DoD awards $44.8M contract for computer systems design services to Alesig Consulting LLC

Contract Overview

Contract Amount: $44,824,088 ($44.8M)

Contractor: Alesig Consulting LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-29

End Date: 2026-12-14

Contract Duration: 1,690 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SDDC GITSS AWARD

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to ALESIG CONSULTING LLC for work described as: SDDC GITSS AWARD Key points: 1. Contract value of $44.8M over approximately 4 years suggests a significant investment in IT support. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. Alesig Consulting LLC, the sole awardee, will provide computer systems design services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The delivery order award mechanism is common for task-based requirements within a larger contract. 6. The contract duration of 1690 days (approx. 4.6 years) indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $44.8M over nearly 5 years averages to approximately $9.5M annually. Benchmarking this against similar large-scale IT services contracts within the Department of Defense is challenging without more specific service details. However, the firm fixed-price structure suggests an attempt to control costs. The number of bidders (6) is moderate, which could imply reasonable pricing, but a direct comparison to market rates for 'Computer Systems Design Services' is difficult without granular data on the specific tasks and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of full and open competition. Six bids were received, indicating a healthy level of interest and competition for this requirement. A competitive process like this generally allows for better price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars are likely being used more efficiently, as multiple companies vied to offer the best value, potentially driving down costs.

Public Impact

The Department of the Army benefits from enhanced computer systems design and support capabilities. This contract supports the operational readiness and technological infrastructure of the DoD. The services delivered are crucial for maintaining and improving complex IT systems. The geographic impact is primarily within Virginia, where the contractor is located, but the services likely support broader Army operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific scope of 'Computer Systems Design Services' is broad and could lead to scope creep if not tightly managed.
Reliance on a single contractor for a significant duration may create vendor lock-in risks.
The firm fixed-price nature, while good for cost control, could incentivize the contractor to minimize effort if not adequately monitored.
The 'After Exclusion of Sources' clause warrants understanding why certain sources were excluded prior to the full and open competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The firm fixed-price contract type transfers cost overrun risk to the contractor.
A moderate number of bidders (6) suggests sufficient market interest and potential for competitive pricing.
The contract duration implies a stable, long-term need that the selected contractor can fulfill.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from software development to network management and cybersecurity. This contract falls under Computer Systems Design Services, a sub-sector focused on planning, designing, and integrating computer systems. The federal government is a major consumer of IT services, with spending often concentrated in areas like defense, intelligence, and civilian agency modernization. This $44.8M award represents a significant, albeit specific, investment within this broader market, contributing to the overall IT spending landscape for the Department of Defense.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. Alesig Consulting LLC is likely a mid-to-large-sized business given the contract value. The absence of set-aside provisions means that opportunities for small businesses to directly participate in this specific contract are limited, though they may be involved indirectly through the supply chain or as potential future competitors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control, but performance monitoring will be crucial to ensure deliverables meet quality standards and timelines. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and oversight reports are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Army Enterprise IT Services
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Potential for scope creep due to broad service definition.
Risk of vendor lock-in with a single provider over a long duration.
Need for robust performance monitoring to ensure quality under FFP.
Rationale for 'Exclusion of Sources' requires further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to ALESIG CONSULTING LLC. SDDC GITSS AWARD

Who is the contractor on this award?

The obligated recipient is ALESIG CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2022-04-29. End: 2026-12-14.

What specific computer systems design services are being provided under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). This broad category typically includes services such as analyzing user needs, designing and developing custom software, integrating hardware and software, and planning computer systems. Without access to the detailed Statement of Work (SOW) or Performance Work Statement (PWS), the precise nature of the services—whether it involves network architecture, database design, application development, or system implementation—remains unspecified. The $44.8M value suggests a substantial and complex set of design and integration tasks rather than simple maintenance or support.

How does the $44.8M contract value compare to similar IT services contracts awarded by the Department of Defense?

The $44.8M value over approximately 4.6 years places this contract in the mid-to-large tier for IT services within the DoD. The Department of Defense awards numerous IT contracts, many significantly larger, particularly for major system acquisitions or enterprise-wide solutions. However, for specific computer systems design and integration tasks, $44.8M represents a substantial commitment. Benchmarking requires comparing it to contracts with similar NAICS codes (541512) and service scopes. Given the competitive award and firm fixed-price structure, the government likely sought competitive pricing for these services, but without detailed tasking, a precise value comparison is difficult.

What is the track record of Alesig Consulting LLC in performing similar government contracts?

Information regarding Alesig Consulting LLC's specific track record on government contracts of this scale and type is not detailed in the provided data. As a recipient of a $44.8M award, the company would have undergone some level of pre-award assessment by the Department of the Army. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain their past performance ratings, previous contract awards in similar service areas, and any history of performance issues or successes. Their ability to win a competitive bid suggests they met the government's minimum requirements.

What are the potential risks associated with a firm fixed-price contract of this magnitude?

Firm Fixed Price (FFP) contracts, while beneficial for cost certainty, carry inherent risks. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit if performance is not rigorously monitored. For the contractor, the risk is absorbing cost overruns if their initial estimates are inaccurate or unforeseen issues arise. In a $44.8M FFP contract, the contractor assumes significant financial risk. Effective oversight is crucial to ensure the contractor delivers the required quality and scope within the agreed price, mitigating the risk of substandard performance or disputes.

How does the 'Full and Open Competition After Exclusion of Sources' clause impact the competition dynamics?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was ultimately open to all responsible sources, certain sources were initially excluded from consideration before the solicitation was issued. The rationale for this exclusion is not provided but could be based on factors like prior performance, specific capabilities, or security requirements. Receiving six bids after this initial screening suggests that a sufficient number of capable vendors remained interested. This clause aims to ensure competition among qualified entities while potentially streamlining the process by removing clearly unsuitable bidders early on.

What is the historical spending trend for Computer Systems Design Services within the Department of the Army?

Historical spending on Computer Systems Design Services (NAICS 541512) by the Department of the Army is substantial, reflecting the continuous need for IT infrastructure and modernization. While specific year-over-year figures for this exact service category are not provided, the Army consistently ranks among the largest federal agencies for IT procurement. Trends generally show increasing reliance on external contractors for specialized IT design, integration, and support services, driven by evolving technology and the need for agile solutions. This $44.8M award aligns with the broader trend of significant investment in IT services to maintain operational effectiveness.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7389 LEE HWY STE 202, FALLS CHURCH, VA, 22042

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $45,001,138

Exercised Options: $45,001,138

Current Obligation: $44,824,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98119D00008

IDV Type: GWAC

Timeline