DoD's $42.3M IT services contract with Advantaged Solutions, LLC, awarded via competitive bidding

Contract Overview

Contract Amount: $42,257,589 ($42.3M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2015-03-30

End Date: 2020-03-26

Contract Duration: 1,823 days

Daily Burn Rate: $23.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to ADVANTAGED SOLUTIONS, LLC for work described as: IGF::OT::IGF Key points: 1. The contract's value of $42.3 million over its 5-year duration suggests a significant investment in IT services. 2. Awarded through a competitive process, the contract indicates potential for good value, though specific performance metrics are needed for full assessment. 3. The fixed-price contract type generally transfers risk to the contractor, which can be beneficial for the government if managed effectively. 4. The contract's duration of 1823 days (approx. 5 years) is substantial, implying a long-term need for the services provided. 5. The North American Industry Classification System (NAICS) code 541519 for Other Computer Related Services covers a broad range of IT support. 6. The contract was awarded to a single entity, Advantaged Solutions, LLC, highlighting the importance of their specific capabilities. 7. The contract was awarded under Simplified Acquisition Procedures (SAP), suggesting it was considered a smaller procurement within the DoD's overall spending.

Value Assessment

Rating: good

The total contract value of $42.3 million over approximately five years averages to about $8.46 million annually. Without specific benchmarks for 'Other Computer Related Services' within the Department of Defense, it's challenging to definitively assess value for money. However, the fact that it was competed suggests that pricing was likely evaluated against market rates. The firm fixed-price nature of the contract is generally favorable for cost control, provided the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than micro-purchases but is less formal than full and open competition for larger contracts. The data indicates 5 bids were received, suggesting a reasonable level of competition for this type of procurement. The competitive nature likely contributed to price discovery and ensured the government received offers from multiple vendors.

Taxpayer Impact: The competitive bidding process for this contract helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging multiple vendors to offer their best terms.

Public Impact

The primary beneficiaries are likely Department of Defense components requiring 'Other Computer Related Services', ensuring operational continuity and technological support. Services delivered under this contract would support various IT functions, potentially including system maintenance, network support, software development, or IT consulting. The geographic impact is centered around the District of Columbia (DC), where the contractor is located, and potentially any DoD facilities that utilize these services. Workforce implications include the direct employment of IT professionals by Advantaged Solutions, LLC, and potentially indirect employment within the DoD's IT infrastructure teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'Other Computer Related Services' is not precisely defined, leading to cost overruns.
Dependence on a single contractor for critical IT services could pose a risk if performance degrades or the contractor faces financial instability.
The duration of the contract (nearly 5 years) means that technological advancements might outpace the services provided if not managed proactively.

Positive Signals

The contract was competed, indicating a selection based on merit and price, which is a positive signal for value.
The firm fixed-price contract type generally provides cost certainty for the government.
The award to Advantaged Solutions, LLC, suggests they possess the necessary qualifications and capabilities to meet the DoD's IT service needs.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from basic infrastructure support to advanced cybersecurity and software development. The 'Other Computer Related Services' category (NAICS 541519) is broad and can include consulting, integration, and support services. Government spending in this area is consistently high, driven by the need to maintain aging systems, modernize infrastructure, and adapt to evolving technological landscapes. This contract represents a portion of the Department of Defense's significant investment in maintaining its IT capabilities.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the contract was competed under Simplified Acquisition Procedures (SAP), which can sometimes include small business considerations, there's no explicit indication of a small business set-aside. This means larger businesses were likely eligible and potentially competed. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Advantaged Solutions, LLC, but are not mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for monitoring performance, cost, and compliance. The Department of Defense's Inspector General (IG) also has jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, which provide basic details of the contract. However, detailed performance reports and specific oversight activities are often not publicly available.

Related Government Programs

Defense IT Modernization Programs
DoD Enterprise IT Services
IT Support Services Contracts
Computer Systems Design Services
Federal IT Consulting Contracts

Risk Flags

Contract Duration
Scope Definition
Technological Obsolescence Risk
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to ADVANTAGED SOLUTIONS, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ADVANTAGED SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2015-03-30. End: 2020-03-26.

