DoD's $21.5M custom programming contract with Foxhole Technology shows fair value despite limited competition
Contract Overview
Contract Amount: $21,523,137 ($21.5M)
Contractor: Foxhole Technology LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-18
End Date: 2022-06-18
Contract Duration: 1,461 days
Daily Burn Rate: $14.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LABOR
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to FOXHOLE TECHNOLOGY LLC for work described as: LABOR Key points: 1. Contract value of $21.5M over 4 years suggests moderate annual spending. 2. Limited competition may have impacted price discovery and potentially inflated costs. 3. Firm Fixed Price contract type offers cost certainty but limits flexibility. 4. Contractor has a track record with the Defense Information Systems Agency. 5. Custom Computer Programming Services are critical for defense information systems. 6. Geographic concentration in Maryland for contract performance.
Value Assessment
Rating: fair
The contract's total value of $21.5M over four years averages to approximately $5.38M annually. Benchmarking this against similar custom computer programming services contracts within the Department of Defense is challenging without more specific service details. However, the firm fixed-price nature suggests an attempt to control costs. Without a clear understanding of the specific services rendered and the complexity involved, a definitive value-for-money assessment is difficult, but the price appears within a reasonable range for specialized IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the data indicates 3 bidders, the specific nature of 'COMPETED UNDER SAP' suggests that the competition may not have been as broad as possible. This limited competition could potentially lead to higher prices than if a wider range of vendors had been solicited.
Taxpayer Impact: Limited competition can mean taxpayers may not have received the lowest possible price for these services, as the pool of potential providers was restricted.
Public Impact
The Department of Defense benefits from custom computer programming services essential for its information systems. This contract supports the operational capabilities of the Defense Information Systems Agency. The primary geographic impact is within Maryland, where the contractor is located. The contract likely supports a specialized workforce in custom software development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher-than-optimal price.
- Firm Fixed Price contracts can be inflexible if requirements change significantly.
- Reliance on a single contractor for specialized services can pose a risk if performance falters.
Positive Signals
- Firm Fixed Price contract provides cost predictability for the agency.
- Contractor has prior experience with the contracting agency.
- Contract duration of 4 years allows for stable service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. The IT services market for the federal government is substantial, with significant spending allocated to software development and maintenance. This contract represents a portion of the Department of Defense's investment in maintaining and enhancing its complex information infrastructure. Comparable spending benchmarks would depend on the specific nature of the custom programming, but annual spending in the multi-million dollar range is common for specialized defense IT projects.
Small Business Impact
The data indicates that small business participation was not a primary focus for this contract (ss: false, sb: false). There is no explicit small business set-aside mentioned. This suggests that the contract was likely awarded to a larger, established firm. Subcontracting opportunities for small businesses are not detailed but would depend on the prime contractor's strategy.
Oversight & Accountability
The contract is firm fixed price, which provides a degree of cost oversight. Oversight mechanisms would typically involve contract performance monitoring by the Defense Information Systems Agency (DISA) and potentially reviews by the Department of Defense's Inspector General if performance issues or financial irregularities arise. Transparency is generally facilitated through contract databases, though detailed performance metrics are often internal.
Related Government Programs
- Defense Information Systems Agency IT Services
- Department of Defense Software Development Contracts
- Custom Computer Programming Services Federal Contracts
Risk Flags
- Limited competition may impact price realization.
- Firm Fixed Price contracts can be inflexible to scope changes.
Tags
it, defense, department-of-defense, foxhole-technology-llc, custom-computer-programming-services, competed-under-sap, bpa-call, firm-fixed-price, maryland, defense-information-systems-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to FOXHOLE TECHNOLOGY LLC. LABOR
Who is the contractor on this award?
The obligated recipient is FOXHOLE TECHNOLOGY 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 $21.5 million.
What is the period of performance?
Start: 2018-06-18. End: 2022-06-18.
What is the track record of FOXHOLE TECHNOLOGY LLC with the Department of Defense?
Foxhole Technology LLC has a history of contracts with the Department of Defense, including this specific BPA Call valued at $21.5M for custom computer programming services. The duration of this contract (June 2018 - June 2022) indicates a multi-year engagement. Further analysis would require examining their performance on this and other DoD contracts, including any past performance reviews, awards, or disputes. Their presence suggests they are a recognized provider of IT services within the defense sector.
How does the pricing of this contract compare to similar custom programming services?
Benchmarking the pricing for this $21.5M contract against similar custom programming services is difficult without detailed service descriptions and labor categories. However, the contract was competed under SAP with 3 bidders, suggesting a potentially less competitive environment than full and open competition. Firm Fixed Price contracts aim for cost certainty. If comparable contracts with broader competition exist, a price comparison could reveal if this contract represents good value or if it was potentially over-priced due to limited bidder engagement.
What are the primary risks associated with this contract?
Key risks include potential cost overruns if the scope of custom programming was underestimated, although the FFP structure mitigates this for the government. Performance risk exists if Foxhole Technology LLC fails to deliver the required custom programming services to the satisfaction of the Defense Information Systems Agency. Another risk is the limited competition, which could mean the government did not secure the most cost-effective solution. Finally, reliance on a single vendor for critical custom programming can create dependency.
How effective has this contract been in delivering custom computer programming services?
The effectiveness of this contract hinges on the successful delivery of custom computer programming services that meet the Defense Information Systems Agency's requirements. As the contract ran from June 2018 to June 2022, its performance period has concluded. A full assessment would require reviewing DISA's performance evaluations, acceptance of deliverables, and whether the custom software contributed to the agency's mission objectives. Without access to these internal assessments, effectiveness remains inferred.
What are the historical spending patterns for custom computer programming services by DISA?
Historical spending patterns for custom computer programming services by the Defense Information Systems Agency (DISA) are substantial, reflecting the critical nature of IT infrastructure for the DoD. This $21.5M contract is one component of DISA's broader IT procurement strategy. Analyzing DISA's spending over several fiscal years would reveal trends in outsourcing software development, the average contract values, and the types of services most frequently procured. Such analysis would place this specific contract within a larger fiscal context.
What is the significance of the 'COMPETED UNDER SAP' designation?
The 'COMPETED UNDER SAP' designation signifies that the contract was awarded using Simplified Acquisition Procedures. These procedures are designed for purchases below the threshold for full and open competition (typically $250,000, though higher thresholds exist for certain types of procurements). While it implies competition occurred among at least two bidders, it generally involves a smaller pool of potential offerors and less formal solicitation processes compared to larger, full-and-open competitions. This can impact the breadth of price discovery and potentially lead to higher prices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC102818R0771
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11781 LEE JACKSON MEMORIAL HWY STE 260, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $21,523,137
Exercised Options: $21,523,137
Current Obligation: $21,523,137
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HC102817A0010
IDV Type: BPA
Timeline
Start Date: 2018-06-18
Current End Date: 2022-06-18
Potential End Date: 2022-06-18 00:00:00
Last Modified: 2025-05-23
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