DoD's $21.5M MEIS SOM contract awarded to Netrist Solutions, LLC for custom programming

Contract Overview

Contract Amount: $21,532,542 ($21.5M)

Contractor: Netrist Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUSTAINMENT, OPERATIONS, AND MAINTENANCE (SOM) SERVICES FOR THE MOBILITY ENTERPRISE INFORMATION SERVICES (MEIS)

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to NETRIST SOLUTIONS, LLC for work described as: SUSTAINMENT, OPERATIONS, AND MAINTENANCE (SOM) SERVICES FOR THE MOBILITY ENTERPRISE INFORMATION SERVICES (MEIS) Key points: 1. Contract value of $21.5M over 3 years for sustainment, operations, and maintenance. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks. 4. Netrist Solutions, LLC is the sole awardee for these critical IT services. 5. The contract supports the Mobility Enterprise Information Services (MEIS) program. 6. Performance is located in Illinois, with a duration of 912 days.

Value Assessment

Rating: fair

The total contract value of $21.5M over approximately three years averages to about $7.17M annually. This figure needs to be benchmarked against similar sustainment, operations, and maintenance (SOM) contracts for enterprise IT services within the Department of Defense. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely managed, making value assessment dependent on effective oversight and contractor efficiency. Without specific performance metrics or comparable contract data, it's challenging to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 8 bids (implied by 'no': 8) indicates a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used more efficiently, as vendors are incentivized to offer competitive pricing to win the contract. This process helps prevent inflated costs that might arise from less competitive awards.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader Department of Defense, ensuring the continued operation of critical IT infrastructure. Services delivered include sustainment, operations, and maintenance for the Mobility Enterprise Information Services (MEIS) platform. The geographic impact is primarily within Illinois, where the services will be performed. Workforce implications include the potential for skilled IT professionals to be employed by Netrist Solutions, LLC or its subcontractors to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type introduces inherent risk of cost escalation if not rigorously managed and monitored.
The specific scope of 'sustainment, operations, and maintenance' can be broad, requiring clear performance standards to ensure effective service delivery.
Dependence on a single contractor (Netrist Solutions, LLC) for critical IT services could pose a risk if performance issues arise or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration of over three years provides stability for both the government and the contractor, allowing for focused service delivery.
The contract supports a critical IT infrastructure (MEIS), indicating its importance to military operations and readiness.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services (NAICS 541511). The market for IT sustainment, operations, and maintenance services for large enterprise systems within the federal government is substantial. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by the DoD or other federal agencies for similar enterprise resource planning (ERP) or mission-critical system support. The size of this contract, over $21M, positions it as a significant award within this sub-sector.

Small Business Impact

This contract was not set aside for small businesses (ss: false, sb: false). As a result, there is no direct analysis of small business set-aside implications. However, the potential for subcontracting opportunities with small businesses exists, depending on Netrist Solutions, LLC's subcontracting plan and the nature of the services required. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, but it represents a missed opportunity for direct small business prime contracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures will be tied to the performance work statement and the terms of the Time and Materials contract. Transparency is facilitated by the contract award being publicly available, but detailed performance reports and cost tracking data may not be readily accessible to the public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Air Force Network Integration Center (AFNIC) Support Contracts
Enterprise IT Management Services
Cloud Computing Services for Defense
Cybersecurity and Information Assurance Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Dependence on a single contractor for critical IT services.
Need for robust performance monitoring and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to NETRIST SOLUTIONS, LLC. SUSTAINMENT, OPERATIONS, AND MAINTENANCE (SOM) SERVICES FOR THE MOBILITY ENTERPRISE INFORMATION SERVICES (MEIS)

Who is the contractor on this award?

The obligated recipient is NETRIST SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What is the track record of Netrist Solutions, LLC in performing similar IT sustainment and operations contracts for the federal government?

Assessing the track record of Netrist Solutions, LLC requires a review of their past performance on federal contracts, particularly those involving sustainment, operations, and maintenance (SOM) of complex IT systems. Information on past performance is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the size and scope of previous contracts, the agencies they served, the duration of those contracts, and any documented performance ratings or past performance evaluations. Positive ratings on similar contracts would indicate a lower risk for this award, while negative feedback or contract terminations would raise concerns about their ability to meet the requirements of the MEIS SOM contract.

How does the average annual cost of this contract compare to similar IT SOM contracts within the DoD?

The average annual cost for this contract is approximately $7.17M ($21.5M / 3 years). To benchmark this value, one would need to identify comparable contracts for IT sustainment, operations, and maintenance services within the Department of Defense. This involves searching procurement databases for contracts with similar scope (e.g., enterprise IT management, system operations, software maintenance), duration, and complexity. Factors such as the number of users supported, the criticality of the systems, and the specific services included (e.g., help desk, network management, application support) must be considered. If comparable contracts show significantly lower annual costs for similar services, it could indicate that this contract's pricing is not optimal, especially given its Time and Materials structure.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific service?

The primary risk associated with a Time and Materials (T&M) contract type for IT sustainment, operations, and maintenance services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project management and oversight are insufficient, the contractor may incur more hours or use more materials than anticipated, leading to a higher final cost than initially budgeted. For SOM services, this risk is amplified if unforeseen technical issues arise or if the demand for support fluctuates unpredictably. Robust monitoring of labor hours, material usage, and task completion is crucial to mitigate these risks.

What is the strategic importance of the Mobility Enterprise Information Services (MEIS) program to the Department of the Air Force?

The Mobility Enterprise Information Services (MEIS) program is critical for supporting the operational readiness and efficiency of the Air Force's mobility air forces. This includes providing essential IT infrastructure, applications, and services that enable the planning, execution, and tracking of global airlift and aerial refueling missions. The sustainment, operations, and maintenance (SOM) services covered by this contract ensure the continuous availability and performance of these vital systems. Without reliable MEIS, the Air Force's ability to project power, deliver humanitarian aid, and conduct other critical missions could be significantly hampered. Therefore, ensuring the robust functioning of MEIS through effective IT support is a strategic imperative.

How has spending on IT SOM services for enterprise mobility systems evolved within the DoD over the past five years?

Analyzing the evolution of spending on IT SOM services for enterprise mobility systems within the DoD over the past five years would reveal trends in investment and potential shifts in technology adoption. This would involve aggregating data from similar contracts awarded across different branches of the military. Key trends might include an increase in spending due to the growing reliance on digital platforms, a shift towards cloud-based solutions, or a focus on cybersecurity enhancements. Conversely, spending might have stabilized or decreased if older systems are being retired or consolidated. Understanding this historical spending pattern provides context for the current contract's value and its place within the DoD's broader IT modernization efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 211 KING ST STE 101, CHARLESTON, SC, 29401

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

Financial Breakdown

Contract Ceiling: $74,920,325

Exercised Options: $25,465,663

Current Obligation: $21,532,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D007D

IDV Type: FSS

Timeline