DoD's $65.3M IT consulting contract with ITILITY, L.L.C. awarded under full and open competition

Contract Overview

Contract Amount: $65,340,134 ($65.3M)

Contractor: Itility, L.L.C

Awarding Agency: Department of Defense

Start Date: 2013-04-15

End Date: 2019-02-04

Contract Duration: 2,121 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF LABOR - PROGRAM MANAGEMENT SUPPORT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $65.3 million to ITILITY, L.L.C for work described as: IGF::OT::IGF LABOR - PROGRAM MANAGEMENT SUPPORT Key points: 1. Contract awarded for program management support services. 2. Duration of the contract was over 5 years. 3. Firm Fixed Price contract type suggests predictable costs. 4. Awarded by the Defense Information Systems Agency (DISA). 5. The North American Industry Classification System (NAICS) code is 541611. 6. The contract was awarded after exclusion of sources, indicating a specific justification. 7. No small business set-aside was utilized.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed service descriptions and performance metrics. The total award amount of $65.3 million over approximately 5.7 years suggests an average annual spend of around $11.4 million. This figure needs to be compared against similar program management support contracts within the DoD and DISA to assess if it represents a reasonable investment for the services rendered. The firm fixed-price nature of the contract provides cost certainty, but the overall value proposition depends heavily on the quality and impact of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior performance issues. The number of bidders (12) indicates a moderate level of interest, but the exclusion of sources might limit the full spectrum of competitive pressure. Further details on the reasons for exclusion would be necessary to fully assess the impact on price discovery and overall competition.

Taxpayer Impact: The exclusion of sources, even with 12 bidders, may have limited the potential for the most competitive pricing. Taxpayers benefit from a competitive process, but the specific nature of this competition warrants a closer look to ensure optimal value was achieved.

Public Impact

The primary beneficiaries are the Department of Defense and its components, receiving program management support. Services delivered likely include strategic planning, resource management, and operational support for IT programs. The geographic impact is primarily within the Department of Defense's operational areas, likely global. Workforce implications include support for government personnel and potentially contractor staff managing these programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires scrutiny to ensure fairness and prevent undue restriction of competition.
Lack of specific performance metrics makes it difficult to assess the true value for money delivered.
The duration of the contract (over 5 years) necessitates ongoing monitoring to ensure continued relevance and effectiveness.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
A significant number of bidders (12) suggests a healthy interest in the contract opportunity.
Awarded by a major defense agency (DISA) indicates a potentially critical support function.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on management and consulting services. The IT services market is vast and highly competitive, with significant government spending allocated to IT modernization, cybersecurity, and program management. Contracts like this are crucial for agencies like DISA to effectively manage complex IT initiatives. Comparable spending benchmarks would involve analyzing IT consulting contracts awarded by other federal agencies for similar program management support, considering factors like contract duration, scope of work, and contractor size.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by `sb: false`. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. The absence of a small business set-aside means that large businesses were eligible to compete and potentially win the entire contract value. This could limit opportunities for small businesses to participate directly in this specific contract, though they might be involved as subcontractors if ITILITY, L.L.C. utilizes them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Information Systems Agency (DISA). As a firm fixed-price contract, oversight would focus on ensuring deliverables meet the defined scope and quality standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

Defense Information Systems Agency IT Support Services
DoD Program Management Consulting
Federal IT Consulting Contracts
Administrative Management and General Management Consulting Services

Risk Flags

Competition Exclusion Justification
Performance Metrics Unclear
Value for Money Assessment Limited

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.3 million to ITILITY, L.L.C. IGF::OT::IGF LABOR - PROGRAM MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is ITILITY, L.L.C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $65.3 million.

What is the period of performance?

Start: 2013-04-15. End: 2019-02-04.

What was the specific justification for excluding certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The specific justification for excluding certain sources in this contract award is not detailed in the provided data. Typically, such exclusions are based on factors like prior performance issues, specific technical capabilities required that only certain vendors possess, or national security considerations. The Federal Acquisition Regulation (FAR) outlines conditions under which sources may be excluded. Without the specific documentation or justification cited by the Defense Information Systems Agency (DISA) at the time of award, it is impossible to definitively state why certain vendors were excluded. This exclusion could potentially limit the competitive landscape and impact price discovery, making it crucial for agencies to ensure such exclusions are well-documented and justified to maintain fair and open competition principles.

How does the per-hour or per-resource cost of this contract compare to industry benchmarks for similar IT program management support services?

The provided data does not include granular cost information such as per-hour or per-resource rates, making a direct comparison to industry benchmarks impossible. The total award amount of $65.3 million over approximately 2121 days (about 5.8 years) gives an average annual value of roughly $11.2 million. To perform a meaningful benchmark, one would need to know the number of full-time equivalents (FTEs) or labor hours utilized, their labor categories, and associated rates. Industry benchmarks for IT program management support can vary significantly based on location, contractor experience, security clearances required, and the complexity of the programs supported. Without these details, assessing the cost-effectiveness on a per-unit basis remains speculative.

What were the key performance indicators (KPIs) used to evaluate ITILITY, L.L.C.'s performance under this contract?

The provided data does not contain information regarding the specific Key Performance Indicators (KPIs) used to evaluate ITILITY, L.L.C.'s performance under this contract. For a contract of this nature, typical KPIs might include metrics related to project schedule adherence, budget management, quality of deliverables, stakeholder satisfaction, and the successful implementation of program management processes. The effectiveness of the program management support is directly tied to how well these KPIs were met. Without access to performance reports or contractually defined metrics, it is difficult to assess the contractor's success in delivering value and achieving the intended outcomes for the Defense Information Systems Agency.

What is the historical spending pattern for program management support services by the Defense Information Systems Agency (DISA) in the years preceding and following this contract?

Historical spending patterns for program management support services by the Defense Information Systems Agency (DISA) are not detailed in the provided data. To establish such a pattern, one would need to analyze DISA's contract awards database over several fiscal years, filtering for contracts with similar NAICS codes (e.g., 541611) and service descriptions related to program management and IT consulting. This analysis would reveal trends in spending levels, identify major contractors, and potentially highlight shifts in procurement strategies. Understanding these historical trends provides context for the $65.3 million awarded to ITILITY, L.L.C., indicating whether this represented an increase, decrease, or stable level of investment in such services.

What is ITILITY, L.L.C.'s overall track record with the federal government, particularly with the Department of Defense, prior to and during this contract?

The provided data only includes information about this specific contract award to ITILITY, L.L.C. To assess their overall track record, a broader search of federal procurement databases (like FPDS or SAM.gov) would be necessary. This would reveal other contracts awarded to ITILITY, L.L.C. by the Department of Defense (DoD) and other federal agencies, including their value, duration, type, and performance ratings if available. Examining past performance, including any awards, terminations, or disputes, provides crucial insight into the contractor's reliability, capability, and history of meeting federal requirements. Without this broader context, evaluating their general suitability and past performance is limited to this single contract.

How did the 'Definitive Contract' award type influence the flexibility and potential for modifications throughout the contract's lifecycle?

A 'Definitive Contract' is a standard contract type used for procurement, as opposed to an 'Indefinite-Delivery' contract like a task order contract. In this case, it was a Firm Fixed Price Definitive Contract. This means the price was set at the time of award, and modifications would typically be handled through formal change order processes if the scope of work needed to be altered. While definitive contracts provide a clear agreement on price and scope, they can sometimes be less flexible than other contract types if significant changes arise during performance. However, the firm fixed-price nature inherently aims to limit cost growth, so modifications that increase cost would require strong justification and potentially a contract modification review.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102811R2058

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4451 BROOKFIELD CORPORATE DR STE 108, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $65,340,134

Exercised Options: $65,340,134

Current Obligation: $65,340,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline