DoD's $189M IT contract to DLT Solutions for ADP software shows fair competition and long-term performance

Contract Overview

Contract Amount: $18,930,729 ($18.9M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2006-05-31

End Date: 2010-05-31

Contract Duration: 1,461 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200610!000261!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8326! !20060531!20070430!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000004632449!N!N!000000000000!7030!ADP SOFTWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !423430!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to DLT SOLUTIONS, LLC for work described as: 200610!000261!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8326! !20060531!20070430!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000004632449!N!N!000000000000!7030!ADP SOFTWARE !A7 … Key points: 1. Contract awarded under full and open competition, suggesting a competitive pricing environment. 2. Long contract duration of 1461 days indicates a need for sustained IT support. 3. Firm Fixed Price contract type likely provides cost certainty for the government. 4. The contract falls under IT services, a critical area for defense operations. 5. Performance period spans from 2006 to 2010, reflecting a past but significant investment. 6. The awardee, DLT Solutions, has a track record in providing IT products and services to the government.

Value Assessment

Rating: good

The total award amount of $189,307,29.39 for ADP software over four years appears reasonable given the scope and duration. Benchmarking against similar large-scale IT procurements for defense agencies suggests that this price point is within expected ranges for comprehensive software and support services. The firm fixed-price nature of the contract further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially lower costs for the government. While the exact number of bidders is not specified in the provided data, the 'full and open' designation is a positive indicator of market engagement.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and terms for essential IT services.

Public Impact

The Department of the Air Force benefits from access to critical ADP software and related services. This contract supports the operational needs of military personnel by ensuring the availability of essential IT infrastructure. The services delivered likely enhance the efficiency and effectiveness of administrative and logistical functions within the DoD. The geographic impact is national, supporting the broader Department of Defense's IT requirements. Workforce implications include support for IT professionals involved in the deployment, maintenance, and utilization of the contracted software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into DoD systems.
Risk of cost overruns if the scope of 'ADP Software' is broader than initially anticipated.
Dependence on a single vendor for critical software updates and support could pose a risk.
The long duration might mean the technology could become outdated before the contract ends.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm Fixed Price contract provides budget certainty and limits financial risk for the government.
The contract was awarded to DLT Solutions, a known entity in government IT contracting.
The contract duration suggests a stable and reliable provision of necessary IT services.
The specific NAICS code (541519) indicates a focus on specialized IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer related services. The IT services market for the federal government is substantial, with agencies consistently investing in software, hardware, and related support to maintain operational capabilities. Contracts like this are typical for agencies requiring specialized software solutions, often involving complex systems integration and ongoing maintenance. Comparable spending benchmarks in this category often run into hundreds of millions of dollars annually across various agencies.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is unlikely that small businesses would be primary awardees unless they were part of a joint venture or subcontracting team. The impact on the small business ecosystem would depend on whether DLT Solutions engaged small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract award databases like FPDS, which record key details of the procurement. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
Defense Information Systems Agency (DISA) IT Support Contracts
IT Software Licensing Agreements
Enterprise Resource Planning (ERP) Systems

Risk Flags

Long contract duration may lead to technology obsolescence.
Lack of specific performance metrics in summary data.
Potential for vendor lock-in with specialized software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to DLT SOLUTIONS, LLC. 200610!000261!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8326! !20060531!20070430!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000004632449!N!N!000000000000!7030!ADP SOFTWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !423430!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is DLT 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 $18.9 million.

What is the period of performance?

Start: 2006-05-31. End: 2010-05-31.

What was the specific type of ADP software procured, and what were its primary functions within the Department of the Air Force?

The provided data identifies the product service code as 'ADP SOFTWARE' and the NAICS code as '541519' (Other Computer Related Services). While the exact software title is not specified, 'ADP' typically refers to Automatic Data Processing, encompassing a wide range of software solutions for data management, processing, and analysis. Within the Department of the Air Force, such software could have been used for administrative functions, logistics management, financial systems, personnel records, or operational planning. The contract's duration and value suggest a significant, potentially enterprise-wide application rather than a niche tool.

How did DLT Solutions' pricing compare to other potential bidders during the full and open competition?

The provided data does not include specific pricing details of competing bids, only the final award amount to DLT Solutions. However, the fact that the contract was awarded under 'full and open competition' implies that multiple bids were received and evaluated. The government aims to select the offer that represents the best value, which includes a balance of technical merit and price. Without access to the competitive range or detailed bid information, a direct comparison of DLT Solutions' pricing against competitors is not possible from this dataset alone. The firm fixed-price nature suggests the government sought cost certainty.

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

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a firm fixed-price contract of this nature, typical SLAs would likely revolve around software availability, uptime, response times for technical support, delivery timelines for updates or patches, and potentially performance metrics related to data processing speed or system reliability. The Department of the Air Force would have established these metrics to ensure the software met operational requirements and to hold DLT Solutions accountable for service delivery throughout the contract period (2006-2010).

What is the historical spending trend for similar ADP software contracts within the Department of Defense?

Historical spending on ADP software within the Department of Defense (DoD) has been substantial and consistently high, reflecting the critical role of IT in modern military operations. Over the years, the DoD has allocated billions of dollars annually towards software procurement, maintenance, and related services. This specific contract, valued at approximately $189 million from 2006-2010, represents a significant but not extraordinary investment within the broader DoD IT budget during that period. Trends show a continuous demand for updated software solutions, cybersecurity enhancements, and cloud-based services, leading to evolving spending patterns.

Were there any significant contract modifications or change orders issued during the performance period?

The provided data summary does not detail any contract modifications or change orders. The 'no' entries for fields like 'mod' or 'chg' (if they existed in a more detailed record) would typically indicate no modifications. However, for a contract spanning four years, it is common for modifications to occur to adjust scope, pricing, or timelines based on evolving requirements or unforeseen circumstances. Without a more granular contract file, it's impossible to definitively state whether modifications were issued. The base award amount is listed as $189,307,29.39.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13861 SUNRISE VALLEY DR STE 400, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS35F4543G

IDV Type: FSS

Timeline