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

Contract Overview

Contract Amount: $23,772,182 ($23.8M)

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: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200610!000264!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8334! !20060531!20070225!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000005573156!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: ASHBURN, LOUDOUN County, VIRGINIA, 20147, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to DLT SOLUTIONS, LLC for work described as: 200610!000264!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8334! !20060531!20070225!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIR… Key points: 1. The contract awarded to DLT Solutions for IT services represents a significant expenditure. 2. Competition was full and open, but the pricing assessment requires further scrutiny. 3. Potential risks include the lack of detailed justification for the final price and the broad scope of services. 4. The sector is IT, specifically 'Other Computer Related Services', a common area for government spending.

Value Assessment

Rating: questionable

The total contract value is $78.6M. Without specific per-unit cost data or benchmarks for 'ADP SOFTWARE' and 'ELECTRONICS AND COMMUNICATION EQUIP', it's difficult to definitively assess if the pricing is competitive. The lack of detailed justification for the final price raises concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the lack of detailed pricing justification in the provided data makes it hard to confirm if the competition effectively drove down costs to the lowest reasonable level.

Taxpayer Impact: While competition was utilized, the final price's justification is unclear, potentially impacting the optimal use of taxpayer funds.

Public Impact

Federal agencies rely heavily on IT services, making this a critical area of spending. The duration of the contract (over 4 years) suggests a long-term need for these services. Transparency in pricing for large IT contracts is essential for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing justification
Broad service categories
Potential for cost overruns if not managed tightly

Positive Signals

Full and open competition utilized
Established vendor with prior contract history

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in IT is substantial, with agencies constantly seeking to modernize systems and procure necessary software and hardware. Benchmarks for similar contracts are often difficult to establish due to the unique nature of IT requirements.

Small Business Impact

The data indicates this contract was not awarded to a small business. While large contracts often go to established prime contractors, opportunities for small businesses can exist further down the subcontracting chain, though this is not explicitly detailed here.

Oversight & Accountability

Oversight would typically involve contract performance reviews, financial audits, and adherence to service level agreements. The provided data does not offer specifics on the oversight mechanisms employed for this particular contract.

Related Government Programs

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

Risk Flags

Lack of detailed pricing justification
Broad service categories lacking specificity
Potential for scope creep
Limited insight into performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to DLT SOLUTIONS, LLC. 200610!000264!5700!FA8771!HQ SSG/AQ !GS35F4543G !C!N! !N!FA877106F8334! !20060531!20070225!786468199!786468199!786468199!N!DLT SOLUTIONS, INC !13861 SUNRISE VALLEY DR !HERNDON !VA!20170!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000005573156!N!N!000000000000!7030!ADP SOFTWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !423430!E! !6! ! ! ! ! !999

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 $23.8 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 they align with the Air Force's mission requirements?

The contract broadly covers 'ADP SOFTWARE' and 'ELECTRONICS AND COMMUNICATION EQUIP'. These are essential for IT infrastructure, including software licenses, hardware maintenance, and potentially related support services. The alignment with specific Air Force mission requirements would necessitate a deeper dive into the contract's statement of work and any associated task orders.

Given the 'full and open competition', what was the range of bids received, and how was the winning bid justified as the best value?

The provided data confirms 'full and open competition' but does not include the number of bids received or a detailed best-value determination. Typically, agencies document the evaluation process, including technical and price factors, to justify the selection. Without this documentation, it's unclear how DLT Solutions' bid was deemed the best value.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure effective service delivery?

The data does not specify any performance metrics or KPIs. Effective IT service contracts usually include clear performance standards and remedies for non-performance. The absence of this information suggests a potential gap in ensuring the contractor consistently meets required service levels and delivers value.

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