DoD's $36M C2SET Modernization contract awarded to OMNI FED LLC for custom programming services

Contract Overview

Contract Amount: $36,182,322 ($36.2M)

Contractor: Omni FED LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-01

End Date: 2026-01-28

Contract Duration: 1,641 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: COMMAND AND CONTROL SIMULATED ENVIRONMENT FOR TRAINING (C2SET) MODERNIZATION

Place of Performance

Location: GAINESVILLE, PRINCE WILLIAM County, VIRGINIA, 20155

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to OMNI FED LLC for work described as: COMMAND AND CONTROL SIMULATED ENVIRONMENT FOR TRAINING (C2SET) MODERNIZATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award is a Delivery Order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The contractor, OMNI FED LLC, is relatively new to federal contracting based on the provided data. 5. The contract duration is substantial at 1641 days, spanning over four years. 6. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.

Value Assessment

Rating: fair

Benchmarking the value of this Time and Materials contract is challenging without detailed labor rates and hours. However, the total estimated value of $36.2 million over approximately 4.5 years suggests a significant investment in custom computer programming. Comparing this to similar large-scale simulation and training environment modernization projects would be necessary for a more precise value assessment. The absence of a fixed ceiling or CLIN structure in the provided data makes direct price comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, but five bidders still provides a reasonable basis for price discovery.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition. The selection process aimed to identify the best value solution, ensuring that taxpayer funds are used efficiently for critical defense modernization.

Public Impact

The primary beneficiaries are the Department of the Air Force and the Department of Defense, who will receive modernized Command and Control Simulated Training Environments. This contract delivers custom computer programming services essential for enhancing training capabilities. The geographic impact is primarily within the United States, supporting defense training infrastructure. Workforce implications include potential employment for software developers, engineers, and simulation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The contractor, OMNI FED LLC, may have limited past performance data in large-scale federal contracts.
The duration of the contract (over 4 years) requires sustained oversight to ensure continued value.
Modernization projects are inherently complex and carry technical risks.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract aims to modernize critical training infrastructure, suggesting a strategic investment.
The specific NAICS code indicates a focus on specialized custom programming expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is vast, with significant spending on software development, system integration, and modernization. Comparable spending benchmarks would involve looking at other large-scale software development contracts for simulation, training, or command and control systems within the Department of Defense and other federal agencies. The market for such specialized services is competitive, with a mix of large system integrators and niche software development firms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not identified as a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could provide opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would include performance reviews, milestone tracking, and adherence to the contract's terms and conditions. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Training Systems Modernization
Command and Control Systems Development
Custom Software Development Services
Simulation and Training Environment Contracts
Information Technology Services for DoD

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Contractor Past Performance Unknown
Long Contract Duration Requires Sustained Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to OMNI FED LLC. COMMAND AND CONTROL SIMULATED ENVIRONMENT FOR TRAINING (C2SET) MODERNIZATION

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 $36.2 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-01-28.

What is the track record of OMNI FED LLC with federal contracts, particularly in simulation and training environments?

Based on the provided data, OMNI FED LLC is the contractor for this $36.2 million Command and Control Simulated Environment for Training (C2SET) Modernization contract. Further investigation into federal procurement databases (like FPDS-NG) would be necessary to ascertain their full track record. This would include examining the number and value of previous contracts awarded to OMNI FED LLC, the agencies they have served, and the types of services rendered. Particular attention should be paid to their performance on similar simulation, training, or command and control modernization projects to assess their experience and capability in this specific domain. A limited track record might indicate higher risk, while a strong history would suggest proven performance.

How does the estimated cost per day for this contract compare to industry benchmarks for custom computer programming services?

The total contract value is approximately $36.2 million over a period of 1641 days (roughly 4.5 years). This equates to an average daily cost of roughly $22,000 ($36,182,321.75 / 1641 days). However, this is a blended rate and does not represent a per-unit cost in the traditional sense, as it's a Time and Materials contract. To benchmark this effectively, one would need to compare the contractor's proposed labor rates (for various skill levels) against market rates for custom computer programming services in the relevant geographic locations and for the specific skill sets required. Without access to the detailed labor rates and hours billed, a precise per-unit cost comparison is not feasible. The overall daily average provides a high-level indicator but lacks the granularity for a robust benchmark.

What are the primary risks associated with a Time and Materials (T&M) contract for a project of this scale and duration?

Time and Materials contracts, while offering flexibility, carry inherent risks, especially for large, long-duration projects like the C2SET Modernization. The primary risk is cost escalation, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, costs can significantly exceed initial estimates. Effective oversight is crucial to monitor labor hours, ensure efficient work, and validate material costs. For a project of this scale ($36.2M over 4.5 years), the government must implement stringent controls, regular performance reviews, and potentially establish cost ceilings or CLIN structures to mitigate the risk of uncontrolled spending and ensure value for taxpayer money.

How does the level of competition (5 bidders) impact the potential value for money received by the government?

The award was made under full and open competition with five bidders. A moderate level of competition, such as five bidders, generally suggests that the government received a reasonable range of proposals and pricing. This level of competition is typically sufficient to drive down prices compared to a sole-source or limited competition scenario. It allows for comparison of technical approaches and costs, enabling the contracting officer to select the offer that represents the best value. While more bidders could potentially lead to even more aggressive pricing, five bidders indicates that the market was sufficiently engaged and that the government likely achieved competitive pricing for the custom computer programming services required for the C2SET modernization.

What is the historical spending trend for Command and Control Simulated Environment for Training (C2SET) modernization within the Department of the Air Force?

The provided data focuses on a single contract award. To understand historical spending trends for C2SET modernization within the Department of the Air Force (or DoD broadly), a comprehensive analysis of federal procurement data over several fiscal years would be required. This would involve querying databases like FPDS-NG for contracts related to 'simulation,' 'training environments,' 'command and control systems,' and 'modernization' within the relevant agency. Analyzing the number of awards, total obligated amounts, and average contract values over time would reveal trends, identify periods of increased or decreased investment, and highlight any shifts in technology or approach. Without this broader data set, it's impossible to establish a historical spending context for this specific contract.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $47,521,324

Exercised Options: $37,955,064

Current Obligation: $36,182,322

Actual Outlays: $185,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00FF

IDV Type: FSS

Timeline