DoD's $31.4M NIPR/SIPR support contract awarded to COMPASS POINT LLC shows fair value with 21 bids

Contract Overview

Contract Amount: $31,402,525 ($31.4M)

Contractor: Compass Point LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-10

End Date: 2026-03-31

Contract Duration: 1,482 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NIPR AND SIPR SUPPORT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to COMPASS POINT LLC for work described as: NIPR AND SIPR SUPPORT Key points: 1. Contract value of $31.4M over 4 years suggests a moderate annual spend. 2. Full and open competition after exclusion of sources indicates a broad but potentially complex solicitation process. 3. The number of bids (21) suggests healthy market interest and potential for competitive pricing. 4. Firm Fixed Price contract type mitigates cost overrun risk for the government. 5. Awarded to COMPASS POINT LLC, a contractor with a history in IT services. 6. The contract supports NIPR and SIPR, critical defense communication networks. 7. Geographic location in Florida may indicate a concentration of relevant infrastructure or personnel.

Value Assessment

Rating: good

The contract's total value of $31.4M over approximately 4 years averages to about $7.85M annually. Benchmarking this against similar IT support contracts for defense agencies requires detailed analysis of scope and service levels. However, the presence of 21 bids suggests that the pricing was likely competitive and reflected market rates for such specialized services. The firm fixed-price nature further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources may have been excluded prior to the main solicitation, possibly due to specific requirements or prior relationships. The 21 bids received suggest that despite any initial exclusions, a significant number of capable vendors participated, leading to a competitive environment.

Taxpayer Impact: A robust number of bidders, even with initial exclusions, generally benefits taxpayers by driving down prices and encouraging innovation. This level of competition suggests that the government likely secured a fair market price for the NIPR and SIPR support services.

Public Impact

The primary beneficiaries are the U.S. Special Operations Command (SOCOM) and its personnel, who rely on secure and reliable NIPR and SIPR networks. Services delivered include essential IT support for these critical communication systems, ensuring operational readiness. The geographic impact is primarily within Florida, where the contractor is based, but the services support a global defense mission. Workforce implications include the potential for skilled IT professionals to be employed by COMPASS POINT LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are required.
Reliance on a single contractor for critical network support could pose a risk if performance falters.
The 'after exclusion of sources' clause warrants scrutiny to ensure fairness and prevent undue market restriction.

Positive Signals

Firm Fixed Price contract type minimizes financial risk for the government.
A high number of bidders (21) indicates strong competition and potential for cost savings.
Contract supports essential defense communication infrastructure (NIPR/SIPR).

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network support and maintenance for government systems. The market for defense IT support is substantial, driven by the need for secure, reliable, and advanced technological capabilities. Comparable spending benchmarks would involve analyzing other contracts for similar network infrastructure support within the Department of Defense and other federal agencies, considering factors like user base, security requirements, and service level agreements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, the prime contractor, COMPASS POINT LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement (PWS), including service level agreements (SLAs) and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIPR Network Support
SIPR Network Support
DoD IT Services
Special Operations Command IT Contracts
Definitive Contracts
IT Infrastructure Support

Risk Flags

Competition Method: 'Full and Open Competition After Exclusion of Sources' requires careful review of exclusion justifications.
Contractor Performance: Past performance data for COMPASS POINT LLC should be thoroughly vetted.
Scope Definition: Clarity of the Performance Work Statement (PWS) is critical for FFP contract success.
Cybersecurity: Robust security protocols and compliance are paramount for NIPR/SIPR support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to COMPASS POINT LLC. NIPR AND SIPR SUPPORT

Who is the contractor on this award?

The obligated recipient is COMPASS POINT LLC.

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 $31.4 million.

What is the period of performance?

Start: 2022-03-10. End: 2026-03-31.

What is the track record of COMPASS POINT LLC in performing similar IT support contracts for the Department of Defense?

Assessing COMPASS POINT LLC's track record requires a deep dive into their past performance evaluations and contract history within the DoD. While the provided data confirms their award for NIPR/SIPR support, it doesn't detail their experience level or past performance ratings. Federal procurement systems often contain Contractor Performance Assessment Reporting System (CPARS) data, which would offer insights into their timeliness, quality of work, and overall customer satisfaction on previous engagements. A review of these records would be crucial to understand their reliability and capability in handling critical defense IT infrastructure.

How does the awarded amount of $31.4M compare to the estimated value or previous spending on similar NIPR/SIPR support services?

The $31.4M total contract value, spanning approximately 4 years (1482 days), translates to an average annual spend of roughly $7.85M. To assess value, this figure needs to be compared against historical spending for similar NIPR/SIPR support contracts awarded by SOCOM or other DoD entities. If previous contracts for comparable services were significantly lower or higher, it could indicate a change in market conditions, scope, or efficiency. The presence of 21 bids suggests the price was deemed competitive by the market, but a direct historical comparison of the per-unit cost or total value for identical services would provide a clearer picture of whether this award represents good or fair value.

What are the specific risks associated with relying on COMPASS POINT LLC for critical NIPR and SIPR network support?

Key risks include potential performance failures that could disrupt critical military communications, cybersecurity vulnerabilities if the contractor's security practices are inadequate, and potential cost overruns if the Firm Fixed Price (FFP) contract contains poorly defined scope or change order provisions. Contractor dependency is another risk; if COMPASS POINT LLC experiences financial instability or operational issues, it could significantly impact DoD operations. The 'after exclusion of sources' aspect of the competition also introduces a risk if it inadvertently limited the pool of highly capable vendors, potentially impacting long-term service quality or innovation.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value and service delivery for defense IT contracts?

This competition method aims to balance broad market access with specific needs. By excluding certain sources initially, the DoD might be targeting vendors with particular expertise or security clearances vital for NIPR/SIPR support. The 21 bids received suggest this approach did not unduly stifle competition. However, the effectiveness hinges on the justification for exclusions; if exclusions are arbitrary or overly restrictive, it could limit innovation and drive up prices. For taxpayers, the key is whether this method ultimately secured the best possible service at a competitive price compared to a purely 'full and open' approach.

What are the implications of the contract being a Firm Fixed Price (FFP) award for the government and the contractor?

For the government, an FFP contract is advantageous as it transfers most of the cost risk to the contractor. This provides budget certainty and protects against unexpected cost increases. For COMPASS POINT LLC, it means they must accurately estimate all costs associated with performing the contract to ensure profitability. If their costs exceed estimates, their profit margin shrinks; if they manage costs effectively, their profit increases. This structure incentivizes the contractor to be efficient and control expenses, which generally benefits the government through stable pricing.

What is the significance of the contract being awarded in Florida (st: FL, sn: FLORIDA) for NIPR/SIPR support?

The contract's Florida location for COMPASS POINT LLC might indicate a concentration of DoD personnel, infrastructure, or specific operational units requiring NIPR/SIPR support within that state. It could also reflect the contractor's primary place of business or a strategic decision to base operations there. While NIPR and SIPR are global networks, the physical location of the support team and associated infrastructure can influence response times, logistical considerations, and potentially the cost structure due to regional labor rates and overhead.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9240422R00XX

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $39,895,403

Exercised Options: $31,412,525

Current Obligation: $31,402,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline