DoD's $20.9M IT contract for DMLSS shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $20,927,240 ($20.9M)

Contractor: Longview International Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-30

End Date: 2017-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $14.3K/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: DMLSS EMERGING REQUIREMENT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, INC. for work described as: DMLSS EMERGING REQUIREMENT Key points: 1. Contract value of $20.9M over 4 years suggests moderate annual spending. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a specific justification for limiting bidders. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within IT systems design, a common area for federal spending. 5. Sector positioning is within Defense Health Agency IT services, a critical but specialized area.

Value Assessment

Rating: fair

The total contract value of $20.9 million over four years averages to approximately $5.2 million annually. Benchmarking this against similar IT system design contracts within the Department of Defense is challenging without more specific service details. However, the fixed-price contract type suggests that the government aimed to control costs upfront. The awarded amount appears within a reasonable range for complex IT system development and support, but a more granular comparison of specific deliverables against market rates would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation type indicates that while the competition was intended to be open, specific sources were excluded, suggesting a limited pool of eligible bidders. The number of bidders is not explicitly stated, but the designation implies that not all potential offerors were considered. This approach can sometimes lead to less competitive pricing if the excluded sources represent significant market players.

Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader range of vendors had been allowed to bid. Taxpayers may have paid a premium due to the restricted bidding environment.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Health Agency, which receives enhanced IT system capabilities. The contract delivers computer systems design services, likely supporting the Defense Medical Logistics Standard System (DMLSS). The geographic impact is likely nationwide, supporting military health facilities and personnel wherever DMLSS is deployed. Workforce implications include the need for skilled IT professionals to design, implement, and maintain the system, potentially creating jobs in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery and potentially increased costs for taxpayers.
The exclusion of sources requires careful justification to ensure fairness and prevent anti-competitive practices.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and efficiency of the services provided.

Positive Signals

The use of a Firm Fixed Price contract type helps to control costs and mitigate the risk of budget overruns.
Awarding to Longview International Technology Solutions, Inc. suggests a potentially established relationship or expertise in this domain.
The contract duration of four years allows for sustained support and development of critical IT systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining complex systems. The Defense Health Agency's need for specialized IT support, like the DMLSS, highlights the critical role of technology in military healthcare operations. Comparable spending benchmarks would involve analyzing other large-scale IT system development and integration contracts within federal health agencies or the broader DoD.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Longview International Technology Solutions, Inc., likely did not have specific obligations to engage small businesses for this particular award. Consequently, the direct impact on the small business ecosystem for this contract appears minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Medical Logistics Standard System (DMLSS)
Department of Defense IT Modernization Programs
Federal Health IT Contracts
Computer Systems Design Services Contracts

Risk Flags

Limited competition may impact price.
Justification for exclusion of sources needs review.
Performance metrics not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, INC.. DMLSS EMERGING REQUIREMENT

Who is the contractor on this award?

The obligated recipient is LONGVIEW INTERNATIONAL TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2013-09-30. End: 2017-09-29.

What is the track record of Longview International Technology Solutions, Inc. with federal contracts, particularly within the Department of Defense?

Longview International Technology Solutions, Inc. has a history of securing federal contracts, primarily within the Department of Defense. Analyzing their past performance reveals a pattern of providing IT services, including system design, integration, and support. While specific details on contract values and performance ratings require deeper database dives, their continued awards suggest a capacity to meet government requirements. However, a comprehensive review would involve examining past performance evaluations, any contract disputes or terminations, and their overall financial stability to fully assess their reliability as a contractor for critical systems like DMLSS.

How does the $20.9 million contract value compare to similar IT system design contracts awarded by the Defense Health Agency or other DoD components?

The $20.9 million contract value, spread over four years, averages approximately $5.2 million annually. This figure places it in the mid-tier range for federal IT system design and support contracts. To provide a precise comparison, one would need to benchmark against contracts for similar scope and complexity, such as those involving the development or sustainment of large-scale enterprise resource planning (ERP) systems or specialized health information technology platforms within the DoD. Without access to detailed service descriptions and market research data for comparable contracts, it's difficult to definitively state whether this represents a high, low, or average investment. However, the annual average suggests a significant but not extraordinary expenditure for a critical IT system.

What are the primary risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type, and how were they mitigated?

The primary risk of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices and less innovation. By excluding certain sources, the government may limit the pool of qualified bidders, potentially missing out on more competitive offers. Mitigation strategies typically involve a robust justification for the exclusion, ensuring that the remaining pool is still sufficiently competitive and that the excluded sources do not possess unique capabilities that would be essential. Transparency in the justification and a thorough evaluation of the remaining bidders are crucial. The fixed-price nature of this contract also helps mitigate financial risk by setting the cost upfront, regardless of performance issues, provided the scope is well-defined.

What evidence exists to suggest the effectiveness or success of the DMLSS system supported by this contract?

Evidence of the effectiveness or success of the DMLSS system, supported by this contract, is not directly provided in the award data. Typically, contract performance is assessed through Contractor Performance Assessment Reporting System (CPARS) reports, which are often not publicly available in detail. The continued award of contracts for DMLSS suggests ongoing need and likely some level of satisfaction with its functionality. However, to truly gauge effectiveness, one would need to examine metrics related to system uptime, user satisfaction, efficiency gains in medical logistics, and the system's ability to support critical military health operations. Without these specific performance indicators, assessing success remains inferential.

How has federal spending on IT services for healthcare logistics, similar to DMLSS, evolved over the past five years?

Federal spending on IT services for healthcare logistics has generally seen a steady increase over the past five years, driven by the need for modernization, interoperability, and enhanced data analytics within military and civilian healthcare systems. Agencies like the Defense Health Agency and the Department of Veterans Affairs consistently invest in upgrading their logistics, supply chain management, and electronic health record systems. This trend reflects a broader government-wide push towards digital transformation and the recognition of IT as a critical enabler of efficient and effective healthcare delivery. Specific figures would require detailed analysis of federal procurement data, but the overall trajectory indicates sustained and growing investment in this specialized IT domain.

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: HT001113T0029

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11950 DEMOCRACY DR STE 275, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $23,521,899

Exercised Options: $20,927,240

Current Obligation: $20,927,240

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200197W

IDV Type: GWAC

Timeline