DoD awards $17.8M contract for web technical administrator services to PDO AHUSAKA JV II, LLC

Contract Overview

Contract Amount: $17,769,486 ($17.8M)

Contractor: PDO Ahusaka JV II, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-25

End Date: 2026-09-27

Contract Duration: 1,828 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB TECHNICAL ADMINISTRATOR

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48089

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to PDO AHUSAKA JV II, LLC for work described as: WEB TECHNICAL ADMINISTRATOR Key points: 1. Contract awarded on a not available for competition basis. 2. Firm Fixed Price contract type suggests predictable costs. 3. Long duration of 1828 days indicates a significant, ongoing need. 4. The contract is for custom computer programming services. 5. The awardee is a joint venture, potentially indicating a specialized capability. 6. The contract is managed by the Department of the Army. 7. The contract is located in Michigan.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. The fixed-price nature provides cost certainty, but the total value over nearly five years is substantial. Without a competitive process, it's difficult to definitively assess if the pricing represents optimal value for the government. Further analysis would require comparing the scope of services to similar contracts awarded through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when a specific justification is provided, such as the unique capabilities of a single source or urgent needs. The lack of competition limits the government's ability to explore a wider range of potential offerors and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may not benefit from the cost savings that can arise from multiple companies vying for a contract. This could lead to a higher overall expenditure for the services provided.

Public Impact

The Department of Defense benefits from essential web technical administrator services. These services are crucial for maintaining and operating critical web infrastructure. The contract supports the Department of the Army's operational capabilities. The geographic impact is primarily within Michigan, where the contractor is located. The contract likely supports a workforce of technical administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The sole-source nature may not fully leverage the broader market's capabilities.
Long contract duration without competitive re-evaluation could lead to complacency.
Transparency regarding the justification for sole-source award is limited in the provided data.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
The award to a joint venture might indicate a specialized and capable team.
The contract duration suggests a stable, long-term requirement being met.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a critical component of the broader Information Technology (IT) industry. This sector is characterized by high demand for specialized skills in software development, system integration, and web services. The market size for IT services to the federal government is substantial, with agencies constantly seeking to modernize and maintain their digital infrastructure. This contract represents a specific instance of the government procuring essential IT support to ensure the functionality of its web-based operations.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on the prime contractor, PDO AHUSAKA JV II, LLC. Further analysis would be needed to determine if the prime contractor has its own small business subcontracting plan or if the nature of the services inherently involves small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is dependent on the agency's policies regarding the release of contract details, particularly for sole-source awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Custom Computer Programming Services
IT Support Services
Web Services Contracts
Department of Defense IT Procurement
Federal IT Infrastructure Management

Risk Flags

Sole-source award without clear justification.
Long contract duration in a rapidly evolving technology sector.
Lack of competitive bidding may impact value for money.
Limited transparency on specific service scope and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to PDO AHUSAKA JV II, LLC. WEB TECHNICAL ADMINISTRATOR

Who is the contractor on this award?

The obligated recipient is PDO AHUSAKA JV II, 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 $17.8 million.

What is the period of performance?

Start: 2021-09-25. End: 2026-09-27.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards require a formal justification and approval (J&A) process, citing reasons such as unique capabilities of the contractor, urgent and compelling needs, or the unavailability of other sources. Without access to the J&A document, it is impossible to ascertain the precise rationale behind this decision. This lack of transparency can raise questions about whether the government explored all viable options to ensure fair and competitive pricing.

How does the firm fixed price (FFP) structure benefit the government in this contract?

A Firm Fixed Price (FFP) contract structure is generally advantageous for the government as it shifts the majority of the performance risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with cost certainty and predictability, making budgeting more straightforward. For the Department of Defense's web technical administrator services, an FFP contract helps to control expenditures and prevents cost overruns that could occur with cost-reimbursement contracts. However, the initial price must be set appropriately, which is where the lack of competition for this specific award could be a concern.

What are the potential risks associated with a long-duration contract (1828 days)?

Long-duration contracts, such as this 1828-day (approximately 5-year) award, carry several potential risks. Firstly, technology and requirements can evolve rapidly in the IT sector; a contract established today might not fully align with future needs, leading to inefficiencies or the need for costly modifications. Secondly, without periodic re-competition, there's a risk of contractor complacency, potentially leading to a decline in service quality or innovation over time. Thirdly, the government is locked into a specific provider for an extended period, limiting its ability to take advantage of new market entrants or more competitive pricing that might emerge. Finally, the long-term commitment represents a significant financial obligation that needs careful management and oversight.

What is the significance of the NAICS code 541511 (Custom Computer Programming Services)?

The North American Industry Classification System (NAICS) code 541511 signifies that the primary business activity of the contract is Custom Computer Programming Services. This industry encompasses businesses primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Services can include application development, system integration, database programming, and web development. For this Department of Defense contract, it indicates that the awarded services are highly specialized and tailored to the government's specific requirements for its web infrastructure, rather than off-the-shelf software solutions. This specialization often requires skilled personnel and a deep understanding of client needs.

How does the joint venture structure of PDO AHUSAKA JV II, LLC potentially impact service delivery?

The fact that PDO AHUSAKA JV II, LLC is a joint venture suggests that two or more entities have combined their resources, expertise, and capabilities to bid on and perform this contract. Joint ventures are often formed to leverage complementary strengths, pool resources for large or complex projects, or meet specific socioeconomic contracting goals (though this contract does not appear to be a small business set-aside). For the government, a joint venture could potentially offer a broader range of skills, increased capacity, and enhanced innovation compared to a single entity. However, it can also introduce complexities in management, communication, and accountability. The success of the service delivery will depend on the effective integration and management of the joint venture partners.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV21RL025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3215 W STATE ST # 309C1, MILWAUKEE, WI, 53208

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,023,329

Exercised Options: $17,769,486

Current Obligation: $17,769,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline