DoD's $12M IT services contract awarded to RGBSI Aerospace & Defense LLC for 3 years

Contract Overview

Contract Amount: $12,064,653 ($12.1M)

Contractor: Rgbsi Aerospace & Defense LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DLIR SCM BAA0002-21 - TDMT

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to RGBSI AEROSPACE & DEFENSE LLC for work described as: DLIR SCM BAA0002-21 - TDMT Key points: 1. Contract value appears reasonable for the scope of IT services over a three-year period. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 4. Performance is expected over 1095 days, aligning with typical IT service engagements. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services'. 6. The award was made by the Defense Logistics Agency, a key procurement arm of the DoD.

Value Assessment

Rating: good

The contract value of approximately $12 million over three years for IT services is within a reasonable range for similar government contracts. The firm fixed-price structure provides cost predictability. Benchmarking against other 'Other Computer Related Services' contracts awarded by the Defense Logistics Agency or similar DoD entities would offer further insight into value for money, but initial assessment suggests fair pricing given the duration and scope.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Defense Logistics Agency's use of this procurement method suggests a commitment to maximizing competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages a wider pool of contractors to offer their services, potentially leading to innovation and better value.

Public Impact

The Department of Defense benefits from enhanced IT services, crucial for operational efficiency and national security. The contract supports the Defense Logistics Agency's mission to provide logistical support to the U.S. Armed Forces. IT professionals in Ohio may see employment opportunities or continued engagement through this contract. The services delivered are expected to maintain and improve the IT infrastructure supporting defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the quality of services.
The duration of the contract (3 years) could lead to vendor lock-in if not managed carefully.
No information is available on potential cybersecurity risks associated with the contractor or the services provided.

Positive Signals

The use of firm fixed-price contract type provides cost certainty and reduces financial risk for the government.
Awarding under full and open competition suggests a robust and fair selection process.
The contractor, RGBSI Aerospace & Defense LLC, is operating within the defense sector, implying relevant experience.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. Contracts like this, under NAICS code 541519, are common and essential for maintaining the technological backbone of agencies. The Defense Logistics Agency, as a major procurer, consistently invests in IT services to support its complex global operations. Spending in this category is benchmarked against numerous similar contracts awarded across various defense agencies.

Small Business Impact

The provided data indicates that 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 set-aside requirement. However, the prime contractor, RGBSI Aerospace & Defense LLC, may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Defense Logistics Agency. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Computer Systems Support
Federal IT Services Procurement
NAICS 541519 IT Services Contracts

Risk Flags

Lack of detailed performance metrics
Limited information on competition specifics (number of bidders)
No data on cybersecurity provisions or contractor vetting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to RGBSI AEROSPACE & DEFENSE LLC. DLIR SCM BAA0002-21 - TDMT

Who is the contractor on this award?

The obligated recipient is RGBSI AEROSPACE & DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the track record of RGBSI Aerospace & Defense LLC with the federal government, particularly in IT services?

Assessing the track record of RGBSI Aerospace & Defense LLC requires a review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. While this specific contract is for 'Other Computer Related Services,' their broader experience in aerospace and defense suggests a potential familiarity with government contracting environments. A deeper dive into their contract history would reveal the types of services previously rendered, their performance ratings, and their overall reliability as a federal contractor. Without access to detailed performance data or a comprehensive contract history database, it's challenging to provide a definitive assessment of their track record beyond the information presented in this single award.

How does the $12 million contract value compare to similar IT services contracts awarded by the Defense Logistics Agency?

To benchmark the $12 million contract value, one would compare it against similar 'Other Computer Related Services' (NAICS 541519) contracts awarded by the Defense Logistics Agency (DLA) or other Department of Defense (DoD) entities over a comparable timeframe (e.g., 3-year duration). Factors such as the specific services required, the level of technical expertise, security requirements, and the number of end-users supported would influence pricing. If DLA has awarded numerous contracts in the $3-5 million per year range for similar IT support, then this $12 million contract, averaging $4 million annually, appears to be within a reasonable market range. Conversely, if comparable contracts are significantly lower, it might warrant further scrutiny regarding scope or pricing efficiency.

What are the primary risks associated with this firm fixed-price contract for IT services?

The primary risks associated with this firm fixed-price (FFP) contract for IT services, while offering cost certainty, revolve around potential scope creep and contractor performance. If the scope of work is not clearly defined or if unforeseen technical challenges arise, the contractor may be incentivized to cut corners on quality to maintain profitability, or the government may need to issue modifications, potentially increasing costs. Another risk is that the FFP structure might disincentivize the contractor from proactively suggesting cost-saving innovations if they are not explicitly compensated. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks and ensure the government receives the intended value.

What is the expected effectiveness of the IT services provided under this contract for the Defense Logistics Agency?

The expected effectiveness of the IT services hinges on the specific tasks outlined in the Statement of Work (SOW), which is not detailed here. However, given the contract is with the Defense Logistics Agency (DLA), the services likely aim to support the DLA's mission-critical logistics operations. This could include maintaining IT infrastructure, providing help desk support, managing networks, or implementing software solutions. Effectiveness will be measured by the contractor's ability to meet performance standards, ensure system uptime, resolve technical issues promptly, and contribute to the overall efficiency and security of DLA's IT environment. Positive performance indicators would include seamless system operations and user satisfaction.

How has the Defense Logistics Agency's spending on 'Other Computer Related Services' evolved over the past five years?

Analyzing the historical spending patterns of the Defense Logistics Agency (DLA) on 'Other Computer Related Services' (NAICS 541519) over the past five years would provide context for this $12 million award. This would involve examining annual spending data for this specific NAICS code. Trends might reveal an increasing, decreasing, or stable demand for such services. For instance, if DLA's spending in this category has been consistently around $10-15 million annually, this new contract aligns with historical patterns. If spending has recently surged, it might indicate new initiatives or increased reliance on external IT support. Conversely, a declining trend could suggest a shift towards in-house capabilities or reduced IT needs.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP470120B0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2850 PRESIDENTIAL DR STE 120, FAIRBORN, OH, 45324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $12,064,653

Exercised Options: $12,064,653

Current Obligation: $12,064,653

Actual Outlays: $597,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline