DoD's $11.5M JETS System Sustainment Contract Awarded to Diverse Business Systems Inc

Contract Overview

Contract Amount: $11,527,217 ($11.5M)

Contractor: Diverse Business Systems Inc

Awarding Agency: Department of Defense

Start Date: 2022-10-25

End Date: 2026-04-24

Contract Duration: 1,277 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8509335895!JETS SYSTEM SUSTAINMENT/MAIN - STORES CTA PARTNER

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to DIVERSE BUSINESS SYSTEMS INC for work described as: 8509335895!JETS SYSTEM SUSTAINMENT/MAIN - STORES CTA PARTNER Key points: 1. Contract focuses on critical IT system sustainment, indicating a need for ongoing support. 2. The award was made under full and open competition, suggesting a robust market. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration extends over multiple years, implying a long-term requirement. 5. The contractor, Diverse Business Systems Inc., has secured this significant award. 6. The service category is 'Other Computer Related Services', a broad IT function.

Value Assessment

Rating: good

Benchmarking the value of this $11.5 million contract for IT system sustainment requires more granular data on the specific services provided. However, the firm-fixed-price structure is a positive indicator for cost control. Comparing this to similar multi-year sustainment contracts within the Department of Defense would offer a clearer picture of its value proposition. Without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a reasonable market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The high number of bids (117) indicates a healthy and competitive market for these IT system sustainment services. This level of competition is generally favorable for price discovery, as it encourages bidders to offer competitive pricing to win the contract. The agency received a substantial number of proposals, suggesting broad industry interest and capability.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically drives down costs and ensures the government receives services at a fair market price. The extensive competition suggests that the selected contractor's pricing is likely well-aligned with market rates.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on the JETS system for operational efficiency. The contract delivers essential sustainment and maintenance services for a critical IT system. The geographic impact is likely within the operational areas of the Department of Defense, potentially global. Workforce implications include the potential for skilled IT professionals employed by the contractor and potentially within the agency to support the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if sustainment requirements are not clearly defined and managed.
Dependence on a single contractor for critical system sustainment could pose a risk if performance falters.
Ensuring continued technological relevance and upgrades within the sustainment contract can be challenging.

Positive Signals

Firm-fixed-price contract type helps mitigate cost overruns.
Awarded under full and open competition with a high number of bidders, indicating strong market interest and likely competitive pricing.
Long contract duration suggests a stable, ongoing need for these services, allowing for focused expertise development.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under 'Other Computer Related Services,' a broad category encompassing IT support, maintenance, and sustainment. The market for such services is substantial, with significant government spending allocated annually. Comparable spending benchmarks would involve analyzing other large-scale IT sustainment contracts awarded by defense agencies, which often run into millions or billions of dollars over their lifecycle.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific contract, as 'sb' is false. However, the large number of bidders in a full and open competition could still present subcontracting opportunities for small businesses if the prime contractor utilizes them. The impact on the broader small business ecosystem depends on whether Diverse Business Systems Inc. actively seeks small business partners for specialized services or support.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the Department of Defense (DoD) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency IT Support Contracts
Department of Defense JETS Program
Federal Civilian IT Sustainment Services
Other Computer Related Services Contracts
Firm Fixed Price IT Service Agreements

Risk Flags

Potential for vendor lock-in due to specialized system knowledge.
Risk of performance degradation over the contract lifecycle.
Dependence on contractor's cybersecurity practices for system integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to DIVERSE BUSINESS SYSTEMS INC. 8509335895!JETS SYSTEM SUSTAINMENT/MAIN - STORES CTA PARTNER

Who is the contractor on this award?

The obligated recipient is DIVERSE BUSINESS 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 $11.5 million.

What is the period of performance?

Start: 2022-10-25. End: 2026-04-24.

What is the specific nature of the 'JETS System' being sustained under this contract?

The 'JETS System' likely refers to a Joint Enterprise Technology Services or a similar enterprise-level IT system critical for the Department of Defense's operations. Without further classification, it's difficult to pinpoint the exact system. However, sustainment typically involves maintaining the operational readiness, security, and functionality of the system. This can include software updates, hardware maintenance, bug fixes, user support, and ensuring compatibility with evolving technological landscapes. The 'Stores CTA Partner' designation might indicate a role in managing or supporting the system's data storage or communication capabilities.

How does the $11.5 million contract value compare to historical spending on similar IT sustainment services within the DoD?

Comparing the $11.5 million value requires context on the scope and duration of 'similar' contracts. For a multi-year sustainment effort for a critical system, this figure appears moderate. Large-scale enterprise IT sustainment contracts within the DoD can range from tens of millions to billions of dollars over their lifespan. The 'JETS System Sustainment/Main - Stores CTA Partner' contract, with an estimated duration of approximately 1.5 years (from Oct 2022 to Apr 2026), suggests an annual spend of roughly $7.6 million. This is within the expected range for specialized IT sustainment, but a direct comparison would need to match system criticality, user base size, and service complexity.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not publicly detailed in the provided data. However, for IT system sustainment contracts, common KPIs often include system uptime percentages, response times for issue resolution, patch deployment timeliness, security vulnerability remediation rates, and user satisfaction scores. The firm-fixed-price nature of the contract implies that Diverse Business Systems Inc. is obligated to meet certain performance standards to receive full payment. The contracting agency (likely DLA or a specific DoD component) would monitor these metrics to ensure contract compliance and system effectiveness.

What is the track record of Diverse Business Systems Inc. in performing similar IT sustainment contracts for the federal government?

Assessing the track record of Diverse Business Systems Inc. requires a review of their past performance on federal contracts. While the award of this $11.5 million contract suggests they possess the capability and were deemed competitive, their history with similar IT sustainment efforts is crucial. Federal procurement systems often include past performance evaluations as a significant factor in award decisions. A deeper dive into contract databases like SAM.gov or FPDS would reveal previous awards, contract values, and potentially performance ratings for Diverse Business Systems Inc. to ascertain their experience level in this specific domain.

What are the potential risks associated with relying on Diverse Business Systems Inc. for the sustainment of the JETS system?

Potential risks associated with relying on Diverse Business Systems Inc. include performance deficiencies, such as failing to meet uptime requirements or resolve issues promptly. Financial instability of the contractor could also pose a risk, potentially impacting service continuity. Furthermore, if the contractor fails to keep pace with technological advancements or security best practices relevant to the JETS system, it could lead to obsolescence or vulnerabilities. The concentration of sustainment responsibility with one entity also presents a risk if key personnel depart or if the contractor faces unforeseen operational challenges.

How does the 'Other Computer Related Services' NAICS code (541519) encompass the scope of this sustainment contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that appropriately covers the sustainment of an IT system like JETS. This code includes services such as IT support, network management, disaster recovery services, and IT system maintenance and repair that are not classified under more specific codes like custom software development (541511) or computer facilities management (541512). System sustainment inherently involves a mix of these activities – ensuring the system remains operational, secure, and functional through ongoing maintenance, updates, and troubleshooting, all falling under the umbrella of 'Other Computer Related Services'.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470922Q1017

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7590 PARAGON RD STE 200, DAYTON, OH, 45459

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,527,217

Exercised Options: $11,527,217

Current Obligation: $11,527,217

Actual Outlays: $2,493,867

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0072

IDV Type: IDC

Timeline