DoD's $17.9M supply chain management contract with Vintun LLC awarded without competition

Contract Overview

Contract Amount: $17,921,960 ($17.9M)

Contractor: Vintun LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPLY CHAIN MANAGEMENT - LABOR

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to VINTUN LLC for work described as: SUPPLY CHAIN MANAGEMENT - LABOR Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. Long duration of 1825 days suggests a need for sustained support. 3. The 'Other Computer Related Services' NAICS code points to a focus on IT-adjacent support. 4. Awarded by the Department of the Navy, a major component of the DoD. 5. Virginia is the state of performance, a common hub for federal contracting. 6. No small business set-aside was applied to this contract. 7. The contract's value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure suggests cost certainty, but the absence of competition raises questions about whether the government secured the best possible price. The contract's duration and value indicate a significant investment, and its effectiveness will depend heavily on the quality of services delivered by Vintun LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific vendor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the most innovative solutions are considered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer competitive pricing. It also reduces opportunities for other businesses to secure government work.

Public Impact

The Department of the Navy benefits from specialized supply chain management labor services. This contract supports the operational efficiency of naval logistics and procurement processes. The primary geographic impact is within Virginia, where the services are performed. The contract likely supports a team of skilled labor professionals contributing to defense supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about potential vendor lock-in.
Long contract duration without competition could lead to cost inefficiencies over time.
Performance metrics and oversight are critical due to the non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single vendor may indicate specialized expertise required for the task.
Sustained support over five years suggests a critical and ongoing need.

Sector Analysis

The IT services sector, particularly under NAICS code 541519 (Other Computer Related Services), is a significant area of federal spending. This contract falls within the broader category of professional services supporting defense operations. The market for supply chain management and related IT services is competitive, but specific niche requirements can sometimes lead to non-competitive awards. Federal spending in this area is driven by the need for efficient logistics and operational support for military branches.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of Vintun LLC's supply chain or are awarded separate, smaller contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense IT Services
Supply Chain Management Services
Professional Services Contracts
Naval Operations Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration increases risk of cost escalation or performance degradation.
Limited public information on contractor's past performance.
NAICS code 541519 is broad; specific services require further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to VINTUN LLC. SUPPLY CHAIN MANAGEMENT - LABOR

Who is the contractor on this award?

The obligated recipient is VINTUN 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 $17.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What specific supply chain management labor services does Vintun LLC provide under this contract?

The provided data indicates the contract is for 'SUPPLY CHAIN MANAGEMENT - LABOR' under NAICS code 541519 (Other Computer Related Services). While the specific labor services are not detailed, this classification suggests Vintun LLC is providing personnel with expertise in managing and optimizing supply chain processes, potentially including areas like logistics planning, inventory management, procurement support, and data analysis related to the supply chain. The 'Other Computer Related Services' aspect might imply that these labor services are heavily supported by or integrated with IT systems and software solutions critical to modern supply chain operations.

How does the $17.9 million contract value compare to similar supply chain management contracts awarded by the Department of the Navy?

Comparing this $17.9 million contract value requires access to a broader database of similar contracts. However, for a five-year period (1825 days), this equates to approximately $3.58 million per year. This figure is moderate for a specialized service supporting a major military branch. Without knowing the exact scope and deliverables, it's difficult to definitively benchmark. Contracts for large-scale, complex supply chain transformations or extensive IT system implementations could easily exceed this amount, while smaller, more focused support contracts might be less. The sole-source nature, however, prevents a direct price comparison with competitively bid alternatives.

What are the primary risks associated with a sole-source award of this magnitude and duration?

The primary risks associated with a sole-source award of this magnitude ($17.9M over 5 years) include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve efficiency beyond the contract's minimum requirements, and the risk of vendor lock-in. If Vintun LLC's performance falters or their pricing becomes uncompetitive over time, the government has limited recourse without renegotiating or terminating the contract, which can be complex and costly. Furthermore, the absence of a competitive process means the government may not be aware of potentially superior or more cost-effective solutions available in the market.

What performance metrics or oversight mechanisms are likely in place for this contract?

Given the firm-fixed-price nature and sole-source award, robust oversight is crucial. Likely performance metrics would focus on the timely delivery of labor services, adherence to project schedules, quality of work (e.g., accuracy of reports, effectiveness of process improvements), and potentially key performance indicators (KPIs) related to supply chain efficiency gains. Oversight mechanisms would typically include regular progress meetings between the contractor and the Navy program office, performance reviews, and potentially independent government cost estimates or audits. The contract would also specify deliverables and acceptance criteria that must be met for payment.

What is Vintun LLC's track record with the federal government, particularly within the Department of Defense?

Information on Vintun LLC's specific track record with the federal government, especially the Department of Defense, is not detailed in the provided data snippet. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., CPARS reports), and any history of disputes or terminations. Without this external data, it's impossible to evaluate their past performance, reliability, or expertise in delivering similar services, which is a key factor in assessing the risk of a sole-source award.

How does this contract fit into the broader context of Department of the Navy's supply chain modernization efforts?

This contract likely supports the Department of the Navy's ongoing efforts to modernize its supply chain operations, which are critical for maintaining fleet readiness and operational effectiveness. Modernization often involves leveraging advanced technologies, improving data analytics, and optimizing logistics processes. By awarding this contract for specialized labor, the Navy is likely seeking expertise to manage these complex transitions, implement new systems, or enhance existing capabilities. The focus on 'labor' suggests a need for skilled personnel to execute or manage these modernization initiatives, rather than procuring specific technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: N0018921RR033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 DUKE STREET, SUITE 175, ALEXANDRIA, VA, 22314

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,921,960

Exercised Options: $17,921,960

Current Obligation: $17,921,960

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,346,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline