DoD's $20.5M IT Tool Support Services Contract Awarded to Forward Slope Inc. for PEO C4I

Contract Overview

Contract Amount: $20,482,459 ($20.5M)

Contractor: Forward Slope Inc

Awarding Agency: Department of Defense

Start Date: 2017-06-30

End Date: 2022-06-29

Contract Duration: 1,825 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SPAWAR PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (PEO C4I) BUSINESS IT TOOL SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to FORWARD SLOPE INC for work described as: IGF::OT::IGF SPAWAR PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (PEO C4I) BUSINESS IT TOOL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The services provided are IT tool support, crucial for command, control, communications, computers, and intelligence systems. 6. The contract was awarded to a single vendor, Forward Slope Inc.

Value Assessment

Rating: fair

Benchmarking the value of this $20.5 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government pays actual costs plus a fixed fee. While this can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure value for money. Without details on the specific IT tools supported and the scope of services, a direct comparison to similar contracts is difficult. The number of bids received (2) is on the lower side for a full and open competition, which might suggest less aggressive pricing.

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. However, only two bids were received. While 'full and open' is the preferred method, a low number of bidders can sometimes limit price discovery and potentially indicate a less competitive market for these specific services or a highly specialized requirement. The contracting agency likely assessed that this approach would yield the best value, but the limited competition warrants attention.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to maximize the pool of potential offerors, theoretically leading to more competitive pricing. However, with only two bids, the potential for significant cost savings may have been constrained compared to a scenario with numerous bidders.

Public Impact

The primary beneficiaries are the personnel within the PEO C4I (Program Executive Office, Command, Control, Communications, Computers and Intelligence) who rely on robust IT tool support for their operations. The services delivered include essential support for IT tools, ensuring the functionality and availability of critical systems for defense intelligence. The geographic impact is primarily within the operational areas supported by PEO C4I, likely concentrated in locations where these command and intelligence functions are based. Workforce implications include the potential for Forward Slope Inc. to employ IT specialists and support staff to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur more costs than necessary to increase the fixed fee, if not properly managed.
Low number of bidders (2) in a full and open competition may indicate limited market competition, potentially leading to higher prices than expected.
The contract duration of 5 years is substantial, increasing the risk of cost escalation over time if not closely monitored.
Lack of specific details on the IT tools supported makes it difficult to assess the criticality and complexity of the services provided.

Positive Signals

Awarded through 'full and open competition', which is the preferred method for maximizing potential offerors and achieving best value.
The contract is for essential IT tool support services, critical for the functioning of PEO C4I's command, control, communications, computers, and intelligence systems.
The contract has a defined duration (5 years), providing a clear timeframe for service delivery and budget planning.
The contract was awarded as a Delivery Order, suggesting it aligns with a broader strategic procurement vehicle.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on support for specialized tools used in defense intelligence and command systems. The IT services market is vast and highly competitive, with significant government spending. Contracts like this are essential for maintaining the operational readiness of complex defense systems. Comparable spending benchmarks would typically involve analyzing other IT support contracts for similar program executive offices or defense agencies, considering factors like contract type, duration, and scope of services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Forward Slope Inc., is responsible for fulfilling the contract requirements. Any subcontracting opportunities would be at the discretion of Forward Slope Inc. and would depend on their internal capabilities and strategic decisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by the Inspector General.

Related Government Programs

PEO C4I IT Support Services
Defense IT Modernization Programs
Command and Control Systems Support
Intelligence Community IT Infrastructure

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Low number of bidders (2) in a full and open competition may indicate limited market competition.
Long contract duration (5 years) increases risk of technological obsolescence and cost escalation.
Lack of specific details on IT tools supported hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to FORWARD SLOPE INC. IGF::OT::IGF SPAWAR PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (PEO C4I) BUSINESS IT TOOL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FORWARD SLOPE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2017-06-30. End: 2022-06-29.

What is the specific nature of the IT tools supported under this contract and their criticality to PEO C4I operations?

The provided data does not specify the exact IT tools supported. However, given that the contract is for PEO C4I (Program Executive Office, Command, Control, Communications, Computers and Intelligence), these tools are likely mission-critical software applications, databases, communication platforms, or specialized hardware management systems that enable the PEO's functions. These functions are vital for national defense, involving the development, acquisition, and sustainment of C4I systems. The criticality implies that any disruption in support could significantly impact military operations, intelligence gathering, or strategic communication capabilities. Further details would be needed from contract documentation or agency statements to identify the specific tools and their precise role.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT support services, and what are the associated risks?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or involves research and development, where costs are uncertain. In such cases, the government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. For IT support services, other common contract types include Firm-Fixed-Price (FFP), which offers the government price certainty but places cost risk on the contractor, or Time and Materials (T&M), which is flexible but requires careful monitoring. The primary risk with CPFF is the potential for cost overruns, as the contractor has less incentive to control costs compared to FFP. Effective oversight, detailed cost reporting, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure value for money.

What is the track record of Forward Slope Inc. in delivering IT support services to the Department of Defense or similar agencies?

Forward Slope Inc. has a history of contracting with the U.S. government, primarily within the Department of Defense. Their contract portfolio often includes IT services, engineering support, and program management. Assessing their track record for this specific type of IT tool support requires examining past performance evaluations, any reported contract disputes, and the successful completion of similar projects. While the award of this $20.5 million contract suggests they met the agency's requirements, a deeper dive into their performance history on comparable contracts would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT support.

Given the 5-year duration, what are the potential implications for technological obsolescence of the IT tools being supported?

A 5-year contract duration for IT support services carries a significant risk of technological obsolescence. The IT landscape evolves rapidly, with new hardware, software, and security threats emerging constantly. If the contract does not include provisions for adapting to these changes, the supported tools could become outdated, inefficient, or vulnerable over the contract's lifespan. This could necessitate costly upgrades, replacements, or modifications, potentially exceeding the original contract value. Effective contract management would involve regular reviews of technological advancements and incorporating flexibility clauses to allow for necessary updates and modernization, ensuring the supported tools remain relevant and effective.

How does the $20.5 million total value compare to historical spending on IT support services for PEO C4I or similar defense programs?

Without access to historical spending data specifically for PEO C4I's IT support services, a direct comparison is difficult. However, $20.5 million over five years averages to approximately $4.1 million annually. This figure can be considered moderate to significant depending on the complexity and scale of the C4I systems supported. To provide context, one would need to analyze budgets allocated to similar program executive offices within the DoD for IT support, factoring in the number of users, systems complexity, and service level agreements. Generally, IT support for defense programs is a substantial and ongoing expenditure, reflecting the critical nature of these systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003917R3058

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2020 CAMINO DEL RIO N STE 400, SAN DIEGO, CA, 92108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,639,271

Exercised Options: $41,639,271

Current Obligation: $20,482,459

Actual Outlays: $1,275,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7718

IDV Type: IDC

Timeline