DISA awards $37M IT project management contract to Lightgrid LLC, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $37,073,886 ($37.1M)

Contractor: Lightgrid LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-01

End Date: 2023-04-30

Contract Duration: 2,006 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF - DISA INFRASTRUCTURE DIRECTORATE (IE1) INFORMATION TECHNOLOGY (IT) PROJECT MANAGEMENT SERVICES

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to LIGHTGRID LLC for work described as: IGF::CL::IGF - DISA INFRASTRUCTURE DIRECTORATE (IE1) INFORMATION TECHNOLOGY (IT) PROJECT MANAGEMENT SERVICES Key points: 1. Contract value of $37.1M over six years suggests a significant investment in IT project management. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The contract's duration of over six years points to long-term IT support requirements. 5. Awarded by the Defense Information Systems Agency (DISA), it aligns with critical defense IT infrastructure. 6. The NAICS code 541512 (Computer Systems Design Services) places this within a key IT service sector.

Value Assessment

Rating: good

The contract value of approximately $37.1 million over six years for IT project management services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests that the overall price point is within expected ranges. The firm fixed-price nature of the contract provides cost predictability for the government, although it may not fully account for unforeseen project complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of six bidders indicates a healthy level of interest and competition for this type of IT project management service. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers, as vendors vied to offer the best value. It also ensures that the government has access to a broad range of capabilities within the IT project management sector.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, which receive enhanced IT project management capabilities. Services delivered include crucial IT project oversight, planning, and execution to support defense information systems. The geographic impact is likely centered around DISA's operational areas, potentially supporting global defense IT infrastructure. Workforce implications include the creation or sustainment of jobs for IT project managers and related specialists employed by Lightgrid LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT projects if not managed tightly.
Reliance on a single contractor for critical IT project management over an extended period.
Firm fixed-price contracts can sometimes disincentivize innovation or proactive problem-solving if not structured with performance incentives.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides budget certainty for the government.
Long contract duration allows for continuity of IT project management expertise.
The contractor, Lightgrid LLC, has secured a significant award, indicating a level of trust and capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and IT project management. The market for these services is substantial, driven by ongoing digital transformation efforts across all government agencies. DISA, as a major defense IT provider, represents a significant segment of this market. Comparable spending benchmarks for IT project management services can vary widely based on complexity, duration, and specific requirements, but contracts of this magnitude are common for large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, Lightgrid LLC may engage small businesses as subcontractors, which would then provide indirect opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, with performance expectations tied to delivery and quality. 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

Defense Information Systems Agency (DISA) IT Services
Department of Defense IT Modernization Programs
Federal IT Project Management Support Contracts
Computer Systems Design Services Contracts

Risk Flags

Contract duration exceeds typical IT support cycles, increasing risk of obsolescence or changing requirements.
Firm Fixed Price may limit flexibility in adapting to evolving IT landscapes.
Lack of specific small business subcontracting goals could limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to LIGHTGRID LLC. IGF::CL::IGF - DISA INFRASTRUCTURE DIRECTORATE (IE1) INFORMATION TECHNOLOGY (IT) PROJECT MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is LIGHTGRID LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2017-11-01. End: 2023-04-30.

What is Lightgrid LLC's track record with similar IT project management contracts, particularly within the Department of Defense?

Assessing Lightgrid LLC's track record requires a deeper dive into their contract history beyond this single award. While this $37 million contract indicates a significant capability, understanding their performance on previous, similar IT project management engagements is crucial. This would involve reviewing past performance evaluations, any documented issues or successes, and their experience with the specific types of IT systems and projects managed by DISA. A history of successful, on-time, and within-budget project completions would bolster confidence in their ability to execute this current contract effectively. Conversely, a pattern of performance issues or contract disputes could signal potential risks.

How does the awarded amount of $37.1 million compare to the average cost of similar IT project management services procured by DISA or the DoD?

The $37.1 million awarded to Lightgrid LLC over approximately six years for IT project management services needs to be benchmarked against comparable contracts to assess value. Without specific details on the scope of services, labor categories, and required deliverables, a precise comparison is challenging. However, for large-scale, long-duration IT project management support within a major defense agency like DISA, this figure appears to be within a plausible range. Factors such as the complexity of the projects, the level of security clearance required, and the specific technical expertise demanded would influence the per-year or per-service cost. A detailed analysis would involve comparing this contract's unit costs (e.g., hourly rates for specific roles, project milestones) against historical DISA or DoD contracts for similar services.

What are the primary risks associated with a firm fixed-price contract for IT project management services over a six-year period?

The primary risks associated with a firm fixed-price (FFP) contract for IT project management over a six-year period revolve around potential inflexibility and the contractor's incentive structure. For the government, the risk is that unforeseen technical challenges, evolving requirements, or scope creep could lead to the contractor being unable to deliver the full scope within the fixed price, potentially resulting in disputes or a reduction in delivered quality. Conversely, if the contractor significantly underestimates the effort or faces unexpected cost increases, they bear the financial burden, which could impact their motivation or ability to perform optimally. For long-term IT projects, the rapid pace of technological change also presents a risk; an FFP contract might not adequately incentivize the adoption of newer, more efficient technologies if they fall outside the initially defined scope.

How effective are the oversight mechanisms in place for this contract to ensure performance and prevent cost overruns?

The effectiveness of oversight for this contract hinges on the robust implementation of standard government contracting procedures. As a firm fixed-price award, the primary mechanism is ensuring that Lightgrid LLC meets the defined deliverables and performance standards outlined in the contract. DISA's contracting officers and program managers are responsible for monitoring progress, conducting regular reviews, and verifying that services meet quality requirements. Performance metrics and reporting requirements within the contract are key to tracking progress. While FFP contracts inherently place cost risk on the contractor, effective oversight is still crucial to ensure that the government receives the full value of the contracted services and to identify any potential issues early on that could jeopardize project success or lead to disputes.

What is the historical spending pattern for IT project management services by the Defense Information Systems Agency (DISA)?

Analyzing DISA's historical spending on IT project management services reveals a consistent and significant investment in this area, reflecting the agency's critical role in managing defense information technology. Over the years, DISA has awarded numerous contracts for project management, systems integration, and IT support, often in the tens to hundreds of millions of dollars annually. Spending patterns are influenced by evolving defense strategies, technological advancements, and the need to maintain and modernize complex IT infrastructures. Contracts like the one awarded to Lightgrid LLC are indicative of a sustained need for specialized project management expertise to oversee large-scale IT initiatives, cybersecurity enhancements, and infrastructure upgrades within the DoD.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1112 JENSEN DR, VIRGINIA BEACH, VA, 23451

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,073,886

Exercised Options: $37,073,886

Current Obligation: $37,073,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F077GA

IDV Type: FSS

Timeline