DoD's $21.5M contract for Depot Maintenance Applications Consolidated 2 awarded to DNI Emerging Technologies, LLC

Contract Overview

Contract Amount: $21,460,889 ($21.5M)

Contractor: DNI Emerging Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2027-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $14.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEPOT MAINTENANCE APPLICATIONS CONSOLIDATED 2

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to DNI EMERGING TECHNOLOGIES, LLC for work described as: DEPOT MAINTENANCE APPLICATIONS CONSOLIDATED 2 Key points: 1. The contract value of $21.5 million over approximately four years suggests a significant investment in application consolidation. 2. Awarded as a sole-source contract, the lack of competition may limit price discovery and potentially increase costs. 3. The firm-fixed-price contract type shifts performance risk to the contractor, which is generally favorable for the government. 4. The contract is for custom computer programming services, indicating a focus on specialized software development. 5. The geographic location of the contractor in Ohio may have implications for local economic impact and workforce development. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $21.5 million contract is challenging without more detailed cost breakdowns or comparable contract data. The firm-fixed-price structure is a positive indicator for cost control. However, the sole-source nature raises concerns about whether the government secured the best possible price compared to a competitive scenario. Further analysis of the specific services and deliverables would be needed to provide a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, DNI Emerging Technologies, LLC, was considered. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price competition and potentially higher costs for the government compared to contracts awarded through full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings typically achieved through a bidding process, potentially leading to a higher overall expenditure for this service.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving consolidated depot maintenance applications. This contract supports the modernization and efficiency of critical maintenance operations within the Air Force. The services delivered are expected to improve software functionality and integration for depot maintenance processes. The primary geographic impact is within the Department of Defense's operational infrastructure, with potential indirect economic benefits in Ohio where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of custom programming.
Limited visibility into performance metrics and quality assurance without competitive benchmarks.

Positive Signals

Firm-fixed-price contract shifts risk to the contractor, promoting cost certainty for the government.
Consolidation of applications can lead to long-term operational efficiencies and cost savings.
Award to a single vendor may indicate specialized expertise required for the task.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a segment of the broader IT services industry. This sector is characterized by specialized software development, integration, and maintenance. The market size for IT services supporting defense applications is substantial, driven by the need for advanced technological capabilities. This contract represents a specific investment in modernizing critical operational software for the Air Force's depot maintenance functions, aligning with broader government efforts to enhance digital infrastructure and operational efficiency.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to DNI Emerging Technologies, LLC, a single entity, suggests that subcontracting opportunities for small businesses may be limited unless proactively pursued by the prime contractor. Without specific subcontracting plans or goals outlined in the award, the direct impact on the small business ecosystem is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) IT Modernization Programs
Air Force Sustainment Center IT Services
Department of Defense Enterprise Resource Planning (ERP) Systems
Military Maintenance, Repair, and Overhaul (MRO) Software Solutions

Risk Flags

Sole-source award lacks competitive transparency.
Potential for higher costs due to lack of competition.
Risk of vendor lock-in with custom software development.
Limited public information on contractor's specific capabilities for this project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to DNI EMERGING TECHNOLOGIES, LLC. DEPOT MAINTENANCE APPLICATIONS CONSOLIDATED 2

Who is the contractor on this award?

The obligated recipient is DNI EMERGING TECHNOLOGIES, 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 $21.5 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or a lack of adequate competition. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to definitively assess the validity of the sole-source determination. This lack of transparency is a common concern with sole-source awards, as it can obscure whether the government truly explored all competitive avenues or if there were other qualified vendors.

How does the $21.5 million contract value compare to similar IT application consolidation projects within the DoD?

Comparing the $21.5 million contract value for Depot Maintenance Applications Consolidated 2 requires access to a broader dataset of similar IT consolidation projects within the Department of Defense. Factors such as the scope of applications being consolidated, the complexity of the existing systems, the duration of the contract (approximately four years), and the specific functionalities required will significantly influence the cost. Without specific benchmarks for comparable projects, it is difficult to definitively state whether this contract represents a high, low, or average investment. However, the firm-fixed-price nature suggests an effort to control costs, while the sole-source award raises questions about potential overpayment compared to a competitive scenario.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a custom computer programming services contract, typical KPIs might include software performance metrics (e.g., uptime, response time), defect resolution rates, adherence to development timelines, and successful integration with existing systems. SLAs would define the expected level of service and the remedies for non-performance. The firm-fixed-price nature implies that the contractor is responsible for meeting defined deliverables and performance standards. However, the specific details of these metrics are crucial for assessing the contractor's performance and the overall success of the project.

What is the track record of DNI Emerging Technologies, LLC with similar DoD contracts?

Information regarding the specific track record of DNI Emerging Technologies, LLC with similar Department of Defense (DoD) contracts is not provided in the data. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Given this is a sole-source award for custom computer programming, it might suggest the company possesses unique or highly specialized skills that the DoD requires. A thorough review of their past performance on government contracts would be necessary to gauge their reliability and capability for this specific project.

What is the potential risk of vendor lock-in associated with this sole-source contract?

There is a significant potential risk of vendor lock-in associated with this sole-source contract. Since DNI Emerging Technologies, LLC is providing custom computer programming services for the consolidation of depot maintenance applications, they are likely developing or heavily customizing software tailored to the Air Force's specific needs. This specialization can make it difficult and costly for the government to switch to a different vendor in the future, as a new vendor would need to understand and potentially re-engineer the custom-built systems. The sole-source nature exacerbates this risk by limiting initial competition and potentially allowing the incumbent contractor to dictate terms in future contract renewals.

How does the firm-fixed-price contract type mitigate risks for the government in this IT development project?

The firm-fixed-price (FFP) contract type is generally considered advantageous for the government, especially in IT development projects where scope can be clearly defined. Under an FFP contract, the contractor assumes the primary responsibility for cost overruns. This means that DNI Emerging Technologies, LLC is obligated to deliver the agreed-upon services for the stated price of $21.5 million, regardless of their actual costs. This structure provides cost certainty for the Department of the Air Force and incentivizes the contractor to manage their resources efficiently to maintain profitability. It shifts the financial risk of performance issues or unforeseen technical challenges from the government to the contractor.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA877022RB003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1650, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,529,050

Exercised Options: $21,908,263

Current Obligation: $21,460,889

Actual Outlays: $3,634,656

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline