GSA awards $44.3M for CPD Systems Operations & Maintenance to Digital Management LLC

Contract Overview

Contract Amount: $44,271,654 ($44.3M)

Contractor: Digital Management LLC

Awarding Agency: General Services Administration

Start Date: 2018-06-26

End Date: 2024-01-25

Contract Duration: 2,039 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEM OPERATIONS AND MAINTENANCE OF CPD SYSTEMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $44.3 million to DIGITAL MANAGEMENT LLC for work described as: SYSTEM OPERATIONS AND MAINTENANCE OF CPD SYSTEMS Key points: 1. Contract value represents a significant investment in essential IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance duration indicates a long-term need for system stability and support. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. This contract falls within the broader IT services sector, supporting federal operations.

Value Assessment

Rating: good

The contract's total value of $44.3 million over approximately 6.7 years suggests a moderate annual spend. Benchmarking against similar IT operations and maintenance contracts is crucial for a precise value-for-money assessment. The firm-fixed-price (FFP) contract type is generally favorable for cost control when requirements are well-defined. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the duration and scope imply a substantial, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, potentially leading to better pricing and service quality. The presence of two bids suggests a moderate level of competition for this specific requirement. Further analysis would be needed to determine if the number of bidders was sufficient to drive optimal price discovery.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings and improved outcomes.

Public Impact

Federal agencies utilizing CPD systems benefit from reliable operations and maintenance. The contract ensures the continuity of critical IT services for government functions. The primary beneficiaries are the government agencies and their employees who rely on these systems. Workforce implications may include IT support roles within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if switching costs are high after contract completion.
Ensuring continued innovation and adaptation to evolving technological needs within a fixed-price structure can be challenging.

Positive Signals

Long-term contract provides stability for both the government and the contractor.
Firm-fixed-price structure offers budget predictability for the procuring agency.
Full and open competition suggests a commitment to leveraging market capabilities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. This sector encompasses a wide range of services, including the design, development, integration, and maintenance of IT systems. Federal spending in IT services is substantial, with a significant portion allocated to maintaining and upgrading existing infrastructure. This contract represents a typical investment in ensuring the operational integrity of core government IT systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the extent of small business participation, if any, would likely be through indirect subcontracting opportunities that are not detailed in this summary. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Mechanisms likely include contract performance reviews, financial audits, and adherence to service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Operations and Maintenance
Cloud Computing Services
Software Development and Maintenance
IT Infrastructure Support

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on a single contractor for critical system operations.
Potential for performance degradation if contractor resources are not adequately managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $44.3 million to DIGITAL MANAGEMENT LLC. SYSTEM OPERATIONS AND MAINTENANCE OF CPD SYSTEMS

Who is the contractor on this award?

The obligated recipient is DIGITAL MANAGEMENT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.3 million.

What is the period of performance?

Start: 2018-06-26. End: 2024-01-25.

What is the historical spending trend for CPD Systems Operations and Maintenance under GSA?

Analyzing historical spending for CPD Systems Operations and Maintenance under GSA requires accessing detailed contract databases and financial reports over multiple fiscal years. While this specific contract award is for $44.3 million from 2018 to 2024, understanding the trend involves looking at prior contracts for similar services, their values, and durations. A rising trend might indicate increasing reliance on these systems or escalating maintenance costs, while a stable or declining trend could suggest efficiency gains or a shift in technology. Without access to a comprehensive historical dataset for this specific service category, it's difficult to provide a precise trend analysis. However, the consistent award of such contracts typically reflects the ongoing need for robust IT infrastructure support within federal agencies.

How does the annual cost of this contract compare to industry benchmarks for similar IT operations and maintenance services?

To compare the annual cost of this $44.3 million contract (over approximately 2039 days, or 6.7 years) to industry benchmarks, we first estimate the annual spend. $44.3M / 6.7 years ≈ $6.61M per year. Benchmarking this against industry rates for IT operations and maintenance requires access to current market data for comparable services, considering factors like system complexity, security requirements, and geographic location. Industry reports from IT consulting firms or government cost-analysis resources often provide average costs per full-time equivalent (FTE) or per managed system. If, for example, industry benchmarks suggest an average annual cost of $5M-$7M for similar services, this contract would fall within that range, indicating potentially fair pricing. Conversely, if benchmarks are significantly lower, it might suggest overpricing or a less complex service scope than typical.

What are the key performance indicators (KPIs) used to measure the success of Digital Management LLC's performance under this contract?

Key Performance Indicators (KPIs) for IT Operations and Maintenance contracts are crucial for ensuring service quality and value. While not explicitly detailed in the provided data, typical KPIs for such a contract would likely include: System Uptime/Availability (e.g., 99.9% uptime for critical systems), Mean Time To Repair (MTTR) for system outages, Incident Response Time (e.g., acknowledging critical incidents within 15 minutes), Resolution Time (e.g., resolving critical incidents within 4 hours), Security Compliance (e.g., adherence to NIST or FISMA standards), and User Satisfaction scores. The contract's performance work statement (PWS) would define these KPIs, along with acceptable performance thresholds and any associated remedies or incentives for meeting or exceeding them. Regular performance reviews between GSA and Digital Management LLC would track progress against these metrics.

What is Digital Management LLC's track record with federal IT service contracts, particularly with GSA?

Digital Management LLC (DMI) has a notable track record in providing IT services to the federal government, including contracts with GSA. A review of federal procurement data (like FPDS or SAM.gov) would reveal the extent and nature of their past awards. DMI has historically secured contracts related to IT modernization, cybersecurity, software development, and managed services across various civilian and defense agencies. Their experience with GSA specifically would be relevant, as GSA often acts as a central procurement authority. Assessing their performance on previous GSA contracts, including client satisfaction, past performance ratings, and any documented issues or successes, would provide insight into their reliability and capability for this current $44.3M contract. Their sustained presence in the federal IT market suggests a level of competence and established relationships.

Are there any specific risks associated with the 'Computer Systems Design Services' NAICS code (541512) that are relevant to this contract?

The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of IT activities. Key risks associated with this code, relevant to a contract like this one for operations and maintenance, include: rapid technological obsolescence requiring continuous adaptation; cybersecurity vulnerabilities inherent in complex systems; potential for scope creep if requirements are not tightly managed; dependency on specialized technical skills that may be in short supply; and the challenge of accurately estimating and controlling costs for evolving system needs. For an operations and maintenance contract, the primary risks often revolve around ensuring system availability, security, and performance while managing the lifecycle of aging infrastructure and integrating new functionalities without disrupting ongoing operations. The firm-fixed-price nature of this contract helps mitigate cost overrun risks for the government, but places the performance risk more squarely on the contractor.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID11170001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR FLR 7, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $50,587,143

Exercised Options: $50,587,143

Current Obligation: $44,271,654

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0061

IDV Type: GWAC

Timeline