Allied Technologies LLC awarded $3M contract for Defense Medical Logistics Standard Support by GSA

Contract Overview

Contract Amount: $3,004,292 ($3.0M)

Contractor: Allied Technologies LLC

Awarding Agency: General Services Administration

Start Date: 2021-05-20

End Date: 2026-05-19

Contract Duration: 1,825 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE MEDICAL LOGISTICS STANDARD SUPPORT

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46268

State: Indiana Government Spending

Plain-Language Summary

General Services Administration obligated $3.0 million to ALLIED TECHNOLOGIES LLC for work described as: DEFENSE MEDICAL LOGISTICS STANDARD SUPPORT Key points: 1. Contract value appears reasonable given the 5-year duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a firm-fixed-price type, which shifts performance risk to the contractor. 4. This contract supports critical medical logistics functions within the defense sector. 5. The contractor, Allied Technologies LLC, is relatively new to federal contracting based on available data. 6. The contract is managed by the General Services Administration, a common practice for IT services.

Value Assessment

Rating: good

The total contract value of approximately $3 million over five years averages to $600,000 annually. This figure seems within a reasonable range for comprehensive IT support services, especially considering the specialized nature of defense medical logistics. Benchmarking against similar contracts for IT support in the defense sector would provide a more precise value-for-money assessment, but initial indications suggest fair pricing. The firm-fixed-price structure further supports value by ensuring cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive environment like this typically drives down prices and encourages contractors to offer their best value propositions to secure the award. The number of bidders provides a good indication that the government received a range of options and pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, pushing for competitive pricing. This process helps prevent overpayment and promotes a fair market price for the services rendered.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, ensuring the smooth operation of medical logistics systems. Services delivered include IT support crucial for the Defense Medical Logistics Standard (DMLS). The contract has a national geographic impact, supporting defense medical operations across various locations. Workforce implications include the potential for skilled IT professionals to be employed by Allied Technologies LLC to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record in federal contracting is limited, requiring close monitoring of performance.
The specific IT services required for defense medical logistics are highly specialized, demanding a high level of expertise.
Dependence on a single IT support provider could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration of five years allows for stability and potential for long-term relationship building.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support for specialized government functions. The market for IT support services to the federal government is substantial, with agencies consistently outsourcing these needs. Contracts like this are common as agencies rely on external expertise to manage complex systems. Benchmarks for similar IT support contracts can vary widely based on scope, duration, and security requirements, but the $3 million value over five years for specialized logistics IT support appears aligned with industry norms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside. However, the prime contractor, Allied Technologies LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically provides oversight for contracts awarded through its Federal Acquisition Service. Oversight mechanisms would likely include performance reviews, contract management, and adherence to federal acquisition regulations. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards to avoid financial penalties. Transparency is generally maintained through contract databases like FPDS, where basic contract information is publicly available.

Related Government Programs

Defense Health Agency IT Support
Logistics Information Systems
Federal IT Services Contracts
GSA Schedule IT Contracts

Risk Flags

Limited contractor performance history
Potential for specialized IT skill gaps
Cybersecurity risks in defense logistics systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.0 million to ALLIED TECHNOLOGIES LLC. DEFENSE MEDICAL LOGISTICS STANDARD SUPPORT

Who is the contractor on this award?

The obligated recipient is ALLIED TECHNOLOGIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2021-05-20. End: 2026-05-19.

What is the specific nature of the Defense Medical Logistics Standard Support being provided?

The Defense Medical Logistics Standard (DMLS) is a critical system for managing the supply chain of medical materiel within the Department of Defense. The IT support provided under this contract likely encompasses a range of services such as system maintenance, software updates, network support, user assistance, and potentially cybersecurity measures to ensure the DMLS operates efficiently and securely. This support is vital for ensuring that medical personnel have access to necessary supplies and equipment, directly impacting military readiness and healthcare delivery.

How does the $3 million contract value compare to similar IT support contracts for defense logistics?

Comparing the $3 million value over five years (averaging $600,000 annually) requires context on the specific IT services and scale of operations supported. Contracts for enterprise-level IT support within large federal agencies can range from hundreds of thousands to tens of millions of dollars annually. Given that this contract is for specialized defense medical logistics, and considering the firm-fixed-price structure and full and open competition, the value appears to be in a reasonable range. However, a precise benchmark would necessitate analyzing contracts with identical or highly similar scopes of work, service level agreements, and security requirements within the defense sector.

What are the potential risks associated with Allied Technologies LLC as the contractor?

A primary risk associated with Allied Technologies LLC stems from its potentially limited track record in federal contracting, as suggested by the available data. Newer contractors may face challenges in navigating complex federal regulations, meeting stringent performance expectations, and managing large-scale projects. There's also the inherent risk in any IT support contract related to system downtime, data breaches, or failure to meet service level agreements. The firm-fixed-price nature, while beneficial for cost control, could also incentivize the contractor to cut corners if not adequately monitored, though the competition should mitigate this.

How effective is the full and open competition in ensuring value for taxpayers?

Full and open competition is generally considered the most effective method for ensuring value for taxpayers in federal contracting. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices, encourages innovation, and ensures that the government receives the best possible combination of price and performance. The fact that seven bidders participated in this procurement indicates a robust competition, which strongly suggests that the selected price is competitive and taxpayers are receiving good value.

What is the historical spending pattern for Defense Medical Logistics Standard Support?

Without access to historical contract data specifically for 'Defense Medical Logistics Standard Support' prior to this award, it's difficult to establish a precise spending pattern. However, federal agencies, particularly the Department of Defense, consistently invest in IT infrastructure and support services to maintain critical operations like medical logistics. Spending in this area is typically driven by the need for system modernization, maintenance, and ensuring operational readiness. Fluctuations in spending can occur due to changes in technology, strategic priorities, or budget allocations. This $3 million award represents a new commitment to supporting this specific standard.

What are the implications of the firm-fixed-price (FFP) contract type for this service?

The firm-fixed-price (FFP) contract type is advantageous for the government in this scenario as it establishes a ceiling on the total cost of the contract. The contractor, Allied Technologies LLC, assumes the primary risk for any cost overruns incurred during performance. This structure incentivizes the contractor to manage its resources efficiently and control costs to maximize profit. For the government, it provides budget certainty and predictability. However, it's crucial that the initial price negotiated reflects a fair market value, as the contractor is locked into that price regardless of their actual costs.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA21Q0061

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11644 N MICHIGAN RD, ZIONSVILLE, IN, 46077

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

Financial Breakdown

Contract Ceiling: $3,796,626

Exercised Options: $3,732,571

Current Obligation: $3,004,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00H7

IDV Type: FSS

Timeline