DoD's $19.6M contract for OPTIONAL HARDWARE awarded to SIERRA7, INC. with 602 days duration

Contract Overview

Contract Amount: $19,649,993 ($19.6M)

Contractor: Sierra7, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-06

End Date: 2025-04-30

Contract Duration: 602 days

Daily Burn Rate: $32.6K/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: OPTIONAL HARDWARE

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to SIERRA7, INC. for work described as: OPTIONAL HARDWARE Key points: 1. Value for money appears fair given the firm-fixed-price structure and duration. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a potentially competitive award. 3. Risk indicators include the fixed-price nature, which shifts performance risk to the contractor. 4. Performance context is within IT services, specifically 'Other Computer Related Services'. 5. Sector positioning is within Defense, supporting the Defense Information Systems Agency. 6. The contract type is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $19.6 million over approximately 20 months (602 days) for 'OPTIONAL HARDWARE' and related services suggests a moderate investment. Benchmarking against similar IT hardware and services contracts within the Department of Defense is necessary for a precise value assessment. However, the firm-fixed-price (FFP) structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. The number of bids (4) provides some basis for comparison, but without knowing the specific hardware and service requirements, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, specific sources may have been excluded prior to the solicitation, potentially narrowing the field. Four bids were received, suggesting a reasonable level of competition. The exclusion of sources warrants further investigation to understand if it limited overall market participation and potentially impacted price discovery.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing. The receipt of four bids suggests that the government likely received a range of price proposals, increasing the likelihood of a fair market price being achieved.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA), which will receive the OPTIONAL HARDWARE and associated services. The services delivered likely support critical defense information systems and infrastructure. The geographic impact is primarily within the continental United States, where DISA operates, though specific deployment locations for the hardware are not detailed. Workforce implications may include IT specialists and technicians involved in the installation, maintenance, or support of the hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Scope creep risk if 'OPTIONAL HARDWARE' is not precisely defined.
Dependence on a single contractor (SIERRA7, INC.) for a critical IT component.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarded under a competitive process, indicating potential for good pricing.
Delivery Order structure suggests it's part of a pre-competed larger contract vehicle.

Sector Analysis

The IT services sector, particularly within the defense domain, is characterized by significant government spending on hardware, software, and related support. Contracts like this are crucial for maintaining and upgrading the technological infrastructure of military branches. The market size for defense IT is substantial, with numerous large and small businesses vying for these opportunities. This contract fits within the broader category of IT support and hardware procurement, a common requirement for agencies like DISA.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless SIERRA7, INC. voluntarily engages small businesses as subcontractors. Further review of the contract's subcontracting plan, if one exists, would be necessary to fully assess its impact.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Defense Contract Management Agency (DCMA). The firm-fixed-price nature provides a degree of accountability by linking payment to delivery and performance. Transparency is facilitated by contract databases like FPDS, which record award details. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Defense Information Systems Agency (DISA) IT Procurement
Department of Defense Hardware Acquisition
Information Technology Services Contracts
Federal IT Modernization Programs

Risk Flags

Potential for limited competition due to source exclusion.
Lack of specific hardware details hinders value assessment.
Contractor's past performance requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to SIERRA7, INC.. OPTIONAL HARDWARE

Who is the contractor on this award?

The obligated recipient is SIERRA7, 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 $19.6 million.

What is the period of performance?

Start: 2023-09-06. End: 2025-04-30.

What specific type of 'OPTIONAL HARDWARE' is being procured, and what is its criticality to DISA operations?

The provided data does not specify the exact type of 'OPTIONAL HARDWARE'. This information is crucial for understanding the contract's purpose and impact. 'Optional Hardware' could range from servers, networking equipment, peripherals, or specialized IT components. Its criticality would depend on its role within DISA's information systems. If it's essential for network operations, data storage, or command and control, its timely delivery and performance are paramount. Without this detail, assessing the true value and risk associated with the contract remains incomplete. Further analysis would require accessing the contract's statement of work (SOW) or technical exhibits.

How does the per-unit cost of this hardware, if determinable, compare to market rates or similar government procurements?

Determining a precise per-unit cost is not possible with the provided summary data. The total award amount is $19,649,993.45, and the contract is for 'OPTIONAL HARDWARE' over 602 days. Without knowing the quantity and specific type of hardware, a per-unit cost benchmark cannot be calculated. To perform this analysis, one would need to identify the specific hardware items, their quantities, and then compare their unit prices against publicly available market data (e.g., GSA schedules, commercial price lists) or historical government contract awards for identical or comparable items. The firm-fixed-price nature suggests the contractor has factored in their costs and profit margins, but the initial pricing strategy is not detailed here.

What is the track record of SIERRA7, INC. in fulfilling similar IT hardware contracts for the Department of Defense?

The provided data indicates SIERRA7, INC. as the contractor for this $19.6 million contract. To assess their track record, a review of their past performance on similar contracts, particularly those involving IT hardware for the Department of Defense or other federal agencies, would be necessary. This would involve examining contract databases for previous awards to SIERRA7, INC., looking at contract values, durations, and performance ratings. Key aspects to investigate include their history of on-time delivery, adherence to specifications, and any documented performance issues or disputes. A positive track record suggests a lower risk for this current contract, while a history of problems would raise concerns.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a nuanced competitive landscape. While it aims for broad participation, the explicit exclusion of certain sources prior to solicitation can limit the pool of potential bidders. The reasons for exclusion are critical; if based on legitimate factors like capability or past performance, it might not significantly harm competition. However, if exclusions are arbitrary or overly restrictive, it could stifle innovation and lead to higher prices by reducing the number of viable competitors. The fact that four bids were received suggests some level of competition was maintained, but understanding *who* was excluded and *why* is key to assessing the true impact on price discovery and overall value for the government.

How does the duration of 602 days (approx. 20 months) align with typical procurement cycles for IT hardware within the DoD?

A contract duration of 602 days (approximately 20 months) for IT hardware procurement is relatively standard within the Department of Defense, especially for delivery orders that may involve phased delivery, installation, and initial support. DoD IT procurements often span multiple fiscal years and can involve complex logistics and integration. This duration allows for potential supply chain lead times, deployment schedules, and initial operational testing. Shorter durations might be feasible for off-the-shelf items, while longer periods accommodate more complex systems or ongoing service components often bundled with hardware. The 602-day timeframe appears reasonable for managing the lifecycle of hardware acquisition and initial integration.

What is the significance of the 'MD' (Maryland) state code and 'MARYLAND' location for this contract?

The 'MD' state code and 'MARYLAND' location likely indicate the primary place of performance or the location of the contracting activity/agency (Defense Information Systems Agency - DISA headquarters is in Fort Meade, Maryland). This suggests that the hardware may be deployed to or managed from facilities within Maryland, or that the contractor's operations supporting this contract are based there. For federal contracts, location can influence factors like logistics costs, local labor rates, and proximity to government facilities. It also provides a geographic context for understanding the contract's operational footprint and potential economic impact within that region.

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 - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR STE 930, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, 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: $19,649,993

Exercised Options: $19,649,993

Current Obligation: $19,649,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD78B

IDV Type: GWAC

Timeline