DoD's $29.4M IT Services Contract Awarded to New River Systems Corporation for Defense Logistics Agency

Contract Overview

Contract Amount: $29,359,556 ($29.4M)

Contractor: NEW River Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2025-04-03

Contract Duration: 1,098 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8508963835!TASK 2

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to NEW RIVER SYSTEMS CORPORATION for work described as: 8508963835!TASK 2 Key points: 1. Contract value represents a significant investment in IT support for a key defense agency. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration of nearly three years indicates a need for sustained IT services. 5. The specific NAICS code points to specialized computer-related services within the IT sector. 6. This award is part of broader DoD efforts to modernize and maintain its IT infrastructure.

Value Assessment

Rating: good

The contract's value of $29.4 million over approximately three years suggests a moderate per-year spend for IT services. Benchmarking against similar IT support contracts within the Department of Defense is crucial for a definitive value assessment. However, the firm fixed-price structure is a positive indicator for cost control. Without specific deliverables or service level agreements, a precise value-for-money judgment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The high number of bids received (117) suggests a competitive marketplace for these IT services. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive award process like this one is beneficial for taxpayers as it helps ensure that the government is obtaining services at a fair market price, preventing potential overspending.

Public Impact

The primary beneficiary is the Defense Logistics Agency (DLA), which will receive essential IT support services. Services delivered likely include IT system maintenance, support, and potentially development or integration. The geographic impact is centered around DLA operations, likely within the United States. Workforce implications may include the direct employment of IT professionals by New River Systems Corporation and potential indirect impacts on DLA's internal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring continued alignment with evolving DoD cybersecurity standards will be important.

Positive Signals

Firm fixed-price contract helps manage cost uncertainty.
Full and open competition suggests a strong market offering competitive pricing.
Longer contract duration allows for stability and deep integration of services.
Award to an established entity like New River Systems Corporation may indicate a track record of performance.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from basic network maintenance to advanced cybersecurity and software development. The Department of Defense, in particular, relies heavily on sophisticated IT infrastructure to maintain its global operations. This contract, falling under 'Other Computer Related Services,' likely supports specialized IT functions that are essential for the DLA's mission. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but the overall IT spending by the DoD runs into billions annually.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to New River Systems Corporation, a company that may or may not be classified as a small business, does not automatically imply a focus on the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency's contracting officers. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet defined deliverables within budget. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

DoD IT Modernization Programs
Defense Logistics Agency IT Support Services
Federal IT Services Procurement
Information Technology Professional Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of vendor lock-in if transition planning is inadequate.
Cybersecurity vulnerabilities if not proactively addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to NEW RIVER SYSTEMS CORPORATION. 8508963835!TASK 2

Who is the contractor on this award?

The obligated recipient is NEW RIVER SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2025-04-03.

What is the historical spending pattern of the Defense Logistics Agency on similar IT services, and how does this award compare?

Analyzing the Defense Logistics Agency's historical spending on IT services requires accessing detailed procurement data over several fiscal years. Typically, agencies like the DLA award numerous contracts for various IT functions, including hardware, software, network management, and specialized services. This $29.4 million contract for 'Other Computer Related Services' represents a significant, but not necessarily unprecedented, investment. To compare, one would look for contracts with similar NAICS codes (541519) and service descriptions awarded by the DLA in previous years. Factors like contract duration, number of bidders, and final award value relative to the initial solicitation are key comparison points. Without access to the DLA's full procurement history for this specific service category, a precise comparison is difficult, but the current award's value suggests a substantial need for these particular IT capabilities.

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 broad and encompasses a range of IT services not classified under more specific categories like custom software development (541511) or computer systems design (541512). For this specific contract with New River Systems Corporation, the 'Other Computer Related Services' likely includes activities such as IT support and help desk services, network monitoring and management, IT infrastructure maintenance, data recovery services, IT consulting not tied to system design, and potentially specialized IT training or technical support. The Defense Logistics Agency's specific requirements would dictate the precise mix of services. A review of the contract's statement of work (SOW) or performance work statement (PWS), if publicly available, would provide the definitive details on the scope of services.

How does the number of bidders (117) impact the perceived value for money in this contract?

A high number of bidders, such as the 117 received for this contract, is generally a strong positive indicator for value for money. It suggests that the market for these 'Other Computer Related Services' is robust and that many companies were interested and capable of fulfilling the DLA's requirements. This level of competition typically drives down prices as contractors vie for the award. It also increases the likelihood that the government selected a bid that represents a fair market price and offers strong technical capabilities. While a high number of bidders doesn't guarantee the absolute lowest price, it significantly enhances the probability that the government achieved a competitive outcome and is receiving good value.

What are the potential risks associated with a firm fixed-price contract of this duration (nearly 3 years)?

Firm fixed-price (FFP) contracts are designed to provide cost certainty for the government, shifting most of the cost risk to the contractor. For a contract of this duration (1098 days, approximately 3 years), the primary risks revolve around the contractor's ability to accurately estimate costs over the long term and manage performance effectively. If the contractor underestimated costs or encountered unforeseen challenges (e.g., rising labor costs, unexpected technical hurdles), they could face reduced profit margins or even losses. Conversely, if the DLA's requirements change significantly during the contract period, managing those changes under an FFP structure can be complex and may require contract modifications, potentially impacting the initial cost certainty. However, the FFP structure strongly incentivizes the contractor to control costs and deliver efficiently.

What is New River Systems Corporation's track record with the Department of Defense or similar agencies?

New River Systems Corporation (NRS) has a history of contracting with the U.S. government, including the Department of Defense. Information available through federal procurement databases often shows past performance awards and contract vehicles. To assess their track record specifically for IT services similar to those required by the DLA, one would examine past contracts awarded to NRS, focusing on performance reviews, any reported issues, and the types of services rendered. Companies that consistently win and successfully execute DoD contracts generally possess a demonstrated ability to meet stringent requirements, navigate complex procurement processes, and deliver reliable services. A deeper dive into NRS's contract history, including any past performance evaluations or awards, would provide a more comprehensive understanding of their suitability for this role.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470922Q1007

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19775 BELMONT EXECUTIVE PLZ STE 305, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $29,359,556

Exercised Options: $29,359,556

Current Obligation: $29,359,556

Actual Outlays: $10,806,108

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0002

IDV Type: IDC

Timeline