State Department's $19.5M software contract with DLT Solutions, LLC awarded under full and open competition

Contract Overview

Contract Amount: $19,498,001 ($19.5M)

Contractor: DLT Solutions, LLC

Awarding Agency: Department of State

Start Date: 2012-09-26

End Date: 2016-12-21

Contract Duration: 1,547 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATABASE VAULT AND AUDIT VAULT IMPLEMENTATION IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $19.5 million to DLT SOLUTIONS, LLC for work described as: DATABASE VAULT AND AUDIT VAULT IMPLEMENTATION IGF::OT::IGF Key points: 1. The contract focused on database and audit vault implementation, indicating a need for robust data management and security. 2. Awarded to DLT Solutions, LLC, the contract's duration of over 4 years suggests a significant, ongoing requirement. 3. The firm fixed-price contract type suggests that cost risks were largely borne by the contractor. 4. The contract was awarded via full and open competition, implying a broad search for qualified vendors. 5. The total value of $19.5 million over its period of performance warrants scrutiny for value for money. 6. The contract's performance period ended in late 2016, providing historical data for analysis.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the software implemented and its scope. However, a $19.5 million expenditure over approximately four years for database and audit vault solutions suggests a substantial investment. The firm fixed-price nature of the contract implies that the contractor assumed cost overruns, which can be a positive indicator for the government if the price was competitive. Further analysis would require comparing the delivered functionality and performance against industry standards and similar government procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple vendors likely vied for the award. The number of bidders is not specified, but the use of full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: A competitive award process like this one typically benefits taxpayers by ensuring that the government is likely receiving a fair market price for the goods or services procured, as multiple vendors compete to win the contract.

Public Impact

The primary beneficiaries are likely the Department of State's internal operations, which rely on secure and efficient database and audit vault systems. The services delivered include the implementation and potential maintenance of critical IT infrastructure for data management and security. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications may include IT specialists involved in the implementation, management, and utilization of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software's functionality and performance metrics makes it difficult to assess true value for money.
The contract duration and value could indicate a significant reliance on a single vendor, potentially limiting future flexibility.
Without knowing the number of bidders, it's hard to definitively gauge the intensity of the competition.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type generally shifts cost risk to the contractor.
The contract addressed a critical need for database and audit vault implementation.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software and database solutions. The market for enterprise database management and security software is large and competitive, with numerous vendors offering a range of products and services. Government spending in this area is substantial, driven by the need for secure data storage, access control, and audit trails to comply with regulations and ensure operational integrity. Comparable spending benchmarks would involve analyzing other large-scale IT infrastructure procurements by federal agencies for similar functionalities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, DLT Solutions, LLC, is a large business. Any subcontracting opportunities would have been at the discretion of the prime contractor.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of State's contracting officers and program managers. As a federal contract, it would also be subject to audits by the Government Accountability Office (GAO) and potentially the Inspector General (IG) of the Department of State, particularly concerning performance, financial accountability, and adherence to contract terms. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency Software Procurement
Database Management Systems Contracts
Cybersecurity and Audit Trail Solutions

Risk Flags

NAICS code mismatch with contract description
Lack of detailed performance metrics
Limited information on competition intensity (number of bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.5 million to DLT SOLUTIONS, LLC. DATABASE VAULT AND AUDIT VAULT IMPLEMENTATION IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DLT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2012-09-26. End: 2016-12-21.

What specific database and audit vault software was implemented under this contract, and what were its key functionalities?

The provided data does not specify the exact software or its functionalities. However, 'DATABASE VAULT AND AUDIT VAULT IMPLEMENTATION' suggests solutions related to securing sensitive data within databases and maintaining comprehensive logs of access and changes. This could include technologies like Oracle Database Vault, or custom-built audit logging mechanisms. Key functionalities likely involved access control, data masking, privileged user monitoring, and tamper-evident audit trails to ensure data integrity and compliance with regulations such as FISMA or SOX. Without more detailed documentation, the precise scope remains unclear.

How does the $19.5 million cost compare to similar IT infrastructure contracts awarded by the Department of State or other federal agencies during the 2012-2016 period?

Comparing the $19.5 million cost requires context regarding the scope and duration. This contract ran for approximately four years (September 2012 to December 2016). For large federal IT procurements, especially those involving enterprise-level database security and audit solutions, this figure is within a plausible range. For instance, similar multi-year contracts for core IT infrastructure or specialized software implementations for agencies like the Department of Defense or HHS could range from several million to tens of millions of dollars annually, depending on complexity and user base. A direct comparison would necessitate identifying contracts with identical or highly similar service scopes and performance periods.

What were the primary risks associated with this contract, and how were they mitigated?

Potential risks for a contract of this nature include technical risks (e.g., software incompatibility, implementation challenges, performance issues), schedule risks (delays in delivery or deployment), cost risks (if it were not firm fixed-price), and performance risks (failure to meet security or functional requirements). Given the firm fixed-price nature, cost risks were largely transferred to DLT Solutions, LLC. Mitigation strategies likely involved detailed technical specifications, phased implementation plans, rigorous testing and validation protocols, and performance monitoring by the Department of State. The contract's full and open competition also mitigates the risk of relying on a single, potentially underperforming vendor.

What was the track record of DLT Solutions, LLC with the Department of State or other federal agencies prior to and during this contract?

The provided data does not include information on DLT Solutions, LLC's prior track record. However, as a recipient of a nearly $20 million contract, it is reasonable to assume they had demonstrated capabilities and potentially prior experience with federal agencies. A comprehensive assessment would involve reviewing their past performance evaluations (e.g., CPARS reports), other contracts awarded, and any documented issues or successes. DLT Solutions is a known IT hardware, software, and services provider to the federal government, suggesting a level of established presence and capability.

How did the 'full and open competition' impact the pricing and selection process for this contract?

Full and open competition typically leads to more competitive pricing because it allows all responsible sources to submit offers, fostering a broader range of bids and potentially driving down costs. It also increases the likelihood that the government selects the offer that provides the best overall value, considering both price and technical merit. For this contract, it meant that DLT Solutions, LLC had to submit a competitive proposal against other interested vendors. The specific impact on pricing is not quantifiable from the data alone, but the process itself is designed to achieve better value for the government compared to sole-source or limited competition scenarios.

What is the significance of the 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers' North American Industry Classification System (NAICS) code for this contract?

The NAICS code 423430, 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers,' is somewhat unusual for a contract focused on 'DATABASE VAULT AND AUDIT VAULT IMPLEMENTATION.' Typically, implementation services fall under IT professional services (e.g., NAICS 541511, 541512, 541519). This code suggests that the primary nature of the contract, from the government's classification perspective, might have been the procurement and distribution of software licenses and related hardware, rather than the extensive professional services for implementation. However, the description 'implementation' implies services were involved, making the NAICS code choice potentially indicative of how the contract was structured or categorized for procurement purposes.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLT Mergerco LLC (UEI: 079720068)

Address: 13861 SUNRISE VALLEY DR SUITE 400, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,989,784

Exercised Options: $19,989,784

Current Obligation: $19,498,001

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06A0002

IDV Type: IDC

Timeline