DoD's $8.8M GEOMAP contract to Solutions71, LLC raises questions on competition and value

Contract Overview

Contract Amount: $8,830,486 ($8.8M)

Contractor: Solutions71, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-01-31

Contract Duration: 517 days

Daily Burn Rate: $17.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GEOSPATIAL ENGINEERING OPERATIONS MAPPING AND ANALYSIS PORTAL (GEOMAP)

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to SOLUTIONS71, LLC for work described as: GEOSPATIAL ENGINEERING OPERATIONS MAPPING AND ANALYSIS PORTAL (GEOMAP) Key points: 1. The contract's value of $8.8 million over 517 days suggests a significant investment in geospatial capabilities. 2. The 'NOT AVAILABLE FOR COMPETITION' award type indicates a lack of competitive bidding, potentially impacting price. 3. The firm-fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 4. The duration of 517 days for a definitive contract warrants scrutiny of project scope and potential for extensions. 5. The contract is awarded to Solutions71, LLC, a single vendor, highlighting a concentrated relationship. 6. The geographic focus on Alabama (AL) for this IT service contract is noted.

Value Assessment

Rating: questionable

Benchmarking the value of this $8.8 million contract is challenging due to the lack of competitive data. The per-day cost is approximately $17,080. Without comparable bids or market analysis, it's difficult to definitively assess if this represents good value for the Department of Defense. The firm-fixed-price structure is a positive for cost control, but the absence of competition means the government may not have secured the lowest possible price.

Cost Per Unit: Approximately $17,080 per day. Market rates for similar geospatial engineering and analysis services vary widely based on scope and complexity, making direct comparison difficult without further details on the specific services provided under GEOMAP.

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means the Department of the Air Force did not solicit bids from multiple vendors. The reasons for this sole-source award are not detailed, but it significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver for cost savings in government contracting.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive geospatial engineering operations, mapping, and analysis services. The GEOMAP portal is intended to enhance the Air Force's capabilities in managing and analyzing geospatial data. The contract's geographic focus is Alabama, suggesting potential implications for state-level defense operations or infrastructure. The contract supports the IT sector by engaging a specialized service provider for advanced data analysis and mapping.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
The sole-source nature of the award requires strong justification to ensure taxpayer funds are used efficiently.
The specific deliverables and performance metrics are not detailed, making it hard to assess the contractor's performance risk.
The duration of the contract (over 1.5 years) could indicate a long-term need or potential for scope creep without competitive pressure.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The definitive contract award suggests a clear scope of work has been established.
The contract is awarded to Solutions71, LLC, which presumably has specialized expertise in geospatial services.
The contract duration is defined, providing a clear end date for the services.

Sector Analysis

The IT services sector, particularly in areas like geospatial engineering and data analysis, is a critical component of modern defense operations. This contract fits within the broader market for specialized IT support services, which is characterized by a mix of large prime contractors and niche providers. The market size for such services is substantial, driven by increasing reliance on data-driven decision-making across all government agencies. Comparable spending benchmarks are difficult to establish without knowing the precise scope of GEOMAP, but IT services represent a significant portion of federal procurement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are likely limited unless Solutions71, LLC voluntarily engages them. The absence of set-asides in larger sole-source contracts can reduce the overall impact on the small business ecosystem within the federal contracting landscape.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is expected to have defined milestones and deliverables that will be monitored. Transparency regarding the justification for the sole-source award and the specific performance metrics would enhance accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Geospatial Intelligence Services
IT System Design and Integration
Data Analysis and Mapping Services
Defense Department IT Procurement
Sole-Source IT Contracts

Risk Flags

Sole-source award without clear justification
Potential for inflated pricing due to lack of competition
Limited transparency on specific deliverables and performance metrics
Uncertainty regarding contractor's past performance in specialized IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to SOLUTIONS71, LLC. GEOSPATIAL ENGINEERING OPERATIONS MAPPING AND ANALYSIS PORTAL (GEOMAP)

Who is the contractor on this award?

The obligated recipient is SOLUTIONS71, 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 $8.8 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-01-31.

What specific geospatial engineering operations, mapping, and analysis services are included in the GEOMAP contract?

The provided data does not detail the specific services encompassed by the GEOMAP contract beyond its general description. Typically, geospatial engineering operations involve the design, development, and maintenance of systems for collecting, processing, and analyzing geographic information. Mapping services would include the creation of various map products, while analysis would involve interpreting spatial data to support decision-making. Without further documentation, the precise scope, deliverables, and technical requirements remain unclear. This lack of specificity makes it challenging to fully assess the contract's value and the contractor's performance expectations.

What is the justification for awarding the GEOMAP contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source procurement. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. The justification for this sole-source award is not detailed in the provided data. Understanding the rationale behind bypassing competitive bidding is crucial for assessing whether the government obtained the best value and if taxpayer funds were used efficiently. Further investigation into the contract's award justification documentation would be necessary.

How does the $8.8 million contract value compare to similar geospatial services contracts awarded by the Department of Defense?

Directly comparing the $8.8 million value of the GEOMAP contract to similar geospatial services contracts is difficult without more specific information on the scope, duration, and complexity of the services provided. The contract runs for 517 days, with a total value of $8,830,486, equating to approximately $17,080 per day. While this figure provides a daily cost benchmark, it doesn't account for the unique technical requirements, software licenses, or specialized personnel involved. The absence of competitive bidding further complicates value assessment, as there's no market-driven price point for comparison. A comprehensive analysis would require examining other DoD contracts for comparable geospatial engineering, mapping, and analysis services, considering their specific deliverables and competitive history.

What is the track record of Solutions71, LLC in performing federal contracts, particularly in geospatial services?

The provided data identifies Solutions71, LLC as the contractor for the GEOMAP project but does not offer details on their past performance or track record with federal contracts. To assess their reliability and expertise, a review of their contract history, past performance evaluations, and any prior experience in geospatial engineering, mapping, and analysis would be necessary. This would involve searching federal contract databases and performance reporting systems. Without this information, it is difficult to gauge the contractor's suitability and the potential risks associated with their performance on this $8.8 million definitive contract.

What are the potential risks associated with a sole-source award for critical IT services like GEOMAP?

Sole-source awards for critical IT services like the GEOMAP contract carry several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it may stifle innovation, as the government doesn't benefit from the diverse approaches and technologies that multiple bidders might propose. Thirdly, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult and potentially expensive. Finally, without competitive benchmarks, assessing the true value for money and the contractor's performance can be more challenging, potentially leading to inefficiencies or unmet requirements if not managed rigorously.

How does the firm-fixed-price contract type mitigate risks for the government in this GEOMAP contract?

The firm-fixed-price (FFP) contract type is generally advantageous for the government as it shifts most of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the Department of the Air Force and protects against cost overruns that might occur due to unforeseen circumstances or contractor inefficiencies. While the absence of competition in this sole-source award might mean the initial fixed price is higher than it could have been, the FFP structure still ensures that the government's financial exposure is capped at the agreed-upon amount for the defined scope of work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 46020 MANEKIN PLZ, STERLING, VA, 20166

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,491,598

Exercised Options: $8,830,486

Current Obligation: $8,830,486

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,587,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline