DoD's $5.5M Contract for Implementation Support West with AIX TECH LLC Raises Questions on Value and Competition
Contract Overview
Contract Amount: $5,528,931 ($5.5M)
Contractor: AIX Tech LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2025-09-30
Contract Duration: 1,309 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IMPLEMENTATION SUPPORT WEST
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to AIX TECH LLC for work described as: IMPLEMENTATION SUPPORT WEST Key points: 1. The contract value of $5.5 million for 'IMPLEMENTATION SUPPORT WEST' appears moderate for IT services. 2. AIX TECH LLC is the sole awardee, raising questions about the extent of competition. 3. The contract's duration of 1309 days (over 3.5 years) suggests a significant, ongoing need. 4. The 'Other Computer Related Services' NAICS code (541519) covers a broad range of IT support.
Value Assessment
Rating: fair
The contract value of $5.5 million for over 3.5 years of support needs further benchmarking against similar IT implementation contracts. Without more specific service details, it's difficult to definitively assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders and potentially impacted price discovery.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these services.
Public Impact
Taxpayers may not have received the most competitive pricing due to limited competition. The long-term nature of the contract suggests a sustained need for these IT services within the DoD. The specific nature of 'Implementation Support West' is unclear, impacting public understanding of the spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises value concerns.
- Lack of transparency on specific services provided.
- Potential for cost overruns on long-term contracts.
Positive Signals
- Contract awarded to a specific company, potentially indicating specialized expertise.
- Clear contract end date provides a defined period for service delivery.
Sector Analysis
The Department of Defense frequently procures IT services, with spending benchmarks varying widely based on the complexity and duration of the support. This contract falls within the broad category of IT services, which is a significant area of federal expenditure.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
The award method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests some level of justification was required, but the specifics of the oversight process and how the exclusion was managed are not detailed here.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition may have inflated costs.
- Vague service description hinders value assessment.
- Long contract duration increases risk of scope creep or obsolescence.
- Lack of small business participation noted.
Tags
other-computer-related-services, department-of-defense, ok, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to AIX TECH LLC. IMPLEMENTATION SUPPORT WEST
Who is the contractor on this award?
The obligated recipient is AIX TECH 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 $5.5 million.
What is the period of performance?
Start: 2022-03-01. End: 2025-09-30.
What specific implementation support services are being provided under this contract, and how do they align with the DoD's strategic IT goals?
The contract description 'IMPLEMENTATION SUPPORT WEST' is vague. To assess value, detailed information on the scope of work is crucial. This could include system integration, software deployment, network configuration, or user training. Understanding these specifics would clarify how the services contribute to the Defense Information Systems Agency's mission and whether the $5.5 million expenditure is justified by tangible outcomes and alignment with broader IT modernization efforts.
What was the rationale for excluding other potential sources, and was this exclusion adequately justified to ensure fair competition?
The contract's award basis, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies that while the initial solicitation was broad, specific reasons led to limiting the field. Understanding the justification for excluding other sources is critical. Was it based on unique capabilities, past performance, or specific security requirements? A robust justification is necessary to ensure that the exclusion did not unduly restrict competition and that the government obtained the best value, rather than simply accepting the first or only viable option.
How will the effectiveness and efficiency of AIX TECH LLC's implementation support be measured throughout the contract's 3.5-year duration?
Measuring effectiveness and efficiency is key to ensuring taxpayer value. For this contract, performance metrics should be clearly defined, covering aspects like timely delivery, system uptime, user satisfaction, and adherence to budget. Regular performance reviews and clear deliverables will be essential. Without defined metrics and ongoing monitoring, it's difficult to assess if the $5.5 million investment is yielding the expected results and if AIX TECH LLC is meeting its contractual obligations effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC102815R0030
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 23390 HIGBEE LN, BRAMBLETON, VA, 20148
Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,825,349
Exercised Options: $5,528,931
Current Obligation: $5,528,931
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102818D0022
IDV Type: IDC
Timeline
Start Date: 2022-03-01
Current End Date: 2025-09-30
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-12-10
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