DoD Awards $12.7M for Japan Aegis Support Services to Forge Group, LLC
Contract Overview
Contract Amount: $12,749,292 ($12.7M)
Contractor: Forge Group, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-31
End Date: 2026-08-31
Contract Duration: 1,096 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JAPAN AEGIS SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $12.7 million to FORGE GROUP, LLC for work described as: JAPAN AEGIS SUPPORT SERVICES Key points: 1. Contract value of $12.7 million for essential support services. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. Risk of overpayment due to lack of competitive bidding. 4. IT services sector, specifically computer facilities management.
Value Assessment
Rating: questionable
The contract is a sole-source award, making direct pricing comparisons difficult. Without competitive bids, it's challenging to ascertain if the $12.7 million represents a fair market price for the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits competition and may lead to higher prices than if multiple vendors had bid.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the most cost-effective solution.
Public Impact
Ensures continued operational readiness of critical Aegis systems in Japan. Supports U.S. national security interests in the Indo-Pacific region. Potential for increased costs to taxpayers due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated pricing without competitive pressure.
- Lack of transparency in the procurement process.
Positive Signals
- Essential support for critical defense systems.
- Ensures operational continuity for Aegis in Japan.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer facilities management services. Benchmarks for similar IT support contracts can vary widely based on scope and complexity, but sole-source awards often deviate from typical market rates.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Navy's justification for the sole-source award and subsequent performance monitoring will be key accountability measures.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Potential for price inflation.
- Limited transparency in procurement.
- Dependency on a single contractor.
- Lack of small business participation.
Tags
computer-facilities-management-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.7 million to FORGE GROUP, LLC. JAPAN AEGIS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is FORGE GROUP, 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 $12.7 million.
What is the period of performance?
Start: 2023-08-31. End: 2026-08-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without detailed documentation, it's difficult to assess if alternatives were truly unavailable or if the justification was robust. A thorough review of the Justification and Approval (J&A) document is necessary to understand the rationale and evaluate the necessity of bypassing full and open competition.
How will the Department of the Navy ensure fair and reasonable pricing for this sole-source contract over its duration?
Ensuring fair pricing for sole-source contracts requires rigorous cost analysis, benchmarking against similar services (where possible), and potentially incorporating price adjustment clauses. The Navy should conduct detailed cost realism analyses and monitor performance closely to identify any deviations from expected costs. Independent government cost estimates and negotiations with the contractor are vital to mitigate the risk of overpayment.
What are the potential risks to operational effectiveness if this support service is not adequately provided by Forge Group, LLC?
The Aegis system is critical for naval defense and command and control. Any lapse in support services could lead to system downtime, reduced operational readiness, and compromised mission effectiveness. This could impact the U.S. military's ability to conduct operations in the Indo-Pacific, potentially affecting regional security and alliance commitments. Contingency plans for service disruption are essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: N6339423R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12211 LAKE JAMES DR, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $23,820,053
Exercised Options: $13,451,253
Current Obligation: $12,749,292
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-31
Current End Date: 2026-08-31
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2025-10-08
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