DoD awards $10.2M for IT support at Fort Novosel, with 14 bids received

Contract Overview

Contract Amount: $10,196,419 ($10.2M)

Contractor: Information Systems Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2029-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADMINISTRATION TELEPHONE SYSTEMS (ATS) AND INFORMATION TECHNOLOGY SYSTEMS (ITS) SUPPORT SERVICES AT FORT NOVOSEL, ALABAMA.

Place of Performance

Location: FORT NOVOSEL, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to INFORMATION SYSTEMS SOLUTIONS, INC. for work described as: ADMINISTRATION TELEPHONE SYSTEMS (ATS) AND INFORMATION TECHNOLOGY SYSTEMS (ITS) SUPPORT SERVICES AT FORT NOVOSEL, ALABAMA. Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Strong competition with 14 bidders suggests a healthy market for these services. 3. Potential risks include vendor lock-in if follow-on contracts are not competitively bid. 4. This contract supports critical IT infrastructure for Army operations at Fort Novosel. 5. The IT services sector is characterized by rapid technological change and high demand. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's total value of approximately $10.2 million over five years averages to about $2 million annually. This figure seems aligned with the cost of comprehensive IT support services for a military installation of Fort Novosel's size and operational tempo. Benchmarking against similar contracts for IT facilities management at other Army posts would provide a more precise value-for-money assessment, but initial indications suggest a fair price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded for specific reasons. With 14 bidders, the level of competition was robust, which typically drives down prices and encourages innovation. The exclusion of sources, however, warrants further investigation to ensure it did not unduly limit the competitive landscape or result in a less optimal outcome for the government.

Taxpayer Impact: The high number of bidders is positive for taxpayers, as it likely led to more competitive pricing. However, the 'exclusion of sources' aspect could mean that taxpayers did not benefit from the potentially lowest prices achievable if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Novosel, Alabama, who rely on stable and secure IT systems. Services delivered include computer facilities management, ensuring the functionality of critical IT infrastructure. The geographic impact is concentrated at Fort Novosel, Alabama, supporting its mission readiness. Workforce implications include the potential for direct employment by the contractor and indirect support for military and civilian staff reliant on IT.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future requirements are not re-competed broadly.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
The 'exclusion of sources' clause needs careful monitoring to ensure it doesn't become a pattern limiting competition.

Positive Signals

Robust competition with 14 bidders indicates a healthy market and potential for competitive pricing.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
Long-term contract provides stability for IT operations at Fort Novosel.

Sector Analysis

The IT services sector is a vast and dynamic market, with government contracts forming a significant portion. This contract falls under IT facilities management, a sub-sector focused on maintaining and operating computing infrastructure. The market size for government IT services is substantial, with agencies constantly seeking to modernize and secure their systems. This contract fits within the broader trend of outsourcing IT operations to specialized firms to ensure efficiency and access to expertise.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor may engage small businesses as subcontractors, which would need to be tracked through performance reporting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and technical teams at Fort Novosel. Accountability measures are embedded in the contract's performance work statement and delivery order terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army IT Support Services
Base Operations Support Contracts
Information Technology Facilities Management
Department of Defense IT Procurement
Fort Novosel Operations

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Reliance on contractor for critical IT infrastructure.
Cybersecurity risks inherent in IT support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to INFORMATION SYSTEMS SOLUTIONS, INC.. ADMINISTRATION TELEPHONE SYSTEMS (ATS) AND INFORMATION TECHNOLOGY SYSTEMS (ITS) SUPPORT SERVICES AT FORT NOVOSEL, ALABAMA.

Who is the contractor on this award?

The obligated recipient is INFORMATION SYSTEMS SOLUTIONS, 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 $10.2 million.

What is the period of performance?

Start: 2024-11-01. End: 2029-10-31.

What is the track record of Information Systems Solutions, Inc. with the Department of Defense?

Information Systems Solutions, Inc. (Information Systems Solutions, Inc.) has a history of performing IT services for the federal government, including the Department of Defense. Analyzing their past performance on similar contracts, particularly those involving military installations, is crucial. Key metrics to review would include on-time delivery, quality of service, adherence to budget, and any past performance issues or awards. A review of their contract history would reveal the types and scale of previous engagements, providing insight into their capacity and reliability for managing a contract of this magnitude and complexity at Fort Novosel.

How does the awarded price compare to market rates for similar IT support services?

The awarded value of $10.2 million over five years, averaging approximately $2 million annually, needs to be benchmarked against market rates for IT facilities management services at comparable military installations. Factors such as geographic location, specific service requirements (e.g., cybersecurity, network management, help desk support), and labor costs in Alabama would influence this comparison. While the presence of 14 bidders suggests competitive pricing, a detailed analysis comparing the proposed labor categories, hours, and overhead rates against industry benchmarks would confirm the value for money. Without specific market data, it's difficult to definitively state if the price is above or below market.

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

The primary risks include potential performance failures by the contractor, cybersecurity vulnerabilities within the IT systems managed, and the possibility of cost overruns if the Firm Fixed Price (FFP) structure is not adequately managed. Mitigations include the robust competition, which incentivizes good performance, and the FFP structure itself, which places cost risk on the contractor. The government's oversight, through contract administration and performance monitoring, is critical. Cybersecurity risks are typically addressed through specific contract clauses, security requirements, and regular audits. The 'exclusion of sources' aspect also presents a risk if it limits the pool of qualified vendors, potentially impacting future competition or innovation.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for IT services?

This contracting approach aims to balance the benefits of full and open competition with the need to potentially exclude specific sources for valid reasons, such as national security, past performance issues, or specific technological requirements. While it allows for a broad range of bidders, the exclusion clause can limit the competitive pool. Its effectiveness hinges on the justification for exclusion; if well-founded, it can ensure the selection of the most capable vendor while still fostering significant competition. If the exclusions are arbitrary or overly broad, it could stifle competition and potentially lead to higher costs or less optimal solutions for the government.

What is the historical spending trend for IT support services at Fort Novosel?

Analyzing historical spending data for IT support services at Fort Novosel prior to this award would provide context on cost trends and potential increases or decreases in expenditure. Understanding previous contract values, durations, and the number of bidders over time can reveal patterns in demand, pricing, and market dynamics. For instance, a significant increase in spending compared to previous periods might warrant closer scrutiny, while consistent spending could indicate stable operational needs and pricing. This historical perspective is vital for assessing whether the current $10.2 million award represents a reasonable escalation or a departure from established spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91RUS24RNOVO

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16305 PROMONTORY CT, ROCKVILLE, MD, 20853

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,596,156

Exercised Options: $26,830,461

Current Obligation: $10,196,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91RUS23D0025

IDV Type: IDC

Timeline