DoD's $7.7M contract for application support and security awarded to AGIL3 TECHNOLOGY SOLUTIONS LLC

Contract Overview

Contract Amount: $7,683,347 ($7.7M)

Contractor: Agil3 Technology Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-14

End Date: 2026-11-14

Contract Duration: 1,492 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION SUPPORT, SECURITY AND ADMINISTRATION OF CROSS DOMAIN ENTERPRISE SOLUTION (CDES) AND PUBLIC KEY ENCRYPTION.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to AGIL3 TECHNOLOGY SOLUTIONS LLC for work described as: APPLICATION SUPPORT, SECURITY AND ADMINISTRATION OF CROSS DOMAIN ENTERPRISE SOLUTION (CDES) AND PUBLIC KEY ENCRYPTION. Key points: 1. Contract focuses on critical application support and security for a cross-domain enterprise solution. 2. AGIL3 TECHNOLOGY SOLUTIONS LLC, a relatively new entity, secured this significant award. 3. The contract duration extends over three years, indicating a need for sustained support. 4. Fixed-price contract type suggests a defined scope and potential for cost certainty. 5. Awarded as a delivery order under a larger contract vehicle, implying a structured procurement process. 6. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services.

Value Assessment

Rating: fair

Benchmarking the value of this $7.7 million contract is challenging without more detailed cost breakdowns or comparisons to similar enterprise-level application support and security contracts. The fixed-price nature provides some cost control, but the overall value proposition depends heavily on the efficiency and effectiveness of AGIL3 TECHNOLOGY SOLUTIONS LLC's service delivery. Further analysis would require understanding the specific services rendered and their alignment with agency needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a moderate level of competition for this specific award. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the limited number of bidders might warrant further investigation into market dynamics or potential barriers to entry.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bids received, the potential for significant cost savings may have been constrained compared to scenarios with a larger pool of competitive offers.

Public Impact

The Department of Defense benefits from enhanced security and operational continuity for its Cross Domain Enterprise Solution (CDES). This contract ensures the ongoing support, security, and administration of critical IT infrastructure. The services delivered are vital for maintaining secure data sharing and communication across different security domains within the DoD. The geographic impact is primarily within the Defense Information Systems Agency's operational sphere, with potential implications for personnel in Alabama where the contractor is registered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could indicate potential market concentration or barriers to entry for other qualified firms.
The contractor, AGIL3 TECHNOLOGY SOLUTIONS LLC, appears to be a relatively new entity, raising questions about its long-term track record and capacity for sustained, high-stakes government contracts.
Lack of detailed performance metrics or specific deliverables in the provided data makes it difficult to assess the true value for money and contractor performance.

Positive Signals

Awarded under full and open competition, adhering to principles of fair opportunity and market access.
The contract is firm-fixed-price, which generally provides cost predictability and incentivizes contractor efficiency.
The contract duration of over three years suggests a stable, long-term requirement, indicating the importance of the services provided.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services (NAICS 541519). The market for enterprise-level application support, security, and administration is substantial within the federal government, driven by the increasing complexity and criticality of IT infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by agencies like DISA or other defense components, often running into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, AGIL3 TECHNOLOGY SOLUTIONS LLC, is not explicitly identified as a small business in the provided details. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of small business participation goals means that opportunities for small businesses to contribute to this specific contract are not mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports and Inspector General oversight would depend on specific agency protocols and any identified issues.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Cross-Domain Solutions (CDTS)
Public Key Infrastructure (PKI) Services
DoD Cybersecurity Contracts
Enterprise IT Management Services

Risk Flags

Limited Competition
Contractor Capacity/Experience (Newer Entity)
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to AGIL3 TECHNOLOGY SOLUTIONS LLC. APPLICATION SUPPORT, SECURITY AND ADMINISTRATION OF CROSS DOMAIN ENTERPRISE SOLUTION (CDES) AND PUBLIC KEY ENCRYPTION.

