, and the specific technical requirements would influence the cost. A comprehensive analysis would involve identifying contracts with similar NAICS codes (518210) and service scopes awarded to entities of comparable size and complexity within the DoD.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support services?

The primary risk associated with a Time and Materials (T&M) contract for IT support services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or profit margin. If the scope of work is not well-defined, or if project management is weak on either the government or contractor side, the number of hours and the cost of materials can escalate beyond initial estimates. This lack of a ceiling on direct costs makes it imperative for the government to exercise stringent oversight, closely monitor labor hours, scrutinize material costs, and ensure that the work performed is necessary and efficient. Without robust oversight, T&M contracts can become significantly more expensive than anticipated.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing for IT services?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing for IT services is nuanced. 'Full and Open Competition' is the preferred method, aiming to maximize the number of potential bidders and thus drive down prices through robust competition. However, the 'after exclusion of sources' clause indicates that certain potential offerors were deliberately excluded from the competition. The reasons for exclusion could range from security concerns to specific capability requirements not met by all. If the exclusions significantly narrow the field of qualified bidders, the competitive pressure might be reduced compared to a truly unrestricted full and open competition. The effectiveness, therefore, depends on the justification for the exclusions and the remaining number and competitiveness of the bidders.

What are the historical spending patterns for IT support services within the Department of the Army?

Historical spending patterns for IT support services within the Department of the Army are substantial and have generally trended upwards over the years, reflecting the increasing reliance on technology for military operations, logistics, intelligence, and administrative functions. The Army procures a wide array of IT services, including network management, cybersecurity, software development, data center operations, and end-user support, similar to what Caelum Research Corporation will provide. Spending is often concentrated in large, multi-year contracts awarded through various competition methods. Analyzing historical data would reveal trends in contract types (e.g., T&M vs. fixed-price), key service providers, and the allocation of funds across different IT sub-categories. This specific $12.1 million award is a component of this larger, ongoing investment in Army IT infrastructure.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB21R0017

Pricing Type: TIME AND MATERIALS (Y)

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $15,831,171

Exercised Options: $15,831,171

Current Obligation: $12,128,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB22D0002

IDV Type: IDC

Timeline