DoD's $5.4M contract for custom programming services awarded to OMNI FED LLC, with 6 bidders

Contract Overview

Contract Amount: $5,402,328 ($5.4M)

Contractor: Omni FED LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2026-06-29

Contract Duration: 1,095 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: P1 OPS - IRON BANK -TEAM 3

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to OMNI FED LLC for work described as: P1 OPS - IRON BANK -TEAM 3 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 1095 days suggests a need for sustained services. 3. Competition was robust with 6 bidders, potentially driving favorable pricing. 4. The contract is for custom computer programming, a critical IT function. 5. Services are to be delivered in Texas. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty. Benchmarking against similar custom computer programming services contracts is necessary to fully assess value. The award amount of $5.4 million over three years suggests a moderate investment for specialized IT support. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a broad solicitation process. Six bidders participated, suggesting a healthy level of interest and competition for these services. The presence of multiple bidders generally leads to better price discovery and a wider range of technical solutions being considered.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source award. The selection from six offers suggests that the government received value through a market-driven process.

Public Impact

The Department of the Air Force benefits from specialized custom computer programming services. These services are crucial for maintaining and enhancing the Air Force's IT infrastructure. The contract's geographic impact is focused on Texas, where services will be delivered. The contract supports the IT workforce, likely involving skilled software developers and programmers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if custom solutions are highly proprietary.
Dependence on a single contractor for critical programming services.
Scope creep could lead to cost overruns if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Robust competition indicates potential for good value.
Award to an established entity suggests a degree of reliability.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. This is a vital area for government operations, enabling the development and maintenance of essential software and systems. The market for such services is competitive, with numerous firms offering specialized expertise. The $5.4 million award is a moderate size within the broader IT services landscape for federal agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The award went to OMNI FED LLC, which may or may not be a small business, but the procurement itself was not specifically targeted towards small business participation. There is no explicit mention of subcontracting requirements for small businesses within the provided data.

Oversight & Accountability

The firm-fixed-price contract type provides a degree of oversight through defined cost parameters. Accountability will be managed through contract performance monitoring by the Department of the Air Force. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Custom Software Development Services
IT Professional Services
Computer Systems Design Services
Software Publishing
Information Technology Consulting

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to OMNI FED LLC. P1 OPS - IRON BANK -TEAM 3

Who is the contractor on this award?

The obligated recipient is OMNI FED 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 $5.4 million.

What is the period of performance?

Start: 2023-06-30. End: 2026-06-29.

What is the track record of OMNI FED LLC in performing similar custom computer programming services for the federal government?

Assessing OMNI FED LLC's track record requires a review of their past federal contract performance, including any awards, past performance evaluations, and any reported issues or disputes. Information on previous contracts, their scope, value, and client agencies would be crucial. A deeper dive into federal procurement databases like SAM.gov or FPDS could reveal their history with similar NAICS codes (e.g., 541511) and contract types. Without specific historical data on OMNI FED LLC's performance on comparable contracts, it is difficult to definitively assess their capability and reliability for this specific $5.4 million award.

How does the awarded price of $5.4 million compare to market rates for similar custom programming services over a three-year period?

To benchmark the $5.4 million award, we would compare it against industry data for custom computer programming services, considering factors like the complexity of the work, the required skill sets, and the duration. Market research reports, salary data for software developers in Texas, and average contract values for similar government IT projects can provide context. Given the firm-fixed-price nature, the government has established a ceiling. If the average hourly rates or project costs for comparable services are significantly lower, it might indicate the price is not optimal. Conversely, if it aligns with or is below market averages for specialized skills, it suggests good value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's ability to deliver the custom solutions as specified, impacting the Air Force's operational capabilities. Technical risks, such as integration challenges with existing systems, also exist. Mitigation strategies likely involve robust contract management, clear definition of deliverables, regular progress reviews, and performance-based metrics. The firm-fixed-price structure itself acts as a risk mitigation tool by capping the government's financial exposure.

What is the expected effectiveness of the custom programming services in meeting the Department of the Air Force's objectives?

The effectiveness hinges on how well the custom solutions developed by OMNI FED LLC align with the specific operational or strategic objectives of the Department of the Air Force. This requires a clear understanding of the requirements driving the need for custom programming. If the contract includes well-defined performance metrics and service level agreements (SLAs), effectiveness can be measured against these benchmarks. Without insight into the specific goals the programming is intended to achieve, assessing its potential effectiveness remains speculative. The Air Force's internal project management and user feedback will be critical indicators.

How does this $5.4 million contract compare to the Department of the Air Force's historical spending on custom computer programming services?

To understand the historical context, we would analyze the Air Force's spending trends on similar IT services (NAICS 541511) over the past several fiscal years. This involves examining the total annual expenditure, the number and value of contracts awarded, and the primary contractors. If this $5.4 million contract represents a significant increase or decrease compared to historical averages, it warrants further investigation. It could indicate a shift in IT strategy, a response to new technological needs, or a change in procurement approach. Comparing the number of bidders also provides insight into market dynamics over time.

What is the potential impact of this contract on the broader IT services market, particularly for custom programming?

This contract contributes to the overall demand for custom computer programming services within the federal IT sector. The award to OMNI FED LLC signifies a portion of the market share allocated to this specific vendor. The competitive nature of the procurement, with six bidders, suggests a healthy market with multiple capable providers vying for government work. This level of competition can stimulate innovation and encourage competitive pricing across the industry. The specific nature of the custom programming required could also influence the development of specialized skills or solutions within the IT market.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7528 RIO GRANDE WAY, GAINESVILLE, VA, 20155

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,230,294

Exercised Options: $5,871,576

Current Obligation: $5,402,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830721G0018

IDV Type: BOA

Timeline