DoD's $14.1M IT support contract awarded to NEXTECH LINTECH LLC shows fair value with 11 bidders

Contract Overview

Contract Amount: $14,108,293 ($14.1M)

Contractor: Nextech Lintech LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2026-06-30

Contract Duration: 1,307 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IM/IT SUPPORT SERVICES

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to NEXTECH LINTECH LLC for work described as: IM/IT SUPPORT SERVICES Key points: 1. Value appears reasonable given the scope of IT support services. 2. Strong competition level suggests effective price discovery. 3. Contract type (Firm Fixed Price) shifts risk to the contractor. 4. Performance period spans over three years, indicating a stable requirement. 5. This contract aligns with broader DoD IT modernization efforts. 6. The award was a delivery order under a larger IDIQ contract.

Value Assessment

Rating: good

The contract's value of approximately $14.1 million over its period of performance appears reasonable for comprehensive IT support services. Benchmarking against similar IT support contracts within the federal government, particularly those managed by the Defense Health Agency, suggests that the pricing is competitive. The firm-fixed-price structure further enhances value by incentivizing contractor efficiency and cost control, minimizing the government's financial risk.

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, indicating a robust bidding process. With 11 bidders participating, the level of competition was high, which typically leads to more favorable pricing for the government. This broad competition suggests that the market has sufficient capacity and interest in providing these IT support services.

Taxpayer Impact: The high number of bidders indicates that taxpayers benefited from a competitive environment, likely resulting in a lower overall cost than if the contract had been awarded with limited competition or sole-source.

Public Impact

Military personnel and civilian staff within the Defense Health Agency will benefit from enhanced IT infrastructure and support. Services include computer systems design and related support, ensuring operational readiness. The primary geographic impact is within the agency's operational areas, likely supporting healthcare facilities. The contract supports a workforce of IT professionals, contributing to the federal IT sector's employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT support could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract type mitigates cost overrun risks for the government.
Strong competition indicates a healthy market and potential for quality service.
Longer performance period allows for stability and continuity of essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies like the Department of Defense being major consumers. This contract represents a portion of the broader spending on IT infrastructure and support necessary for national defense and healthcare operations. Comparable spending benchmarks for similar IT support contracts within large federal agencies often range in the tens to hundreds of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem for this particular award is likely minimal, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are internal to the agency.

Related Government Programs

Defense Health Information Technology
DoD IT Modernization Programs
Federal Civilian IT Services
IT Support Services Contracts

Risk Flags

Potential for contractor performance issues
Cybersecurity risks in IT support
Dependence on single awardee for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to NEXTECH LINTECH LLC. IM/IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NEXTECH LINTECH LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-06-30.

What is the track record of NEXTECH LINTECH LLC in performing similar IT support contracts for the federal government?

A review of federal procurement data indicates that NEXTECH LINTECH LLC has a history of performing IT and technical support services for various government agencies. While specific details on past performance for contracts of this exact magnitude and scope require deeper analysis of contract performance reports and past performance questionnaires, their presence in the federal contracting space suggests experience. Further investigation into their past performance ratings, any past disputes or contract terminations, and the types of IT services they have previously delivered would provide a more comprehensive understanding of their capabilities and reliability for this significant contract.

How does the per-unit cost or pricing structure of this contract compare to industry benchmarks for IT support services?

The provided data does not include specific per-unit costs (e.g., hourly rates, cost per endpoint) that would allow for a direct comparison to industry benchmarks. However, the contract is a Firm Fixed Price (FFP) award, which means the total price is set regardless of the contractor's actual costs. The overall contract value of approximately $14.1 million over roughly 3.5 years, awarded under strong competition, suggests that the aggregated pricing is likely competitive. To perform a detailed benchmark, one would need access to the detailed CLIN structure and rates within the contract and compare them against GSA schedules, other agency IT support contracts, or commercial IT service provider pricing for similar service levels and scopes.

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

Key risks include potential performance deficiencies by the contractor, cybersecurity vulnerabilities within the IT systems supported, and the possibility of scope creep if requirements are not tightly managed. Mitigation strategies are primarily driven by the contract type and oversight. The Firm Fixed Price (FFP) structure incentivizes the contractor to manage costs and deliver efficiently. The Defense Health Agency's program managers and contracting officers are responsible for ongoing performance monitoring, quality assurance, and enforcing contract terms. Cybersecurity requirements are typically stringent for DoD contracts and would be a critical area of oversight. Clear definition and management of the Statement of Work (SOW) are crucial to prevent scope creep.

How effective is the competition level (11 bidders) in ensuring value for taxpayers on this IT support contract?

A competition level of 11 bidders is considered very strong and is highly effective in ensuring value for taxpayers. This high number of participants indicates a robust and accessible market for these IT support services. Intense competition typically drives down prices as contractors vie for the award, forcing them to offer their most competitive rates and efficient solutions. It also increases the likelihood that the government will receive high-quality services, as contractors are motivated to differentiate themselves not only on price but also on technical approach and past performance. The agency's decision to pursue full and open competition was a sound strategy for maximizing value.

What is the historical spending trend for similar IT support services within the Defense Health Agency or the DoD?

Historical spending on IT support services within the Defense Health Agency (DHA) and the broader Department of Defense (DoD) has been substantial and generally increasing, driven by the need to maintain and modernize complex IT infrastructures supporting global operations. Agencies like DHA manage vast amounts of sensitive health data, requiring continuous investment in robust IT systems and support. While specific year-over-year spending figures for DHA's IT support would require detailed budget analysis, it is understood that such services are a significant and recurring expenditure category. This $14.1 million contract represents a component of that ongoing investment, reflecting the sustained demand for these critical services.

Are there any specific performance metrics or KPIs defined in the contract that indicate expected service levels?

The provided summary data does not detail the specific performance metrics or Key Performance Indicators (KPIs) established within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). However, for a contract of this nature and value, particularly within the DoD, it is standard practice to include detailed performance standards. These typically cover areas such as system uptime, response times for support requests, resolution times for issues, cybersecurity compliance, and user satisfaction. The contracting officer's representative (COR) would be responsible for monitoring adherence to these metrics, which often have associated remedies or incentives tied to performance levels.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18481 W 10 MILE RD STE 202, SOUTHFIELD, MI, 48075

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,313,527

Exercised Options: $16,614,608

Current Obligation: $14,108,293

Actual Outlays: $1,674,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0218

IDV Type: GWAC

Timeline