DoD's $15.3M software purchase from DLT Solutions, LLC, awarded under full and open competition

Contract Overview

Contract Amount: $15,290,420 ($15.3M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-16

End Date: 2012-07-24

Contract Duration: 1,530 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to DLT SOLUTIONS, LLC for work described as: SOFTWARE Key points: 1. Value for money appears fair given the firm-fixed-price contract type, though specific performance metrics are not detailed. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over 4 years indicates a significant, long-term need for the software. 4. Awarded to DLT Solutions, LLC, a known entity in government IT contracting. 5. The contract falls under the 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers' NAICS code. 6. The 'CA' contract status suggests it is active or completed, requiring further detail for precise performance assessment.

Value Assessment

Rating: fair

The total award amount of $15.3 million over approximately four years suggests a moderate annual spend. Without specific unit costs or detailed service descriptions, a direct comparison to similar contracts is challenging. However, the firm-fixed-price nature of the award implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was competitive. Further analysis would require benchmarking against market rates for comparable software licenses and support.

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. The presence of only one bid (no: 1) is noted, which, despite the open competition, might warrant further investigation into market dynamics or the specific requirements of the solicitation. A single bid in an open competition can sometimes suggest limited market availability or a highly specialized requirement.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers by encouraging multiple bids, a single bid in this instance means the full benefit of robust competition may not have been realized, potentially impacting price discovery.

Public Impact

The primary beneficiary is the Department of Defense, likely utilizing the software for critical operational or administrative functions. The services delivered are software procurement and potentially associated support or maintenance. The geographic impact is likely within the operational areas of the Defense Information Systems Agency (DISA) and its supported entities. Workforce implications may include IT personnel trained on and utilizing the procured software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received despite full and open competition, raising questions about market breadth or solicitation attractiveness.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the software acquisition.
Contract duration is substantial, increasing the risk associated with potential software obsolescence or vendor lock-in if not managed proactively.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
Awarded under full and open competition, theoretically allowing for the widest possible vendor participation.
Contract awarded to a known entity (DLT SOLUTIONS, LLC) with experience in government IT procurement.

Sector Analysis

This contract falls within the broader IT sector, specifically focusing on software procurement. The market for enterprise software within the federal government is substantial, with agencies constantly seeking to modernize systems and improve efficiency. Comparable spending benchmarks would involve analyzing other large-scale software procurements by DoD or other federal agencies for similar functionalities or user bases. The NAICS code 423430 indicates a focus on wholesale distribution of computer equipment and software.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless DLT SOLUTIONS, LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified software. Transparency is facilitated by contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Procurement
Federal Software Licensing
Department of Defense Information Technology Services
General Services Administration (GSA) Schedule Contracts (potential vehicle)

Risk Flags

Single Bidder in Full and Open Competition
Lack of Specific Software Details
Limited Performance Data Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to DLT SOLUTIONS, LLC. SOFTWARE

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2008-05-16. End: 2012-07-24.

What specific software was procured under this contract, and what was its intended use within the Department of Defense?

The provided data does not specify the exact software title or its intended application. The NAICS code 423430 ('Computer and Computer Peripheral Equipment and Software Merchant Wholesalers') indicates the procurement of software, but not the specific product. The contracting agency, Defense Information Systems Agency (DISA), typically supports a wide range of IT needs for the DoD, from enterprise resource planning and cybersecurity tools to specialized operational software. Without further details, the precise function and impact of this $15.3 million software purchase remain unclear. It is possible this was for operating systems, productivity software, or specialized defense applications.

How does the $15.3 million total award compare to typical spending on similar software procurements by the DoD?

Benchmarking this $15.3 million award requires knowledge of the specific software category and quantity. For enterprise-level software suites (e.g., large-scale ERP, CRM, or specialized defense systems), $15.3 million over four years represents a moderate investment. However, for commodity software or licenses for a smaller user base, it could be substantial. The federal government procures vast amounts of software, with individual agency IT budgets often in the billions. Comparing this to similar contracts would involve identifying procurements with comparable software types, user counts, and contract durations. The firm-fixed-price nature suggests a defined scope, but without knowing that scope, direct comparison is difficult.

What are the key risks associated with a contract of this duration (over 4 years) for software procurement?

Several risks are associated with long-term software contracts. Firstly, technological obsolescence is a significant concern; software can become outdated rapidly, diminishing its value. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers even if better alternatives emerge. Thirdly, the initial pricing might not remain competitive over the contract's life, especially if market rates decrease. Lastly, changes in agency requirements or strategic direction could render the procured software less relevant or even redundant. Effective risk mitigation involves regular reviews, performance monitoring, and potentially incorporating clauses for upgrades or termination for convenience.

Given the 'FULL AND OPEN COMPETITION' award type, why was only one bid received?

Receiving only one bid under a 'FULL AND OPEN COMPETITION' solicitation can stem from several factors. The requirement might be highly specialized, limiting the number of capable vendors. The solicitation's terms and conditions could be perceived as overly burdensome or restrictive by potential bidders. The timing of the solicitation might conflict with other major industry events or vendor priorities. Alternatively, the perceived market for this specific software might be smaller than anticipated, or incumbent vendors may have a strong competitive advantage. It could also indicate that the government's needs were very precisely defined, aligning perfectly with only one vendor's offerings.

What is DLT SOLUTIONS, LLC's track record with federal IT contracts, particularly with the Department of Defense?

DLT SOLUTIONS, LLC (now part of Tech Data, which is owned by Apollo Global Management) has a significant history of contracting with the U.S. federal government, including the Department of Defense. They are known for providing IT hardware, software, and related services. Their track record typically involves fulfilling contracts awarded through various procurement vehicles, including GSA Schedules. While specific performance details for every contract are not publicly available, their continued presence and numerous awards suggest a generally accepted capability to meet government IT requirements. Further due diligence would involve examining past performance evaluations if available.

How does the 'CA' contract status impact the assessment of this award?

The 'CA' status, often indicating 'Completed' or 'Active,' is crucial for a complete assessment. If 'Completed,' it means the contract period has ended, and the focus shifts to evaluating the delivered outcomes against the initial objectives and cost. If 'Active,' the assessment is prospective, focusing on potential risks and the likelihood of successful completion within budget and schedule. Without explicit confirmation of 'Completed' or 'Active,' the 'CA' status provides limited analytical value beyond indicating the contract's lifecycle stage. For this analysis, assuming 'CA' implies the contract has run its course or is currently operational, the lack of detailed performance data limits a definitive value assessment.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13861 SUNRISE VALLEY DR SUITE 400, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,290,420

Exercised Options: $15,290,420

Current Obligation: $15,290,420

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0002

IDV Type: IDC

Timeline