DoD's $16M Air Force contract for IT services awarded to Netrist Solutions, LLC, with 10 bids received

Contract Overview

Contract Amount: $16,019,843 ($16.0M)

Contractor: Netrist Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-01

End Date: 2026-09-30

Contract Duration: 1,248 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CONSOLIDATED AIR MOBILITY PLANNING (CAMPS) - SUSTAINMENT, OPERATIONS AND MAINTENANCE SERVICES (SOMS)

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to NETRIST SOLUTIONS, LLC for work described as: CONSOLIDATED AIR MOBILITY PLANNING (CAMPS) - SUSTAINMENT, OPERATIONS AND MAINTENANCE SERVICES (SOMS) Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics with 10 bidders suggest a healthy market for these services. 3. Risk indicators are moderate, with performance context and sector positioning needing further review. 4. The contract duration of over three years provides stability for service delivery. 5. This contract falls within the custom computer programming services sector.

Value Assessment

Rating: good

The contract's total value of approximately $16 million over its period of performance is within a reasonable range for custom computer programming services. Benchmarking against similar contracts for IT sustainment and operations is crucial for a definitive value assessment. The pricing structure, likely based on time and materials, requires careful monitoring to ensure efficiency and prevent cost overruns. The number of bids received (10) suggests a competitive environment that should have driven favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with ten distinct bidders vying for the opportunity. This high level of competition is a positive indicator, suggesting that the government sought a broad range of potential providers and that market forces were likely at play to ensure competitive pricing. The presence of multiple bidders generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective award than a sole-source or limited competition scenario. It indicates that taxpayer funds are being utilized efficiently by leveraging market competition.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential IT sustainment, operations, and maintenance services. Services delivered are critical for the operational readiness and efficiency of Air Force IT systems. The geographic impact is likely concentrated around Air Force installations where these IT services are required. Workforce implications may include the direct employment of IT professionals by Netrist Solutions, LLC, and potentially indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in time and materials contracts if not managed diligently.
Dependence on a single contractor for critical IT operations could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee contractor performance.

Positive Signals

Awarded under full and open competition, indicating a competitive pricing environment.
Contract duration of over three years provides continuity of essential services.
The contractor, Netrist Solutions, LLC, has secured a significant contract, suggesting a level of established capability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services (NAICS 541511). This sector is characterized by a wide range of providers, from small specialized firms to large system integrators. The market size for government IT services is substantial, with agencies continually seeking to modernize and maintain their technological infrastructure. This contract for sustainment, operations, and maintenance is a common requirement across federal agencies to ensure the ongoing functionality of critical systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SS: false, SB: false). While Netrist Solutions, LLC may be a small business itself, the award was made under full and open competition, meaning large businesses were also eligible. There is no explicit information on subcontracting plans for small businesses within this award, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be embedded in the contract's performance work statement and delivery order terms. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Air Force Network Operations and Maintenance
Custom Software Development Services
IT Professional Services

Risk Flags

Potential for cost overruns in Time and Materials contracts.
Dependence on a single contractor for critical IT functions.
Need for robust government oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to NETRIST SOLUTIONS, LLC. CONSOLIDATED AIR MOBILITY PLANNING (CAMPS) - SUSTAINMENT, OPERATIONS AND MAINTENANCE SERVICES (SOMS)

Who is the contractor on this award?

The obligated recipient is NETRIST SOLUTIONS, 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 $16.0 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-09-30.

What is the track record of Netrist Solutions, LLC in performing similar IT sustainment and operations contracts for the federal government?

Assessing the track record of Netrist Solutions, LLC is crucial for understanding their capability to deliver on this $16 million contract. A review of their past performance on similar federal contracts, particularly those involving sustainment, operations, and maintenance of IT systems, would provide valuable insights. This includes examining past performance evaluations, any contract disputes or terminations, and their history of meeting delivery schedules and quality standards. While the award itself suggests a level of qualification, a deeper dive into their specific experience with the Department of Defense or similar complex IT environments would offer a more robust assessment of their reliability and expertise for this particular requirement.

How does the awarded price compare to industry benchmarks for similar IT sustainment and operations services?

To evaluate the value for money, the awarded price needs to be benchmarked against industry standards for comparable IT sustainment, operations, and maintenance services. This involves analyzing the contract's labor rates, overhead, and profit margins against data from commercial IT service providers and other government contracts. Given this is a time and materials contract, a key aspect of the comparison would be the average hourly rates for different labor categories. A higher number of bids (10) suggests competitive pressure, which should theoretically drive prices closer to market rates. However, without specific details on the labor categories and skill levels required, a precise comparison is challenging. Further analysis would involve accessing specialized cost-estimating tools or consulting industry reports.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the time and materials pricing structure, performance deficiencies impacting critical Air Force IT systems, and contractor dependency. Mitigation strategies should involve robust government oversight, including detailed monitoring of labor hours and material costs, regular performance reviews against the Service Level Agreements (SLAs) outlined in the contract, and clear communication channels with the contractor. The government should also maintain contingency plans and potentially explore options for bringing services in-house or diversifying contractors for future needs if performance issues arise. Ensuring the contract has well-defined deliverables and performance metrics is key to managing these risks effectively.

How effective has the Department of the Air Force been in managing similar IT sustainment contracts in the past?

The effectiveness of the Department of the Air Force in managing similar IT sustainment contracts provides a crucial context for this award. Historical data on contract performance, cost growth, and user satisfaction for past sustainment efforts can indicate the agency's proficiency in oversight, vendor management, and requirements definition. Analyzing past contract close-outs, any incurred penalties or awards, and the frequency of contract modifications can reveal patterns in management effectiveness. A strong track record suggests a higher likelihood of success for this new contract, while a history of challenges might signal areas where enhanced government oversight or different contracting approaches might be necessary.

What is the historical spending trend for custom computer programming services within the Department of the Air Force?

Examining the historical spending trend for custom computer programming services within the Department of the Air Force is essential for understanding the scale and consistency of investment in this area. This analysis would involve reviewing aggregate spending data over several fiscal years to identify patterns, fluctuations, and the overall growth or decline in this category. It helps contextualize the $16 million award by showing whether it represents a typical investment, an increase, or a decrease compared to previous years. Understanding these trends can inform future budget planning and highlight the strategic importance the Air Force places on custom IT solutions and related services like sustainment and operations.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 211 KING ST STE 101, CHARLESTON, SC, 29401

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,722,077

Exercised Options: $21,850,051

Current Obligation: $16,019,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D007D

IDV Type: FSS

Timeline