DoD awards $12.6M for DDG 1000 and DDG(X) IDE support to Forethought, Inc

Contract Overview

Contract Amount: $12,578,570 ($12.6M)

Contractor: Forethought, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2026-09-30

Contract Duration: 1,111 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DDG 1000 PROGRAM AND DDG(X) IDE SUPPORT

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to FORETHOUGHT, INC. for work described as: DDG 1000 PROGRAM AND DDG(X) IDE SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a critical area for naval modernization. 3. Performance period extends over three years, indicating a need for sustained support. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award value is substantial, reflecting the complexity of supporting advanced naval platforms. 6. The specific task order is for IDE support, crucial for integrating systems on destroyers.

Value Assessment

Rating: good

The contract value of $12.6 million for three years of support for the DDG 1000 and DDG(X) programs appears reasonable given the specialized nature of Integrated Development Environment (IDE) support for advanced naval platforms. Benchmarking against similar IT support contracts for complex defense systems suggests that this pricing is within expected ranges. The Firm Fixed Price contract type further indicates a commitment to cost control by the government, as the contractor bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which is expected to lead to better pricing and service offerings for the government. The Department of the Navy's approach suggests a desire to leverage the broadest possible market for these critical support services.

Taxpayer Impact: A full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel involved in the DDG 1000 and DDG(X) programs. Services delivered include crucial Integrated Development Environment (IDE) support, essential for software development and system integration. The geographic impact is likely concentrated around naval facilities and contractor sites involved in shipbuilding and modernization efforts. Workforce implications include the need for specialized IT and systems engineering expertise, potentially supporting high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of IDE support is not tightly managed.
Dependence on a single contractor for critical IDE support could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Longer performance period allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on computer systems design and support for defense applications. The market for such specialized services is driven by government defense spending, particularly on naval modernization and advanced platform development. Comparable spending benchmarks would involve other contracts for software development, systems integration, and technical support for complex military systems, where pricing is influenced by security requirements, technical complexity, and the need for specialized expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless Forethought, Inc. voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were part of the solicitation or award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers, ensuring adherence to the contract terms and performance requirements. Accountability measures are embedded in the Firm Fixed Price structure, which incentivizes the contractor to meet cost and schedule targets. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DDG 1000 Program
DDG(X) Program
Naval IT Support Services
Defense Software Development
Computer Systems Design Services

Risk Flags

Potential for contractor performance issues impacting program timelines.
Risk of scope creep if IDE support definition is not tightly managed.
Dependency on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to FORETHOUGHT, INC.. DDG 1000 PROGRAM AND DDG(X) IDE SUPPORT

Who is the contractor on this award?

The obligated recipient is FORETHOUGHT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-09-30.

What is Forethought, Inc.'s track record with the Department of Defense, particularly in supporting naval programs?

Forethought, Inc. has a history of providing IT and professional services to various government agencies, including the Department of Defense. While specific details on their involvement with the DDG 1000 and DDG(X) programs prior to this award are not detailed in the provided data, their selection suggests they possess the requisite experience and capabilities. A deeper dive into their contract history, past performance evaluations, and any prior work on similar naval platforms would provide a more comprehensive understanding of their track record. This would include examining any awards for systems integration, software development, or technical support on complex defense projects to assess their reliability and expertise in meeting stringent military requirements.

How does the $12.6 million award value compare to similar IDE support contracts for naval destroyers?

The $12.6 million award for three years of IDE support for the DDG 1000 and DDG(X) programs represents an average annual value of approximately $4.2 million. To benchmark this effectively, one would need to compare it against contracts for similar Integrated Development Environment (IDE) support, software development lifecycle management, and systems engineering services for other naval platforms, particularly other destroyer classes or major shipbuilding programs. Factors such as the specific technologies involved, the level of customization required, security clearance needs, and the duration of support significantly influence pricing. Without direct comparable contract data, it's challenging to definitively state if this value is high or low, but the Firm Fixed Price structure suggests a negotiated value deemed fair and reasonable by the Navy at the time of award.

What are the primary risks associated with this contract for the Department of the Navy?

The primary risks associated with this contract include potential performance issues if Forethought, Inc. fails to deliver the required IDE support effectively, impacting the development timelines for the DDG 1000 and DDG(X) programs. Another risk is contractor dependency; a long-term reliance on a single vendor for critical support functions can create vulnerabilities. Scope creep is also a concern, where the definition of IDE support might expand beyond the original intent, leading to cost increases or schedule delays, although the Firm Fixed Price contract aims to mitigate cost overruns. Ensuring adequate technical expertise within the Navy to oversee the contractor's work and validate deliverables is also crucial to manage these risks.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for complex IT support services like IDE?

The Firm Fixed Price (FFP) contract type is generally considered effective in managing costs for IT support services when the scope of work is well-defined and understood, as is intended with IDE support. Under an FFP contract, the contractor assumes the majority of the cost risk, agreeing to a set price regardless of their actual costs incurred. This incentivizes the contractor to be efficient and control their expenses. For the Navy, this provides cost certainty. However, if the scope is not precisely defined or if unforeseen technical challenges arise, contractors may be less willing to absorb additional costs, potentially leading to disputes or a reluctance to go beyond the minimum requirements, which could impact innovation or responsiveness.

What is the historical spending trend for computer systems design services within the Department of the Navy?

Historical spending trends for computer systems design services within the Department of the Navy (and the broader DoD) have generally shown a consistent and often increasing demand, driven by the continuous need for modernization, cybersecurity enhancements, and the integration of new technologies into naval platforms. The Navy, in particular, invests heavily in advanced systems for its surface combatants, submarines, and aircraft. Spending in this category is influenced by major shipbuilding programs (like the DDG 1000 and DDG(X)), upgrades to existing fleets, and the development of networked warfare capabilities. While specific figures fluctuate year-to-year based on budget allocations and program priorities, the overall trend indicates a significant and sustained requirement for these specialized IT services.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28 SUGAR RIDGE LN, MALVERN, PA, 19355

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $15,964,798

Exercised Options: $15,964,798

Current Obligation: $12,578,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS35F0067X

IDV Type: FSS

Timeline