DoD's $7.28M Custom Computer Programming Contract with Horizon Performance Raises Questions on Value and Competition
Contract Overview
Contract Amount: $7,280,463 ($7.3M)
Contractor: Horizon Performance L.L.C.
Awarding Agency: Department of Defense
Start Date: 2021-03-10
End Date: 2026-03-14
Contract Duration: 1,830 days
Daily Burn Rate: $4.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FTE LABOR
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542
Plain-Language Summary
Department of Defense obligated $7.3 million to HORIZON PERFORMANCE L.L.C. for work described as: FTE LABOR Key points: 1. The contract for custom computer programming services awarded to Horizon Performance L.L.C. is for $7.28 million. 2. Awarded by the Department of Defense's U.S. Special Operations Command, the contract runs from March 2021 to March 2026. 3. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting potential limitations in the scope of competition. 4. The firm fixed-price contract type aims to control costs, but the specific value proposition needs further scrutiny. 5. The absence of small business participation is noted.
Value Assessment
Rating: questionable
The contract value of $7.28 million for custom computer programming services requires benchmarking against similar DoD contracts for this NAICS code (541511). Without specific performance metrics or comparison data, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves smaller dollar thresholds and may limit the number of potential bidders. This method can impact price discovery by potentially excluding larger, more competitive firms.
Taxpayer Impact: The $7.28 million expenditure represents taxpayer funds. The effectiveness of the competition method under SAP will determine if the government received the best possible price for these services.
Public Impact
Taxpayers are funding custom computer programming for U.S. Special Operations Command. The contract duration of 1830 days (5 years) represents a significant, long-term commitment. The lack of small business involvement may limit opportunities for smaller, specialized firms in this sector. The specific nature of the 'custom computer programming' is not detailed, impacting public understanding of the service's utility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP
- No small business participation
- Lack of detailed service description
Positive Signals
- Firm fixed-price contract type
- Awarded by a key defense agency
Sector Analysis
The IT services sector, particularly custom computer programming, is a significant area of government spending. Benchmarks for this NAICS code (541511) within the Department of Defense can vary widely based on complexity and specific requirements.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This suggests a missed opportunity to support small businesses within the federal contracting landscape for IT services.
Oversight & Accountability
Oversight would involve monitoring contract performance, ensuring adherence to the firm fixed-price terms, and verifying that the custom programming services meet the requirements of U.S. Special Operations Command. The use of SAP may warrant closer review of the justification for limited competition.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for limited competition
- Lack of small business participation
- Insufficient detail on services procured
- Need for value-for-money assessment
Tags
custom-computer-programming-services, department-of-defense, nc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.3 million to HORIZON PERFORMANCE L.L.C.. FTE LABOR
Who is the contractor on this award?
The obligated recipient is HORIZON PERFORMANCE L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $7.3 million.
What is the period of performance?
Start: 2021-03-10. End: 2026-03-14.
What specific custom computer programming services are being procured, and how do they align with U.S. Special Operations Command's mission requirements?
The provided data lacks specifics on the custom computer programming services. Understanding the exact nature of the software development, integration, or maintenance being performed is crucial. This information would clarify the necessity and criticality of these services for the U.S. Special Operations Command's operational effectiveness and strategic goals.
Could a broader competition under FAR Part 15 have yielded better pricing or a wider range of innovative solutions for these programming services?
Competing under Simplified Acquisition Procedures (SAP) typically involves fewer bidders and potentially less rigorous price analysis compared to full and open competition or even other competitive procedures like FAR Part 15. It is plausible that a broader competition could have attracted more offerors, fostering greater price competition and potentially leading to more innovative or cost-effective solutions for the government.
What is the benchmark cost for similar custom computer programming services within the Department of Defense, and how does this contract's pricing compare?
Without access to a comprehensive database of historical contract pricing for NAICS code 541511 within the DoD, establishing a precise benchmark is challenging. However, the $7.28 million value over five years suggests a significant investment. A detailed cost-reconciliation or comparison with similar task orders or contracts would be necessary to determine if this pricing is competitive and represents good value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 510 GLENWOOD AVE, STE 215, RALEIGH, NC, 27603
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,715,802
Exercised Options: $7,715,802
Current Obligation: $7,280,463
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-03-10
Current End Date: 2026-03-14
Potential End Date: 2026-03-14 00:00:00
Last Modified: 2025-12-12
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