Army IT Support Contract Awarded to Caelum Research Corporation for $8.9 Million

Contract Overview

Contract Amount: $8,911,119 ($8.9M)

Contractor: Caelum Research Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $24.5K/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) FOR 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 $8.9 million to CAELUM RESEARCH CORPORATION for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) FOR ARMY TEST AND EVALUATION COMMAND (ATEC). Key points: 1. Value for money assessed against market benchmarks for IT support services. 2. Competition dynamics indicate a full and open competition after exclusion of sources. 3. Risk indicators include contract type (Time and Materials) and potential for cost overruns. 4. Performance context is IT support for Army Test and Evaluation Command (ATEC). 5. Sector positioning within IT services for defense agencies. 6. The contract duration is one year, with a potential for renewal. 7. The award amount is $8.9 million, covering a 12-month period.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure presents a moderate risk for cost control compared to fixed-price contracts. Benchmarking against similar IT support contracts for defense agencies suggests that the overall value is within a reasonable range, but the T&M nature requires diligent oversight to ensure efficient resource utilization. The specific services provided, such as computing infrastructure and data processing, are standard, but the final cost will depend heavily on the actual hours and materials consumed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific sources were excluded, potentially limiting the number of bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing than a truly unrestricted full and open competition. Further analysis would be needed to understand the impact of the excluded sources on the final price.

Taxpayer Impact: The exclusion of certain sources, even within a broader competitive framework, may have limited the potential for the most aggressive pricing, potentially resulting in a slightly higher cost to taxpayers than if all potential bidders were considered.

Public Impact

The primary beneficiary is the Department of the Army, specifically the Army Test and Evaluation Command (ATEC), which will receive essential IT support. Services delivered include computing infrastructure, data processing, and web hosting, crucial for ATEC's testing and evaluation operations. The geographic impact is likely concentrated around ATEC's operational locations, primarily in Maryland. Workforce implications may include the direct employment of personnel by Caelum Research Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely managed.
Limited competition due to exclusion of sources could impact price competitiveness.
Potential for scope creep in IT support services if requirements are not clearly defined and managed.

Positive Signals

Awarded to a single contractor, potentially streamlining management and communication.
Contract supports critical Army testing and evaluation functions.
One-year base period allows for performance evaluation before potential extensions.

Sector Analysis

The IT services sector for defense agencies is a significant market. This contract falls under the broader category of IT infrastructure and support, which includes computing, data processing, and hosting. Spending in this area is consistently high across federal agencies, with significant portions allocated to maintaining and upgrading existing systems and providing operational support. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and complexity of the IT environment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contract, Caelum Research Corporation may choose to subcontract portions of the work to small businesses, which could provide opportunities within the small business ecosystem. The extent of such subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and technical points of contact. Accountability measures will be tied to the performance standards outlined in the contract and the delivery of IT support services. Transparency is facilitated through contract award databases, though detailed performance metrics are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army IT Services Contracts
Department of Defense IT Modernization Programs
Information Technology Support Services
Cloud Computing Services for Government
Data Center Operations Support

Risk Flags

Time and Materials Pricing
Limited Competition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to CAELUM RESEARCH CORPORATION. INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) FOR 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 $8.9 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

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. While specific details on their IT support service performance for the Army Test and Evaluation Command (ATEC) are not provided in this data snippet, their past performance on similar contracts would be a key factor in the award decision. A review of their contract history would reveal the types of services rendered, contract values, and performance ratings on previous engagements. Agencies typically assess past performance to gauge a contractor's ability to meet requirements, manage resources, and deliver quality services. Without access to detailed performance reports or a comprehensive contract database, a definitive assessment of their track record is limited to the fact that they have secured this new award, suggesting satisfactory past performance.

How does the $8.9 million contract value compare to similar IT support contracts for defense agencies?

The $8.9 million contract value for one year of IT support services for ATEC is within the typical range for such contracts within the Department of Defense. Defense agencies often require extensive IT infrastructure and support, leading to contracts that can vary significantly based on the scope of services, number of users, and complexity of the systems. For a command like ATEC, which is critical for testing and evaluation, robust IT support is essential. While this figure is substantial, it is not exceptionally high when compared to larger, multi-year IT modernization or enterprise-wide support contracts that can run into hundreds of millions of dollars. Benchmarking against contracts for similar-sized commands or specific IT functions (e.g., network management, cybersecurity support) would provide a more precise comparison, but $8.9 million for a year of comprehensive IT support is generally considered a moderate investment in this sector.

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

The primary risk associated with a Time and Materials (T&M) contract for IT support 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. This structure can incentivize longer task durations or the use of more resources than strictly necessary if not managed diligently. For the government, this means that the final cost is not predetermined and can exceed initial estimates. Effective oversight, including detailed tracking of labor hours, material receipts, and regular performance reviews, is crucial to mitigate these risks. Without strong government oversight, T&M contracts can become significantly more expensive than anticipated, impacting the overall value for money.

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

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing is variable and depends heavily on the rationale and scope of the exclusions. This method aims to achieve broad competition while allowing the agency to exclude specific sources for defined reasons (e.g., national security, prior performance issues, or specific technical requirements that only certain vendors can meet). If the exclusions are narrow and well-justified, it can still foster significant competition among the remaining eligible bidders, leading to competitive pricing. However, if the exclusions are broad or perceived as arbitrary, it can limit the pool of potential bidders, potentially reducing the competitive pressure and leading to higher prices than a truly unrestricted competition. The key is whether the excluded sources represent a significant portion of the market capable of meeting the requirement.

What are the implications of this contract for the Army Test and Evaluation Command's operational capabilities?

This contract is critical for maintaining and enhancing the operational capabilities of the Army Test and Evaluation Command (ATEC). Reliable and efficient IT infrastructure and support are fundamental to ATEC's mission, which involves complex testing and evaluation of military systems. By ensuring the provision of computing infrastructure, data processing, and web hosting services, this contract directly supports ATEC's ability to conduct its operations without interruption. It enables the secure storage and analysis of vast amounts of data generated during testing, facilitates communication and collaboration among personnel, and supports the deployment of necessary software and systems. The effectiveness of this IT support directly correlates with ATEC's overall readiness and its capacity to fulfill its vital role in the Army's modernization and acquisition processes.

What is the historical spending pattern for IT support services within the Department of the Army?

The Department of the Army historically exhibits substantial and consistent spending on IT support services, reflecting the critical role technology plays in modern military operations. This spending encompasses a wide array of services, including network infrastructure management, cybersecurity, software development and maintenance, data center operations, and end-user support. Annual IT spending for the Army typically runs into billions of dollars, driven by the need to maintain legacy systems, modernize infrastructure, and adopt new technologies to maintain a strategic advantage. Contracts for IT support services are diverse, ranging from large enterprise-wide agreements to smaller, specialized task orders like the one awarded to Caelum Research Corporation. Factors influencing historical spending include evolving threats, technological advancements, and strategic priorities for modernization and readiness.

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

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: $17,721,668

Exercised Options: $17,721,668

Current Obligation: $8,911,119

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB22D0002

IDV Type: IDC

Timeline