DoD's $33.5M JETS Network contract awarded to Plateau Software, Inc. for IT services

Contract Overview

Contract Amount: $33,553,818 ($33.6M)

Contractor: Plateau Software, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-03

End Date: 2024-11-13

Contract Duration: 1,290 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8508170271!JETS NETWORK/TELECOMMUNICATIO

Place of Performance

Location: ISSAQUAH, KING County, WASHINGTON, 98029

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to PLATEAU SOFTWARE, INC. for work described as: 8508170271!JETS NETWORK/TELECOMMUNICATIO Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1290 days indicates a significant, long-term need for these services. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The award was a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded to a single contractor, Plateau Software, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this $33.5 million contract is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure is a positive indicator for cost control. However, the absence of detailed cost breakdowns or comparisons to similar IT service contracts makes a definitive value assessment difficult. Further analysis would require understanding the specific services rendered and their market rates.

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 a bid. The fact that it resulted in a single award suggests that Plateau Software, Inc. was the most advantageous offer based on the evaluation criteria. The number of bids received is not specified, which limits the assessment of the intensity of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential solutions and contractors.

Public Impact

The Department of Defense benefits from enhanced telecommunications and IT services through this contract. The contract supports critical IT infrastructure and network operations within the Defense Logistics Agency. The geographic impact is primarily within Washington, where the contract was awarded. The contract likely supports a workforce of IT professionals and technicians involved in network management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor performance and value.
The specific nature of 'Other Computer Related Services' is broad and could encompass a wide range of activities, making oversight challenging.
Limited information on the competitive landscape beyond 'full and open' prevents a deep dive into price discovery.

Positive Signals

Awarded under a firm-fixed-price contract, which helps in budget predictability.
The contract was awarded through full and open competition, indicating a structured procurement process.
The contract duration suggests a stable and ongoing requirement, implying a recognized need for the services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with government contracts often representing a significant portion of revenue for many firms. Comparable spending benchmarks would depend on the specific IT services provided, such as network management, telecommunications support, or system integration, which are crucial for defense operations.

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 for small businesses stemming from a set-aside requirement. However, the prime contractor, Plateau Software, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, but this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Defense Logistics Agency. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

JETS Network
Defense Logistics Agency IT Services
Department of Defense Telecommunications Contracts
IT Professional Services Contracts

Risk Flags

Potential for vendor lock-in due to single award.
Broad NAICS code may obscure specific service risks.
Limited transparency on competitive bids received.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to PLATEAU SOFTWARE, INC.. 8508170271!JETS NETWORK/TELECOMMUNICATIO

Who is the contractor on this award?

The obligated recipient is PLATEAU SOFTWARE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2021-05-03. End: 2024-11-13.

What specific IT services are included under the 'Other Computer Related Services' NAICS code for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide array of IT services not classified under other specific codes. For this Department of Defense contract, these services likely include, but are not limited to, IT infrastructure management, network operations and maintenance, telecommunications support, cybersecurity services, IT consulting, and potentially software support or integration. The specific details would be outlined in the contract's Statement of Work (SOW), which is not provided here. Without the SOW, it's difficult to pinpoint the exact nature of the services, but they are critical for maintaining the operational readiness of defense networks.

How does Plateau Software, Inc.'s track record compare for similar government contracts?

Assessing Plateau Software, Inc.'s track record requires access to historical contract data, including past performance evaluations and any documented issues or successes on previous government awards. Publicly available data, such as the Federal Procurement Data System (FPDS), can provide insights into the types and values of contracts awarded to the company. A thorough review would involve examining the number of contracts awarded, their duration, the agencies involved, and any reported performance ratings. Without this specific historical data, it is impossible to definitively compare their track record for similar contracts. However, being awarded a $33.5 million contract by the Defense Logistics Agency suggests a level of capability and reliability deemed sufficient for this significant requirement.

What is the benchmark for 'Other Computer Related Services' for a contract of this size and duration?

Establishing a precise benchmark for 'Other Computer Related Services' at $33.5 million over approximately 3.6 years (1290 days) is complex due to the broad nature of the NAICS code and the specialized needs of the Department of Defense. General IT services benchmarks might suggest that pricing should be competitive, especially given the firm-fixed-price award type. However, defense-specific requirements often involve higher security, compliance, and operational uptime standards, which can justify higher costs compared to commercial IT services. A true benchmark would require comparing the specific deliverables, service level agreements (SLAs), and labor categories against similar, recently awarded DoD contracts for comparable services, factoring in geographic location and security clearances.

What are the potential risks associated with a single award contract for critical IT services?

A single award contract, even if competed fully and openly, carries inherent risks. The primary risk is vendor lock-in, where the government becomes heavily reliant on one provider, potentially reducing leverage in future negotiations and limiting access to alternative solutions. If the contractor underperforms, experiences financial instability, or faces other operational issues, it could significantly disrupt critical IT services, impacting national security operations. Furthermore, a lack of ongoing competition can sometimes lead to complacency or less incentive for the contractor to innovate or offer the most cost-effective solutions over the contract's life. Robust oversight and clear performance metrics are crucial to mitigate these risks.

How does the $33.5 million award compare to historical spending on similar IT services by the Defense Logistics Agency?

To compare this $33.5 million award to historical spending, one would need to analyze past DLA contracts within the 541519 NAICS code or similar IT service categories. This analysis should consider the contract duration, scope of work, and inflation over time. If the DLA has consistently awarded contracts in this range for similar services, it suggests this award is in line with historical patterns. Conversely, if this amount represents a significant increase or decrease, it might indicate a shift in requirements, market pricing, or procurement strategy. Without access to DLA's historical procurement data for IT services, a precise comparison cannot be made, but the award size suggests a substantial and ongoing need.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4580 KLAHANIE DR SE, ISSAQUAH, WA, 98029

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,893,256

Exercised Options: $33,893,256

Current Obligation: $33,553,818

Actual Outlays: $3,197,621

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0012

IDV Type: IDC

Timeline