DoD awards $7.36M for infrastructure support to DNI Emerging Technologies, LLC, with limited competition

Contract Overview

Contract Amount: $7,360,026 ($7.4M)

Contractor: DNI Emerging Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-16

End Date: 2026-09-30

Contract Duration: 1,233 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to DNI EMERGING TECHNOLOGIES, LLC for work described as: INFRASTRUCTURE SUPPORT Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT support. 2. The contract duration of 1233 days suggests a long-term requirement for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The award was not competed, raising questions about potential cost savings and market engagement. 5. Small business participation is not explicitly detailed, warranting further investigation. 6. The contract is for infrastructure support, a critical component for operational readiness.

Value Assessment

Rating: fair

The contract value of $7.36 million over approximately 3.4 years for custom computer programming services appears reasonable for specialized IT support. However, without a competitive bidding process, it is difficult to benchmark against market rates or determine if the government secured the best possible value. The firm fixed price structure provides cost predictability, but the absence of competition limits the ability to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'not available for competition' basis, suggesting that only one source was deemed capable of fulfilling the requirement. This limits the number of bidders and potentially reduces price discovery. The specific justification for this limited competition would need to be reviewed to understand if it was due to unique capabilities or other factors.

Taxpayer Impact: The lack of full and open competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a more robust bidding process.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving critical infrastructure support services. Custom computer programming services will be delivered, likely enhancing IT systems and operational capabilities. The contract is geographically focused on Illinois (IL), indicating a specific regional impact. The contract supports the DoD's mission, indirectly benefiting national security and defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of transparency in the sole-source justification could mask inefficiencies.
Potential for vendor lock-in due to the non-competitive award.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long contract duration suggests a stable, ongoing need for the services.
Award to DNI Emerging Technologies, LLC, indicates a specific capability being leveraged.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls under the broader category of IT support for defense agencies. Comparable contracts for similar services within the DoD or other federal agencies would provide benchmarks for value and pricing. The market for specialized programming services is often dynamic, with a few key players possessing unique expertise.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor, DNI Emerging Technologies, LLC, may engage small businesses as subcontractors, which would require further investigation into their subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver specific services within a set budget. Transparency regarding the justification for limited competition would be crucial for assessing accountability. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
USTRANSCOM Logistics IT Support
Custom Software Development Services

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Award Basis

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to DNI EMERGING TECHNOLOGIES, LLC. INFRASTRUCTURE SUPPORT

Who is the contractor on this award?

The obligated recipient is DNI EMERGING TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2023-05-16. End: 2026-09-30.

What is the specific nature of the 'infrastructure support' being provided under this contract?

The contract specifies 'Custom Computer Programming Services' (NAICS code 541511) as the service being procured. This suggests that the infrastructure support involves the development, modification, or maintenance of computer systems and software. It could encompass a range of activities such as developing new applications, integrating existing systems, enhancing database functionalities, or providing specialized software solutions to support the operational needs of USTRANSCOM. The exact scope would be detailed in the contract's statement of work, but it points towards IT-centric infrastructure improvements rather than physical infrastructure.

What is the justification for awarding this contract on a 'not available for competition' basis?

The 'not available for competition' designation typically implies that only one responsible source is capable of providing the required services or supplies. For IT services, this could be due to unique proprietary technology, specialized expertise held by a single contractor, or urgent requirements where only one vendor can respond in time. A formal justification document (e.g., Justification and Approval - J&A) would be required by federal acquisition regulations to detail the specific reasons why full and open competition was not feasible. Without this document, it's difficult to definitively assess the validity of the limited competition.

How does the contract value of $7.36 million compare to similar custom computer programming services contracts within the DoD?

Benchmarking this $7.36 million contract requires comparing it to similar custom computer programming services procured by the DoD. Given the contract's duration of over three years and its firm fixed price nature, the annual value is approximately $2.1 million. This figure needs to be assessed against contracts for comparable services, considering factors like complexity, security requirements, and the specific technologies involved. Without access to a database of comparable contract values and detailed statements of work, a precise comparison is challenging. However, for specialized IT development, this value is within a plausible range, though the lack of competition prevents a definitive value-for-money assessment.

What is the track record of DNI Emerging Technologies, LLC, with federal contracts, particularly within the DoD?

DNI Emerging Technologies, LLC, has been awarded this definitive contract by the Department of Defense. Further analysis of their federal contracting history would reveal their past performance, including the types of services they have provided, their success rates, and any past performance issues or awards. Examining their prior awards, especially those with USTRANSCOM or similar agencies, would provide insight into their reliability and expertise in delivering contracted services. A review of contract databases and performance evaluations would be necessary to fully assess their track record.

What are the potential risks associated with a 'not available for competition' award for IT services?

The primary risk associated with a 'not available for competition' award is the potential for inflated pricing due to the absence of market competition. Taxpayers may end up paying more than necessary if alternative vendors could have offered the same services at a lower cost. Another risk is reduced innovation, as the lack of competitive pressure might disincentivize the contractor from exploring more efficient or advanced solutions. Furthermore, it can create a perception of favoritism or a lack of due diligence in seeking the best value for the government. Ensuring the justification for limited competition is robust and well-documented is critical to mitigating these risks.

How does the firm fixed price (FFP) contract type influence cost control and risk for this contract?

A Firm Fixed Price (FFP) contract type is generally favored by the government for its cost control benefits. Under an FFP agreement, the contractor agrees to a total price for a well-defined scope of work, and is responsible for all costs incurred to complete the work. This shifts the cost risk from the government to the contractor. For this $7.36 million contract, the FFP structure provides budget certainty for the Department of Defense. However, it also means that if the contractor encounters unforeseen difficulties that increase their costs, they bear the financial burden, which could potentially lead to quality compromises if not carefully monitored. Conversely, if the contractor is highly efficient, they retain any cost savings, which is a benefit of FFP for the contractor.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HTC71123QD010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1650, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,573,737

Exercised Options: $7,360,026

Current Obligation: $7,360,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline