DoD awards $11.5M contract to Digital Cloak, LLC for unspecified professional services

Contract Overview

Contract Amount: $11,507,530 ($11.5M)

Contractor: Digital Cloak, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-25

End Date: 2026-07-25

Contract Duration: 1,096 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: M95494-23-C-0015 MCCAMS CONTRACT AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to DIGITAL CLOAK, LLC for work described as: M95494-23-C-0015 MCCAMS CONTRACT AWARD Key points: 1. Contract value of $11.5M over three years suggests a significant investment in specialized services. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope, requiring further definition of services rendered. 3. Awarded as a definitive contract with a firm-fixed-price structure, indicating clear deliverables and cost certainty. 4. The contract duration of 1096 days (3 years) allows for sustained support but also necessitates ongoing performance monitoring. 5. The absence of a specific Product Service Code (PSC) further obscures the precise nature of the services procured. 6. The contract was not competed, raising questions about potential cost efficiencies and market-driven pricing.

Value Assessment

Rating: questionable

Without a clear definition of the services provided and a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition may have led to a higher price than could have been achieved in an open market. Further analysis of the contractor's historical performance and pricing on similar contracts would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services, or in specific circumstances where competition is not feasible or advantageous. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and terms.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiary appears to be the Department of the Navy, which will receive the professional services. The specific services delivered are not detailed in the provided data, making it impossible to identify the direct impact on operations or personnel. The contract is geographically focused on the District of Columbia, suggesting services are likely performed in or managed from this region. Workforce implications are unclear due to the undefined nature of the services, but it could involve specialized technical or analytical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for cost savings.
The broad NAICS code and absence of PSC make it difficult to assess the necessity and scope of the services.
Limited transparency into the justification for a sole-source award requires further investigation.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Definitive contract structure implies a clear agreement on scope and duration.
Awarded to a single contractor, potentially indicating specialized expertise required for the task.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad sector encompassing a wide range of specialized services. This contract likely falls within a niche area of technical or analytical support for the Department of the Navy. Benchmarking is challenging without more specific service details, but spending in this broad category can range from millions to billions annually across the federal government, depending on the specific sub-sectors involved.

Small Business Impact

The data indicates that small business set-aside was not utilized (ss: false) and there is no indication of subcontracting requirements for small businesses (sb: false). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business participation may be limited unless they are prime contractors or subcontractors to Digital Cloak, LLC.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the Department of the Navy's program office responsible for the services. Transparency is limited by the sole-source nature of the award and the lack of detailed service descriptions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional, Scientific, and Technical Services
Department of Defense Contracts
Department of the Navy Procurements
Sole Source Contracts
Definitive Contracts

Risk Flags

Lack of competition
Undefined service scope
Unclear justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to DIGITAL CLOAK, LLC. M95494-23-C-0015 MCCAMS CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is DIGITAL CLOAK, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2023-07-25. End: 2026-07-25.

What specific services does Digital Cloak, LLC provide under this contract?

The provided data does not specify the exact services Digital Cloak, LLC is contracted to provide. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is very broad and can encompass a wide array of activities. Without further documentation or clarification from the Department of the Navy, it is impossible to determine the nature of the work, such as whether it involves research, analysis, consulting, or specialized technical support. This lack of specificity is a significant gap in understanding the contract's purpose and value.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, agencies must document reasons such as the unique capability of a single contractor, urgent and compelling needs, or specific statutory authority. For this contract, the Department of the Navy would have had to formally justify why competition was not feasible or advantageous. Without this documentation, it is difficult to assess whether the sole-source decision was appropriate and in the best interest of the government, or if it potentially bypassed opportunities for better pricing and innovation through competition.

How does the $11.5 million contract value compare to similar services procured by the Department of the Navy?

Benchmarking the $11.5 million contract value is challenging without knowing the specific services rendered. If the services are highly specialized and unique, the price might be reasonable. However, if the services fall into more common categories of professional or technical support, this value over three years could be on the higher end, especially given the lack of competition. A comparative analysis would require identifying contracts with similar NAICS codes and service descriptions, which are currently undefined for this award. The firm-fixed-price nature suggests a defined scope, but the value's reasonableness remains unverified.

What is the track record of Digital Cloak, LLC in performing federal contracts?

Information regarding Digital Cloak, LLC's track record in performing federal contracts is not included in the provided data. To assess their past performance, one would need to examine their contract history, including contract values, durations, agencies served, and performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS). A lack of readily available performance data, especially for a sole-source award, can be a risk indicator. A thorough review would involve searching federal procurement databases and performance assessment systems to gauge their reliability and capability.

What are the potential risks associated with a sole-source award for 'All Other Professional, Scientific, and Technical Services'?

The primary risks associated with a sole-source award in this broad service category include potential overpricing due to the absence of competitive pressure, limited innovation, and a lack of transparency regarding the necessity and scope of the services. Taxpayers may not receive the best value for their money. Furthermore, without clear performance metrics tied to a competitive process, it can be harder to hold the contractor accountable for delivering optimal results. The broad NAICS code exacerbates these risks by making it difficult to define and measure success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M9549423R0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 CORPORATE DR, STAFFORD, VA, 22554

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,003,198

Exercised Options: $11,507,530

Current Obligation: $11,507,530

Actual Outlays: $293,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline