NAVY awards $9.2M contract for DevSecOps services to OTEEMO INC, highlighting IT modernization efforts

Contract Overview

Contract Amount: $9,204,962 ($9.2M)

Contractor: Oteemo Inc

Awarding Agency: General Services Administration

Start Date: 2024-05-20

End Date: 2026-05-19

Contract Duration: 729 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SKICAMP DEVSECOPS SBIR III TO3 PEO IWS X NAVY FORGE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $9.2 million to OTEEMO INC for work described as: SKICAMP DEVSECOPS SBIR III TO3 PEO IWS X NAVY FORGE Key points: 1. Contract focuses on critical DevSecOps capabilities, essential for modern software development and deployment. 2. The award to OTEEMO INC suggests a need for specialized IT services within the Navy's PEO IWS X. 3. Limited competition may indicate a need for specific expertise or a pre-existing relationship. 4. The contract duration of approximately two years allows for sustained support and development. 5. Performance is expected in Virginia, aligning with significant defense and federal IT hubs. 6. The use of labor hours pricing offers flexibility but requires diligent oversight to manage costs.

Value Assessment

Rating: fair

Benchmarking the value of this $9.2 million contract is challenging without specific deliverables or performance metrics. However, the labor hours pricing structure (PT: LABOR HOURS) can lead to cost overruns if not managed effectively. Comparing it to similar DevSecOps contracts would require detailed scope analysis, but the overall dollar amount is moderate for specialized IT services within a large defense agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION) designation, suggesting it was likely a sole-source or limited competition award. This could be due to the specialized nature of the DevSecOps services required, the need for continuity with a specific vendor, or a specific program requirement that restricts broader competition. The limited competition may result in less price pressure compared to a full and open solicitation.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the limited nature of the competition. This could translate to higher costs for the services rendered.

Public Impact

The primary beneficiaries are the Navy's Program Executive Office for Integrated Warfare Systems (PEO IWS X), receiving enhanced DevSecOps capabilities. Services delivered are expected to improve software development lifecycle, security, and deployment efficiency for critical Navy systems. The geographic impact is concentrated in Virginia, a key area for defense operations and federal IT contracting. Workforce implications may include the direct employment of IT professionals by OTEEMO INC and potential upskilling of existing Navy personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to labor hours pricing without clear performance benchmarks.
Limited competition may prevent the government from securing the best possible price.
Scope creep could be a risk if not tightly managed under a labor-hour contract.
Dependence on a single vendor for critical DevSecOps functions could pose long-term risks.

Positive Signals

Focus on DevSecOps aligns with modernizing Navy IT infrastructure and security practices.
The contract duration allows for sustained support and integration of services.
Awarding to a specialized firm like OTEEMO INC suggests access to specific, needed expertise.

Sector Analysis

The IT services sector, particularly within defense, is characterized by high demand for specialized skills like DevSecOps. This contract fits within the broader category of IT support and software development services, a significant portion of federal IT spending. Comparable spending benchmarks for DevSecOps services vary widely based on scope, but contracts in the multi-million dollar range are common for specialized support to major defense programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false) and is not a small business set-aside (SS: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, OTEEMO INC, will likely handle the majority of the work, with potential for larger, established IT firms to be involved if they are partners or subcontractors to OTEEMO INC.

Oversight & Accountability

Oversight for this contract will likely fall under the General Services Administration (GSA) and the Navy's PEO IWS X. The labor hours pricing model necessitates robust monitoring of hours worked and task completion to ensure value for money. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency may be limited due to the 'NOT AVAILABLE FOR COMPETITION' status, but contract details should be publicly accessible through federal procurement databases.

Related Government Programs

Navy IT Modernization Programs
DevSecOps Initiatives
Software Development Services
Cybersecurity Support Contracts
PEO IWS X Contracts

Risk Flags

Limited Competition
Labor Hours Pricing
Potential for Cost Overruns
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.2 million to OTEEMO INC. SKICAMP DEVSECOPS SBIR III TO3 PEO IWS X NAVY FORGE

Who is the contractor on this award?

The obligated recipient is OTEEMO INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2024-05-20. End: 2026-05-19.

What is OTEEMO INC's track record with the federal government, particularly the Navy?

OTEEMO INC has a history of federal contracting, primarily within the IT services domain. While specific details on their past performance with the Navy or PEO IWS X require deeper database analysis, their ability to secure this contract suggests a level of established capability and potentially prior positive performance. Federal procurement data would reveal the number and value of previous contracts, agencies served, and any performance ratings or past performance questionnaires submitted by government clients. Understanding their experience with similar DevSecOps or complex IT integration projects is crucial for assessing their suitability and reliability for this NAVY FORGE initiative.

How does the $9.2 million value compare to similar DevSecOps contracts awarded by the Navy or other defense agencies?

The $9.2 million contract value for DevSecOps services is within a moderate range for specialized IT support within large defense organizations. Contracts for similar services can range from a few million to tens or even hundreds of millions of dollars, depending heavily on the scope, duration, complexity, and specific technologies involved. For instance, broader cybersecurity modernization efforts or large-scale software development over several years could easily exceed this amount. Conversely, smaller, more focused task orders for specific DevSecOps tools or training might be valued in the hundreds of thousands. This contract's value suggests a significant, but not enterprise-wide, scope of work for PEO IWS X.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for critical IT services?

The primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' (sole-source or limited competition) award for critical IT services include potentially higher costs due to reduced price competition, and a lack of innovation that can arise from market-wide engagement. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult or expensive. Furthermore, without the vetting process of a broad competition, there's a slightly elevated risk of selecting a vendor whose capabilities might not be as robust as others available in the market, although agencies typically justify sole-source awards based on specific, documented needs and vendor qualifications.

How effective is the labor hours pricing model for managing DevSecOps projects, and what are the potential pitfalls?

The labor hours (LH) pricing model offers flexibility, allowing the government to adapt to evolving project requirements common in dynamic fields like DevSecOps. It ensures that the contractor is compensated for the actual time and effort expended. However, its primary pitfall is the potential for cost overruns if not meticulously managed. Without fixed price deliverables or strict hour limitations, costs can escalate if tasks take longer than anticipated or if scope creep occurs. Effective oversight, detailed task tracking, and clear communication are paramount to ensure value for money and prevent uncontrolled spending under an LH contract. The government must actively manage the scope and monitor progress closely.

What is the historical spending pattern for DevSecOps or similar IT services within the Navy's PEO IWS X?

Analyzing historical spending patterns for PEO IWS X reveals a consistent and significant investment in IT modernization, software development, and cybersecurity capabilities. DevSecOps, as a methodology integrating development, security, and operations, has become increasingly critical. Past spending likely includes numerous contracts for software engineering, system integration, cloud services, and cybersecurity solutions. The trend indicates a growing emphasis on agile development and secure software lifecycles, making dedicated DevSecOps contracts like this one a logical progression. Understanding the volume and types of previous awards can help contextualize the $9.2 million figure and assess if it aligns with the program's evolving needs and budget allocations.

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 › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA24R0011

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 10701 PARKRIDGE BLVD STE 150, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,904,298

Exercised Options: $9,320,374

Current Obligation: $9,204,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA22D0505

IDV Type: IDC

Timeline