DoD's Navy awards $15.17M contract for PEOC4I application support to Forward Slope Inc

Contract Overview

Contract Amount: $15,169,427 ($15.2M)

Contractor: Forward Slope Inc

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2026-03-26

Contract Duration: 1,095 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PEOC4I STOREFRONT/APPLICATION ARSENAL AND NAVY NET-CENTRIC APPLICATION SUPPORT

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to FORWARD SLOPE INC for work described as: PEOC4I STOREFRONT/APPLICATION ARSENAL AND NAVY NET-CENTRIC APPLICATION SUPPORT Key points: 1. Contract value represents a significant investment in naval IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of 3 years indicates a need for sustained support. 4. The specific services provided are crucial for the Navy's net-centric operations. 5. Forward Slope Inc. is positioned as a key provider for this specialized IT need. 6. The contract type (Cost Plus Fixed Fee) warrants scrutiny for cost control.

Value Assessment

Rating: good

The contract value of $15.17 million over three years for application support appears reasonable given the specialized nature of supporting PEOC4I and Navy net-centric applications. Benchmarking against similar IT support contracts for defense agencies suggests this is within expected ranges for complex system maintenance and development. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, requires careful monitoring to ensure costs remain aligned with project objectives and market rates for similar engineering and IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders suggests a healthy level of competition for this type of specialized IT support. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

Naval personnel will benefit from enhanced and reliable IT applications. Services delivered will support the critical PEOC4I (Program Executive Office Command, Control, Communications, Computers and Intelligence) systems. The contract's impact is primarily within the Department of the Navy's IT infrastructure. Workforce implications include potential employment opportunities for IT specialists and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
The duration of the contract (3 years) requires ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for critical application support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports essential command, control, communications, computers, and intelligence (C4I) systems.
Forward Slope Inc. has secured a significant contract, suggesting a level of trust and capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on defense-related software development, maintenance, and support. The market for defense IT is substantial, driven by the need for advanced technological capabilities in command and control, intelligence, and network-centric operations. Comparable spending often involves large-scale system integration, cybersecurity, and application sustainment for military branches, with values frequently in the millions to billions of dollars.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there explicit information about subcontracting plans for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Forward Slope Inc. actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

PEOC4I Systems Support
Navy Net-Centric Warfare Programs
Defense IT Modernization Initiatives
Command and Control Systems Sustainment

Risk Flags

Cost Overrun Risk (CPFF)
Performance Degradation
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to FORWARD SLOPE INC. PEOC4I STOREFRONT/APPLICATION ARSENAL AND NAVY NET-CENTRIC APPLICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is FORWARD SLOPE 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 $15.2 million.

What is the period of performance?

Start: 2023-03-27. End: 2026-03-26.

What is Forward Slope Inc.'s track record with similar Department of Defense contracts?

Forward Slope Inc. has a history of securing contracts with various branches of the U.S. military, including the Navy and Air Force, often related to IT services, software development, and systems engineering. Their portfolio typically includes support for complex defense systems, command and control applications, and network infrastructure. Analyzing past performance on similar contracts, particularly those involving application support and net-centric operations, would provide insight into their reliability, technical expertise, and ability to meet stringent defense requirements. Reviewing contract close-out data and past performance evaluations, where available, can offer a more comprehensive understanding of their capabilities and any historical issues.

How does the $15.17 million contract value compare to other Navy IT support contracts?

The $15.17 million contract value for PEOC4I and Navy Net-Centric Application Support is a moderate-sized award within the context of large defense IT procurements. The Navy and Department of Defense frequently award contracts ranging from tens of millions to billions of dollars for comprehensive IT infrastructure, software development, and sustainment services. This specific award appears to be for a defined scope of application support over a three-year period. When compared to broader system integration or enterprise-wide IT modernization contracts, it is smaller. However, for specialized application sustainment and development for critical C4I systems, this value is consistent with market rates and the complexity involved.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one, revolve around cost control and potential for cost growth. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If project scope expands, unforeseen technical challenges arise, or inefficient practices are employed, the total cost to the government can increase significantly beyond initial estimates. Effective oversight, detailed cost tracking, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value for its investment.

How critical are the PEOC4I and Navy Net-Centric applications to naval operations?

The PEOC4I (Program Executive Office Command, Control, Communications, Computers and Intelligence) systems and Navy Net-Centric applications are absolutely critical to modern naval operations. These systems form the backbone of the Navy's ability to gather, process, disseminate, and act upon information in real-time across distributed platforms and geographic locations. Net-centric capabilities enable seamless communication, data sharing, and coordinated actions among ships, aircraft, submarines, and shore-based commands. Failure or degradation of these applications can severely impair situational awareness, decision-making speed, and the overall effectiveness of naval forces in executing missions, from tactical engagements to strategic deployments.

What is the historical spending trend for similar application support services within the Navy?

Historical spending trends for similar application support services within the Navy generally show a consistent and significant investment in maintaining and modernizing its IT infrastructure. The Navy, like other branches of the DoD, relies heavily on complex software systems for command, control, intelligence, and logistics. Spending in this area typically fluctuates based on modernization cycles, emerging threats, and technological advancements. Over the past decade, there has been a sustained focus on enhancing net-centric capabilities, cybersecurity, and data integration, leading to ongoing contracts for application development, sustainment, and support. While specific figures vary by program and fiscal year, the overall trend indicates a substantial and continuous allocation of resources to ensure these critical systems remain operational and effective.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600123R3506

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2020 CAMINO DEL RIO N STE 400, SAN DIEGO, CA, 92108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,697,902

Exercised Options: $16,718,468

Current Obligation: $15,169,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D9078

IDV Type: IDC

Timeline