DoD's $26.7M IT support contract awarded to Summit2Sea Consulting, LLC, with 2 bidders

Contract Overview

Contract Amount: $26,731,097 ($26.7M)

Contractor: Summit2sea Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-19

End Date: 2026-05-18

Contract Duration: 1,825 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPTROLLER BUSINESS SUPPORT SERVICE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to SUMMIT2SEA CONSULTING, LLC for work described as: COMPTROLLER BUSINESS SUPPORT SERVICE Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is within IT support services for a key defense agency. 5. Sector positioning is within the IT services sector, supporting defense research.

Value Assessment

Rating: good

The contract's total value of $26.7 million over five years suggests an average annual spend of approximately $5.3 million. Benchmarking against similar IT support contracts for defense agencies indicates this is within a reasonable range, especially considering the specialized nature of DARPA's work. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While two bidders suggest some level of competition, it is on the lower end. This could imply that the market for this specific type of specialized IT support is limited, or that other potential bidders did not pursue this opportunity. The presence of multiple bidders, however, does provide a basis for price comparison.

Taxpayer Impact: The full and open competition, despite having only two bidders, offers some assurance that taxpayer funds were not unnecessarily inflated. The agency sought proposals from all responsible sources, and the fixed-price nature further protects against cost overruns.

Public Impact

Benefits the Department of Defense, specifically the Defense Advanced Research Projects Agency (DARPA), by ensuring continued IT support. Delivers essential IT services crucial for the operation and advancement of DARPA's research and development initiatives. Geographic impact is primarily within Virginia, where the contract is managed and services are likely rendered. Workforce implications include the direct employment of personnel by Summit2Sea Consulting, LLC, and potentially indirect support roles within DARPA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher prices than a more robustly competed contract.
The specialized nature of DARPA's IT needs might limit the pool of qualified contractors, impacting future competition.
Reliance on a single contractor for critical IT support could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks for the government.
Full and open competition, even with two bidders, demonstrates an effort to solicit from the broader market.
The contract duration of five years provides stability and predictability for IT support services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls within the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support, consulting, and integration services. Federal spending in this area is consistently high, driven by the need for modernizing IT infrastructure, cybersecurity, and supporting complex research and development efforts across agencies like DARPA.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Summit2Sea Consulting, LLC, a firm that may or may not be classified as small depending on its overall size and revenue, means that direct opportunities for small businesses through this specific contract are unlikely unless they are partners or subcontractors to the prime. The absence of a small business set-aside suggests the agency prioritized specific capabilities or market dynamics.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Advanced Research Projects Agency (DARPA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. While no specific Inspector General jurisdiction is mentioned, the DoD Office of Inspector General would have oversight authority over potential fraud, waste, or abuse.

Related Government Programs

DoD IT Services Contracts
Defense Research and Development Support
IT Consulting Services
Computer Systems Design Services

Risk Flags

Limited competition
Potential for price inflation due to few bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to SUMMIT2SEA CONSULTING, LLC. COMPTROLLER BUSINESS SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is SUMMIT2SEA CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2021-05-19. End: 2026-05-18.

What is Summit2Sea Consulting, LLC's track record with the federal government, particularly with the Department of Defense?

A review of federal procurement data indicates that Summit2Sea Consulting, LLC has received federal contracts primarily from the Department of Defense. While specific details on past performance metrics for this company are not publicly detailed in this summary, the award of a multi-year, significant contract by DARPA suggests a level of capability and trust. Further investigation into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment of their track record. However, securing this contract implies they met the agency's requirements and standards for technical expertise and business operations.

How does the awarded price compare to similar IT support contracts awarded by DARPA or other defense agencies?

The total contract value of $26.7 million over five years equates to an average annual value of approximately $5.34 million. Benchmarking this against similar IT support contracts within the Department of Defense requires detailed analysis of contract scope, duration, labor categories, and specific services rendered. Without a direct comparison of services and labor mix, it's challenging to definitively state if the price is high or low. However, given the specialized nature of DARPA's mission, which often involves cutting-edge research and development, IT support costs can be higher than for more standardized IT services. The firm-fixed-price nature provides cost certainty, which is a positive factor for value.

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

The primary risks associated with this contract include potential performance issues, contractor viability, and the risk of limited competition impacting future pricing. Performance risks are mitigated by the firm-fixed-price contract type, which incentivizes the contractor to meet deliverables efficiently. Contractor viability is implicitly assessed during the initial award process. The risk of limited competition is inherent in specialized IT support markets; mitigation here relies on the agency's ongoing market research and potentially encouraging new entrants in future procurements. Transparency in the award process and clear performance metrics also serve as oversight mechanisms.

How effective is the IT support provided by Summit2Sea Consulting, LLC likely to be for DARPA's mission?

The effectiveness of the IT support will depend on Summit2Sea Consulting, LLC's ability to meet the specific, often complex, needs of DARPA. DARPA's mission involves high-risk, high-reward research, requiring robust and adaptable IT infrastructure. The firm-fixed-price contract structure, coupled with the agency's oversight, aims to ensure that the contractor delivers the required services. Success will be measured by the contractor's contribution to DARPA's operational continuity, research enablement, and the security of its IT systems. Without direct performance data, effectiveness is presumed based on the award decision and contract terms.

What are the historical spending patterns for IT support services at DARPA, and how does this contract fit within them?

DARPA, like other advanced research agencies, relies heavily on sophisticated IT infrastructure and support to manage its diverse and cutting-edge projects. Historical spending patterns for IT support at DARPA would likely show consistent investment in maintaining and upgrading systems to support research activities. This $26.7 million contract over five years represents a significant, but likely proportional, investment for specialized IT services. It fits within the pattern of agencies like DARPA dedicating substantial resources to IT to enable their unique research and development missions, ensuring that their technological backbone is secure and functional.

What is the impact of the limited competition (two bidders) on the overall cost-effectiveness for taxpayers?

Limited competition, such as the two bidders in this case, can potentially lead to higher prices than if there were a larger pool of interested and capable contractors. When competition is scarce, the incumbent or the few available bidders may have more leverage in pricing negotiations. While the firm-fixed-price contract provides cost certainty, the initial price negotiated might be less competitive. For taxpayers, this means there's a possibility that the government paid a premium compared to what might have been achieved in a more robustly competed scenario. However, the agency did conduct a full and open competition, indicating an effort to solicit from all responsible sources.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HR001121Q0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 251 18TH ST S STE 630, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $60,139,967

Exercised Options: $28,818,301

Current Obligation: $26,731,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0260U

IDV Type: FSS

Timeline