DV UNITED LLC awarded $898,765 for IT Management as a Service, with a 546-day duration

Contract Overview

Contract Amount: $8,987,654 ($9.0M)

Contractor: DV United LLC

Awarding Agency: Department of Commerce

Start Date: 2023-09-18

End Date: 2025-03-17

Contract Duration: 546 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT AND TELECOM - IT MANAGEMENT AS A SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $9.0 million to DV UNITED LLC for work described as: IT AND TELECOM - IT MANAGEMENT AS A SERVICE Key points: 1. The contract value of $898,765 for IT Management as a Service appears reasonable given the 546-day performance period. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy, potentially balancing broad market access with specific needs. 3. The firm fixed-price contract type indicates that DV UNITED LLC bears the primary financial risk, which can incentivize cost control. 4. Performance is scheduled to conclude in March 2025, providing a clear timeline for service delivery and evaluation. 5. The contract falls under Computer Systems Design Services, a common category for IT management support within federal agencies. 6. The award to DV UNITED LLC represents a specific investment in IT management capabilities for the Department of Commerce's Office of the Secretary.

Value Assessment

Rating: good

The contract value of approximately $898,765 over 546 days translates to roughly $1,646 per day. Benchmarking this against similar IT management as a service contracts is challenging without more specific service details. However, the firm fixed-price structure suggests that the government has secured a defined scope of work at a set cost, which is generally a positive indicator for value. The absence of extensive modifications or change orders, if that pattern holds, would further support a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was initially broad, certain sources were excluded before the final award. The exact reasons for exclusion are not detailed but could relate to specific technical requirements, past performance, or other pre-qualification criteria. The number of bidders is not specified, but this method aims to ensure fair competition while allowing for targeted selection.

Taxpayer Impact: This competition level suggests that taxpayers benefit from a process that, while potentially more targeted than pure full and open, still aims to achieve competitive pricing by considering multiple qualified vendors.

Public Impact

The primary beneficiaries are the Department of Commerce's Office of the Secretary, which will receive enhanced IT management services. Services delivered are expected to include computer systems design and IT management, crucial for the agency's operational efficiency. The geographic impact is centered in the District of Columbia, where the Office of the Secretary is located. Workforce implications may include the utilization of DV UNITED LLC's personnel to supplement or manage IT functions, potentially impacting internal IT staffing needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the excluded sources were highly specialized.
Risk of scope creep if the 'exclusion of sources' criteria were not precisely defined.
Dependence on DV UNITED LLC's performance for critical IT functions.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Clear performance period (546 days) allows for structured evaluation.
Competition, even with exclusions, should drive a reasonable price.

Sector Analysis

The IT Management as a Service sector is a critical component of the broader IT and Telecommunications industry. Federal spending in this area supports agencies' digital transformation efforts, cybersecurity, and operational continuity. The market is characterized by a mix of large system integrators and specialized service providers. Comparable spending benchmarks vary widely based on the scope and complexity of services, but contracts in the high hundreds of thousands to millions of dollars for multi-year engagements are common for IT management support.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless DV UNITED LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring DV UNITED LLC to deliver specified services within the agreed budget and timeframe. Transparency is facilitated by the contract's public availability, allowing for scrutiny. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Management Services
Computer Systems Design Services
Cloud Computing Services
IT Consulting Services
Managed Services

Risk Flags

Competition Method Specificity
Performance Metrics Unclear
Contractor Past Performance Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $9.0 million to DV UNITED LLC. IT AND TELECOM - IT MANAGEMENT AS A SERVICE

Who is the contractor on this award?

The obligated recipient is DV UNITED LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2023-09-18. End: 2025-03-17.

What is the specific nature of the 'IT Management as a Service' being provided by DV UNITED LLC?

The provided data indicates the contract falls under NAICS code 541512, 'Computer Systems Design Services.' While the contract title is 'IT AND TELECOM - IT MANAGEMENT AS A SERVICE,' the specific deliverables are not detailed. Typically, 'IT Management as a Service' can encompass a wide range of functions, including IT strategy development, infrastructure management, cybersecurity oversight, help desk support, network administration, and application management. The firm fixed-price nature suggests a defined scope, but further details on the Statement of Work (SOW) would be necessary to fully understand the services rendered and their alignment with the agency's needs.

How does the daily rate of approximately $1,646 compare to market benchmarks for similar IT management services?

A daily rate of approximately $1,646 for IT Management as a Service is within a plausible range, but a definitive benchmark requires more granular data. Factors influencing this rate include the specific skill sets required (e.g., cybersecurity experts, network architects), the level of responsibility, and the geographic location of service delivery. For instance, highly specialized roles or services requiring on-site presence in high-cost areas like Washington D.C. would command higher rates. Without knowing the exact mix of services and personnel provided by DV UNITED LLC, comparing it to industry averages for generic IT support or basic help desk functions would be misleading. However, compared to high-end IT consulting engagements, this rate might be considered moderate.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' method used for this award?

The 'Full and Open Competition After Exclusion of Sources' method, while intended to ensure a competitive process, carries potential risks. The primary risk lies in the justification and transparency of the 'exclusion' criteria. If the criteria are overly narrow or subjective, it could inadvertently limit competition to a pre-selected group of vendors, potentially reducing the pool of qualified bidders and impacting price discovery. There's also a risk that innovative solutions from excluded vendors might not be considered. For taxpayers, this could mean a less competitive price than what might have been achieved through a truly unrestricted full and open competition, depending on the rationale and execution of the exclusion process.

What is DV UNITED LLC's track record with federal contracts, particularly in IT management services?

Information regarding DV UNITED LLC's specific track record with federal contracts, especially in IT management services, is not provided in the initial data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported issues or disputes, and the types and values of previous awards. Understanding their experience with similar scope, complexity, and agency requirements is crucial for evaluating their capability to successfully execute this current contract. Without this historical data, assessing their reliability and past performance is speculative.

How does this contract's value and duration compare to other IT management contracts awarded by the Department of Commerce?

Comparing this $898,765 contract over 546 days to other Department of Commerce IT management contracts requires access to historical spending data for the agency. The value is substantial but not exceptionally large, suggesting it covers a significant but perhaps not agency-wide IT management function. The duration is typical for a service contract of this nature. To provide a meaningful comparison, one would need to analyze the average contract value, duration, and scope for similar IT management services procured by the Department of Commerce over the past several fiscal years. This would help determine if DV UNITED LLC's award is within the expected range for the services provided.

What are the key performance indicators (KPIs) used to measure the success of this IT management service contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for an 'IT Management as a Service' contract, typical KPIs often include system uptime and availability, response times for service requests and incident resolution, cybersecurity compliance rates, project completion timelines, and user satisfaction scores. The firm fixed-price nature implies that DV UNITED LLC is incentivized to meet these performance standards to ensure full payment. The contracting officer and relevant program managers would be responsible for monitoring these KPIs throughout the contract's duration.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7343 WAVERLY DR, WARRENTON, VA, 20186

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,987,654

Exercised Options: $8,987,654

Current Obligation: $8,987,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200193W

IDV Type: GWAC

Timeline