DoD's $23.7M JSP Infrastructure Support Contract Awarded to Open San Consulting L.L.C

Contract Overview

Contract Amount: $23,684,623 ($23.7M)

Contractor: Open SAN Consulting L.L.C.

Awarding Agency: Department of Defense

Start Date: 2020-01-03

End Date: 2025-10-07

Contract Duration: 2,104 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JOINT SERVICE PROVIDER (JSP) INFRASTRUCTURE SUPPORT FACILITY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to OPEN SAN CONSULTING L.L.C. for work described as: JOINT SERVICE PROVIDER (JSP) INFRASTRUCTURE SUPPORT FACILITY SERVICES Key points: 1. Value for money appears fair given the 5-year duration and fixed-price nature. 2. Competition was robust with 9 bidders, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and potential for scope creep. 4. Performance context is within IT infrastructure support, a critical but common service. 5. Sector positioning is within Defense IT, a significant area of federal spending. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract's total value of $23.7 million over approximately 5 years suggests an average annual spend of around $4.7 million. Benchmarking this against similar IT infrastructure support contracts within the Department of Defense is challenging without more granular data on the specific services provided. However, the firm fixed-price structure indicates that the contractor is responsible for managing costs to meet the agreed-upon price, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was initially open, certain sources were later excluded. With 9 bidders, the competition level appears healthy, suggesting that multiple vendors were interested and capable of performing the required services. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive award process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on stable and functional IT infrastructure. Services delivered include essential infrastructure support for Joint Service Provider (JSP) facilities. The geographic impact is concentrated in the District of Columbia, where the JSP facilities are located. Workforce implications may include direct employment by the contractor and potential indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) increases the risk of price escalation or performance degradation if not managed closely.
The 'after exclusion of sources' clause warrants further investigation into the rationale for excluding specific bidders.
Reliance on a single contractor for critical infrastructure support could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Firm Fixed Price contract type aligns incentives for cost control with the contractor.
Robust competition with 9 bidders suggests a healthy market and potential for competitive pricing.
The contract is for essential IT infrastructure support, a core requirement for the agency.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, with agencies heavily reliant on contractors for system design, integration, and support. This contract falls within the Computer Systems Design Services category, which is a significant sub-sector. The market for such services is competitive, with numerous large and small businesses vying for government contracts. Benchmarking this contract's value requires comparison to similar IT infrastructure support services, considering factors like scope, duration, and security requirements.

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 or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary impact on small businesses would be through potential subcontracting opportunities if Open San Consulting L.L.C. chooses to engage them, or through competition for future, similar contracts.

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 embedded within the contract's performance work statement and delivery terms. 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

Joint Service Provider (JSP) Operations
Defense Information Technology Support Contracts
Federal IT Infrastructure Services
Computer Systems Design Services

Risk Flags

Potential for technological obsolescence over the contract's 5-year term.
Rationale for 'exclusion of sources' in a nominally full and open competition needs clarification.
Long-term reliance on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to OPEN SAN CONSULTING L.L.C.. JOINT SERVICE PROVIDER (JSP) INFRASTRUCTURE SUPPORT FACILITY SERVICES

Who is the contractor on this award?

The obligated recipient is OPEN SAN CONSULTING 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 $23.7 million.

What is the period of performance?

Start: 2020-01-03. End: 2025-10-07.

What is the specific nature of the 'Joint Service Provider (JSP) Infrastructure Support' being provided under this contract?

The Joint Service Provider (JSP) is an organization that provides IT services to the Department of Defense (DoD) and the Intelligence Community. Infrastructure support typically encompasses a wide range of services necessary to maintain the operational readiness and functionality of IT systems and facilities. This can include, but is not limited to, data center operations, network management, hardware and software maintenance, cybersecurity support, physical facility management for IT equipment, and help desk services. The specific details of the support would be outlined in the contract's Performance Work Statement (PWS), detailing the exact tasks, deliverables, service levels, and performance metrics required from Open San Consulting L.L.C.

How does the pricing of this contract compare to similar IT infrastructure support contracts awarded by the DoD?

Directly comparing the pricing of this $23.7 million contract to similar IT infrastructure support contracts requires access to detailed pricing structures and service level agreements of comparable awards. The provided data indicates a Firm Fixed Price (FFP) contract, which means the contractor is responsible for all costs incurred to deliver the specified services. While the total value and duration provide a high-level view, a true price comparison would involve analyzing the cost per service unit, labor rates, and overhead applied in similar FFP contracts for comparable scope and complexity within the DoD. Without this granular data, a precise benchmark is not feasible, but the competitive award process suggests an effort to achieve market-driven pricing.

What are the primary risks associated with a 5-year contract for IT infrastructure support, and how are they mitigated?

A significant risk with a 5-year contract for IT infrastructure support is technological obsolescence; IT environments can change rapidly, and the contracted services might become outdated. Another risk is contractor performance degradation over time, or potential cost overruns if the FFP structure is not managed effectively by the contractor. Mitigations include robust performance monitoring by the agency, clearly defined service level agreements (SLAs) with penalties for non-compliance, and contract clauses that allow for adjustments or modifications if technology shifts significantly. The agency's active oversight and the competitive nature of the initial award also serve as risk mitigators by incentivizing the contractor to maintain high performance and cost control.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process?

This designation indicates that the procurement was initially intended to be fully open to all responsible sources. However, 'after exclusion of sources' suggests that at some point in the process, specific potential offerors were excluded from consideration. The reasons for exclusion could range from failure to meet minimum qualifications, non-responsiveness to solicitation requirements, or specific agency decisions based on past performance or other factors outlined in procurement regulations. While 9 bidders participated, the exclusion of some sources might limit the ultimate breadth of competition, and understanding the rationale behind these exclusions is key to assessing the fairness and effectiveness of the competition.

What is the historical spending pattern for JSP infrastructure support services within the Defense Information Systems Agency (DISA)?

Analyzing historical spending patterns for JSP infrastructure support services within DISA would involve examining contract awards over several fiscal years. This would reveal trends in contract values, durations, types of services procured, and the contractors frequently awarded these types of agreements. Understanding this history helps in assessing whether the current $23.7 million award is consistent with past investments, if there's an increasing or decreasing trend in spending for these services, and if DISA relies on a consistent set of vendors or frequently re-competes these services. Such analysis provides context for the current contract's scale and importance.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102820R0053

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Open SAN Consulting LLC

Address: 1954 AIRPORT RD SUITE 144, ATLANTA, GA, 30341

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,092,608

Exercised Options: $24,177,475

Current Obligation: $23,684,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17GWD2257

IDV Type: GWAC

Timeline