DoD's $18.6M contract for PPBE Decision Analysis Tool awarded to Rhombus Power Inc

Contract Overview

Contract Amount: $18,600,000 ($18.6M)

Contractor: Rhombus Power Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $51.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: A8 PPBE DECISION ANALYSIS TOOL (DAT) SBIR III

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to RHOMBUS POWER INC for work described as: A8 PPBE DECISION ANALYSIS TOOL (DAT) SBIR III Key points: 1. Contract value of $18.6M over 364 days suggests a significant investment in decision support capabilities. 2. Awarded under Full and Open Competition after Exclusion of Sources, indicating a competitive process with specific justifications. 3. The contract's focus on custom computer programming services aligns with the need for specialized software solutions. 4. Performance period of one year with a delivery order structure allows for phased development and delivery. 5. The contract's primary purpose is to support the Planning, Programming, Budgeting, and Execution (PPBE) process. 6. The use of a Firm Fixed Price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $18.6 million for a 364-day period for custom computer programming services appears reasonable given the specialized nature of supporting the DoD's PPBE process. Benchmarking against similar complex software development contracts for defense agencies would provide further context, but the price seems aligned with the technical expertise required. The firm fixed price structure suggests an effort to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, likely due to unique capabilities or prior involvement. The exact number of bidders is not specified, but the exclusion of sources suggests a potentially narrower competitive pool than a truly unrestricted full and open competition.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' clause implies that a competitive process was still undertaken. This should still provide some level of price discovery and ensure the government receives a fair value, though potentially not as competitive as a completely open bid.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Department of the Air Force) and its personnel involved in the PPBE process. The contract will deliver a Decision Analysis Tool (DAT) to enhance the efficiency and effectiveness of defense budget planning and execution. The geographic impact is primarily within the District of Columbia, where the contract is registered, but the tool's use will extend across DoD operations. Workforce implications include the need for skilled software developers and analysts to build and maintain the tool, as well as training for end-users within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the developed tool is highly proprietary and difficult to transition.
Risk of scope creep if requirements are not clearly defined and managed throughout the development lifecycle.
Dependence on a single contractor for critical PPBE decision support functionality.

Positive Signals

The contract supports a critical defense function (PPBE), indicating a strategic investment.
The use of a firm fixed price contract provides cost certainty for the government.
Awarded under a competitive process (albeit with exclusions) suggests an effort to obtain value.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The market for defense IT solutions is substantial, with significant government spending dedicated to enhancing decision-making capabilities and modernizing systems. This contract for a PPBE Decision Analysis Tool is a niche but vital component of defense spending, aiming to improve the efficiency of resource allocation within a complex bureaucratic process. Comparable spending benchmarks would involve other large-scale software development contracts for specialized government applications.

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 small business set-aside. The primary contractor, Rhombus Power Inc., is likely a mid-to-large sized business given the contract value. The impact on the small business ecosystem is indirect, as the focus is on a specialized IT solution rather than broad service delivery where small businesses often play a significant subcontracting role.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are embedded in the firm fixed price contract type and the delivery order structure, requiring adherence to defined milestones and deliverables. Transparency is facilitated through contract award databases, though specific details of the tool's development and performance may be subject to security and proprietary restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Budgeting Systems
PPBE Process Support
Acquisition Decision Support Tools
Custom Software Development for Government
DoD Financial Management Systems

Risk Flags

Competition Level
Scope Definition
Contractor Performance History
Value for Money Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to RHOMBUS POWER INC. A8 PPBE DECISION ANALYSIS TOOL (DAT) SBIR III

Who is the contractor on this award?

The obligated recipient is RHOMBUS POWER INC.

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 $18.6 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is the specific functionality and intended impact of the A8 PPBE DECISION ANALYSIS TOOL (DAT)?

