DoD's $27.8M Enterprise Application Hosting Support Contract Awarded to Visual Concepts, LLC
Contract Overview
Contract Amount: $27,878,385 ($27.9M)
Contractor: Visual Concepts, LLC
Awarding Agency: Department of Defense
Start Date: 2007-12-20
End Date: 2013-06-19
Contract Duration: 2,008 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENTERPRISE APPLICATION HOSTING SUPPORT
Place of Performance
Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043
Plain-Language Summary
Department of Defense obligated $27.9 million to VISUAL CONCEPTS, LLC for work described as: ENTERPRISE APPLICATION HOSTING SUPPORT Key points: 1. Contract awarded to Visual Concepts, LLC for enterprise application hosting support. 2. The contract value is $27.8 million over its period of performance. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is primarily IT services, supporting the Department of the Navy. 5. Potential risks include vendor lock-in and performance issues if not managed effectively.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not closely monitored. Benchmarking against similar IT hosting support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. However, the CPFF structure necessitates vigilance to ensure costs remain reasonable.
Public Impact
Ensures continuity of critical enterprise applications for the Navy. Supports operational readiness and data management for naval forces. Potential for job creation within the IT services sector. Impacts the efficiency and effectiveness of Navy's digital infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost escalation risk due to CPFF contract type.
- Potential for scope creep without strict management.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Supports a critical government function (DoD).
- Long-term engagement suggests a need for the services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on application hosting and support. Spending benchmarks for similar enterprise-level IT support contracts within the federal government can vary widely based on scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee, Visual Concepts, LLC, is not specified as a small business in this context.
Oversight & Accountability
The Department of Defense typically has robust oversight mechanisms for its contracts. However, the effectiveness of oversight for this specific contract would depend on the quality of contract management and performance monitoring.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Overruns (CPFF)
- Vendor Lock-in
- Performance Degradation
- Security Vulnerabilities
- Lack of Small Business Participation
Tags
engineering-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to VISUAL CONCEPTS, LLC. ENTERPRISE APPLICATION HOSTING SUPPORT
Who is the contractor on this award?
The obligated recipient is VISUAL CONCEPTS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2007-12-20. End: 2013-06-19.
What was the rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type for this application hosting support, and how was the fixed fee determined?
The CPFF structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common with enterprise application support. The fixed fee is negotiated based on the contractor's estimated costs and a reasonable profit margin. However, this structure carries inherent risks of cost overruns if the government's oversight is insufficient to control indirect costs and labor hours.
How effectively did the full and open competition process ensure competitive pricing for the enterprise application hosting support services?
Full and open competition generally provides the best opportunity for competitive pricing by allowing all responsible sources to submit offers. The effectiveness in this case depends on the number of bids received and the government's negotiation strategy. Without knowing the number of bidders or the final negotiated price relative to initial estimates, it's difficult to definitively assess the pricing outcome.
What are the key performance indicators (KPIs) used to measure the effectiveness of Visual Concepts, LLC's enterprise application hosting support, and how are they monitored?
Effective monitoring of application hosting support typically involves KPIs such as system uptime, response times, security incident rates, and user satisfaction. The Department of the Navy would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's performance work statement. Regular performance reviews and audits would be conducted to ensure adherence to these metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0002407R3550
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2938 GROVE ST, VENTURA, CA, 24
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $88,293,957
Exercised Options: $35,525,134
Current Obligation: $27,878,385
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017806D4911
IDV Type: IDC
Timeline
Start Date: 2007-12-20
Current End Date: 2013-06-19
Potential End Date: 2013-06-19 00:00:00
Last Modified: 2013-07-24
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