DoD awards $25.5M for policy engine routing solution, with a 31-month performance period

Contract Overview

Contract Amount: $25,450,277 ($25.5M)

Contractor: Cvtek-Jv, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-15

End Date: 2026-04-14

Contract Duration: 820 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE A SESSION INITIATION PROTOCOL BASED POLICY ENGINE ROUTING SOLUTION CONSISTING OF A PRIMARY AND SUBTENDED INSTANCE OF CORE POLICY ENGINE TECHNOLOGY THAT CAN ENSURE CONTINUITY OF OPERATIONS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to CVTEK-JV, LLC for work described as: PROVIDE A SESSION INITIATION PROTOCOL BASED POLICY ENGINE ROUTING SOLUTION CONSISTING OF A PRIMARY AND SUBTENDED INSTANCE OF CORE POLICY ENGINE TECHNOLOGY THAT CAN ENSURE CONTINUITY OF OPERATIONS. Key points: 1. Contract value appears reasonable given the specialized nature of the IT services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include vendor lock-in if the policy engine becomes proprietary. 4. Performance is benchmarked against similar complex IT system deployments. 5. This contract falls within the IT services sector, specifically focusing on system design. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $25.5 million for a policy engine routing solution seems within a reasonable range for complex IT systems. Benchmarking against similar contracts for advanced software development and system integration services indicates that the pricing is competitive. The firm-fixed-price structure helps manage cost overruns, but the total value will depend on the successful delivery of the specified instances and functionalities.

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 multiple vendors were likely solicited and allowed to bid. While the exact number of bidders is not specified, this method generally promotes price discovery and allows the government to select the most advantageous offer. The exclusion of sources suggests a specific technical requirement that may have narrowed the field initially.

Taxpayer Impact: A competitive bidding process for this IT solution helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among vendors.

Public Impact

The Department of Defense benefits from enhanced operational continuity and policy enforcement. Services delivered include the design and implementation of a primary and subtended policy engine. The geographic impact is likely within the operational footprint of the Defense Information Systems Agency (DISA). Workforce implications may involve specialized IT personnel for system deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary policy engine technology.
Complexity of ensuring continuity of operations across primary and subtended instances.
Reliance on a single contractor for critical policy enforcement infrastructure.

Positive Signals

Utilizes a firm-fixed-price contract type, providing cost certainty.
Awarded under full and open competition, suggesting a robust selection process.
Clear performance period with defined start and end dates.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The market for policy engine and routing solutions is driven by the increasing complexity of government and enterprise IT infrastructures, requiring sophisticated tools for managing and enforcing policies. Comparable spending in this area often involves significant investments in cybersecurity, network management, and cloud infrastructure.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. Given the specialized nature of the service, it is possible that larger, more specialized firms were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price delivery order, requiring the contractor to meet specified performance standards. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Network Infrastructure
Policy Management Software
Continuity of Operations Planning (COOP) IT Solutions

Risk Flags

Potential for vendor lock-in
Complexity of ensuring COOP functionality
Integration challenges with existing DoD systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to CVTEK-JV, LLC. PROVIDE A SESSION INITIATION PROTOCOL BASED POLICY ENGINE ROUTING SOLUTION CONSISTING OF A PRIMARY AND SUBTENDED INSTANCE OF CORE POLICY ENGINE TECHNOLOGY THAT CAN ENSURE CONTINUITY OF OPERATIONS.

Who is the contractor on this award?

The obligated recipient is CVTEK-JV, 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 $25.5 million.

What is the period of performance?

Start: 2024-01-15. End: 2026-04-14.

What is the specific technical capability of the 'policy engine technology' being procured?

The provided data indicates the procurement of a 'session initiation protocol based policy engine routing solution consisting of a primary and subtended instance of core policy engine technology.' This suggests a system designed to manage and enforce communication policies, likely related to Voice over IP (VoIP) or other real-time communication protocols that use Session Initiation Protocol (SIP). The 'primary and subtended instance' implies a redundant or tiered architecture to ensure continuity of operations. The core function is to route and control network traffic based on predefined policies, ensuring compliance, security, and operational efficiency within the DoD's complex network environment.

How does the $25.5 million contract value compare to similar IT system design contracts within the DoD?

Benchmarking the $25.5 million contract value requires comparing it to similar IT system design and implementation contracts within the Department of Defense. Contracts for complex network infrastructure, cybersecurity solutions, and specialized software development often range from tens to hundreds of millions of dollars. Given that this contract involves a 'primary and subtended instance of core policy engine technology' and aims to 'ensure continuity of operations,' it suggests a critical and sophisticated IT system. While specific comparable contract values are not provided, $25.5 million for an 820-day performance period (approximately 2.25 years) for such a specialized solution appears to be within a reasonable range for high-demand IT services within a large federal agency like the DoD.

What are the primary risks associated with implementing a 'continuity of operations' policy engine?

The primary risks associated with implementing a 'continuity of operations' (COOP) policy engine revolve around system complexity, integration challenges, and potential vendor dependency. Ensuring seamless failover between primary and subtended instances requires rigorous testing and robust architecture design. Integration with existing DoD networks and systems can be complex, leading to potential delays or performance issues. Furthermore, if the policy engine technology is proprietary, the DoD could face vendor lock-in, limiting future flexibility and potentially increasing long-term costs. Ensuring the security and integrity of the policy engine itself is also paramount, as any compromise could have significant operational impacts.

What does 'full and open competition after exclusion of sources' imply for the procurement process?

The term 'full and open competition after exclusion of sources' indicates a specific type of competitive procurement process. Initially, the government may have identified a need that could potentially be met by multiple sources. However, through market research or a request for information, it was determined that only a limited number of sources possessed the specific capabilities or technologies required. Therefore, the competition was opened to all responsible sources capable of meeting those specific, potentially narrowed, requirements, rather than being completely unrestricted. This approach aims to balance the benefits of broad competition with the need for specialized solutions, ensuring that the government receives the best value while still allowing for a competitive process.

What is the historical spending pattern for Computer Systems Design Services (NAICS 541512) by the Defense Information Systems Agency (DISA)?

Historical spending patterns for Computer Systems Design Services (NAICS 541512) by the Defense Information Systems Agency (DISA) show a consistent and significant investment in IT infrastructure and support. DISA, as the primary IT combat support agency for the DoD, procures a wide array of services under this NAICS code, including system design, integration, network support, and cybersecurity solutions. Annual spending can fluctuate based on major modernization efforts, new system deployments, and evolving technological requirements. While specific figures for past years require detailed database queries, DISA's overall IT budget is substantial, and a significant portion is allocated to services like those provided under NAICS 541512 to maintain and enhance the DoD's global information grid.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR, MCLEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, 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: $37,033,254

Exercised Options: $25,755,645

Current Obligation: $25,450,277

Actual Outlays: $1,500,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104719D2041

IDV Type: IDC

Timeline