DoD's $9M Contract for Legacy Application Modernization Awarded to Zigabyte Corporation

Contract Overview

Contract Amount: $9,012,204 ($9.0M)

Contractor: Zigabyte Corporation

Awarding Agency: Department of Defense

Start Date: 2023-02-08

End Date: 2027-02-07

Contract Duration: 1,460 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LEGACY APPLICATIONS

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $9.0 million to ZIGABYTE CORPORATION for work described as: LEGACY APPLICATIONS Key points: 1. Significant investment in modernizing critical legacy applications. 2. Competition method suggests potential for price discovery challenges. 3. Focus on custom computer programming services indicates specialized needs. 4. Long-term contract (4 years) requires ongoing performance monitoring.

Value Assessment

Rating: fair

The contract value of $9.01M over 4 years for custom computer programming services appears reasonable given the specialized nature of legacy application modernization. Benchmarking against similar contracts for complex software development is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential offerors, potentially impacting the final price achieved through robust price discovery.

Taxpayer Impact: The limited competition raises questions about whether taxpayers received the best possible price. Further analysis of the justification for excluding sources is warranted.

Public Impact

Modernization of legacy systems is crucial for operational efficiency and security. Potential for improved service delivery and reduced long-term maintenance costs. Impact on military readiness and technological advantage. Job creation and economic impact within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 61 / 10

Warning Flags

Limited competition may lead to higher costs.
Performance risks associated with legacy system modernization.
Vendor lock-in potential.

Positive Signals

Addresses critical need for system modernization.
Long-term contract provides stability.
Firm-fixed-price contract shifts some risk to the contractor.

Sector Analysis

The Department of Defense's significant spending on IT services, particularly custom computer programming, reflects the ongoing need to update aging infrastructure. Benchmarks for similar modernization projects vary widely based on complexity and scope.

Small Business Impact

This contract was not awarded to small businesses, as indicated by 'sb': false. Opportunities for small businesses may exist as subcontractors or in future, smaller-scale modernization efforts.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Department of the Air Force to ensure performance milestones are met and costs remain controlled. Regular reviews of contractor performance and adherence to contract terms are essential.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Risk of cost overruns during complex modernization efforts.
Potential for schedule delays impacting operational readiness.
Dependency on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.0 million to ZIGABYTE CORPORATION. LEGACY APPLICATIONS

Who is the contractor on this award?

The obligated recipient is ZIGABYTE CORPORATION.

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 $9.0 million.

What is the period of performance?

Start: 2023-02-08. End: 2027-02-07.

What is the specific scope of 'legacy applications' being modernized, and what are the key performance indicators for success?

The specific legacy applications are not detailed in the provided data. Key performance indicators for success would typically include metrics related to system uptime, performance improvements (e.g., faster processing times), reduction in security vulnerabilities, successful migration of data, and user satisfaction post-modernization. Defining these clearly in the contract is crucial for effective oversight and value assessment.

What was the justification for excluding other potential sources, and how did this impact the final price?

The justification for excluding other sources is critical for understanding the limited competition. If based on unique capabilities or proprietary technology, it might be warranted. However, such exclusions can limit competitive pressure, potentially leading to a higher price than if a broader range of vendors had competed. A thorough review of the 'justification for other than full and open competition' is needed.

How does the $9.01M cost compare to industry benchmarks for similar legacy application modernization projects of this scale and complexity?

Directly comparing this $9.01M cost requires detailed project scope and complexity metrics, which are not fully provided. However, legacy system modernization is notoriously expensive and complex. Industry benchmarks suggest costs can range from hundreds of thousands to tens of millions, depending on the number of applications, their criticality, the technology stack, and the chosen modernization approach (e.g., re-hosting, re-platforming, refactoring). A detailed cost-benefit analysis against similar DoD projects would be informative.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1601 KOON RD, LUGOFF, SC, 29078

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,509,166

Exercised Options: $9,012,204

Current Obligation: $9,012,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877120D0019

IDV Type: IDC

Timeline