DoD's $25M IT support contract for USFF HQ awarded to Professional Software Engineering, Inc

Contract Overview

Contract Amount: $25,161,670 ($25.2M)

Contractor: Professional Software Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-01

End Date: 2024-07-31

Contract Duration: 1,642 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HQ IT SUPPORT - U.S. FLEET FORCES COMMAND (USFF) HEADQUARTERS (HQ) IS ACQUIRING SUPPORT FOR THE MANAGEMENT AND OPERATION OF THE USFF COMMUNICATIONS AND INFORMATION SYSTEMS DIVISION (N6).

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to PROFESSIONAL SOFTWARE ENGINEERING, INC. for work described as: HQ IT SUPPORT - U.S. FLEET FORCES COMMAND (USFF) HEADQUARTERS (HQ) IS ACQUIRING SUPPORT FOR THE MANAGEMENT AND OPERATION OF THE USFF COMMUNICATIONS AND INFORMATION SYSTEMS DIVISION (N6). Key points: 1. Contract value of $25.17 million over its period of performance. 2. Awarded under full and open competition, indicating broad market engagement. 3. Firm Fixed Price contract type suggests defined scope and cost certainty. 4. Delivery Order under an existing contract vehicle. 5. Performance period spans over 4.5 years, from February 2020 to July 2024. 6. Contract supports critical IT infrastructure for U.S. Fleet Forces Command.

Value Assessment

Rating: good

The contract's total value of $25.17 million over 4.5 years averages approximately $5.59 million annually. This figure appears reasonable for comprehensive IT management and operations support at a major command headquarters. Benchmarking against similar IT support contracts within the Department of Defense would provide a more precise value-for-money assessment, but the scale of the requirement suggests a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bidders, as indicated by the data, points to a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible value for essential IT support services.

Public Impact

Ensures the continuous operation and management of critical IT systems for the U.S. Fleet Forces Command. Supports the communication and information systems division (N6) essential for naval operations. Benefits naval personnel and leadership by providing reliable IT infrastructure. Maintains the technological backbone for strategic and tactical decision-making within the fleet. Contributes to the operational readiness and effectiveness of the U.S. Navy's Atlantic Fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period could introduce risks related to technology obsolescence if not managed proactively.
Reliance on a single contractor for critical IT infrastructure requires robust performance monitoring.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
Delivery Order structure may indicate efficient use of existing contract vehicles.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT management, operations, and support for a major military command. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing defense IT infrastructure. The value of this contract, while substantial, is within the typical range for large-scale IT support services for federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Professional Software Engineering, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data, which warrants further investigation to understand the potential impact on the small business ecosystem.

Oversight & Accountability

As a Delivery Order under a larger contract vehicle, oversight mechanisms are likely inherited from the parent contract. The Department of the Navy and U.S. Fleet Forces Command are responsible for performance monitoring and acceptance. Transparency is generally maintained through contract award databases, but specific oversight details and Inspector General jurisdiction would depend on the parent contract's structure and agency policies.

Related Government Programs

DoD IT Modernization Programs
Naval Information Warfare Systems Command (NAVWAR) Contracts
Defense Information Systems Agency (DISA) Support Contracts
IT Services for Major Command Headquarters

Risk Flags

Long contract duration may pose technology obsolescence risk.
Criticality of IT systems requires stringent performance monitoring.
Cybersecurity threats necessitate ongoing vigilance and robust defense.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to PROFESSIONAL SOFTWARE ENGINEERING, INC.. HQ IT SUPPORT - U.S. FLEET FORCES COMMAND (USFF) HEADQUARTERS (HQ) IS ACQUIRING SUPPORT FOR THE MANAGEMENT AND OPERATION OF THE USFF COMMUNICATIONS AND INFORMATION SYSTEMS DIVISION (N6).

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL SOFTWARE ENGINEERING, 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 $25.2 million.

What is the period of performance?

Start: 2020-02-01. End: 2024-07-31.

What is the track record of Professional Software Engineering, Inc. with the Department of Defense and similar IT support contracts?

Professional Software Engineering, Inc. (PSI) has a history of performing IT and engineering services for the U.S. government. While specific details on their track record with the Department of Defense for similar large-scale IT support contracts require deeper analysis of contract databases, their award on this significant contract suggests they possess the necessary qualifications and experience. Further investigation into past performance reviews, contract modifications, and any past disputes or awards would provide a more comprehensive understanding of their reliability and expertise in managing complex IT operations for federal agencies.

How does the $25.17 million contract value compare to similar IT support contracts for naval command headquarters?

The $25.17 million contract value for IT support at U.S. Fleet Forces Command (USFF) HQ, spread over approximately 4.5 years, averages around $5.59 million annually. This figure appears to be within a reasonable range for comprehensive IT management and operations support for a major military command. To provide a precise comparison, one would need to benchmark against contracts of similar scope, duration, and complexity awarded to other naval or DoD entities. Factors such as the specific services required (e.g., network management, cybersecurity, help desk support, system administration), geographic location, and the number of users supported would influence the cost. Without direct comparable data, this value is assessed as potentially good, assuming the scope of work is met effectively.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technology obsolescence given the long performance period (over 4.5 years), the contractor's performance reliability in managing critical IT systems, and cybersecurity vulnerabilities. Mitigation strategies likely involve robust contract management by the U.S. Fleet Forces Command, including regular performance reviews, adherence to strict cybersecurity protocols, and potentially incorporating clauses for technology refresh or adaptation. The Firm Fixed Price nature of the contract helps mitigate cost overrun risks for the government, provided the scope is well-defined and managed. Continuous monitoring of the contractor's performance and proactive risk assessments are crucial for ensuring the ongoing success of the IT support.

How effective is the IT support provided by this contract in ensuring the operational readiness of the U.S. Fleet Forces Command?

The effectiveness of the IT support is directly tied to the operational readiness of the U.S. Fleet Forces Command (USFF). By ensuring the management and operation of USFF's communications and information systems, the contract directly contributes to the command's ability to execute its mission. Reliable IT infrastructure is fundamental for communication, data analysis, command and control, and logistical support. While direct metrics on operational readiness are not provided, the sustained award and performance period suggest that the services are meeting the essential needs of the command. Continued success hinges on the contractor's ability to maintain high uptime, security, and responsiveness of the IT systems.

What are the historical spending patterns for IT support at U.S. Fleet Forces Command or similar naval commands?

Historical spending patterns for IT support at U.S. Fleet Forces Command (USFF) and similar naval commands typically show consistent investment in maintaining and upgrading critical communication and information systems. Federal spending databases often reveal multi-million dollar annual expenditures for IT services, encompassing network infrastructure, cybersecurity, software development, and end-user support. The $25.17 million awarded to Professional Software Engineering, Inc. for this contract aligns with the expected scale of IT support required for a major command. Analyzing past contracts for USFF or comparable commands like U.S. Fleet Cyber Command or Naval Network Warfare Command would reveal trends in contract values, types of services procured, and contractor performance over time.

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: N0018920R3013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Professional Software Engineering Inc.

Address: 500 VIKING DRIVE, SUITE 301, VIRGINIA BEACH, VA, 23452

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

Financial Breakdown

Contract Ceiling: $32,719,808

Exercised Options: $26,443,539

Current Obligation: $25,161,670

Actual Outlays: $1,638,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8340

IDV Type: IDC

Timeline