Air Force awards $16.6M for IT services to Obsidian Global, LLC under full and open competition

Contract Overview

Contract Amount: $16,580,959 ($16.6M)

Contractor: Obsidian Global, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-28

End Date: 2026-02-27

Contract Duration: 1,978 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE REQUEST PROCESS SYSTEM CAPABILITY DELIVERY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to OBSIDIAN GLOBAL, LLC for work described as: PURCHASE REQUEST PROCESS SYSTEM CAPABILITY DELIVERY Key points: 1. Contract value represents a significant investment in IT support services for the Department of the Air Force. 2. Obsidian Global, LLC, a relatively new entity, secured this award, highlighting potential for emerging contractors. 3. The contract's duration of nearly two years suggests a need for sustained IT support. 4. Fixed-price contract type aims to control costs, but requires careful scope management. 5. The award falls under 'Other Computer Related Services,' a broad category indicating diverse IT needs. 6. Geographic location of the contractor in Washington D.C. may indicate proximity to key Air Force decision-makers.

Value Assessment

Rating: fair

The total contract value of $16.6 million over approximately 1.9 years (from Sep 2020 to Feb 2026) averages to roughly $8.38 million per year. Without specific details on the services rendered, it's challenging to benchmark against similar contracts. However, the firm-fixed-price structure suggests an expectation of cost control. The number of bids received (10) indicates some level of competition, which can be a positive sign for value, but the ultimate value depends on the scope and quality of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Ten bids were received, indicating a healthy level of interest and a competitive environment. This broad competition is generally favorable for price discovery and ensures the government has access to a range of potential solutions and pricing structures.

Taxpayer Impact: The full and open competition process, with multiple bidders, suggests that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down prices and encourages innovative solutions.

Public Impact

The Department of the Air Force benefits from the procurement of essential IT services to support its operations. The contract likely supports various IT functions, including system maintenance, development, or operational support. The geographic impact is primarily within the District of Columbia, where the contractor is located, potentially supporting local IT infrastructure and personnel. Workforce implications may include employment opportunities for IT professionals within Obsidian Global, LLC and potentially within the Air Force's IT support structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, increasing the risk of scope creep or evolving technological needs not being met.
The contractor, Obsidian Global, LLC, appears to be a relatively new entity, which may present a higher risk profile compared to established firms with a long track record.
The broad NAICS code (541519) for 'Other Computer Related Services' could mask a wide range of service complexities, making precise performance evaluation difficult.

Positive Signals

Awarded under full and open competition with 10 bids received, indicating a competitive process that should yield good value.
Firm-fixed-price contract type helps to control costs and provides budget certainty for the Air Force.
The contract is for IT services, a critical function for modern military operations, suggesting strategic importance.

Sector Analysis

The IT services sector is a vast and dynamic market, with government contracts forming a significant portion of its revenue. This contract falls under 'Other Computer Related Services,' a broad category that encompasses a wide array of IT support, consulting, and integration services. The Department of Defense is a major consumer of IT services, constantly seeking to modernize its systems and maintain operational readiness. Benchmarking this contract's value against similar IT service contracts within the DoD would require a more granular understanding of the specific services procured, but the annual value of approximately $8.38 million is within a common range for specialized IT support.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal unless Obsidian Global, LLC voluntarily engages small businesses for subcontracting. The absence of set-aside provisions means that larger, established companies were also eligible to bid, potentially overshadowing smaller competitors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control, but performance monitoring remains crucial. Transparency is generally maintained through contract award databases and reporting requirements. 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 Services
Air Force Network Integration Center
DoD Cloud Computing Services
Cybersecurity Services Contracts

Risk Flags

Contractor is a relatively new entity with potentially limited federal performance history.
Broad NAICS code may obscure the specific nature and complexity of services.
Long contract duration increases risk of evolving needs and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to OBSIDIAN GLOBAL, LLC. PURCHASE REQUEST PROCESS SYSTEM CAPABILITY DELIVERY

Who is the contractor on this award?

The obligated recipient is OBSIDIAN GLOBAL, 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 $16.6 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-02-27.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can include a wide range of IT services such as IT consulting, systems integration, custom software development, IT support, and data processing services. Without further details from the contract's statement of work, it is difficult to ascertain the precise services. However, given it's for the Department of the Air Force, these services likely support critical IT infrastructure, operational systems, or specific technological initiatives aimed at enhancing military capabilities and readiness. The firm-fixed-price nature suggests a well-defined scope of work is expected.

How does the $16.6 million contract value compare to typical IT service spending by the Air Force for similar services?

The total contract value of $16.6 million, spread over approximately 23 months (September 2020 to February 2026), equates to an average annual spend of roughly $8.38 million. This figure is moderate for IT services within a large organization like the Air Force. The DoD, in general, spends billions annually on IT services. To provide a precise comparison, one would need to benchmark against contracts with identical or very similar NAICS codes, service descriptions, and contract durations. However, this amount is not exceptionally high or low, suggesting it addresses a specific, ongoing need rather than a massive, transformative project or a minor, short-term requirement.

What is the track record of Obsidian Global, LLC in securing and performing on federal contracts, particularly within the DoD?

Based on the available data, Obsidian Global, LLC appears to be a relatively new entity in the federal contracting space. Information regarding its extensive track record, especially within the Department of Defense, is not readily apparent from the summary data. Newer contractors often present a higher risk profile due to limited performance history. However, securing a contract of this value ($16.6 million) under full and open competition suggests they met the initial qualifications and demonstrated capability to the Air Force. Further due diligence would involve examining past performance evaluations, any prior government contracts, and their financial stability to assess their reliability.

What are the potential risks associated with a nearly two-year contract for IT services, and how are they mitigated?

A contract duration of nearly two years for IT services carries inherent risks, primarily related to the rapid evolution of technology and potential changes in operational requirements. Risks include scope creep, where the project expands beyond its original objectives; obsolescence of technology or solutions; and the possibility that the contractor's proposed solution may not align with future Air Force needs. Mitigation strategies often involve robust contract management, including regular performance reviews, clear change control processes, and potentially incorporating flexibility clauses within the contract. The firm-fixed-price structure also incentivizes the contractor to deliver within the defined scope, but careful monitoring is still essential to ensure the services remain relevant and effective throughout the contract period.

How does the 'full and open competition' with 10 bidders impact the value proposition for taxpayers?

The 'full and open competition' with 10 bidders is a strong positive indicator for taxpayer value. It signifies that the Air Force cast a wide net, allowing numerous qualified companies to compete for the contract. A larger pool of bidders generally leads to more competitive pricing as companies strive to offer the best value to win the award. The presence of 10 bids suggests that the market has sufficient capacity and interest in providing these IT services. This competitive pressure helps ensure that the government is not overpaying and is receiving services at or near market rates. It also encourages innovation as bidders differentiate themselves on price, technical approach, and past performance.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1055 THOMAS JEFFERSON ST NW, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $16,705,959

Exercised Options: $16,705,959

Current Obligation: $16,580,959

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $13,309,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F292GA

IDV Type: FSS

Timeline