The A8 PPBE DECISION ANALYSIS TOOL (DAT) is designed to enhance the Department of Defense's Planning, Programming, Budgeting, and Execution (PPBE) process. The PPBE is the core system used by the DoD to allocate resources and align them with national security objectives. A Decision Analysis Tool would likely provide advanced analytical capabilities, data visualization, and modeling features to assist decision-makers in evaluating various budget scenarios, assessing program effectiveness, and identifying potential risks or efficiencies. Its intended impact is to improve the speed, accuracy, and strategic alignment of defense resource allocation, leading to more effective use of taxpayer funds and better support for military missions.

How does the 'Full and Open Competition after Exclusion of Sources' procurement method compare to standard full and open competition?

Standard 'Full and Open Competition' allows all responsible sources to submit offers, ensuring the widest possible competition. 'Full and Open Competition after Exclusion of Sources,' as used here, is a specific procurement method where the agency initially intends to compete the requirement fully but then excludes certain sources. This exclusion must be justified, often because a particular source possesses unique capabilities, has prior experience with the specific system being developed, or is deemed essential for continuity. While it aims for competition among the remaining eligible sources, it inherently narrows the competitive pool compared to a truly unrestricted process, potentially impacting price discovery and the range of innovative solutions considered.

What are the potential risks associated with a firm fixed price contract for custom software development?

Firm Fixed Price (FFP) contracts are generally preferred for cost control, but they can introduce risks in custom software development. If the requirements are not perfectly defined upfront, the contractor may face significant challenges in delivering the exact product envisioned without incurring substantial cost overruns. This can lead to the contractor either cutting corners on quality to meet the fixed price, or seeking change orders that increase the overall cost. For the government, the risk is receiving a product that doesn't fully meet evolving needs or paying a premium if the initial price was set too high to account for the contractor's risk. Effective scope management and clear communication are crucial to mitigate these risks.

What is the typical cost range for similar custom computer programming services contracts within the Department of Defense?

The cost range for custom computer programming services within the Department of Defense can vary dramatically based on complexity, duration, and the specific expertise required. Contracts can range from a few hundred thousand dollars for smaller, well-defined tasks to tens or even hundreds of millions of dollars for large-scale system development and integration efforts. A $18.6 million contract for a specialized tool supporting a critical process like PPBE over approximately one year falls within the mid-to-high range for such services. It suggests a complex, high-value solution requiring significant development effort and specialized knowledge, likely exceeding the cost of routine IT support or basic application development.

What is Rhombus Power Inc.'s track record with DoD contracts, particularly in software development?

Information regarding Rhombus Power Inc.'s specific track record with DoD contracts, especially in custom software development for decision analysis tools, would require a detailed search of federal procurement databases (like SAM.gov or FPDS). Without direct access to that data, it's difficult to assess their past performance, past performance ratings, or history with similar projects. However, being awarded a contract of this magnitude, particularly under a competitive process (even with exclusions), suggests they possess the necessary qualifications, technical capabilities, and potentially a positive performance history that made them a suitable choice for the Department of the Air Force.

How does the $18.6M contract value compare to historical spending on PPBE-related tools or systems within the DoD?

Historical spending on PPBE-related tools and systems within the DoD can be substantial, reflecting the critical nature of resource allocation. While specific figures for 'Decision Analysis Tools' are not readily available without deep dives into budget documents, the overall PPBE process involves significant IT investments. Large-scale modernization efforts, data analytics platforms, and simulation tools used within the DoD often run into tens or hundreds of millions of dollars over their lifecycle. Therefore, an $18.6 million contract for a specialized DAT appears to be a significant, but not necessarily outlier, investment for enhancing a core strategic process like PPBE, especially if it represents a new capability or a major upgrade.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 HILLVIEW AVENUE, PALO ALTO, CA, 94034

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

Financial Breakdown

Contract Ceiling: $24,500,000

Exercised Options: $24,500,000

Current Obligation: $18,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701425D0011

IDV Type: IDC

Timeline