DoD's $36.5M IT Services Contract Awarded to ALVAREZ LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $36,484,607 ($36.5M)

Contractor: Alvarez LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-16

End Date: 2026-07-29

Contract Duration: 1,443 days

Daily Burn Rate: $25.3K/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: F5-BIG-LTM-I15820-DF

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to ALVAREZ LLC for work described as: F5-BIG-LTM-I15820-DF Key points: 1. The contract value of approximately $36.5 million over its period of performance suggests a significant investment in IT services. 2. Awarded under full and open competition, this contract indicates a competitive bidding process was utilized, potentially leading to better pricing. 3. The 'Other Computer Related Services' NAICS code points to a broad scope of IT support, requiring careful performance monitoring. 4. The contract's duration of over 1400 days highlights its long-term nature and the ongoing need for these services. 5. The fixed-price contract type shifts performance risk to the contractor, ALVAREZ LLC. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: good

The contract value of $36.5 million for IT services appears reasonable given the duration and scope. Benchmarking against similar 'Other Computer Related Services' contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without detailed service breakdowns, a definitive value comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple bidders were solicited and considered. The specific designation suggests that while full and open competition was the intent, there might have been prior considerations or exclusions that were later lifted. The number of bidders is not specified, but the 'full and open' nature generally promotes price discovery and allows the government to select from a wide pool of qualified vendors.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers for its IT needs.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential IT services to support its operations. Services likely encompass a range of IT support, maintenance, and potentially development, crucial for national security infrastructure. The contract's performance is likely concentrated within Maryland, given the 'MD' state code, impacting the local IT workforce. This contract supports the Defense Information Systems Agency (DISA) in its mission-critical functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'Other Computer Related Services' if not tightly managed.
Reliance on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring ALVAREZ LLC maintains adequate cybersecurity practices is paramount given the sensitive nature of DoD data.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration indicates a stable, ongoing need and potential for contractor expertise development.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services,' a broad category that can include consulting, integration, and support. The Department of Defense is a major consumer of IT services, with significant spending across various sub-sectors. Benchmarks for similar IT support contracts within the federal government often range from tens to hundreds of millions of dollars, depending on scope and duration. This $36.5 million award appears to be a mid-range contract within the DoD's IT spending landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This means ALVAREZ LLC, the awardee, is likely a large business. There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business IT ecosystem may be limited, though large prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Information Technology Support Services
Defense Information Systems Agency Contracts
Department of Defense IT Procurement
Computer Systems Design Services

Risk Flags

Undefined Scope of Services
Contractor Performance Risk
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to ALVAREZ LLC. F5-BIG-LTM-I15820-DF

Who is the contractor on this award?

The obligated recipient is ALVAREZ 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 $36.5 million.

What is the period of performance?

Start: 2022-08-16. End: 2026-07-29.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide array of IT support functions beyond standard software development or hardware maintenance. This could include IT consulting, systems integration, data processing services, IT disaster recovery, network management, and specialized IT support. Without further details from the contract award documents or performance statements, the precise services rendered remain unspecified. However, given the awarding agency (DISA) and the substantial value, it likely involves critical IT infrastructure support, network operations, or specialized technical services essential for the Department of Defense's mission.

How does the $36.5 million contract value compare to similar IT services contracts awarded by the DoD?

The $36.5 million contract value for IT services over approximately four years is a significant but not extraordinary amount for the Department of Defense. The DoD procures a vast range of IT services, with contract values often reaching hundreds of millions or even billions of dollars for large-scale system integrations or enterprise-wide support. For 'Other Computer Related Services' (NAICS 541519), this value falls within a common range for substantial, multi-year support contracts. Contracts for similar services can vary widely based on scope, duration, and specific requirements. A direct comparison would require analyzing contracts with identical or highly similar service descriptions, performance periods, and agency components.

What are the key performance indicators (KPIs) used to evaluate ALVAREZ LLC's performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for IT services contracts, common KPIs often include system uptime and availability, response times for service requests, resolution rates for technical issues, adherence to security protocols, project completion timelines (if applicable), and user satisfaction surveys. The contracting officer's representative (COR) and technical monitors would typically track these metrics against established targets outlined in the Performance Work Statement (PWS). Failure to meet KPIs could result in contract deficiencies, performance reviews, or even penalties.

What is ALVAREZ LLC's track record with federal IT service contracts, particularly with the Department of Defense?

Information on ALVAREZ LLC's specific track record with federal IT service contracts, especially with the Department of Defense, is not provided in the abbreviated data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or contract terminations. Federal agencies typically consider past performance as a critical factor in source selection. Without access to these records, it's difficult to definitively assess their experience and reliability for this specific $36.5 million contract.

What are the potential risks associated with a firm fixed-price contract for 'Other Computer Related Services'?

Firm Fixed-Price (FFP) contracts place the primary risk of cost overruns on the contractor, ALVAREZ LLC. While generally advantageous for the government by providing cost certainty, risks can arise if the scope of 'Other Computer Related Services' is not clearly defined or if unforeseen technical challenges emerge. The contractor might be incentivized to cut corners on quality or service to maintain profitability if costs escalate unexpectedly. Conversely, if the scope is underestimated by the government, the contractor may deliver minimal effort. Effective contract management and clear performance standards are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $36,484,607

Exercised Options: $36,484,607

Current Obligation: $36,484,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD19B

IDV Type: GWAC

Timeline