DoD's $24.3M IT Sustainment Contract Awarded to Horizon Industries, Limited

Contract Overview

Contract Amount: $24,303,181 ($24.3M)

Contractor: Horizon Industries, Limited

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8509392214 - LCDS FLIS INFORMATION TECHNOLOGY SUSTAINMENT SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to HORIZON INDUSTRIES, LIMITED for work described as: 8509392214 - LCDS FLIS INFORMATION TECHNOLOGY SUSTAINMENT SUPPORT Key points: 1. Contract awarded for IT sustainment support. 2. Horizon Industries, Limited is the sole awardee. 3. Full and open competition was utilized. 4. The contract has a duration of 1095 days. 5. The award is for Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $24.3 million over three years suggests a reasonable price for IT sustainment services. Benchmarking against similar IT support contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for price discovery and selection. This method generally leads to competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Ensures continued IT support for critical defense logistics. Supports operational readiness within the Department of Defense. Provides essential services for the Defense Logistics Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Full and open competition utilized
  • Firm Fixed Price contract type
  • Long-term sustainment support

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. IT sustainment is crucial for maintaining operational capabilities within government agencies, with spending varying based on agency needs and technological complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The use of full and open competition suggests a structured procurement process. Oversight would focus on performance monitoring and adherence to contract terms by Horizon Industries, Limited.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Potential for vendor lock-in
  • Reliance on a single provider for critical IT systems
  • Lack of small business participation noted

Tags

other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to HORIZON INDUSTRIES, LIMITED. 8509392214 - LCDS FLIS INFORMATION TECHNOLOGY SUSTAINMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is HORIZON INDUSTRIES, LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-09-29.

What specific IT sustainment services are included in this contract?

The contract description 'LCDS FLIS INFORMATION TECHNOLOGY SUSTAINMENT SUPPORT' implies a broad range of services related to maintaining and supporting the Logistics Common Data System (LCDS) and the Federal Logistics Information System (FLIS). This could encompass software maintenance, hardware support, system upgrades, cybersecurity, and help desk services to ensure the continuous operation of these critical defense IT systems.

What are the potential risks associated with relying on a single vendor for IT sustainment?

Relying on a single vendor like Horizon Industries, Limited, for IT sustainment carries risks such as vendor lock-in, potential price increases upon contract renewal, and a lack of competitive pressure to innovate or improve service quality. If the vendor experiences financial difficulties or operational issues, it could disrupt critical defense logistics IT systems.

How effectively does this contract support the Defense Logistics Agency's mission?

This contract is designed to directly support the Defense Logistics Agency's (DLA) mission by ensuring the reliable operation of essential IT systems like LCDS and FLIS. Effective sustainment of these systems is crucial for DLA's ability to manage and distribute logistics information, impacting readiness and operational efficiency across the Department of Defense.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470922Q1016

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8245 BOONE BLVD STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,758,545

Exercised Options: $24,303,181

Current Obligation: $24,303,181

Actual Outlays: $8,473,979

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0028

IDV Type: IDC

Timeline

Start Date: 2022-09-30

Current End Date: 2025-09-29

Potential End Date: 2025-09-29 00:00:00

Last Modified: 2025-04-26

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