Who is the contractor on this award?

The obligated recipient is AGIL3 TECHNOLOGY SOLUTIONS 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 $7.7 million.

What is the period of performance?

Start: 2022-10-14. End: 2026-11-14.

What is the specific nature of the 'Cross Domain Enterprise Solution (CDES)' and its criticality to the Department of Defense?

The Cross Domain Enterprise Solution (CDES) is a critical infrastructure component within the Department of Defense (DoD) that enables secure information sharing and transfer between networks operating at different classification levels or security domains. Its criticality lies in facilitating the flow of intelligence, operational data, and command and control information to authorized users across disparate systems without compromising the security boundaries of any network. This capability is essential for modern military operations, allowing for timely decision-making and coordinated actions. The application support, security, and administration provided under this contract are vital for maintaining the integrity, availability, and confidentiality of this sensitive data exchange mechanism, directly impacting national security.

How does the firm-fixed-price contract type influence the risk and value for money in this IT support contract?

The firm-fixed-price (FFP) contract type shifts the majority of the performance risk to the contractor, AGIL3 TECHNOLOGY SOLUTIONS LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. For the government, this offers price certainty and predictability, making budgeting more straightforward. From a value-for-money perspective, an FFP contract incentivizes the contractor to be efficient and manage costs effectively to maximize their profit margin. However, the government must ensure the contract's scope is clearly defined to avoid scope creep or disputes. If the scope is well-defined and the contractor is competent, FFP can yield good value. Conversely, if the scope is ambiguous or the contractor lacks expertise, the government might end up paying a premium for potentially subpar services or facing change order requests.

What does the limited number of bidders (two) suggest about the market for these specialized IT services?

A limited number of bidders, such as the two received for this contract, can suggest several market dynamics. It might indicate a niche market with a small pool of highly specialized vendors capable of meeting the stringent requirements of the DoD for cross-domain solutions and enterprise security. Alternatively, it could point to barriers to entry, such as high qualification standards, complex proposal requirements, or the significant investment needed to compete effectively. It's also possible that the specific contract vehicle used for this delivery order had a limited number of pre-qualified vendors. While full and open competition was advertised, the actual number of responsive and capable bidders may have been constrained, potentially impacting the level of price competition achieved.

What is the potential impact of awarding a significant contract to a potentially newer entity like AGIL3 TECHNOLOGY SOLUTIONS LLC?

Awarding a significant contract like this to a potentially newer entity, AGIL3 TECHNOLOGY SOLUTIONS LLC, presents both opportunities and risks. The opportunity lies in fostering competition and potentially bringing innovative solutions or more competitive pricing from emerging businesses. However, the risk involves the contractor's capacity, experience, and financial stability to successfully execute a complex, long-term contract critical to national security. Government agencies often mitigate this risk through rigorous pre-award evaluations, performance monitoring, and potentially phased contract structures. For taxpayers, the impact hinges on the contractor's ability to deliver as promised; successful execution means value for money, while failure could lead to cost overruns, delays, and the need for contract re-competition or termination.

How does the geographic registration of the contractor (Alabama) relate to the contract's performance location and potential economic impact?

The contractor's registration in Alabama (ST: AL, SN: ALABAMA) indicates the state where the company is legally incorporated or primarily operates. However, for a federal IT services contract like this, the actual performance location is often remote or at various government sites, not necessarily tied to the contractor's home state. The Defense Information Systems Agency (DISA), the awarding sub-agency, has significant operations and personnel in Alabama (e.g., Maxwell Air Force Base, Redstone Arsenal), suggesting a potential for local or regional performance. If performance occurs within Alabama, it could have a positive economic impact through job creation and local spending. If performance is remote, the economic impact is distributed nationally or globally based on where the contractor's employees are located.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3141 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,023,498

Exercised Options: $7,934,246

Current Obligation: $7,683,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F097DA

IDV Type: FSS

Timeline