DoD's $27M IT Services Contract Awarded to Information Technology Strategies, Inc. for 1100 Days

Contract Overview

Contract Amount: $26,988,921 ($27.0M)

Contractor: Information Technology Strategies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2025-09-30

Contract Duration: 1,100 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8509426529!TASK 5

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to INFORMATION TECHNOLOGY STRATEGIES, INC. for work described as: 8509426529!TASK 5 Key points: 1. Contract value appears reasonable given the duration and scope of IT services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include contractor performance over the extended period and evolving IT needs. 4. This contract supports critical IT infrastructure for the Defense Logistics Agency. 5. The award falls within the broad 'Other Computer Related Services' category. 6. Fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's total value of approximately $27 million over 1100 days (roughly 3 years) suggests an average annual value of around $9 million. Benchmarking against similar IT services contracts within the Department of Defense requires detailed analysis of scope and deliverables. However, the firm fixed-price structure indicates that the contractor assumes the risk of cost overruns, which can be a positive indicator of value if the contractor successfully manages costs within the agreed price. The award amount seems within a plausible range for comprehensive IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 117 bids received, this suggests a robust and competitive bidding environment. A high number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government. The extensive competition likely drove down prices and encouraged innovation among the offerors.

Taxpayer Impact: The broad competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution and ensured the government received competitive pricing for essential IT services.

Public Impact

The primary beneficiaries are the personnel and operations of the Defense Logistics Agency, who will receive enhanced IT support. Services delivered include a range of IT support functions, likely encompassing network management, system maintenance, and potentially software development or support. The geographic impact is centered around the Defense Logistics Agency's operational locations, primarily in Virginia. Workforce implications may include the need for skilled IT professionals within Information Technology Strategies, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring continued relevance of IT solutions over the contract's multi-year duration.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Extensive competition (117 bids) suggests a strong market offering and potentially competitive pricing.
Award to a single contractor for a defined period can lead to specialized expertise and efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services' (NAICS 541519). The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks for IT support services can vary widely based on the specific services, duration, and agency. However, contracts of this magnitude are common within large federal agencies like the Department of Defense, which consistently invests heavily in IT to support its global operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, Information Technology Strategies, Inc. may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet performance standards within budget. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Information Technology Contracts
Federal IT Services Procurement
Other Computer Related Services Contracts

Risk Flags

Contract Duration
Contractor Performance History
Scope Definition
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to INFORMATION TECHNOLOGY STRATEGIES, INC.. 8509426529!TASK 5

Who is the contractor on this award?

The obligated recipient is INFORMATION TECHNOLOGY STRATEGIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-09-30.

What is the track record of Information Technology Strategies, Inc. with the federal government, particularly in IT services?

A comprehensive review of Information Technology Strategies, Inc.'s federal contracting history would be necessary to fully assess their track record. This would involve examining past performance evaluations, any prior contract awards, and their history of meeting delivery schedules and quality standards. Databases like the Federal Procurement Data System (FPDS) and the Contractor Performance Assessment Reporting System (CPARS) are crucial resources for this analysis. Understanding their experience with similar IT services, contract values, and agency types can provide significant insight into their capability to successfully execute this current $27 million award over its 1100-day duration.

How does the awarded price of $27 million compare to similar IT services contracts awarded by the DoD or other federal agencies?

Benchmarking this $27 million contract requires a detailed comparison with other firm fixed-price contracts for 'Other Computer Related Services' (NAICS 541519) awarded by the Department of Defense or similar large federal agencies over the past few years. Key comparison factors include contract duration (1100 days), specific service deliverables, geographic location, and the number of bidders. If similar contracts with comparable scope and duration were awarded at significantly lower or higher price points, it could indicate potential overpricing or exceptional value. The high number of bids (117) suggests a competitive market, which generally pushes prices towards market rates.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential contractor underperformance, technological obsolescence over the contract's three-year term, and the possibility of scope creep if requirements are not tightly managed. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature shifts cost overrun risk to the contractor. The extensive competition suggests a pool of capable vendors, reducing the risk of selecting an underqualified provider. Robust government oversight, clear performance metrics, and defined change control processes are crucial for managing performance and scope risks throughout the contract lifecycle.

How effective is the Defense Logistics Agency in managing IT service contracts of this scale and complexity?

Assessing the effectiveness of the Defense Logistics Agency (DLA) in managing IT service contracts requires an analysis of their historical contract performance data, including metrics on contract modifications, on-time delivery rates, and user satisfaction with IT services. DLA's significant role in logistics and supply chain management necessitates robust IT infrastructure, suggesting they have established processes for managing such contracts. However, the complexity of federal IT procurement means that effectiveness can vary. Examining specific oversight mechanisms, the experience of their contracting and program management teams, and any past issues with IT contracts would provide a clearer picture of their management capabilities.

What has been the historical spending trend for 'Other Computer Related Services' by the Defense Logistics Agency?

Analyzing historical spending trends for 'Other Computer Related Services' (NAICS 541519) by the Defense Logistics Agency (DLA) is essential for context. This involves examining FPDS data over several fiscal years to identify the total amount spent in this category, the number and value of contracts awarded, and the primary contractors. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate shifts in DLA's IT needs and procurement strategies. This trend analysis helps determine if the current $27 million award is an outlier, a continuation of established spending patterns, or part of a larger strategic investment in IT 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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470922Q1029

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23392 SUMMERSTOWN PL, DULLES, VA, 20166

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,726,267

Exercised Options: $32,171,783

Current Obligation: $26,988,921

Actual Outlays: $7,017,660

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0054

IDV Type: IDC

Timeline