DoD's $17.8M contract for Egypt Integrated Logistics System upgrade awarded to Glasshouse Systems Inc

Contract Overview

Contract Amount: $17,833,986 ($17.8M)

Contractor: Glasshouse Systems Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EGYPT INTEGRATED LOGISTICS SYSTEM PEACE VERTABRAE PROGRAM UPGRADE

Place of Performance

Location: LISLE, DUPAGE County, ILLINOIS, 60532

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to GLASSHOUSE SYSTEMS INC for work described as: EGYPT INTEGRATED LOGISTICS SYSTEM PEACE VERTABRAE PROGRAM UPGRADE Key points: 1. The contract value of $17.8 million for the Egypt Integrated Logistics System upgrade appears to be a significant investment in defense logistics capabilities. 2. The award to Glasshouse Systems Inc. for Computer Systems Design Services indicates a focus on modernizing critical defense infrastructure. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process and potential lack of competitive pressure on pricing. 4. The contract duration of over 1600 days suggests a long-term commitment to the system's development and maintenance. 5. The firm-fixed-price contract type aims to provide cost certainty for the Department of Defense. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable data for similar integrated logistics system upgrades for foreign military support. The firm-fixed-price nature provides some cost control, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. The total award amount of $17.8 million over approximately 4.5 years needs to be evaluated against the specific deliverables and the criticality of the system to the Peace Vertabrae Program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or when urgency dictates a direct award. The lack of competition means that the Department of Defense did not benefit from a bidding process that could have potentially driven down costs or spurred innovation through multiple proposals.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and potentially allied forces utilizing the Egypt Integrated Logistics System. The contract will deliver upgraded computer systems design services crucial for the Peace Vertabrae Program. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for international logistics and support. Workforce implications may include specialized IT and logistics personnel required for system development, implementation, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
The long contract duration could present risks if technology or requirements change significantly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established entity suggests a focus on reliability and proven capabilities.
Modernization of logistics systems is critical for effective defense operations.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT and Defense industries. The market for defense logistics systems is specialized, often involving complex integration and security requirements. Spending in this area is driven by the need for efficient and secure management of military assets and operations, both domestically and internationally. Comparable spending benchmarks would typically be found within other large-scale defense IT modernization programs or foreign military sales support contracts.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Glasshouse Systems Inc., is likely a larger entity, and the focus of this award was not on promoting small business participation. Consequently, the direct impact on the small business ecosystem for this specific contract appears minimal, unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract terms, including performance metrics and delivery schedules. Transparency might be limited due to the sole-source nature of the award, but contract award details are generally made public. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) IT Modernization Programs
Foreign Military Sales (FMS) Support Contracts
Global Force Projection Systems
Peacekeeping Operations Support Systems

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency into the justification for non-competition.
Potential for cost overruns if scope is not tightly managed.
Long contract duration increases risk of obsolescence or changing requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to GLASSHOUSE SYSTEMS INC. EGYPT INTEGRATED LOGISTICS SYSTEM PEACE VERTABRAE PROGRAM UPGRADE

Who is the contractor on this award?

The obligated recipient is GLASSHOUSE SYSTEMS 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 $17.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-03-31.

What is the specific justification for the sole-source award of this contract?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as the existence of only one responsible source, urgency, or when the contract is a follow-on to a previously competed effort where only the original contractor can provide the necessary services or supplies. Without further documentation from the Department of the Air Force, the precise rationale remains unknown, but it implies that Glasshouse Systems Inc. was deemed the only viable option for this particular upgrade.

How does the $17.8 million contract value compare to similar defense logistics system upgrades?

Direct comparison of the $17.8 million contract value for the Egypt Integrated Logistics System upgrade to similar defense logistics system upgrades is difficult without access to a broader dataset of comparable contracts. The value is influenced by numerous factors, including the scope of work, system complexity, duration, specific technologies involved, and the geopolitical context of the support. However, for major IT system upgrades within the Department of Defense, especially those involving international partners or complex logistical chains, a multi-million dollar investment is not uncommon. The 'Peace Vertabrae Program' designation suggests a significant operational context that likely contributes to the contract's scale.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for the Egypt Integrated Logistics System upgrade. However, as a 'Computer Systems Design Services' contract, it is reasonable to infer that deliverables would include system design documentation, software development, integration of new components, testing, and potentially training materials. Performance would likely be measured against criteria such as system functionality, reliability, security compliance, and adherence to the project schedule. The firm-fixed-price nature suggests that the government expects specific outcomes to be achieved within the agreed-upon budget.

What is Glasshouse Systems Inc.'s track record with Department of Defense contracts, particularly in logistics systems?

Glasshouse Systems Inc. has a history of receiving contracts from the Department of Defense, as indicated by this award. To assess their track record specifically in logistics systems, a deeper dive into their contract history would be necessary. This would involve examining past performance evaluations, the types of systems they have previously developed or supported, and their success in meeting deadlines and budget requirements on similar projects. Without this detailed historical data, it's difficult to definitively characterize their expertise and reliability in the logistics system domain, though their selection for this sole-source contract suggests a level of confidence from the awarding agency.

What is the historical spending trend for the Egypt Integrated Logistics System or similar programs?

The provided data only includes information for this specific contract award. To understand the historical spending trend for the Egypt Integrated Logistics System or similar programs, one would need to access historical contract databases and budget allocations for the Department of the Air Force and the relevant program offices. This would involve looking at previous contracts awarded for the maintenance, upgrade, or development of this system, as well as comparable systems supporting other international partners or defense initiatives. Analyzing these trends would reveal whether spending has been consistent, increasing, or decreasing over time.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 801 WARRENVILLE RD STE 560, LISLE, IL, 60532

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,148,767

Exercised Options: $19,492,105

Current Obligation: $17,833,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline