DoD's $12.8M ADP Systems Development contract awarded to Dynamic Systems Inc. for IT services

Contract Overview

Contract Amount: $12,884,253 ($12.9M)

Contractor: Dynamic Systems Inc

Awarding Agency: Department of Defense

Start Date: 2023-08-10

End Date: 2026-08-14

Contract Duration: 1,100 days

Daily Burn Rate: $11.7K/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: 8510059788!ADP SYSTEMS DEVELOPMENT SERVI

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to DYNAMIC SYSTEMS INC for work described as: 8510059788!ADP SYSTEMS DEVELOPMENT SERVI Key points: 1. Contract value appears reasonable given the scope of IT systems development. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include contractor performance and adherence to delivery schedules. 4. This contract supports critical IT infrastructure for the Defense Logistics Agency. 5. The IT services sector is characterized by rapid technological change and high demand. 6. Contract type is Firm Fixed Price, shifting cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $12.8 million for ADP systems development over approximately three years is within a reasonable range for complex IT projects. Benchmarking against similar government IT development contracts, this award appears to be competitive. The firm-fixed-price structure further indicates that the government has secured a defined cost for the services, which is a positive indicator of value for money, assuming the contractor can deliver as specified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. Seven offers were received, demonstrating significant interest and a healthy level of competition. This broad competition is expected to drive competitive pricing and ensure the government selects a contractor offering the best value.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It also ensures that government funds are being used efficiently by selecting from a wide pool of qualified vendors.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the enhanced ADP systems. Services delivered include the development and maintenance of critical automated data processing systems. The geographic impact is likely focused on Department of Defense installations where these systems are deployed. Workforce implications may include the need for specialized IT personnel within the Defense Logistics Agency to manage and integrate the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT development projects.
Dependence on contractor's ability to meet evolving technological requirements.
Risk of delays impacting critical defense logistics operations.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
Full and open competition suggests a strong pool of qualified bidders.
Contract awarded to a company with experience in IT services.

Sector Analysis

The IT services sector is a large and dynamic market within federal procurement, encompassing a wide range of services from software development to cybersecurity. This contract for ADP systems development fits within the broader category of IT modernization efforts across government agencies. Comparable spending benchmarks for similar IT development projects vary widely based on complexity and duration, but this award appears to be of moderate size within the sector.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Dynamic Systems Inc., is not identified as a small business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The lack of a small business set-aside means that opportunities for small business participation in this specific contract are not guaranteed and would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will be managed by the Defense Logistics Agency, likely through contracting officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are typically internal.

Related Government Programs

Defense Logistics Agency IT Modernization Programs
Department of Defense Information Technology Services
Federal ADP Systems Development Contracts
IT Services for Logistics and Supply Chain Management

Risk Flags

Potential for contractor performance issues.
Risk of schedule delays impacting critical operations.
Complexity of IT systems development can lead to cost overruns if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to DYNAMIC SYSTEMS INC. 8510059788!ADP SYSTEMS DEVELOPMENT SERVI

Who is the contractor on this award?

The obligated recipient is DYNAMIC SYSTEMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2023-08-10. End: 2026-08-14.

What is the track record of Dynamic Systems Inc. in performing similar federal IT development contracts?

Dynamic Systems Inc. has a history of performing IT services for the federal government. While specific details on past ADP systems development projects are not provided in this data snippet, their award by the Defense Logistics Agency suggests a level of capability and past performance deemed sufficient for this contract. Further analysis would require examining their contract history, past performance reviews, and any reported issues on previous federal awards to fully assess their track record in delivering complex IT solutions on time and within budget.

How does the $12.8 million contract value compare to similar IT development contracts awarded by the DoD?

The $12.8 million contract value for ADP systems development is a moderate-sized award within the Department of Defense's IT procurement landscape. The DoD awards a vast number of IT contracts annually, ranging from small, specialized services to multi-billion dollar enterprise-wide solutions. To provide a precise comparison, one would need to analyze contracts with similar scopes (e.g., custom software development, system integration, database management) and durations (approximately three years) awarded by the DoD or other large federal agencies. However, based on general market knowledge, this value suggests a significant but not exceptionally large project, likely focused on a specific system or set of systems rather than a complete enterprise overhaul.

What are the primary risks associated with this firm-fixed-price contract for ADP systems development?

The primary risks associated with this firm-fixed-price (FFP) contract for ADP systems development, despite its cost control benefits for the government, lie in potential contractor underperformance or unforeseen technical challenges. If Dynamic Systems Inc. underestimates the complexity of the development, encounters significant technical hurdles, or faces resource constraints, they may struggle to deliver the required system within the agreed-upon price and timeline. This could lead to delays, reduced quality, or even contractor default. The government's recourse in an FFP contract is limited once the price is set, making thorough initial requirements definition and ongoing oversight crucial to mitigate these risks and ensure successful project completion.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT services?

The 'full and open competition after exclusion of sources' method is generally considered highly effective in ensuring competitive pricing for IT services. This approach allows all responsible sources to submit a bid, maximizing the pool of potential offerors. By excluding specific sources, it can sometimes streamline the process or target specific capabilities, but the core principle of broad competition remains. Receiving seven offers, as indicated in this case, demonstrates that the method successfully attracted a significant number of bidders. This level of competition typically drives down prices as contractors vie to win the award, leading to better value for the government and, by extension, taxpayers. It also encourages innovation and efficiency as companies seek to differentiate themselves.

What are the historical spending patterns for ADP systems development within the Defense Logistics Agency?

Historical spending patterns for ADP systems development within the Defense Logistics Agency (DLA) would reveal trends in their investment in IT infrastructure and modernization. Analyzing past DLA contracts for similar services would indicate whether this $12.8 million award represents an increase, decrease, or consistent level of spending in this area. It could also highlight shifts in technology focus, such as a move towards cloud-based solutions, cybersecurity enhancements, or specific types of system upgrades. Understanding these patterns is crucial for assessing the strategic importance of this current contract within the DLA's overall IT budget and long-term technology roadmap.

Industry Classification

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

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

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

Parent Company: Dynamic Systems, Inc.

Address: 880 N PARK VIEW DR, EL SEGUNDO, CA, 90245

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

Financial Breakdown

Contract Ceiling: $12,884,253

Exercised Options: $12,884,253

Current Obligation: $12,884,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC69B

IDV Type: GWAC

Timeline