DoD's $22.1M IGF Application Host Services Contract Awarded to DILIGENT CONSULTING, INC

Contract Overview

Contract Amount: $22,149,003 ($22.1M)

Contractor: Diligent Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-04-18

End Date: 2018-12-31

Contract Duration: 1,718 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF APPLICATION HOST SERVICES

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to DILIGENT CONSULTING, INC. for work described as: IGF::OT::IGF APPLICATION HOST SERVICES Key points: 1. Contract value of $22.1 million over 4 years. 2. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. 3. Primary risk is potential for limited competition impacting price. 4. Sector is IT services, specifically Custom Computer Programming.

Value Assessment

Rating: fair

The contract value of $22.1 million for custom computer programming services appears within a reasonable range for a multi-year engagement. Benchmarking against similar contracts for application hosting and development services would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the process was open, specific criteria or prior exclusions may have limited the pool of eligible bidders. This could potentially impact price discovery and lead to less competitive pricing.

Taxpayer Impact: Taxpayer impact is moderate, as the pricing may not have benefited from the full competitive pressure of an unrestricted open competition.

Public Impact

Ensures continued operation and support for critical IGF applications. Supports Department of the Air Force's IT infrastructure. Potential for cost savings if competition was robust despite exclusion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition due to exclusion of sources.
  • Potential for price inflation if competition was not truly robust.

Positive Signals

  • Contract awarded to a single vendor, potentially streamlining management.
  • Fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, with significant variation based on complexity and duration.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a structured procurement process. Oversight would focus on performance against the firm fixed price and adherence to contract terms.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for reduced competition leading to higher costs.
  • Dependence on a single vendor for critical application services.
  • Risk of scope creep or unmanaged changes impacting budget.
  • Ensuring continued relevance and modernization of IGF applications.

Tags

custom-computer-programming-services, department-of-defense, ok, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to DILIGENT CONSULTING, INC.. IGF::OT::IGF APPLICATION HOST SERVICES

Who is the contractor on this award?

The obligated recipient is DILIGENT CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2014-04-18. End: 2018-12-31.

What specific criteria led to the exclusion of certain sources, and how did this impact the final price?

The exclusion of sources likely stemmed from specific technical requirements, past performance, or unique capabilities needed for the IGF application host services. Understanding these criteria is crucial to assessing whether the limited competition resulted in a fair and reasonable price. Without this information, it's difficult to definitively state if taxpayers received optimal value.

What are the key performance indicators (KPIs) for this contract, and how is DILIGENT CONSULTING, INC. being monitored for performance?

Key performance indicators would likely include application uptime, response times, security compliance, and successful deployment of updates or patches. The Department of the Air Force would typically monitor these through regular performance reviews, service level agreement (SLA) adherence reports, and potentially user feedback to ensure the contractor meets its obligations.

How does the $22.1 million expenditure compare to industry benchmarks for similar application hosting and custom programming services over a 4-year period?

Comparing this $22.1 million expenditure requires detailed analysis of the specific services rendered, including the complexity of the IGF applications, the number of users supported, and the level of customization. Industry benchmarks for similar government IT contracts vary widely, but this figure suggests a significant investment that warrants scrutiny against comparable private sector or government contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 901 NE LOOP 410 STE 600, SAN ANTONIO, TX, 78209

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

Financial Breakdown

Contract Ceiling: $22,594,019

Exercised Options: $22,594,019

Current Obligation: $22,149,003

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1003

IDV Type: IDC

Timeline

Start Date: 2014-04-18

Current End Date: 2018-12-31

Potential End Date: 2018-12-31 00:00:00

Last Modified: 2018-11-26

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