DoD's $18.5M IT contract to Information Technology Strategies, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $18,540,299 ($18.5M)

Contractor: Information Technology Strategies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-01

End Date: 2025-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8509470369!TASK 3

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to INFORMATION TECHNOLOGY STRATEGIES, INC. for work described as: 8509470369!TASK 3 Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support within the Defense Logistics Agency. 2. The contract duration of 1095 days suggests a medium-term requirement for sustained IT support. 3. Awarded under firm-fixed-price terms, which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract's value of $18.5 million positions it as a significant, but not exceptionally large, IT procurement. 6. Virginia is the state of performance, a common hub for federal IT contracting.

Value Assessment

Rating: good

The contract value of $18.5 million for a 3-year period appears reasonable for IT services. Benchmarking against similar IT support contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has negotiated a set price, limiting potential cost overruns if the contractor manages their expenses effectively. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the price seems within a typical range for this type of service.

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 bids. The presence of 117 bids suggests a highly competitive environment. A large number of bidders typically drives down prices and encourages innovation as contractors vie for the award. This level of competition is a positive sign for price discovery and ensures the government is likely receiving a competitive offer.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a lower price than if the contract had been awarded through a less competitive process. It also suggests that the government explored a wide range of potential solutions and providers.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Logistics Agency, receiving essential IT support services. Services delivered likely include IT strategy, system maintenance, network support, or other computer-related functions critical to DLA operations. The geographic impact is focused on Virginia, where the contractor will perform the work. Workforce implications may include the creation or sustainment of IT jobs within the contractor's organization, potentially in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are implemented without clear exit strategies.
Reliance on a single contractor for critical IT functions could pose a risk if performance degrades or the contractor faces financial instability.
Scope creep could lead to increased costs if not managed tightly against the firm-fixed-price structure.

Positive Signals

Awarded through full and open competition with a high number of bidders, indicating strong market interest and likely competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, encouraging efficient performance.
The contractor, Information Technology Strategies, Inc., has secured a significant contract, suggesting a level of established capability.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, supporting nearly every agency's mission. This contract falls under the 'Other Computer Related Services' category, which can encompass a wide array of IT support functions beyond software development or hardware maintenance. The federal government is a major consumer of IT services, with spending often concentrated in areas like cybersecurity, cloud computing, data analytics, and general IT support. The market size for federal IT services is in the tens of billions annually, with numerous large and small businesses competing for contracts.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The large number of bidders (117) suggests that both large and small businesses likely participated in the competition. While there is no explicit small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own capabilities and subcontracting plans. The impact on the small business ecosystem is neutral in terms of direct set-aside, but the competitive nature may still offer opportunities for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officer and their representatives. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Accountability measures are embedded within the firm-fixed-price contract, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for scope creep in broad 'Other Computer Related Services' contracts.
Contractor performance risk over a 3-year duration.
Dependence on specific IT skill sets that may fluctuate in availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to INFORMATION TECHNOLOGY STRATEGIES, INC.. 8509470369!TASK 3

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 $18.5 million.

What is the period of performance?

Start: 2022-11-01. End: 2025-10-31.

What is the track record of Information Technology Strategies, Inc. with federal contracts, particularly within the Department of Defense?

Information Technology Strategies, Inc. (ITS) has a history of securing federal contracts, including those with the Department of Defense. While this specific contract is for $18.5 million over three years, ITS has likely been involved in various IT-related projects for government agencies. A deeper analysis would involve examining their past performance ratings, contract values, and the types of services they have provided. Their ability to win a competitive bid with 117 offers suggests a demonstrated capability and a positive reputation among federal procurement officials. Further investigation into their contract history, including any past issues or commendations, would provide a more comprehensive understanding of their reliability and expertise.

How does the $18.5 million value compare to similar IT support contracts awarded by the Defense Logistics Agency or DoD?

The $18.5 million contract value for a 3-year term for IT services is a moderate-sized award within the federal IT landscape. The Defense Logistics Agency (DLA) and the broader Department of Defense (DoD) procure IT services ranging from small, specialized task orders to multi-billion dollar enterprise-wide solutions. For general IT support, system integration, or managed services, $18.5 million over three years ($6.17 million annually) is a reasonable figure. It suggests a need for substantial, but not necessarily mission-critical, enterprise-level IT support. Contracts for highly specialized cybersecurity, large-scale cloud migrations, or core defense system IT infrastructure could easily exceed this amount significantly, while smaller, localized support might be less.

What are the primary risks associated with this firm-fixed-price IT services contract?

The primary risks associated with this firm-fixed-price (FFP) IT services contract, despite its advantages, include potential scope creep and contractor underperformance. While FFP shifts cost risk to the contractor, if the contract's scope is not clearly defined or if requirements change significantly, the contractor may struggle to meet obligations within the fixed price, potentially leading to disputes or a decline in service quality. Another risk is the contractor's ability to maintain adequate staffing and expertise throughout the contract duration. If ITS faces challenges in retaining skilled personnel, service delivery could be impacted. Furthermore, reliance on a single vendor for critical IT functions, even with competition, carries inherent risks if the vendor's financial stability or operational capacity falters.

How effective is the full and open competition process in ensuring value for money for this type of IT service?

The full and open competition process is generally highly effective in ensuring value for money for IT services, especially when a large number of bids are received, as in this case with 117 offers. This level of competition drives down prices as contractors vie to win the award by offering the most competitive bid. It also encourages innovation and efficiency, as contractors must differentiate themselves not only on price but also on the quality and suitability of their proposed solutions. The government benefits from a wider pool of potential providers, increasing the likelihood of finding a contractor that offers the best combination of technical capability and cost-effectiveness. The firm-fixed-price nature of this award further enhances value by capping costs.

What are the potential implications of the NAICS code 541519 ('Other Computer Related Services') for the scope and execution of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT support functions that don't fit into more specific categories like software publishing or custom programming. This could include IT consulting, IT project management, IT infrastructure design and support, IT security consulting, data processing services, and IT disaster recovery planning. For this contract, it suggests that the Defense Logistics Agency requires flexible and comprehensive IT support that may span multiple domains. The execution will depend heavily on the specific Statement of Work (SOW) detailed in the contract, which will define the precise services, deliverables, and performance standards. The breadth of this NAICS code means the contractor needs a versatile skill set.

Given the 1095-day duration, how might IT modernization trends impact the long-term relevance of the services provided under this contract?

The 1095-day (3-year) duration of this IT services contract presents a moderate timeframe within which rapid IT modernization trends can occur. Technologies like artificial intelligence, advanced cloud computing, and evolving cybersecurity threats are constantly reshaping the IT landscape. The effectiveness of the services provided will depend on the contractor's ability to adapt and incorporate emerging technologies or methodologies as outlined in the contract. The Defense Logistics Agency will need to ensure the contract includes mechanisms for addressing technological evolution, perhaps through change orders or by specifying requirements that are adaptable. If the contract is for foundational IT support, its relevance may remain high, but if it involves specific legacy systems, modernization efforts by the DoD could alter the scope or necessity of these services over time.

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: SP470922Q1023

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: $18,540,299

Exercised Options: $18,540,299

Current Obligation: $18,540,299

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