DoD's $9.3M Q-Flow Support contract awarded to World Wide Technology LLC for IT services

Contract Overview

Contract Amount: $9,325,282 ($9.3M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2026-10-17

Contract Duration: 1,121 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: Q-FLOW SUPPORT

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to WORLD WIDE TECHNOLOGY LLC for work described as: Q-FLOW SUPPORT Key points: 1. Contract awarded for IT support services, indicating a need for specialized technical assistance. 2. The contract duration of 1121 days suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is managed by the Defense Health Agency, highlighting its role in supporting healthcare IT infrastructure. 7. The contractor, World Wide Technology LLC, has secured a significant federal IT services contract. 8. The contract is located in Texas, potentially impacting the local IT workforce and economy.

Value Assessment

Rating: good

The contract's value of $9.3 million over approximately three years appears reasonable for specialized IT support services. Benchmarking against similar contracts for IT support and system integration within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the scope of work and deliverables, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive bidding environment, potentially resulting in better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests a healthy market response for these IT support services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining the best value.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Defense Health Agency, which will receive enhanced IT support. The services delivered are expected to improve the functionality and reliability of IT systems supporting military health operations. The geographic impact is primarily within Texas, where the contract is managed and potentially where services are delivered or supported. The contract may have implications for the IT workforce in Texas, potentially creating or sustaining jobs in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the exact IT support needs are not clearly defined in the contract.
Dependence on a single contractor for critical IT support could pose a risk if performance issues arise.
Ensuring the contractor maintains up-to-date cybersecurity practices is crucial given the sensitive nature of defense data.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration indicates a stable, ongoing need for these services, allowing for specialized expertise development.
Contractor World Wide Technology LLC is a known entity in the federal IT space, suggesting established capabilities.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The IT services market is highly dynamic, with significant government spending allocated to maintaining and upgrading complex systems. Comparable spending benchmarks for IT support and managed services within federal agencies often run into millions of dollars annually, reflecting the critical role of IT in modern government operations. This contract represents a portion of the Defense Health Agency's investment in ensuring robust IT infrastructure for its operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, World Wide Technology LLC, is a large business. While not a set-aside, large federal contracts can sometimes lead to subcontracting opportunities for small businesses, depending on the prime contractor's subcontracting plan and the nature of the services required. Further investigation into World Wide Technology's subcontracting practices would be needed to assess potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency's contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement (PWS) and require the contractor to meet specific deliverables and performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to the contract.

Related Government Programs

Defense Health Agency IT Modernization Programs
Department of Defense Information Technology Services
Federal IT Support Services
Computer Systems Design Services

Risk Flags

Potential for performance issues if not adequately managed.
Cybersecurity risks associated with IT support services.
Dependence on contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to WORLD WIDE TECHNOLOGY LLC. Q-FLOW SUPPORT

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-10-17.

What is the specific scope of 'Q-FLOW SUPPORT' and what are the key performance indicators (KPIs) for this contract?

The provided data does not detail the specific scope of 'Q-FLOW SUPPORT' or its associated Key Performance Indicators (KPIs). Typically, 'Q-FLOW SUPPORT' could refer to services related to workflow management systems, process optimization, or queue management software, particularly within a healthcare context for the Defense Health Agency. A comprehensive understanding would require reviewing the Performance Work Statement (PWS) or Statement of Work (SOW) associated with the contract. KPIs would likely focus on system uptime, response times for support requests, resolution rates, user satisfaction, and adherence to service level agreements (SLAs). Without the PWS/SOW, a precise definition and measurement of success remain unclear.

How does the awarded amount of $9.3 million compare to historical spending on similar IT support contracts by the Defense Health Agency?

To compare the $9.3 million award for Q-FLOW SUPPORT, one would need to analyze historical contract data for similar IT support services procured by the Defense Health Agency (DHA). This would involve searching databases like the Federal Procurement Data System (FPDS) for contracts with comparable NAICS codes (e.g., 541519) and service descriptions over the past several fiscal years. Factors such as contract duration, scope complexity, and the number of bidders in those historical contracts would need to be considered for a meaningful comparison. A preliminary assessment suggests that $9.3 million over approximately three years is within a typical range for specialized IT support for a large agency like the DHA, but a detailed benchmark requires specific historical data analysis.

What are the potential risks associated with World Wide Technology LLC's performance on this contract, given their track record?

Assessing the potential risks associated with World Wide Technology LLC's performance requires examining their past performance on federal contracts. This includes reviewing past performance evaluations, any documented instances of contract disputes, delays, or quality issues. While World Wide Technology is a large and established IT solutions provider, any contractor can face performance challenges. Key risks could include failure to meet service level agreements, cybersecurity vulnerabilities, or difficulties in adapting to evolving technological requirements within the DHA. A thorough risk assessment would involve consulting contractor performance databases and any available past performance information reports (PPRs) to identify any red flags or areas of concern.

What is the estimated value of this contract on an annual basis, and how does this compare to industry benchmarks for similar IT support services?

The total value of this contract is $9,325,282.18, with an estimated duration of 1121 days (approximately 3.07 years). On an annual basis, this equates to roughly $3.04 million per year ($9.3M / 3.07 years). Comparing this to industry benchmarks for IT support services requires considering the specific nature of the services, the size and complexity of the client (Defense Health Agency), and the geographic location. For large-scale, specialized IT support within the federal government, an annual spend of around $3 million is not uncommon. However, precise benchmarking would necessitate comparing it against contracts with similar scopes of work, service level agreements, and contractor overhead structures within the federal IT services market.

How does the 'full and open competition' award strategy impact the overall cost-effectiveness and taxpayer value for this specific contract?

The 'full and open competition' strategy is designed to maximize cost-effectiveness and taxpayer value by ensuring a broad range of potential contractors can compete for the award. This competitive pressure typically drives down prices as companies vie for the contract. It also encourages innovation and the offering of higher quality services to win the bid. For this $9.3 million contract, the open competition suggests that the Defense Health Agency likely received competitive proposals, leading to a price that reflects market rates. The absence of restrictions means the government could select the best-value offer, not just the lowest price, potentially leading to better long-term outcomes and greater overall value for taxpayer dollars compared to a sole-source or limited competition scenario.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001523R0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,462,736

Exercised Options: $9,325,282

Current Obligation: $9,325,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC55B

IDV Type: GWAC

Timeline