DoD awards $17M IT contract for HRM apps support to Information Technology Strategies, Inc

Contract Overview

Contract Amount: $16,986,118 ($17.0M)

Contractor: Information Technology Strategies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-08

End Date: 2027-01-03

Contract Duration: 1,091 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HRM APPS SUPPORT - AWARD

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to INFORMATION TECHNOLOGY STRATEGIES, INC. for work described as: HRM APPS SUPPORT - AWARD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating a phased approach to IT support. 3. The duration of over 1000 days suggests a long-term need for these HRM application services. 4. The fixed-price contract type aims to control costs by establishing a set price for services. 5. The awardee, Information Technology Strategies, Inc., has secured a significant contract within the IT services sector. 6. The services provided fall under 'Other Computer Related Services', a broad category within IT.

Value Assessment

Rating: good

The contract value of $16.98 million over approximately three years represents a significant investment in IT support for the Defense Logistics Agency. Benchmarking this against similar IT support contracts for large federal agencies is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs predictably. The number of bids received (4) indicates some level of competition, which typically helps in achieving fair market pricing.

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. Four bids were received, indicating a moderate level of competition for this IT support requirement. While more than one bidder participated, the specific dynamics of the competition, such as the number of large vs. small businesses or the range of proposed prices, are not detailed here. A higher number of bidders generally leads to more robust price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Defense Logistics Agency, which will receive ongoing support for their Human Resources Management applications. The services delivered will ensure the continued functionality and maintenance of critical HR systems, supporting personnel management and administrative processes. The geographic impact is likely concentrated within the Defense Logistics Agency's operational areas, primarily in Virginia where the contractor is based. Workforce implications may include the need for specialized IT personnel within Information Technology Strategies, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the supported HRM applications are highly specialized and difficult to transition.
Reliance on a single vendor for critical HR IT infrastructure could pose risks if the vendor experiences financial instability or operational disruptions.
Scope creep could lead to cost overruns if the definition of 'support' is not clearly delineated and managed.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Awarding under full and open competition suggests a deliberate effort to secure the best value through market forces.
The contractor's established presence in Virginia may facilitate efficient service delivery and local support.

Sector Analysis

The IT services sector is a vast and competitive landscape, with government contracts forming a significant portion of the market. This contract falls within the 'Other Computer Related Services' NAICS code (541519), which encompasses a wide range of IT support, integration, and consulting. The Defense Logistics Agency's spending on IT support is part of a broader trend of federal agencies outsourcing complex IT functions to specialized firms to maintain and upgrade aging systems and implement new technologies.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Information Technology Strategies, Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of a small business set-aside means that larger, established IT service providers were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract will primarily reside with the Defense Logistics Agency's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides a degree of cost oversight. Transparency is facilitated by the public nature of contract award data, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Human Resources Management Systems
Federal IT Services Contracts
Other Computer Related Services Contracts

Risk Flags

Potential for scope creep due to broad service classification.
Reliance on a single vendor for critical HR IT functions.
Need for clear performance metrics and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to INFORMATION TECHNOLOGY STRATEGIES, INC.. HRM APPS SUPPORT - AWARD

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 $17.0 million.

What is the period of performance?

Start: 2024-01-08. End: 2027-01-03.

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, primarily within the IT services domain. While the provided data indicates this is a significant award from the Defense Logistics Agency (DLA), a deeper analysis would involve reviewing ITS's contract history across various agencies, including the Department of Defense. This would entail examining past performance, types of services rendered, contract values, and any reported issues or commendations. Understanding their experience with similar HRM applications and their performance on previous DLA or DoD contracts would provide crucial context for assessing their capability and reliability in fulfilling this current award. A review of contract databases and performance assessment reports would be necessary for a comprehensive understanding.

How does the value of this contract compare to similar IT support contracts awarded by the Defense Logistics Agency or other DoD components?

The $16.98 million value for approximately three years of HRM application support is a substantial but not extraordinary figure for a federal IT contract of this scope. To benchmark effectively, one would need to compare it against contracts for similar services (e.g., application maintenance, help desk support, system upgrades) awarded by the DLA or other DoD branches to companies of comparable size and capability. Factors such as the complexity of the HRM systems, the number of users supported, and the specific service level agreements (SLAs) would influence pricing. Without access to detailed service requirements and pricing structures of comparable contracts, a precise value-for-money assessment is difficult. However, the competitive bidding process suggests the DLA aimed for a fair market price.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how will they be monitored?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, IT support contracts of this nature would include metrics related to system uptime, response times for issue resolution, patch management, security compliance, and user satisfaction. Monitoring these KPIs would be the responsibility of the Defense Logistics Agency's contracting officer's representative (COR) or program manager. They would review regular performance reports submitted by Information Technology Strategies, Inc., conduct periodic reviews, and potentially utilize automated monitoring tools. Failure to meet agreed-upon SLAs could result in penalties or impact future contract renewals.

What is the potential risk associated with the 'Other Computer Related Services' classification, and how is it mitigated?

The 'Other Computer Related Services' (NAICS 541519) classification is broad, encompassing a wide array of IT functions beyond standard software development or hardware maintenance. The primary risk associated with such a broad classification is a lack of specificity regarding the exact services required, potentially leading to scope creep or misunderstandings between the government and the contractor. Mitigation strategies include a clearly defined Statement of Work (SOW) within the contract, detailed task orders, robust project management by the DLA, and regular communication channels. The firm fixed-price nature also incentivizes the contractor to perform the defined scope efficiently. The DLA's oversight is crucial in ensuring the services delivered align precisely with the agency's needs.

How does this contract fit into the broader IT modernization or sustainment strategy of the Defense Logistics Agency?

This contract for HRM application support likely fits into the DLA's broader strategy for sustaining its existing IT infrastructure while potentially paving the way for future modernization efforts. Agencies like the DLA manage complex, often legacy, systems that require continuous support to ensure operational readiness. This award suggests a focus on maintaining the current functionality of critical HR applications. Depending on the specific terms, it might also include provisions for minor enhancements or updates. The long-term nature of the contract (nearly 3 years) indicates that these HRM applications are considered essential and will remain in use for the foreseeable future, possibly until a more significant system replacement or overhaul is undertaken.

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: SP470924Q1002

Offers Received: 4

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: $16,986,118

Exercised Options: $16,986,118

Current Obligation: $16,986,118

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