DoD's $20.1M Public Infrastructure Contract Awarded to Riverside Engineering LLC for Computer Systems Design

Contract Overview

Contract Amount: $20,129,301 ($20.1M)

Contractor: Riverside Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-04

End Date: 2026-12-03

Contract Duration: 1,156 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PUBLIC KEY INFRASTRUCTURE SUSTAINMENT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to RIVERSIDE ENGINEERING LLC for work described as: PUBLIC KEY INFRASTRUCTURE SUSTAINMENT Key points: 1. Contract value of $20.1 million over its period of performance. 2. Awarded under full and open competition, indicating a broad search for qualified bidders. 3. The contract is for computer systems design services, a critical area for defense operations. 4. Performance period spans over three years, from October 2023 to December 2026. 5. The firm fixed-price contract type suggests a defined scope and cost structure. 6. Awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD.

Value Assessment

Rating: good

The contract value of $20.1 million for over three years of computer systems design services appears reasonable given the scope and the agency involved. Benchmarking against similar IT services contracts within the Department of Defense suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The firm fixed-price structure also provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that there were 7 bids received suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for essential IT services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA), which will receive enhanced computer systems design services. These services are crucial for maintaining and improving the technological infrastructure that supports military operations and communications. The contract's impact is primarily within the defense sector, supporting national security objectives. While not directly impacting the general public, the contract contributes to the efficiency and effectiveness of defense IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial system design requirements are not clearly defined.
Dependence on a single contractor for critical system design could pose risks if performance falters.
Ensuring ongoing alignment with evolving cybersecurity threats and DoD technological advancements.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract provides cost predictability and limits financial risk for the government.
The contract duration allows for sustained support and development of complex systems.
Awarded to a specific contractor, Riverside Engineering LLC, suggesting they met stringent qualification criteria.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a vital component of the broader Information Technology (IT) industry. This sector is characterized by rapid innovation and a constant demand for specialized expertise. The Department of Defense is a significant consumer of these services, investing heavily in maintaining and upgrading its complex IT infrastructure to ensure operational readiness and national security. Comparable spending benchmarks within the DoD for similar IT services contracts often range in the millions to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless Riverside Engineering LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily be managed by the contracting officers and program managers within the Defense Information Systems Agency (DISA). Accountability measures are inherent in the firm fixed-price contract type, which requires the contractor to deliver services within the agreed-upon cost. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if any concerns regarding performance or compliance arise.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Computer Systems Design
Federal IT Infrastructure Modernization
Military Communications Systems Support

Risk Flags

Contract performance risk
Cybersecurity risk
Technical complexity risk
Contractor financial stability risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to RIVERSIDE ENGINEERING LLC. PUBLIC KEY INFRASTRUCTURE SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is RIVERSIDE ENGINEERING 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 $20.1 million.

What is the period of performance?

Start: 2023-10-04. End: 2026-12-03.

What is the track record of Riverside Engineering LLC with the Department of Defense?

Riverside Engineering LLC has been awarded this $20.1 million contract by the Defense Information Systems Agency (DISA) for computer systems design services. While this is a significant award, further analysis would be needed to assess their broader track record with the DoD. This would involve examining past contract performance, any reported issues or awards, and their history of delivering similar services. Understanding their past performance is crucial for evaluating the likelihood of successful execution of this current contract. Without more historical data, it's difficult to definitively assess their established performance level within the DoD.

How does the $20.1 million value compare to similar DoD IT services contracts?

The $20.1 million contract value for computer systems design services over a period of approximately three years is within a common range for significant IT procurements by the Department of Defense. Agencies like DISA often award contracts of this magnitude for specialized services that require extensive technical expertise and long-term support. When compared to other firm fixed-price contracts for similar system design and integration services within the defense sector, this award appears to be a substantial but not unusually large investment. Factors such as the complexity of the systems, the specific technologies involved, and the duration of support would influence its relative size.

What are the primary risks associated with this contract?

Key risks for this contract include potential technical challenges in designing complex computer systems that meet evolving DoD requirements, cybersecurity vulnerabilities that could be introduced or exploited, and contractor performance issues. Given the firm fixed-price nature, there's a risk that the contractor might cut corners to maintain profitability, potentially impacting quality. Furthermore, reliance on a single contractor for critical system design could pose a risk if the contractor faces financial instability or significant operational disruptions. Ensuring robust oversight and clear performance metrics will be essential to mitigate these risks.

How effective is the full and open competition strategy for IT services like this?

The full and open competition strategy is generally considered highly effective for procuring IT services, as it maximizes the pool of potential offerors, fostering innovation and driving competitive pricing. For a contract of this nature, it allows the Defense Information Systems Agency (DISA) to solicit proposals from a wide range of companies, including large established firms and potentially smaller, specialized ones. The seven bids received indicate that this approach successfully attracted multiple interested parties. This level of competition typically leads to better value for the government by ensuring that the chosen contractor offers a strong combination of technical capability and cost-effectiveness, thereby enhancing program effectiveness.

What are the historical spending patterns for computer systems design services at DISA?

Historical spending patterns for computer systems design services at the Defense Information Systems Agency (DISA) typically show consistent and significant investment due to the agency's critical role in providing IT infrastructure and services to the DoD. DISA frequently procures services related to network design, system integration, cybersecurity solutions, and software development. Annual spending can fluctuate based on modernization initiatives, new system deployments, and evolving technological requirements. Contracts in this category often range from several million to tens of millions of dollars, reflecting the complexity and scale of DoD IT needs. This $20.1 million award aligns with these historical patterns of substantial investment in IT modernization and support.

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

Solicitation ID: HC104717R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1921 GALLOWS RD STE 120, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture 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: $32,278,292

Exercised Options: $29,376,319

Current Obligation: $20,129,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104719D2035

IDV Type: IDC

Timeline