DoD Awards $24.75M for Computer Systems Design, Competition Method Impacts Price Discovery
Contract Overview
Contract Amount: $24,754,821 ($24.8M)
Contractor: AGE Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2022-11-28
End Date: 2025-02-27
Contract Duration: 822 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LABOR
Place of Performance
Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to AGE SOLUTIONS LLC for work described as: LABOR Key points: 1. Significant contract value of $24.75 million over 822 days. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk associated with the firm-fixed-price contract type if scope changes. 4. Spending falls within the IT/Defense sector, a common area for such services.
Value Assessment
Rating: good
The contract value of $24.75M for computer systems design services appears reasonable given the duration and scope. Benchmarking against similar DoD contracts for IT services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple vendors to bid. This method generally leads to more competitive pricing compared to limited or sole-source approaches.
Taxpayer Impact: The competitive nature of this award is expected to yield a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures continued IT support for the Department of Defense. Supports the operational needs of the Defense Information Systems Agency. Provides services critical to national defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price contract type may lead to cost overruns if scope changes.
- No small business participation noted, potentially missing opportunities for smaller vendors.
Positive Signals
- Full and open competition utilized.
- Contract awarded to AGE SOLUTIONS LLC, a specific vendor.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending benchmarks for similar IT services within the DoD can vary widely based on complexity and duration, but $24.75M over two years is a substantial award.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). This suggests that larger, established companies were likely the primary bidders, and opportunities for small business participation may have been limited in this specific procurement.
Oversight & Accountability
The contract is managed by the Defense Information Systems Agency (DISA), a key component of the DoD for information technology. Oversight would typically involve contract performance monitoring and adherence to the firm-fixed-price terms.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- No small business participation.
- Firm Fixed Price contract risk.
- Potential for scope creep in IT design services.
- Long contract duration (822 days).
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to AGE SOLUTIONS LLC. LABOR
Who is the contractor on this award?
The obligated recipient is AGE 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 $24.8 million.
What is the period of performance?
Start: 2022-11-28. End: 2025-02-27.
What specific computer systems design services are included in this contract?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). This broad category typically encompasses designing, developing, and integrating hardware and software solutions, network infrastructure, and IT systems. Specific deliverables and technical requirements would be detailed in the contract's statement of work, outlining the exact nature of the design and integration services required by the Defense Information Systems Agency.
What are the potential risks associated with the firm-fixed-price contract type for this service?
A firm-fixed-price (FFP) contract commits the contractor to a total price regardless of the actual costs incurred. For complex IT services like system design, the primary risk is that unforeseen technical challenges or scope creep could lead to the contractor incurring higher costs than anticipated. This might incentivize the contractor to cut corners on quality or service delivery to maintain profitability, or it could lead to disputes if the government requests changes outside the original scope.
How does the full and open competition impact the overall effectiveness of this contract for the DoD?
Full and open competition is designed to maximize the pool of potential bidders, thereby fostering a more competitive environment. This generally leads to better pricing and higher quality services as contractors strive to win the award. For the DoD, this approach increases the likelihood of obtaining effective IT solutions at a reasonable cost, ensuring that taxpayer funds are used efficiently and that the agency receives the best possible technical expertise for its critical systems design needs.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6412 BEULAH ST, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,116,525
Exercised Options: $27,116,525
Current Obligation: $24,754,821
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCA22D00AD
IDV Type: FSS
Timeline
Start Date: 2022-11-28
Current End Date: 2025-02-27
Potential End Date: 2025-02-27 00:00:00
Last Modified: 2025-07-16
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