DoD's $14.6M 'Platform as a Service' contract with NEXTECH SOLUTIONS LLC raises questions on value and competition
Contract Overview
Contract Amount: $14,628,856 ($14.6M)
Contractor: Nextech Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-07
End Date: 2027-09-07
Contract Duration: 1,826 days
Daily Burn Rate: $8.0K/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: PLATFORM AS A SERVICE
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33611
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to NEXTECH SOLUTIONS LLC for work described as: PLATFORM AS A SERVICE Key points: 1. The contract's value of $14.6M for 'Platform as a Service' requires further scrutiny to determine its alignment with market rates. 2. NEXTECH SOLUTIONS LLC is the sole awardee, highlighting a potential lack of robust competition. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants investigation into the reasons for source exclusion. 4. The IT sector, particularly cloud and platform services, is highly competitive, making the limited competition notable.
Value Assessment
Rating: questionable
The $14.6M award for Platform as a Service needs comparison against similar contracts for cloud infrastructure and managed services to assess pricing fairness. Without benchmarks, it's difficult to ascertain if this represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific sources were excluded. This method can limit price discovery and potentially lead to higher costs.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for the services rendered.
Public Impact
Special Operations Command relies on this platform for critical functions, making service continuity a high priority. The use of cloud-based 'Platform as a Service' aligns with modern IT trends but requires strong security and performance oversight. Potential for vendor lock-in exists if the platform is highly customized or integrated, impacting future flexibility and cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear justification for source exclusion
- Potential for overpricing due to limited competition
Positive Signals
- Firm Fixed Price contract type can provide cost certainty
- Long-term contract (5 years) allows for stable service delivery
Sector Analysis
This contract falls within the IT services sector, specifically cloud computing and managed services. Spending in this area has surged government-wide, with significant investment in secure and scalable platforms for various agencies.
Small Business Impact
The awardee, NEXTECH SOLUTIONS LLC, is not identified as a small business. The contract's structure and limited competition may not have provided opportunities for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure NEXTECH SOLUTIONS LLC meets performance requirements and that the pricing remains competitive throughout the contract's duration, especially given the limited initial competition.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for inflated costs due to limited competition.
- Lack of transparency regarding source exclusion.
- Risk of vendor lock-in with a single provider.
- Need for rigorous performance monitoring to ensure service effectiveness.
Tags
other-computer-related-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to NEXTECH SOLUTIONS LLC. PLATFORM AS A SERVICE
Who is the contractor on this award?
The obligated recipient is NEXTECH SOLUTIONS 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 $14.6 million.
What is the period of performance?
Start: 2022-09-07. End: 2027-09-07.
What was the specific justification for excluding other potential sources during the competition phase?
The justification for excluding other sources is critical for understanding the procurement's integrity. Without this information, it's impossible to determine if the exclusion was valid, potentially based on unique capabilities or if it was an administrative limitation that stifled competition and impacted price.
How does the $14.6M cost compare to industry benchmarks for similar Platform as a Service offerings?
Benchmarking this $14.6M cost against similar PaaS contracts in the market is essential for value assessment. Factors like included services, service level agreements, and provider reputation influence pricing. A significant deviation from benchmarks could indicate overpayment or an unusually comprehensive service package.
What are the performance metrics and service level agreements (SLAs) associated with this contract to ensure effectiveness?
Robust performance metrics and SLAs are vital for ensuring the effectiveness of the Platform as a Service. These should cover aspects like uptime, response times, security incident handling, and data availability. Regular monitoring and reporting against these metrics are necessary for accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6701 S DALE MABRY HWY, TAMPA, FL, 33611
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $22,890,769
Exercised Options: $17,138,902
Current Obligation: $14,628,856
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD03B
IDV Type: GWAC
Timeline
Start Date: 2022-09-07
Current End Date: 2027-09-07
Potential End Date: 2027-09-07 00:00:00
Last Modified: 2026-01-07
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