DoD's $12.3M IT Support Contract Awarded to Digital Enterprise Solutions, Inc. for Navy DNA Enterprise
Contract Overview
Contract Amount: $12,345,614 ($12.3M)
Contractor: Digital Enterprise Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-31
End Date: 2026-07-31
Contract Duration: 1,642 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES NECESSARY TO PERFORM BUSINESS OPERATIONS, INFORMATION TECHNOLOGY PORTFOLIO MANAGEMENT/CUSTOMER RELATIONSHIP MANAGEMENT AND HORIZONTAL INTEGRATION ACROSS THE DNA ENTERPRISE.
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to DIGITAL ENTERPRISE SOLUTIONS, INC. for work described as: THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES NECESSARY TO PERFORM BUSINESS OPERATIONS, INFORMATION TECHNOLOGY PORTFOLIO MANAGEMENT/CUSTOMER RELATIONSHIP MANAGEMENT AND HORIZONTAL INTEGRATION ACROSS THE DNA ENTERPRISE. Key points: 1. Contract focuses on IT portfolio management and horizontal integration for the Navy's DNA Enterprise. 2. Digital Enterprise Solutions, Inc. secured the award under full and open competition. 3. The contract spans over four years, indicating a significant, long-term need for these services. 4. The use of Cost Plus Fixed Fee (CPFF) pricing requires careful monitoring to ensure cost control.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure necessitates diligent oversight to manage costs effectively. Benchmarking against similar IT support contracts is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT support services, with competition aiming to optimize value for money.
Public Impact
Ensures continued IT operations and modernization for the Navy's DNA Enterprise. Supports critical business operations and customer relationship management. Promotes horizontal integration across enterprise systems, enhancing efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- CPFF pricing requires strong cost controls.
- Potential for scope creep in long-term IT support contracts.
Positive Signals
- Full and open competition.
- Long-term contract provides stability.
- Supports critical Navy IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically supporting enterprise-level IT management and integration. Spending in this area is substantial across government agencies, driven by the need for modern, secure, and efficient digital infrastructure.
Small Business Impact
The contract was awarded to Digital Enterprise Solutions, Inc., a large business. There is no indication of small business subcontracting participation in the provided data.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires robust oversight from the Department of the Navy to ensure costs remain within reasonable bounds and that the contractor meets all performance requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure.
- Long contract duration (over 4 years).
- Lack of explicit small business participation.
- Potential for scope creep in IT services.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to DIGITAL ENTERPRISE SOLUTIONS, INC.. THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES NECESSARY TO PERFORM BUSINESS OPERATIONS, INFORMATION TECHNOLOGY PORTFOLIO MANAGEMENT/CUSTOMER RELATIONSHIP MANAGEMENT AND HORIZONTAL INTEGRATION ACROSS THE DNA ENTERPRISE.
Who is the contractor on this award?
The obligated recipient is DIGITAL ENTERPRISE SOLUTIONS, 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 $12.3 million.
What is the period of performance?
Start: 2022-01-31. End: 2026-07-31.
What is the estimated total cost per year for this contract, and how does it compare to industry benchmarks for similar IT support services?
The total award amount is $12,345,613.55 over approximately 4.5 years. This averages to roughly $2.74 million per year. Benchmarking against industry standards for IT portfolio management, CRM, and horizontal integration services would be necessary to determine if this annual cost is competitive and reflects fair market value.
What are the specific performance metrics and key performance indicators (KPIs) used to evaluate the contractor's success under this Cost Plus Fixed Fee agreement?
The provided data does not detail the specific performance metrics or KPIs. For a CPFF contract, these are crucial for managing risk and ensuring value. They typically include metrics related to system uptime, response times, project completion rates, customer satisfaction, and adherence to security protocols.
How will the Department of the Navy ensure that the 'horizontal integration' across the DNA Enterprise is effectively achieved and provides tangible benefits?
Effective horizontal integration will likely be measured by improved data sharing, streamlined workflows, reduced system redundancies, and enhanced interoperability between different components of the DNA Enterprise. The Navy's oversight team will need to actively monitor progress, validate integration efforts, and assess the resulting operational efficiencies and cost savings.
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 › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0042121R3007
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 46970 BRADLEY BLVD, LEXINGTON PARK, MD, 20653
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,863,481
Exercised Options: $22,737,065
Current Obligation: $12,345,614
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7525
IDV Type: IDC
Timeline
Start Date: 2022-01-31
Current End Date: 2026-07-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2025-11-24
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