IT Infrastructure Services Contract Awarded to DV UNITED LLC for $28M Over 5 Years

Contract Overview

Contract Amount: $28,069,232 ($28.1M)

Contractor: DV United LLC

Awarding Agency: Department of the Interior

Start Date: 2018-01-19

End Date: 2023-10-15

Contract Duration: 2,095 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE SERVICES FOR THE INTERNATIONAL TRADE ADMINISTRATION (ITA)

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $28.1 million to DV UNITED LLC for work described as: IGF::CT::IGF INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE SERVICES FOR THE INTERNATIONAL TRADE ADMINISTRATION (ITA) Key points: 1. Contract value represents a significant investment in IT infrastructure for the International Trade Administration. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type may offer cost certainty but could limit flexibility for evolving IT needs. 4. Performance period spans over five years, indicating a long-term need for these services. 5. The services fall under Computer Systems Design, a critical area for government IT operations. 6. The awardee, DV UNITED LLC, is a key player in delivering these essential IT services.

Value Assessment

Rating: good

The contract's total value of approximately $28 million over five years for IT infrastructure services appears reasonable when benchmarked against similar government contracts for system design and integration. The firm fixed-price structure provides a predictable cost ceiling for the agency. However, a detailed analysis of the specific deliverables and service levels would be necessary to fully assess value for money and compare it against market rates for comparable IT support and design services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders can influence price discovery. A higher number of bids typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best value from the market, rather than being restricted to a limited pool of vendors.

Public Impact

The International Trade Administration (ITA) benefits from enhanced IT infrastructure, supporting its mission to promote international trade and investment. Services delivered include computer systems design, crucial for maintaining and upgrading the agency's technological backbone. The contract's impact is primarily within the District of Columbia, where the ITA is headquartered. The workforce implications include potential employment opportunities for IT professionals involved in system design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Risk of vendor lock-in if the chosen IT solutions are proprietary and difficult to transition away from.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides cost predictability for the agency.
Long performance period indicates a sustained need and potential for building a strong working relationship.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for government agencies is substantial, with significant spending allocated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks for IT infrastructure support and system design can vary widely based on the complexity and scope of services, but contracts in the tens of millions of dollars over several years are common for agencies of the ITA's size and operational needs.

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 small business set-aside. The primary focus remains on the prime contractor's ability to deliver the required IT services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the International Trade Administration. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

ITA IT Modernization Efforts
Federal Civilian Agency IT Infrastructure Support
Computer Systems Design and Integration Services
Information Technology Services for Federal Agencies

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.1 million to DV UNITED LLC. IGF::CT::IGF INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE SERVICES FOR THE INTERNATIONAL TRADE ADMINISTRATION (ITA)

Who is the contractor on this award?

The obligated recipient is DV UNITED LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2018-01-19. End: 2023-10-15.

What is the track record of DV UNITED LLC in performing similar IT infrastructure services for federal agencies?

Assessing the track record of DV UNITED LLC requires a review of their past performance on federal contracts, particularly those involving computer systems design and IT infrastructure support. Information on past performance can often be found in federal procurement databases like SAM.gov or through agency-specific performance evaluations. Key indicators to examine include on-time delivery, adherence to budget, quality of work, and any past disputes or contract terminations. A strong track record with similar agencies or for comparable services would increase confidence in their ability to successfully execute this contract. Without specific past performance data readily available in the provided snippet, further research into DV UNITED LLC's contract history is recommended.

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

To benchmark the awarded price of approximately $28 million over five years against market rates, one would need to compare it with similar contracts awarded to other vendors for comparable services. This involves analyzing the scope of work, service level agreements, and the specific technologies involved. Government databases and industry reports can provide data on average costs for IT system design, integration, and ongoing support. Factors such as the complexity of the ITA's systems, the geographic location of service delivery, and the specific expertise required will influence the market rate. A preliminary assessment suggests the price is within a typical range for a multi-year, comprehensive IT infrastructure contract, but a detailed comparison with specific market data is necessary for a definitive conclusion.

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

Primary risks associated with this contract include potential scope creep if requirements are not precisely defined and managed, the possibility of vendor lock-in with proprietary IT solutions, and performance issues arising from the contractor's execution. Mitigation strategies typically involve robust contract management, clear definition of deliverables and performance metrics, regular progress reviews, and contingency planning. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, shifting that risk to the contractor. However, ensuring the contractor has adequate resources and expertise to meet all performance obligations is crucial. The long-term nature of the contract also necessitates ongoing monitoring of the contractor's performance and financial stability.

How effective is the International Trade Administration's IT infrastructure likely to be with these new services?

The effectiveness of the ITA's IT infrastructure under this contract will largely depend on the quality of the computer systems design and implementation provided by DV UNITED LLC, as well as the clarity and completeness of the requirements defined by the ITA. If the services successfully modernize and optimize the agency's systems, it could lead to improved operational efficiency, enhanced data security, and better support for the ITA's mission objectives. The long-term performance period suggests an intent to build a robust and sustainable IT environment. Regular performance evaluations and user feedback will be critical indicators of the actual effectiveness achieved.

What has been the historical spending trend for IT infrastructure services at the International Trade Administration?

Analyzing historical spending trends for IT infrastructure services at the International Trade Administration (ITA) would provide context for the current $28 million contract. This would involve examining past contract awards for similar services, their values, durations, and the contractors involved. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate the agency's evolving IT needs and budget priorities. Significant year-over-year increases might suggest a push for modernization or expansion, while stable spending could indicate ongoing maintenance and incremental upgrades. Without specific historical data, it's difficult to ascertain the trend, but this contract represents a substantial, multi-year investment.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0418Q0068

Offers Received: 2

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: $38,351,828

Exercised Options: $38,351,828

Current Obligation: $28,069,232

Actual Outlays: $26,690,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200193W

IDV Type: GWAC

Timeline