DoD awards $6.9M for EDRMS support, with AETOS LLC securing a firm-fixed-price delivery order

Contract Overview

Contract Amount: $6,905,658 ($6.9M)

Contractor: Aetos LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-14

End Date: 2026-11-14

Contract Duration: 1,096 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COLLABORATION & ELECTRONIC DOCUMENT RECORDS MANAGEMENT SYSTEM (EDRMS) SUPPORT AND SUSTAINMENT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78253

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to AETOS LLC for work described as: COLLABORATION & ELECTRONIC DOCUMENT RECORDS MANAGEMENT SYSTEM (EDRMS) SUPPORT AND SUSTAINMENT Key points: 1. The contract value represents a moderate investment in electronic document management systems for the Department of Defense. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of approximately three years provides a stable period for service delivery. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The award was made via a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of $6.9 million over three years for EDRMS support appears reasonable within the context of federal IT services. Benchmarking against similar contracts for electronic document management systems and custom computer programming services would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if the contractor's costs are well-managed. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The fact that it was competed fully is a positive sign for taxpayer value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. This approach ensures that the government is not limited to a single provider, increasing the likelihood of securing services at a fair market price.

Public Impact

The Department of Defense is the primary beneficiary, receiving support for its Collaboration & Electronic Document Records Management System (EDRMS). This contract ensures the continued operation and sustainment of critical document management infrastructure. The services delivered will likely support military operations, administrative functions, and record-keeping across various DoD components. The geographic impact is national, supporting DoD operations wherever the EDRMS is deployed. Workforce implications may include the need for specialized IT personnel to manage and maintain the EDRMS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical EDRMS support could pose a risk if performance falters.
Ensuring data security and integrity within the EDRMS is paramount and requires continuous vigilance.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive bidding process, potentially leading to better pricing.
The contract is for sustainment, indicating a focus on maintaining existing, presumably functional, systems.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to custom computer programming and IT support. The Defense Information Systems Agency (DISA) is a major procurer within this sector, responsible for providing IT services and solutions to the DoD. Contracts for EDRMS support fall under the broader category of enterprise IT solutions, which are crucial for efficient operations and data management within large organizations. Spending benchmarks for similar custom computer programming services (NAICS 541511) can range widely based on complexity and duration, but a $6.9 million award over three years for a specific system sustainment is within a typical range for specialized IT support.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. The contractor, AETOS LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear, and it does not appear to have been a primary focus of this procurement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA), which awarded the delivery order. As a firm-fixed-price contract, oversight will focus on ensuring the contractor meets the defined performance standards and deliverables within the agreed-upon price. Accountability measures are embedded in the contract terms, with potential penalties or remedies for non-performance. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Electronic Document Management Systems (EDRMS) Federal Procurements
Custom Computer Programming Services (NAICS 541511)
Department of Defense IT Sustainment Contracts

Risk Flags

Potential for vendor lock-in if not managed carefully.
Reliance on contractor for critical system sustainment.
Cybersecurity risks associated with electronic document management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to AETOS LLC. COLLABORATION & ELECTRONIC DOCUMENT RECORDS MANAGEMENT SYSTEM (EDRMS) SUPPORT AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is AETOS 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 $6.9 million.

What is the period of performance?

Start: 2023-11-14. End: 2026-11-14.

What is the track record of AETOS LLC in delivering similar EDRMS support services to the federal government?

Assessing the track record of AETOS LLC requires a review of their past performance on federal contracts, particularly those involving EDRMS or similar document management systems. Information on past performance can often be found in federal contract databases, performance evaluation reports (like Contractor Performance Assessment Reporting System - CPARS), and the company's own federal contracting history. A positive track record would include successful completion of similar projects, adherence to schedules and budgets, and positive feedback from previous government clients. Conversely, a history of performance issues, contract disputes, or unmet requirements would raise concerns about their ability to successfully execute this current contract. Without specific data on AETOS LLC's past performance on comparable contracts, it is difficult to definitively assess their reliability for this EDRMS support and sustainment task.

How does the awarded price of $6.9 million compare to market rates for similar EDRMS support and sustainment services?

To benchmark the $6.9 million award against market rates, one would typically compare it to similar contracts awarded by other federal agencies or even state and local governments for comparable EDRMS support and sustainment. Key factors for comparison include the scope of services (e.g., software maintenance, user support, system upgrades, data migration), the number of users supported, the complexity of the EDRMS, and the contract duration (approximately three years in this case). The firm-fixed-price nature of this contract means the government has agreed on a total price, which should ideally reflect a competitive market rate. Analyzing the per-user cost or cost per function delivered, if data is available, would provide a more granular comparison. Without access to detailed market analysis or a broader set of comparable contract data, it's challenging to definitively state if $6.9 million represents an excellent or merely fair market value.

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

Primary risks associated with this contract include potential performance issues from the contractor (AETOS LLC), technological obsolescence of the EDRMS, cybersecurity threats to sensitive data, and the possibility of scope creep if requirements are not tightly managed. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price (FFP) nature shifts financial risk to the contractor, incentivizing them to manage costs efficiently. The full and open competition process aims to select a capable contractor. Ongoing oversight by the Defense Information Systems Agency (DISA) will monitor performance against contract requirements. Cybersecurity protocols and regular system updates are crucial for mitigating technological and security risks. Clear definition and management of the EDRMS scope are essential to prevent uncontrolled expansion of work.

What is the expected effectiveness of the EDRMS support and sustainment provided by this contract in enhancing DoD's operational efficiency?

The expected effectiveness of this EDRMS support and sustainment contract hinges on the reliability and performance of the system itself, and the contractor's ability to maintain it. A well-supported EDRMS should enhance operational efficiency by ensuring secure, accessible, and organized storage and retrieval of critical documents. This facilitates faster decision-making, streamlines administrative processes, improves collaboration among personnel, and ensures compliance with record-keeping regulations. The sustainment aspect implies that the system is already functional, and this contract aims to keep it running smoothly, potentially incorporating necessary updates or patches. The effectiveness will be measured by system uptime, user satisfaction, the speed of document access, and the reduction in manual processes. Successful execution by AETOS LLC should lead to tangible improvements in information management within the DoD.

How has federal spending on EDRMS and related IT support services evolved over the past five years, and where does this contract fit in?

Federal spending on EDRMS and related IT support services has generally seen a steady increase over the past five years, driven by the government's ongoing digital transformation initiatives and the need for efficient, secure information management. Agencies across the board are investing in modernizing their record-keeping systems, moving away from paper-based processes towards digital solutions. This includes spending on software licenses, implementation services, integration with other enterprise systems, and long-term sustainment and support. This $6.9 million contract for EDRMS support and sustainment awarded to AETOS LLC by the Department of Defense fits within this trend. It represents a specific investment in maintaining and supporting a critical component of the DoD's IT infrastructure, reflecting the broader federal emphasis on robust digital record management capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5310 STATICE HUNT, SAN ANTONIO, TX, 78253

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,537,999

Exercised Options: $6,905,658

Current Obligation: $6,905,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA23D0081

IDV Type: FSS

Timeline