DoD's $11.5M contract for software factory operations and maintenance awarded to Semper Valens Solutions

Contract Overview

Contract Amount: $11,487,699 ($11.5M)

Contractor: Semper Valens Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS CONTRACT SUPPORTS DISA'S COMMAND & CONTROL PORTFOLIO TO PROCURE TOOLS AND OBTAIN SUBJECT MATTER EXPERTS WITH DIVERSE KNOWLEDGE TO OPERATE AND MAINTAIN AN EXISTING SOFTWARE FACTORY THAT USES CURRENT INDUSTRY LEADING TOOLS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to SEMPER VALENS SOLUTIONS, INC. for work described as: THIS CONTRACT SUPPORTS DISA'S COMMAND & CONTROL PORTFOLIO TO PROCURE TOOLS AND OBTAIN SUBJECT MATTER EXPERTS WITH DIVERSE KNOWLEDGE TO OPERATE AND MAINTAIN AN EXISTING SOFTWARE FACTORY THAT USES CURRENT INDUSTRY LEADING TOOLS. Key points: 1. Contract focuses on supporting DISA's Command & Control Portfolio with tools and expertise. 2. Aims to operate and maintain an existing software factory utilizing industry-leading tools. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Duration of 729 days suggests a medium-term operational support requirement. 5. Awarded under Full and Open Competition after Exclusion of Sources, implying a specific justification for limited initial bidders. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services.

Value Assessment

Rating: fair

The contract's value of $11.5 million over approximately two years for software factory operations and maintenance appears to be within a reasonable range for specialized IT support. However, without specific benchmarks for similar software factory operations or detailed breakdowns of labor and tool costs, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk, as it allows for reimbursement of costs plus a fixed fee, which can sometimes lead to higher overall expenditures if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, there was an initial exclusion of certain sources, possibly due to specific technical requirements or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a potentially narrower field than a standard full and open competition, which could impact price discovery.

Taxpayer Impact: The limited competition, even if justified, may mean taxpayers did not benefit from the broadest possible price competition, potentially leading to a higher cost than if more vendors had been able to bid.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and specifically the Defense Information Systems Agency (DISA). The contract delivers essential operational and maintenance services for a critical software factory. This supports the DoD's Command & Control Portfolio, enhancing its technological capabilities. Workforce implications include the potential for skilled IT professionals to be engaged in maintaining and operating advanced software development environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost escalation if not managed tightly.
The 'Exclusion of Sources' in the competition method warrants further investigation into the justification and potential impact on price.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the software factory operations.
The specific tools and technologies used within the software factory are not detailed, limiting a full understanding of the technical scope.

Positive Signals

Supports a critical DoD function (Command & Control Portfolio).
Utilizes current industry-leading tools, suggesting a focus on modern and efficient practices.
Awarded to a specific company (Semper Valens Solutions, Inc.) indicating a chosen vendor for specialized services.
The contract duration of 729 days suggests a commitment to sustained operational support.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for such services is highly competitive, with numerous firms offering expertise in software development, operations, and maintenance. The Defense Information Systems Agency (DISA) is a major procurer of IT services for the Department of Defense, and contracts like this are crucial for maintaining the technological infrastructure that supports military operations. Comparable spending benchmarks would typically involve analyzing other contracts for similar software factory operations or IT support services within the federal government or large enterprise environments.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, Semper Valens Solutions, Inc., is likely a larger entity. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring the contractor to adhere to agreed-upon costs and performance standards. Transparency is often facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense Software Development Services
Command and Control Systems Maintenance
Computer Systems Design Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Competition method 'Full and Open Competition after Exclusion of Sources' requires scrutiny for potential limitations on price discovery.
Lack of detailed performance metrics in the award data.
Specifics of the 'software factory' and 'industry leading tools' are not detailed, impacting full scope understanding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to SEMPER VALENS SOLUTIONS, INC.. THIS CONTRACT SUPPORTS DISA'S COMMAND & CONTROL PORTFOLIO TO PROCURE TOOLS AND OBTAIN SUBJECT MATTER EXPERTS WITH DIVERSE KNOWLEDGE TO OPERATE AND MAINTAIN AN EXISTING SOFTWARE FACTORY THAT USES CURRENT INDUSTRY LEADING TOOLS.

Who is the contractor on this award?

The obligated recipient is SEMPER VALENS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the track record of Semper Valens Solutions, Inc. with the Department of Defense and similar IT service contracts?

A thorough review of Semper Valens Solutions, Inc.'s contract history with the Department of Defense (DoD) and other federal agencies is necessary to assess their track record. This would involve examining past performance evaluations, any documented issues or disputes, and the types and values of previous contracts they have held. For IT service contracts, particularly those involving software factory operations and maintenance, their experience with similar technologies, security protocols, and operational demands is crucial. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a lower risk. Conversely, a pattern of performance issues, cost overruns, or contract modifications could signal potential risks for this current award. Specific details on their past performance metrics and client feedback would provide a more robust assessment.

How does the $11.5 million contract value compare to similar software factory operations and maintenance contracts within the DoD?

Benchmarking the $11.5 million contract value against similar software factory operations and maintenance contracts within the DoD requires access to a broader dataset of federal procurement information. Key comparison points would include the scope of services (e.g., number of users supported, complexity of the software factory, specific tools and platforms), contract duration, and the specific agency or command being supported. Contracts with similar technical requirements, team sizes, and operational complexities would serve as the most relevant benchmarks. If this contract's value per year or per full-time equivalent (FTE) is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding. Without specific comparative data, it is difficult to definitively assess whether this contract represents excellent, fair, or questionable value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software factory operations?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for software factory operations is the potential for cost escalation. While the contractor's profit (the 'fee') is fixed, their costs are reimbursed. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. For the government, this means the total contract cost could exceed initial estimates if costs are not rigorously monitored and controlled. Effective oversight, detailed cost reporting, and strong program management are essential to mitigate this risk. Additionally, defining the 'scope of work' and 'allowable costs' clearly in the contract is critical to prevent disputes and ensure that only necessary and reasonable costs are reimbursed.

What is the expected impact of this contract on the operational effectiveness of DISA's Command & Control Portfolio?

This contract is expected to have a positive impact on the operational effectiveness of DISA's Command & Control (C2) Portfolio by ensuring the continuous operation and maintenance of a critical software factory. A well-maintained software factory, utilizing industry-leading tools, is essential for developing, deploying, and updating the software applications that underpin C2 systems. This includes providing the necessary tools and subject matter expertise to operate and maintain these systems efficiently. By supporting this infrastructure, the contract directly contributes to the reliability, security, and agility of the C2 systems, enabling DISA to better support military operations. The effectiveness will ultimately depend on the contractor's performance and the quality of the tools and expertise provided.

How has DISA's spending on computer systems design services evolved over the past five years, and where does this contract fit?

Analyzing DISA's spending trends on computer systems design services over the past five years would require accessing historical procurement data. This would involve aggregating contract awards under NAICS code 541512 and potentially related codes. The trend analysis would reveal whether DISA's investment in such services has been increasing, decreasing, or remaining stable. It would also highlight major contract vehicles and top-performing contractors in this space. This specific $11.5 million contract for software factory operations and maintenance fits within this category. Its size and duration would be compared against the historical average contract size and the frequency of similar awards to understand its relative significance within DISA's overall IT procurement strategy for systems design 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2413 GLENN DR, CANYON LAKE, TX, 78133

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $54,521,783

Exercised Options: $12,059,907

Current Obligation: $11,487,699

Actual Outlays: $1,029,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104719D2036

IDV Type: IDC

Timeline