What is the track record of Advantaged Solutions, LLC with federal contracts, particularly within the Department of Defense?

Advantaged Solutions, LLC has been awarded federal contracts, including this significant $42.3 million IT services contract with the Department of Defense. Further analysis of their contract history would reveal the types of services they have provided, their performance ratings (if available), and their success rate in competitive bidding. Understanding their past performance, especially with similar agencies or contract types, is crucial for assessing their reliability and capability in fulfilling current and future obligations. A review of their award data might also indicate if they have a history of cost overruns or performance issues on other contracts, which could serve as a risk indicator.

How does the per-unit cost or hourly rate for the services provided under this contract compare to market benchmarks for similar IT services?

Determining the precise per-unit cost or hourly rate requires a breakdown of the services rendered and the pricing structure within the $42.3 million contract. Without this granular data, direct comparison to market benchmarks is difficult. However, since the contract was competed under SAP with 5 bids received, it suggests that the pricing was subject to competitive pressure. To perform a thorough benchmark, one would need to identify the specific IT services (e.g., network administration, software development, cybersecurity consulting) and compare the contractor's proposed rates against industry standards for those specific services in the Washington D.C. metropolitan area, considering the contract's duration and scope.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of Advantaged Solutions, LLC's IT services under this contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. Typically, for IT services contracts, KPIs would focus on metrics such as system uptime, response times for technical support, project completion rates, cybersecurity incident response times, and user satisfaction. The effectiveness of Advantaged Solutions, LLC would be measured against these predefined metrics, often outlined in the Performance Work Statement (PWS). Regular performance reviews by the contracting officer's representative (COR) would assess adherence to these KPIs, influencing future contract decisions and potential award term extensions.

What is the historical spending pattern for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense, and how does this contract compare?

The Department of Defense is a major consumer of IT services, with substantial annual spending across various NAICS codes, including 541519. Historical spending data from sources like the Federal Procurement Data System (FPDS) would show that the DoD consistently awards billions of dollars annually for IT-related services. This $42.3 million contract, awarded over approximately five years, represents a moderate-sized investment within the DoD's overall IT budget. To contextualize it further, one would compare its value against the total annual spending on NAICS 541519 by the DoD and other defense agencies to understand if it's a typical, large, or small award relative to the agency's historical procurement patterns in this service category.

What are the potential risks associated with a 5-year firm fixed-price contract for IT services, and what mitigation strategies are in place?

A significant risk with a long-term (5-year) firm fixed-price IT services contract is the potential for technological obsolescence or the contractor's inability to adapt to evolving requirements within the agreed price. If the scope is not meticulously defined, scope creep can occur, leading to cost overruns for the contractor or reduced quality if they try to cut corners. Mitigation strategies include robust contract management, clear definition of services and deliverables, regular performance reviews, and potentially incorporating mechanisms for change orders or contract modifications if requirements evolve significantly. The government also mitigates risk by ensuring the contractor has a strong financial standing and technical capability.

How does the competition level (5 bids) for this contract influence the pricing and potential for innovation compared to sole-source or limited competition awards?

Receiving 5 bids for this contract, especially under Simplified Acquisition Procedures, suggests a healthy level of competition. This generally leads to more competitive pricing as vendors strive to offer their best value propositions to win the award. A competitive environment also encourages vendors to propose innovative solutions to differentiate themselves. Compared to a sole-source award, where pricing might be less scrutinized and innovation driven solely by the contractor's initiative, this competed contract offers better assurance of fair pricing and potentially a wider array of technical approaches. The competition level directly benefits taxpayers by ensuring funds are used more efficiently.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1455 PENNSYLVANIA AVE NW STE 800, WASHINGTON, DC, 20004

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,257,589

Exercised Options: $42,257,589

Current Obligation: $42,257,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470111A0171

IDV Type: BPA

Timeline