DoD's $19.8M IT and logistics support contract awarded to DT Professional Services, LLC

Contract Overview

Contract Amount: $19,862,888 ($19.9M)

Contractor: DT Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2026-09-11

Contract Duration: 1,460 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER (TO) IS TO PROCURE TELECOMMUNICATIONS ENGINEERING, INFORMATION TECHNOLOGY, DATA MANAGEMENT, INFORMATION ASSURANCE, AND LOGISTICS SUPPORT SERVICES FOR THE PA DEPARTMENT (PAD) AT THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION.

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to DT PROFESSIONAL SERVICES, LLC for work described as: TASK ORDER (TO) IS TO PROCURE TELECOMMUNICATIONS ENGINEERING, INFORMATION TECHNOLOGY, DATA MANAGEMENT, INFORMATION ASSURANCE, AND LOGISTICS SUPPORT SERVICES FOR THE PA DEPARTMENT (PAD) AT THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION. Key points: 1. Contract provides essential IT, data management, and logistics support for the Naval Surface Warfare Center. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 4. The cost-plus-fixed-fee (CPFF) pricing structure may incentivize cost control by the contractor. 5. The contract is a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for specialized services. 6. The specific NAICS code (541330) points to engineering services, aligning with the technical nature of the support.

Value Assessment

Rating: good

The contract value of approximately $19.8 million over four years averages to about $4.96 million annually. Benchmarking this against similar IT and engineering support contracts for Department of Defense entities is challenging without more specific service details. However, the pricing structure (Cost Plus Fixed Fee) allows for flexibility while aiming for cost control through the fixed fee component. The award amount appears reasonable for the scope of services described, which include critical IT, data management, and logistics support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While not an extremely high number of bidders, full and open competition generally promotes price discovery and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages high-quality service delivery.

Public Impact

The Naval Surface Warfare Center, Corona Division, benefits from enhanced IT, data management, and logistics capabilities, crucial for its operations. Personnel at the Naval Surface Warfare Center will have access to improved technological infrastructure and support services. The contract supports the Department of the Navy's mission readiness and operational effectiveness. The geographic impact is concentrated at the Naval Surface Warfare Center, Corona Division in California. While not explicitly stated, the contract likely supports a workforce involved in engineering, IT, and logistics roles within the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can sometimes lead to cost overruns if not closely monitored, although the fixed fee component aims to mitigate this.
Reliance on a single task order under an IDIQ vehicle means the long-term strategic value depends on the overall IDIQ's performance and future task orders.

Positive Signals

Awarded under full and open competition, indicating a fair and competitive process.
The contract duration suggests a stable, long-term requirement, providing continuity of essential services.
The specific nature of the services (IT, data management, assurance) are critical for modern defense operations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT, data management, and logistics for a naval warfare center. The market for defense IT and engineering support services is substantial, with numerous companies competing for government contracts. This award represents a task order under a broader IDIQ contract, a common procurement method for acquiring specialized services across various defense agencies. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT and engineering support at other Navy or DoD installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, DT Professional Services, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices at the Naval Surface Warfare Center, Corona Division. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs incurred by the contractor to ensure they align with the fixed fee and the overall contract ceiling. Transparency is generally maintained through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center Contracts
Department of Defense IT Support Services
Information Assurance Contracts
Logistics Support Services
Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for integration challenges due to diverse service scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to DT PROFESSIONAL SERVICES, LLC. TASK ORDER (TO) IS TO PROCURE TELECOMMUNICATIONS ENGINEERING, INFORMATION TECHNOLOGY, DATA MANAGEMENT, INFORMATION ASSURANCE, AND LOGISTICS SUPPORT SERVICES FOR THE PA DEPARTMENT (PAD) AT THE NAVAL SURFACE WARFARE CENTER, CORONA DIVISION.

Who is the contractor on this award?

The obligated recipient is DT PROFESSIONAL SERVICES, 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 $19.9 million.

What is the period of performance?

Start: 2022-09-12. End: 2026-09-11.

What is the track record of DT Professional Services, LLC with the Department of Defense?

DT Professional Services, LLC has a history of performing contracts for the Department of Defense. While specific details on past performance quality require deeper investigation into contract databases and performance reviews, their ability to win this task order suggests they have met the necessary qualifications and demonstrated capability. Analyzing their portfolio of previous DoD contracts, including their size, scope, and client satisfaction ratings (if available), would provide a more comprehensive understanding of their track record. It's important to note that winning contracts is one indicator, but consistent successful delivery and adherence to requirements are key metrics for evaluating a contractor's reliability and expertise.

How does the annual value of this contract compare to similar IT and engineering support contracts within the Navy?

The annual value of this contract, approximately $4.96 million ($19.8M / 4 years), needs to be contextualized against similar IT and engineering support contracts within the Navy. Without access to a comprehensive database of all Navy contracts, a precise comparison is difficult. However, this value appears moderate for specialized IT and engineering support services required by a warfare center. Larger, more complex programs or contracts supporting multiple facilities might exceed this figure significantly, while smaller, more focused support tasks could be valued lower. The specific nature of the services (telecommunications engineering, data management, information assurance, logistics) dictates the market rates and thus the appropriate value range.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT and engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to a fixed-price contract, as their profit (the fixed fee) is guaranteed regardless of the actual costs incurred, provided they stay within the contract ceiling. This can potentially lead to cost overruns if not managed diligently. For the government, the risk lies in paying higher-than-necessary costs. However, the fixed fee component does provide the contractor with a defined profit margin, which can incentivize efficient performance to complete the work within budget to maximize their return on the fee. Robust government oversight and detailed cost accounting are crucial to mitigate these risks.

How effective is the competition level (3 bidders) in ensuring value for taxpayers on this contract?

A competition level of three bidders for this task order suggests a moderate degree of competition. While more bidders generally lead to better price discovery and potentially lower prices for taxpayers, three bidders still indicate that the opportunity was known and pursued by multiple capable firms. This level of competition is often sufficient to prevent excessively high pricing and encourage the submission of competitive proposals. The government's evaluation process, focusing on both technical merit and price, plays a critical role in ensuring value. If the proposals were technically sound and competitively priced, then three bidders likely provided adequate value for taxpayers in this instance.

What is the historical spending trend for similar engineering and IT support services at the Naval Surface Warfare Center, Corona Division?

Analyzing historical spending trends for similar services at the Naval Surface Warfare Center, Corona Division, would require access to historical contract data for that specific entity. Without that data, it's impossible to determine trends. However, it is reasonable to assume that a facility like the Corona Division would have consistent, ongoing needs for IT, data management, and engineering support. Spending patterns could fluctuate based on specific project requirements, technological upgrades, and overall defense budget allocations. A consistent award of task orders under IDIQ vehicles for these services would indicate a stable historical demand and spending level.

What are the potential performance challenges given the diverse scope of services (IT, data management, assurance, logistics)?

The diverse scope of services presents potential performance challenges primarily related to integration and specialized expertise. Ensuring seamless coordination between IT infrastructure, data management protocols, information assurance measures, and logistics support requires strong project management and clear communication channels. The contractor must possess or effectively manage teams with deep expertise across all these domains. A risk exists if the contractor excels in one area but struggles in another, potentially leading to suboptimal performance or delays. Effective oversight by the government is crucial to ensure all aspects of the contract are addressed with the required level of proficiency and integration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6426722R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5231 MAUREEN LN STE B, MOORPARK, CA, 93021

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,074,125

Exercised Options: $33,904,544

Current Obligation: $19,862,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7537

IDV Type: IDC

Timeline