DoD awards $8.5M cloud and data engineering contract to Duchancell Engineering Consulting LLC on a sole-source basis

Contract Overview

Contract Amount: $8,528,447 ($8.5M)

Contractor: Duchancell Engineering Consulting LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-10

End Date: 2026-02-09

Contract Duration: 1,095 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD & DATA ENGINEERING SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to DUCHANCELL ENGINEERING CONSULTING LLC for work described as: CLOUD & DATA ENGINEERING SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. The contract's duration of 1095 days suggests a long-term need for these specialized services. 3. The firm fixed-price structure aims to control costs, but the lack of competition may hinder optimal pricing. 4. This award represents a significant investment in cloud and data engineering capabilities for the Department of the Navy. 5. The contractor, Duchancell Engineering Consulting LLC, is relatively new to federal contracting, indicated by a low contract award count. 6. The contract is for Computer Systems Design Services, a sector experiencing high demand and rapid technological evolution.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of publicly available comparable contracts for Duchancell Engineering Consulting LLC. The fixed-price structure is a positive indicator for cost control, but without competitive bids, it's difficult to ascertain if the $8.5 million represents a fair market price. The contract's value should be assessed against industry benchmarks for cloud and data engineering services, considering the specific deliverables and the contractor's capabilities.

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 approach is typically used when only one vendor can provide the required services, often due to unique capabilities or proprietary technology. The lack of competition limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of the Navy will benefit from enhanced cloud and data engineering capabilities, potentially improving operational efficiency and data management. Services delivered will focus on computer systems design, crucial for modernizing defense infrastructure. The contract's geographic impact is primarily within California, where the contractor is based, but the services may support broader naval operations. The contract is likely to impact the workforce by creating or sustaining jobs within Duchancell Engineering Consulting LLC, specializing in cloud and data engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Limited competition may restrict access to a broader range of innovative solutions.
Contractor's track record in federal contracting appears limited, posing potential performance risks.
The specific technical requirements and performance metrics are not detailed, making it hard to assess value for money.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
The contract addresses critical needs in cloud and data engineering, essential for modern defense operations.
The duration of the contract allows for sustained focus and development of specialized capabilities.

Sector Analysis

The cloud computing and data engineering sector is a rapidly growing and critical area for government operations, enabling advanced analytics, secure data storage, and efficient IT infrastructure. The federal government's spending in this sector has been substantial, driven by the need to modernize legacy systems and leverage data for decision-making. This contract fits within the broader trend of federal agencies outsourcing specialized IT services to private sector firms to gain access to expertise and advanced technologies. Comparable spending benchmarks in this sector are difficult to pinpoint precisely without more detail on the specific services, but IT services contracts of this magnitude are common.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Duchancell Engineering Consulting LLC, is not identified as a small business in the provided data. There is no information available regarding subcontracting plans for small businesses. This award does not appear to directly benefit the small business ecosystem through set-asides, though the prime contractor may engage small businesses as subcontractors if their capabilities align with project needs.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is limited due to the sole-source nature of the award; however, contract details are generally made public through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cloud Computing Services
Data Engineering Services
Computer Systems Design Services
Information Technology Professional Services
Department of Defense IT Contracts

Risk Flags

Sole-source award
Limited contractor track record
Potential for cost overruns due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to DUCHANCELL ENGINEERING CONSULTING LLC. CLOUD & DATA ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is DUCHANCELL ENGINEERING CONSULTING 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 $8.5 million.

What is the period of performance?

Start: 2023-02-10. End: 2026-02-09.

What is the specific track record of Duchancell Engineering Consulting LLC with federal contracts, particularly in cloud and data engineering?

Based on the provided data, Duchancell Engineering Consulting LLC has been awarded one contract, this definitive contract valued at $8.5 million. This indicates a very limited track record within the federal contracting space. Further investigation into contract databases like SAM.gov or FPDS would be necessary to ascertain if they have other awards, past performance references, or experience with similar cloud and data engineering projects. A limited track record can sometimes correlate with higher performance risks, as there is less historical data to assess their ability to meet government requirements, manage complex projects, and deliver on time and within budget.

How does the $8.5 million contract value compare to similar cloud and data engineering contracts awarded by the Department of the Navy or other federal agencies?

Without specific details on the scope of work, deliverables, and duration of comparable contracts, a precise comparison is difficult. However, $8.5 million for a three-year contract (1095 days) in cloud and data engineering is a substantial award. The Department of the Navy, like other large federal agencies, frequently awards IT services contracts in this range and higher, especially for complex system design and implementation. The sole-source nature of this award makes direct price comparison challenging, as competitive bids often drive prices down. Industry benchmarks for similar services, considering factors like cloud migration, data architecture, and engineering support, would be needed for a more robust value assessment.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with a sole-source award include a lack of price competition, which can lead to the government paying a premium. There's also a reduced incentive for the contractor to innovate or optimize performance when there are no competitors vying for future work. Furthermore, the government may miss out on potentially better solutions or technologies offered by other qualified vendors. For Duchancell Engineering Consulting LLC, a limited track record combined with a sole-source award could present performance risks if they lack the necessary experience or resources to execute the contract successfully. Ensuring robust oversight and clear performance metrics becomes even more critical in such scenarios.

How effective is the firm fixed-price (FFP) contract type in managing costs for this specific cloud and data engineering project?

The Firm Fixed-Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For a cloud and data engineering project, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to control costs and manage resources efficiently. However, if the project scope is subject to significant change or unforeseen technical challenges arise, an FFP contract might lead to disputes or require costly contract modifications. The success of FFP here will depend on the clarity of the SOW and the contractor's ability to accurately estimate and manage their costs throughout the contract period.

What are the historical spending patterns for cloud and data engineering services within the Department of the Navy, and how does this contract fit?

The Department of the Navy, along with the broader Department of Defense, has significantly increased its spending on cloud computing and data engineering services over the past decade. This trend is driven by the military's strategic imperative to modernize its IT infrastructure, enhance data analytics capabilities for intelligence and operational planning, and improve cybersecurity. This $8.5 million contract aligns with this pattern, representing an investment in specialized services crucial for achieving these modernization goals. Historical data would likely show a consistent and growing allocation of resources towards cloud migration, data management platforms, and associated engineering support across various naval commands and programs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6600123R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3658 OLD COBBLE ROAD, SAN DIEGO, CA, 92111

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,024,383

Exercised Options: $8,564,447

Current Obligation: $8,528,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline