DoD's $44.3M software support contract with DLT Solutions, LLC awarded via full and open competition

Contract Overview

Contract Amount: $44,304,750 ($44.3M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-16

End Date: 2021-12-15

Contract Duration: 730 days

Daily Burn Rate: $60.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE SUPPORT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to DLT SOLUTIONS, LLC for work described as: SOFTWARE SUPPORT Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and 2-year duration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's performance period is relatively short, allowing for periodic re-evaluation of needs. 4. This contract falls within the broader IT services sector, specifically supporting defense information systems. 5. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) nature provides cost certainty for the government. Benchmarking against similar software support contracts is challenging without specific service details, but the total value of $44.3 million over two years averages to approximately $22.15 million annually. This figure seems within a reasonable range for enterprise-level software support, especially for defense systems. The award was made under a BPA Call, which implies that pricing may have been established through a prior competitive process, potentially offering better value than a new sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally fosters a competitive environment. A competitive process is crucial for ensuring that the government receives fair market prices and that contractors are incentivized to offer their best value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on the supported software for critical operations. The services delivered are essential for maintaining the functionality and security of vital defense information systems. The geographic impact is likely nationwide, supporting DoD operations across various bases and commands. Workforce implications may include the need for specialized IT personnel to manage and support the software, both within the government and at the contractor's end.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software supported makes it difficult to assess the criticality of the service.
The BPA Call mechanism, while efficient, could potentially limit the scope of competition for the specific call-out.
No explicit mention of small business subcontracting goals, which could limit opportunities for smaller firms.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget predictability.
Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract is for a defined period, allowing for reassessment of needs and potential for future competition.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software support for defense applications. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Comparable spending benchmarks for enterprise software support can vary widely based on the complexity and criticality of the software, but this contract's value is substantial within its niche. The Defense Information Systems Agency (DISA) is a major procurer of such services to ensure operational readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is DLT Solutions, LLC, a large business, there is no explicit information regarding subcontracting plans or goals for small businesses. This means that opportunities for small businesses to participate in this contract may be limited unless DLT Solutions voluntarily includes them in its supply chain. Further investigation into subcontracting reports would be necessary to determine the actual impact on the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price award under a BPA Call, its execution will be monitored by the Defense Information Systems Agency (DISA). Transparency is facilitated through contract databases like FPDS. Accountability rests with DLT Solutions, LLC to deliver the contracted software support services as per the agreement. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense Software Maintenance and Support
General Services Administration (GSA) Schedules (if BPA was under GSA)
IT Services for National Security

Risk Flags

Potential for scope creep if not managed tightly.
Reliance on a single vendor for critical software support.
Need for clear performance metrics to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to DLT SOLUTIONS, LLC. SOFTWARE SUPPORT

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, 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 $44.3 million.

What is the period of performance?

Start: 2019-12-16. End: 2021-12-15.

What specific software applications or systems are covered under this $44.3 million contract?

The provided data does not specify the exact software applications or systems that DLT Solutions, LLC is contracted to support. This information is crucial for a comprehensive understanding of the contract's scope, criticality, and value. Software support can range from operating systems and network infrastructure software to specialized mission-critical applications. Without this detail, it is difficult to benchmark the price against similar services or assess the technical expertise required. Further analysis would necessitate reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS) to identify the specific software assets being maintained and supported.

How does the $44.3 million contract value compare to historical spending on similar software support services by the Defense Information Systems Agency (DISA)?

To compare this $44.3 million contract value to historical spending, one would need to analyze DISA's procurement history for similar software support services over the contract's two-year duration (2019-2021) and preceding years. This would involve searching contract databases for awards with comparable North American Industry Classification System (NAICS) codes (like 541519) and service descriptions. Factors such as the specific software, number of users, service level agreements (SLAs), and contract type (e.g., firm-fixed-price vs. cost-plus) would need to be considered for a meaningful comparison. Without access to detailed historical data and the specific software context, a precise benchmark is not possible, but the annual average of approximately $22.15 million suggests a significant investment in maintaining critical defense IT infrastructure.

What is DLT Solutions, LLC's track record with the Department of Defense and specifically with DISA for software support contracts?

DLT Solutions, LLC has a history of contracting with the U.S. federal government, including the Department of Defense (DoD) and its various agencies like the Defense Information Systems Agency (DISA). Their portfolio often includes providing IT hardware, software, and related services. To assess their track record specifically for software support contracts with DISA, a review of past performance evaluations, contract awards, and any reported issues or successes would be necessary. Their ability to secure this $44.3 million contract under full and open competition suggests a level of capability and past performance that met DISA's requirements. However, a deeper dive into their specific performance metrics on similar prior contracts would provide a more robust assessment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this software support contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, software support contracts detail metrics such as response times for issue resolution, system uptime guarantees, patch management timelines, and availability of technical support personnel. These KPIs are crucial for measuring the contractor's performance and ensuring the government receives the expected level of service. The firm-fixed-price nature of the contract implies that DLT Solutions, LLC is obligated to meet certain performance standards, the specifics of which would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

Are there any identified risks or potential challenges associated with the performance of this contract by DLT Solutions, LLC?

Potential risks associated with this contract could include vendor lock-in if the software is proprietary and difficult to transition away from, potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by FFP), and performance issues if DLT Solutions lacks the necessary expertise or resources. Given the critical nature of defense IT systems, any disruption in software support could have significant operational impacts. The contract's duration of two years is relatively short, which can be seen as a risk mitigation strategy, allowing the agency to re-evaluate needs and contractor performance periodically. However, the lack of specific software details prevents a more granular risk assessment.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exitcertified Corp

Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $44,304,750

Exercised Options: $44,304,750

Current Obligation: $44,304,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N6600118A0008

IDV Type: BPA

Timeline