DoD's $32.4M Software Support Contract with DLT Solutions Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $32,365,623 ($32.4M)
Contractor: DLT Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-09
End Date: 2016-09-30
Contract Duration: 752 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.4 million to DLT SOLUTIONS, LLC for work described as: SOFTWARE SUPPORT Key points: 1. The contract awarded to DLT Solutions for software support represents a significant expenditure for the Department of Defense. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The fixed-price nature of the contract aims to control costs, but the overall value and efficiency require further analysis. 4. This spending falls within the broader IT sector, specifically related to software procurement and support services.
Value Assessment
Rating: fair
The contract's value of $32.4 million for software support needs careful comparison against similar IT support contracts. Without specific benchmarks for the software covered and the level of support provided, assessing its pricing fairness is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the effectiveness of this competition in securing optimal pricing for software support is not detailed.
Taxpayer Impact: While competition was employed, the ultimate taxpayer impact depends on whether the final price reflects true market value for the software support services rendered.
Public Impact
Taxpayers are funding essential software support for the Department of Defense, impacting military operational capabilities. The procurement process, though competitive, raises questions about whether the $32.4 million expenditure yielded the best possible value. Transparency in the specific software supported and the services rendered is crucial for public understanding of this defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific software details
- Unclear performance metrics
- Potential for cost overruns if support needs are underestimated
Positive Signals
- Full and open competition utilized
- Firm fixed-price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software support and maintenance for defense systems. Benchmarks for similar IT support contracts are essential to evaluate the reasonableness of the $32.4 million cost.
Small Business Impact
The data indicates that DLT Solutions, LLC, is the awardee. There is no explicit information provided regarding the involvement or subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
Oversight of this contract would involve monitoring DLT Solutions' performance against the agreed-upon software support services and ensuring adherence to the firm fixed-price terms. Accountability rests on the Defense Information Systems Agency to manage the contract effectively.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed software and service description
- Insufficient information on price reasonableness justification
- Unclear performance metrics and evaluation process
- Potential for vendor lock-in if software is proprietary
Tags
computer-and-computer-peripheral-equipme, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.4 million to DLT SOLUTIONS, LLC. SOFTWARE SUPPORT
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 $32.4 million.
What is the period of performance?
Start: 2014-09-09. End: 2016-09-30.
What specific software products and services are covered under this $32.4 million contract, and how do these align with current DoD IT infrastructure needs?
The provided data lacks specificity regarding the exact software titles and the scope of support services included in the $32.4 million contract. Understanding these details is critical to assessing the necessity and relevance of the expenditure to the Department of Defense's operational requirements and technological modernization efforts.
How was the 'fairness' of the $32.4 million price determined during the full and open competition, and what benchmarks were used?
The data states the contract was awarded under 'full and open competition,' implying a competitive bidding process. However, it does not detail the specific pricing benchmarks or cost analysis methods used to determine the fairness of the $32.4 million award. Further investigation into the solicitation documents and evaluation criteria would be needed to understand the price discovery mechanism.
What are the key performance indicators (KPIs) for this software support contract, and how is DLT Solutions' effectiveness being measured?
Information regarding the key performance indicators (KPIs) and the specific metrics used to measure DLT Solutions' effectiveness in providing software support is not included in the provided data. Establishing and monitoring these KPIs is crucial for ensuring the government receives the contracted value and for holding the vendor accountable for service delivery.
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
Parent Company: DLT Mergerco LLC (UEI: 079720068)
Address: 13861 SUNRISE VALLEY DR SUITE 400, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,365,623
Exercised Options: $32,365,623
Current Obligation: $32,365,623
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06A0002
IDV Type: IDC
Timeline
Start Date: 2014-09-09
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2017-06-13
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