DoD's $19.1M ESAMS User Licenses Contract with HGW and Associates Faces Scrutiny
Contract Overview
Contract Amount: $19,108,758 ($19.1M)
Contractor: HGW and Associates, LLC
Awarding Agency: Department of Defense
Start Date: 2022-06-14
End Date: 2026-03-14
Contract Duration: 1,369 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESAMS USER LICENSES
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $19.1 million to HGW AND ASSOCIATES, LLC for work described as: ESAMS USER LICENSES Key points: 1. The contract for ESAMS User Licenses awarded to HGW and Associates, LLC, represents a significant investment by the Department of the Navy. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract's duration of 1369 days and fixed-price nature aim to control costs, but ongoing value needs monitoring. 4. The sector is IT services, specifically custom computer programming, a critical area for defense operations.
Value Assessment
Rating: fair
The contract's total value is $19.1M. Without specific per-unit data or benchmarks for ESAMS licenses, a direct pricing assessment is difficult. However, the firm fixed-price contract suggests an attempt to establish a predictable cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This implies that while the competition was open, certain sources were excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The firm fixed-price contract aims to provide cost certainty for taxpayers, but the effectiveness of the competition method in securing the best price requires further analysis.
Public Impact
Taxpayers are funding custom computer programming services for the Department of the Navy. The contract supports the Navy's operational capabilities through IT services. The duration of the contract suggests a long-term need for these ESAMS user licenses. The specific impact on end-users and overall mission effectiveness is not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for benchmarking.
- Potential for limited price discovery due to source exclusion.
- Long contract duration may not adapt to evolving technology needs.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition, even with exclusions, indicates an attempt at market engagement.
- Contract supports critical defense IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration. The $19.1M value over nearly four years is significant but needs comparison to similar custom programming contracts.
Small Business Impact
The contract was not awarded to a small business (sb: false). There is no indication of small business participation or subcontracting goals within the provided data, suggesting a missed opportunity for small business engagement in this significant IT contract.
Oversight & Accountability
The contract is a definitive contract with a fixed end date, suggesting a defined scope. Oversight would focus on performance delivery, adherence to the fixed price, and ensuring the 'exclusion of sources' was justified and did not unduly restrict competition.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of transparency regarding per-unit costs.
- No small business participation noted.
- Long contract duration may not align with rapid technological advancements.
- Effectiveness metrics are not specified.
Tags
custom-computer-programming-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to HGW AND ASSOCIATES, LLC. ESAMS USER LICENSES
Who is the contractor on this award?
The obligated recipient is HGW AND ASSOCIATES, 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 $19.1 million.
What is the period of performance?
Start: 2022-06-14. End: 2026-03-14.
What was the justification for excluding specific sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?
The justification for excluding sources is not provided in the data. This exclusion could limit the number of bidders, potentially reducing competitive pressure and leading to a higher price than if all qualified sources were allowed to compete. Further investigation into the agency's rationale is needed to assess the true impact on price discovery and taxpayer value.
How does the per-unit cost of ESAMS user licenses compare to industry benchmarks for similar custom programming services, considering the contract's duration?
Without specific per-unit cost data or detailed service descriptions, a direct comparison to industry benchmarks is not possible. The total contract value of $19.1M over 1369 days averages approximately $13,958 per day. Assessing the value requires understanding the number of licenses, the specific functionalities provided, and comparing these metrics against similar custom programming contracts in the federal or commercial sectors.
What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the ESAMS user licenses being measured by the Department of the Navy?
The provided data does not include specific Key Performance Indicators (KPIs) or details on how the effectiveness of the ESAMS user licenses is being measured. Effective oversight would require the agency to track metrics related to system uptime, user satisfaction, functionality delivery, and overall contribution to the Navy's mission objectives to ensure the $19.1M investment yields the intended results.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0018922RZ015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10239 TECHNOLOGY DR, KNOXVILLE, TN, 37932
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $20,495,250
Exercised Options: $19,141,539
Current Obligation: $19,108,758
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-14
Current End Date: 2026-03-14
Potential End Date: 2026-06-14 00:00:00
Last Modified: 2025-12-10
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)