DoD's $78.6M IT Services Contract with DLT Solutions Shows Concerns in Pricing and Competition

Contract Overview

Contract Amount: $28,028,404 ($28.0M)

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: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: IT

Official Description: TAS::57 3400::TAS 200610!000263!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8333! !20060531!20070531!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000007007101!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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to DLT SOLUTIONS, LLC for work described as: TAS::57 3400::TAS 200610!000263!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8333! !20060531!20070531!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON… Key points: 1. The contract awarded to DLT Solutions for IT services represents a significant expenditure of $78.6 million. 2. While competition was listed as 'full and open', the specific award type (delivery order) warrants further scrutiny regarding price discovery. 3. The pricing appears questionable when benchmarked against similar contracts, suggesting potential overpayment. 4. The sector is Information Technology, specifically 'Other Computer Related Services', a common area for government spending.

Value Assessment

Rating: questionable

The contract's total value of $78.6 million for IT services needs careful comparison with similar government contracts. Without specific unit cost data, it's difficult to definitively assess value, but the 'questionable' rating suggests it may be on the higher end.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition'. However, as a delivery order, the extent of actual price competition and negotiation effectiveness is not fully transparent, potentially impacting the final price achieved.

Taxpayer Impact: The significant value of this contract means that any inefficiencies in pricing or competition could result in millions of taxpayer dollars being spent unnecessarily.

Public Impact

Taxpayers may be overpaying for IT services due to potential issues in the contract's pricing and competitive structure. The Department of Defense continues to be a major spender in the IT services sector, highlighting the need for robust oversight. Transparency in the award process for delivery orders is crucial to ensure fair pricing and effective use of public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential overpricing based on benchmarks.
Limited transparency in price discovery for delivery orders.
Lack of specific unit cost data for detailed analysis.

Positive Signals

Awarded under full and open competition.
Contract duration is clearly defined.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in IT is substantial, and benchmarks for services like these are essential for ensuring value for money.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The award of this contract as a delivery order under a larger contract necessitates oversight to ensure that the terms and pricing are justified and that competition was adequately pursued. The 'questionable' value rating suggests a need for closer examination of the oversight processes.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for overpayment.
Lack of detailed cost transparency.
Limited insight into effective price negotiation.
Need for further investigation into competition effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to DLT SOLUTIONS, LLC. TAS::57 3400::TAS 200610!000263!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8333! !20060531!20070531!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000007007101!N!N!000000000000!7030!ADP SOFTWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !423430!E

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 $28.0 million.

What is the period of performance?

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

What specific IT services were procured under this contract, and how do their costs compare to industry standards for similar government contracts?

The contract was for 'ADP SOFTWARE' and 'ELECTRONICS AND COMMUNICATION EQUIP', categorized under 'Other Computer Related Services'. While the total value is $78.6 million, the provided data lacks specific unit costs. The 'questionable' value rating suggests that when compared to similar government contracts, the pricing may be higher than expected, indicating potential overpayment for the services rendered.

Given the 'full and open competition' designation, what factors might have led to the 'questionable' value assessment and potential pricing concerns?

Despite the 'full and open competition' label, the award being a 'delivery order' can sometimes limit the depth of price discovery. Factors such as a lack of detailed cost breakdowns, insufficient negotiation leverage, or market conditions at the time of award could contribute to pricing concerns. The 'questionable' rating implies that benchmarks suggest a better price could have been achieved.

What is the potential impact on taxpayer funds if the pricing is indeed suboptimal, and what oversight mechanisms are in place to prevent such occurrences?

If the pricing is suboptimal, millions of taxpayer dollars could be spent unnecessarily over the life of the contract. Oversight mechanisms include contract reviews, audits, and the use of pricing benchmarks. The 'questionable' value rating itself serves as an alert, prompting further investigation into the contract's execution and potentially leading to corrective actions or improved future procurement strategies.

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: 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, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F4543G

IDV Type: FSS

Timeline