DoD awards $20M for document automation, with New River Systems Corp. to provide support through April 2027

Contract Overview

Contract Amount: $19,949,984 ($19.9M)

Contractor: NEW River Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-04

End Date: 2027-04-03

Contract Duration: 729 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DOCUMENT AUTOMATION CONTENT SERVICES (DACS) SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to NEW RIVER SYSTEMS CORPORATION for work described as: DOCUMENT AUTOMATION CONTENT SERVICES (DACS) SUPPORT Key points: 1. Contract value appears reasonable given the 2-year duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. This contract supports critical document automation needs within the Defense Logistics Agency. 5. The contractor, New River Systems Corporation, has a track record in IT services. 6. The NAICS code 541519 indicates a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of approximately $20 million over two years for document automation and IT support services seems within a reasonable range for this type of work. Benchmarking against similar IT support contracts for federal agencies, especially within the Department of Defense, would provide a more precise value-for-money assessment. However, the firm-fixed-price structure generally indicates that the contractor is responsible for managing costs to meet the agreed-upon price, which can be advantageous for the government.

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 a bid. The fact that there were five bidders suggests a healthy level of competition for this requirement. A competitive process generally helps ensure that the government receives fair market prices and that the most capable contractor is selected.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through competitive bidding and encourages a wider pool of contractors to vie for government work, leading to potentially better value.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, which will receive enhanced document automation and IT support. Services delivered include crucial support for document management and related IT functions, aiming to improve efficiency and reduce manual processes. The geographic impact is primarily within the operational areas of the Defense Logistics Agency, likely supporting its nationwide or global operations. Workforce implications may include the need for specialized IT personnel by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical document automation services could pose a risk if performance issues arise.
Ensuring continued innovation and adaptation to evolving document automation technologies.

Positive Signals

Firm-fixed-price contract shifts cost control risk to the contractor.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration of two years allows for stable service delivery and planning.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide array of IT support, consulting, and implementation services. Federal spending in this area is substantial, driven by the need for modernization and efficiency across all agencies. This specific contract for document automation supports the ongoing digital transformation efforts within the DoD, aiming to streamline operations and improve data management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, New River Systems Corporation, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by tying payment to performance. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense may also have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

DoD IT Modernization Programs
Defense Logistics Agency IT Support Services
Document Management Systems Contracts
Federal IT Services Procurement

Risk Flags

Contract performance risk
Cybersecurity risk
Vendor lock-in potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to NEW RIVER SYSTEMS CORPORATION. DOCUMENT AUTOMATION CONTENT SERVICES (DACS) SUPPORT

Who is the contractor on this award?

The obligated recipient is NEW RIVER SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2025-04-04. End: 2027-04-03.

What is the track record of New River Systems Corporation with the Department of Defense and similar IT support contracts?

New River Systems Corporation (NRS) has a history of performing IT services for the federal government, including the Department of Defense. While specific details on past performance for document automation are not provided in this summary, their presence as a bidder and awardee in this competitive bid suggests they possess relevant capabilities and experience. A deeper dive into their contract history, past performance evaluations (if publicly available), and any prior awards for similar services would provide a more comprehensive understanding of their track record. Examining their financial stability and any past performance issues or commendations would also be crucial for a complete assessment.

How does the awarded price compare to market rates for similar document automation and IT support services?

The awarded value of approximately $20 million over two years for document automation and IT support services needs to be benchmarked against current market rates. Factors influencing market rates include the complexity of the services, the level of expertise required, geographic location, and the specific technologies involved. Without detailed service level agreements and technical specifications, a precise comparison is difficult. However, given the full and open competition with five bidders, it suggests the pricing is likely competitive and reflects prevailing market conditions for IT support within the federal sector. Further analysis would involve comparing the per-unit cost of specific services or the overall contract value against industry benchmarks for similar government or commercial contracts.

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

Key risks include potential performance deficiencies by the contractor, cybersecurity vulnerabilities related to document automation systems, and the possibility of cost overruns if the firm-fixed-price contract is not managed effectively. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price nature places the onus of cost control on New River Systems Corporation. The full and open competition process aims to select a capable contractor. The Defense Logistics Agency's program managers and contracting officers will provide oversight, monitor performance against service level agreements, and ensure compliance with security protocols. Regular reporting and potential audits by the DoD IG further mitigate risks.

How effective is document automation in improving the Defense Logistics Agency's operational efficiency?

Document automation, when implemented effectively, can significantly enhance operational efficiency by reducing manual data entry, streamlining workflows, improving document retrieval times, and minimizing errors. For an organization like the Defense Logistics Agency, which handles vast amounts of logistical data and documentation, these improvements can translate into faster decision-making, reduced administrative burden, and cost savings. The success of this contract in achieving these benefits will depend on the specific solutions implemented by New River Systems Corporation, the integration with existing DLA systems, and the adoption of these new processes by DLA personnel. Performance metrics within the contract will be key indicators of its effectiveness.

What are the historical spending patterns for document automation and related IT services within the Department of Defense?

The Department of Defense historically represents one of the largest federal spenders on IT services, including document management and automation solutions. Spending in this area fluctuates based on modernization initiatives, evolving technological needs, and budget allocations. Over the past decade, there has been a consistent trend towards digitizing operations and automating processes across DoD agencies to improve efficiency and data accessibility. Contracts for IT support, software development, and system integration related to document handling are common. Analyzing historical spending data for NAICS code 541519 and specific contract vehicles related to document automation within the DoD would reveal trends in contract values, durations, and types of services procured.

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: SP470925Q4003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19775 BELMONT EXECUTIVE PLZ, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,876,803

Exercised Options: $19,949,984

Current Obligation: $19,949,984

Actual Outlays: $2,850,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470924D0054

IDV Type: IDC

Timeline