DoD Awards $25M for Weapon Systems Data Exchange to 3 Squared Technology Group
Contract Overview
Contract Amount: $2,521,656 ($2.5M)
Contractor: 3 Squared Technology Group LLC
Awarding Agency: Department of Defense
Start Date: 2024-01-06
End Date: 2027-01-05
Contract Duration: 1,095 days
Daily Burn Rate: $2.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACTOR SUPPORTED WEAPON SYSTEMS DATA EXCHANGE
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $2.5 million to 3 SQUARED TECHNOLOGY GROUP LLC for work described as: CONTRACTOR SUPPORTED WEAPON SYSTEMS DATA EXCHANGE Key points: 1. Contract awarded for weapon systems data exchange services. 2. Sole-source award raises questions about competition and potential cost savings. 3. The contract duration is three years, with a firm fixed price. 4. The sector is IT services, specifically computer related services.
Value Assessment
Rating: questionable
Pricing is based on a firm fixed price contract. Without competitive bids, it is difficult to assess if the price is optimal or if it represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition could lead to a higher overall cost for this essential data exchange service.
Public Impact
Enhances weapon systems data exchange capabilities for the Air Force. Potential for increased efficiency in military operations through better data sharing. Sole-source nature may limit innovation and cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated costs
Positive Signals
- Supports critical weapon systems data exchange
- Long-term contract provides stability
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this area is substantial across the government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The contractor, 3 Squared Technology Group LLC, is not listed as a small business. This award does not appear to include specific provisions for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance requirements and that the sole-source justification remains valid throughout the contract's life.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns without competitive pressure.
- Lack of small business participation.
- Dependence on a single contractor for critical IT services.
Tags
other-computer-related-services, department-of-defense, oh, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.5 million to 3 SQUARED TECHNOLOGY GROUP LLC. CONTRACTOR SUPPORTED WEAPON SYSTEMS DATA EXCHANGE
Who is the contractor on this award?
The obligated recipient is 3 SQUARED TECHNOLOGY GROUP 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 $2.5 million.
What is the period of performance?
Start: 2024-01-06. End: 2027-01-05.
What is the justification for the sole-source award, and how does it ensure value for money?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can fulfill the requirement. For this contract, the specific justification needs to be reviewed to understand why competition was not feasible. Ensuring value for money in such cases relies heavily on robust negotiation, clear performance metrics, and potentially independent cost analysis by the agency to validate the pricing.
What are the risks associated with a sole-source contract for critical IT services like weapon systems data exchange?
Sole-source contracts carry inherent risks, including the potential for higher prices due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a risk of vendor lock-in. For critical IT services, this could also mean a single point of failure if the contractor underperforms or faces operational issues, potentially impacting national security.
How will the effectiveness of the weapon systems data exchange be measured and ensured?
Effectiveness will likely be measured through Key Performance Indicators (KPIs) outlined in the contract, such as data accuracy, system uptime, response times, and successful integration with other military systems. Regular performance reviews, milestone tracking, and user feedback from the Department of the Air Force will be essential to ensure the service meets its intended objectives and contributes to operational readiness.
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 › IT AND TELECOM - APLLICATIONS
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: 270 NEW PROVIDENCE WAY, PIKE ROAD, AL, 36064
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $3,861,506
Exercised Options: $2,521,656
Current Obligation: $2,521,656
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-01-06
Current End Date: 2027-01-05
Potential End Date: 2028-07-05 00:00:00
Last Modified: 2026-01-02
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