DoD's $9.46M Stock Control System Contract Awarded to Obsidian Global, LLC

Contract Overview

Contract Amount: $9,458,256 ($9.5M)

Contractor: Obsidian Global, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-19

End Date: 2026-04-18

Contract Duration: 729 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REQUIREMENT FOR A FOLLOW-ON CONTRACT FOR CONTINUED SUPPORT AND SUSTAINMENT OF STOCK CONTROL SYSTEM (SCS).

Place of Performance

Location: FAIRBORN, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to OBSIDIAN GLOBAL, LLC for work described as: REQUIREMENT FOR A FOLLOW-ON CONTRACT FOR CONTINUED SUPPORT AND SUSTAINMENT OF STOCK CONTROL SYSTEM (SCS). Key points: 1. Contract supports critical Air Force logistics with a follow-on award. 2. Obsidian Global, LLC, a small business, secures the contract. 3. The award utilizes full and open competition after exclusion of sources. 4. Spending is for custom computer programming services, a key IT sector.

Value Assessment

Rating: good

The contract value of $9.46M over two years appears reasonable for custom programming services supporting a critical system. Benchmarking against similar sustainment contracts for complex IT systems is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for excluding other potential bidders. This method may limit price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding essential support for a defense logistics system, ensuring operational readiness. The competition method's impact on final price requires further scrutiny.

Public Impact

Ensures continued operation of the Air Force's Stock Control System. Supports logistics and inventory management critical for military readiness. Potential impact on future contract awards within the defense IT sector. Highlights the importance of specialized IT support for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may not yield the best price.
Lack of detailed performance metrics in provided data.
Follow-on nature could indicate a lack of market research for alternatives.

Positive Signals

Supports a critical defense system.
Awarded to a small business.
Firm Fixed Price contract type controls cost escalation.

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending benchmarks for similar sustainment contracts for complex government IT systems are typically in the millions annually, depending on system criticality and scope.

Small Business Impact

Obsidian Global, LLC is identified as a small business, and this award contributes to their portfolio. The contract's structure and value should be assessed for its long-term impact on the company's growth and sustainability within the federal contracting landscape.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' clause warrants careful oversight to ensure the exclusion was justified and properly documented. Transparency in the justification process is key to accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for limited competition impacting price.
Need for clear performance metrics.
Justification for source exclusion requires scrutiny.
Long-term cost-effectiveness versus modernization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to OBSIDIAN GLOBAL, LLC. REQUIREMENT FOR A FOLLOW-ON CONTRACT FOR CONTINUED SUPPORT AND SUSTAINMENT OF STOCK CONTROL SYSTEM (SCS).

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 $9.5 million.

What is the period of performance?

Start: 2024-04-19. End: 2026-04-18.

What was the specific justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did it impact the final price?

The justification for excluding other sources is crucial for understanding the competitive landscape and potential price impacts. If the exclusion was based on unique capabilities or proprietary technology, it might limit price competition. Conversely, if the exclusion was less stringent, it could suggest a missed opportunity for better value. A thorough review of the justification documentation is necessary to assess the fairness and effectiveness of the procurement process and its influence on the final negotiated price.

What are the key performance indicators (KPIs) for the Stock Control System (SCS) support, and how will their achievement be measured to ensure effectiveness?

Measuring the effectiveness of SCS support hinges on clearly defined Key Performance Indicators (KPIs). These should include metrics such as system uptime, data accuracy rates, response times for critical functions, and user satisfaction. The contract should outline specific targets for these KPIs and the methodology for tracking and reporting performance. Regular performance reviews against these metrics will ensure the contractor is meeting obligations and that taxpayer funds are yielding the desired operational outcomes for the Air Force.

How does the $9.46M contract value compare to the total lifecycle cost of the Stock Control System, and are there plans for future competition or system modernization?

The $9.46M represents the cost for continued support and sustainment over two years. To assess its value comprehensively, it must be compared against the total lifecycle cost of the SCS, including initial development, ongoing maintenance, and potential future upgrades or replacements. Understanding the long-term investment strategy is vital. Agencies should regularly evaluate whether continued sustainment is more cost-effective than modernization or replacement, and ensure future procurements are structured to maximize competition and technological advancement.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $24,157,002

Exercised Options: $9,458,256

Current Obligation: $9,458,256

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,236,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877120D0012

IDV Type: IDC

Timeline