DoD's $7.5M Transport Services Advisory Contract Awarded to Defense Solutions Group LLC

Contract Overview

Contract Amount: $7,550,271 ($7.6M)

Contractor: Defense Solutions Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-07-13

Contract Duration: 468 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORT SERVICES STRATEGIC ADVISORY SUPPORT (TSSAS)

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.6 million to DEFENSE SOLUTIONS GROUP LLC for work described as: TRANSPORT SERVICES STRATEGIC ADVISORY SUPPORT (TSSAS) Key points: 1. Contract aims to enhance strategic advisory support for transportation services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Performance period spans over a year, indicating a need for sustained support. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The North American Industry Classification System (NAICS) code 541519 points to specialized IT or computer-related services.

Value Assessment

Rating: fair

The contract value of $7.55 million over approximately 1.5 years appears moderate for strategic advisory services within the Department of Defense. Benchmarking against similar contracts for specialized IT and management consulting within defense agencies would be necessary for a more precise value assessment. The firm-fixed-price structure is a positive indicator for cost control, but the specific deliverables and market rates for such niche advisory support are key to determining true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonable level of competition for this specialized advisory service. This competitive environment is generally expected to drive more favorable pricing and innovative solutions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution than a sole-source or limited competition procurement. It ensures that taxpayer funds are being utilized efficiently by selecting the best value offer.

Public Impact

The Department of Defense benefits from enhanced strategic guidance on transportation services. Services delivered are likely to include analysis, planning, and recommendations for optimizing DoD's transportation logistics. Geographic impact is likely global, given the nature of defense operations. Workforce implications may involve specialized consultants and analysts contributing to defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess contractor performance.
The 'Other Computer Related Services' NAICS code might not fully capture the scope of strategic advisory work, potentially indicating a mismatch or broad categorization.
The contract is a delivery order, which could imply that the underlying IDIQ vehicle itself was not competed as broadly or as recently, introducing potential upstream risks.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
The contract duration of over a year suggests a sustained need and potential for impactful advisory services.
The awardee, Defense Solutions Group LLC, is likely experienced in providing services to the defense sector.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting for defense logistics. The market for defense consulting is substantial, driven by the complex operational needs of military branches. Comparable spending often involves contracts for strategic planning, IT integration, and operational efficiency improvements within large government agencies. The NAICS code 541519, while broad, suggests a focus on IT-enabled advisory services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside requirement. However, the prime contractor, Defense Solutions Group LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or the Defense Contract Audit Agency (DCAA), depending on the nature of the services and financial aspects. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Advisory Services
Department of Transportation Strategic Planning Contracts
Military Sealift Command Support Contracts
DoD IT Consulting Services

Risk Flags

Potential for undefined scope creep in advisory services.
Reliance on contractor's expertise without clear performance benchmarks.
NAICS code may not fully align with the strategic advisory nature of the work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.6 million to DEFENSE SOLUTIONS GROUP LLC. TRANSPORT SERVICES STRATEGIC ADVISORY SUPPORT (TSSAS)

Who is the contractor on this award?

The obligated recipient is DEFENSE SOLUTIONS GROUP 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 $7.6 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-07-13.

What is the specific nature of the 'transport services strategic advisory support' being provided?

The provided data does not detail the specific services. However, based on the contract title and the NAICS code (541519 - Other Computer Related Services), it likely involves providing expert advice, analysis, and recommendations to the Department of Defense (DoD) regarding the strategic planning, optimization, and management of its transportation and logistics operations. This could encompass areas such as fleet management, supply chain efficiency, technology adoption for logistics, route planning, and policy development related to the movement of personnel and equipment. The 'Other Computer Related Services' code suggests that IT solutions or data analytics may play a significant role in the advisory support.

How does the $7.55 million contract value compare to similar advisory contracts within the DoD?

Without access to a comprehensive database of comparable DoD advisory contracts, a precise benchmark is difficult. However, $7.55 million over approximately 1.5 years (468 days) for specialized strategic advisory services is a moderate-sized award within the defense sector. Larger, more complex strategic initiatives or IT modernization programs can run into tens or hundreds of millions of dollars. Smaller, more focused consulting engagements might be in the hundreds of thousands. This contract appears to be for a significant, but not massive, advisory effort, likely focused on a specific area of transportation logistics.

What are the key risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep if the advisory services are not clearly defined, contractor underperformance, and the risk that the advice provided may not be actionable or cost-effective. Mitigation strategies include the firm-fixed-price contract type, which caps the government's financial liability and incentivizes the contractor to manage costs. The 'full and open competition' process aims to select a contractor with a proven track record and the best value offering. Clear performance standards and regular progress reviews by the contracting officer's representative (COR) are also crucial for managing performance risks.

What is the track record of Defense Solutions Group LLC in providing similar services to the federal government?

The provided data does not include specific details on Defense Solutions Group LLC's past performance or track record. A thorough assessment would require reviewing their contract history in federal procurement databases (like FPDS) to identify previous awards, performance evaluations, and any past issues. However, their selection under full and open competition suggests they met the minimum qualifications and were deemed capable of performing the required services. Further due diligence would be needed to confirm their expertise in strategic transportation advisory support.

What is the historical spending pattern for 'transport services strategic advisory support' within the Department of Defense?

The provided data is for a single contract award and does not offer historical spending patterns. To determine historical spending, one would need to query federal procurement databases for similar contracts awarded over multiple fiscal years, potentially using keywords like 'transportation advisory,' 'logistics strategy,' 'supply chain consulting,' and filtering by the Department of Defense. This analysis would reveal trends in spending, identify key contractors, and indicate the overall investment in such advisory services.

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 - NETWORK

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1112 JENSEN DR STE 107, VIRGINIA BEACH, VA, 23451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,784,230

Exercised Options: $7,863,641

Current Obligation: $7,550,271

Actual Outlays: $1,150,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0027

IDV Type: IDC

Timeline