DoD's $23.7M ATIA Sustainment Contract Awarded to Acquisition Logistics Support Group

Contract Overview

Contract Amount: $23,718,318 ($23.7M)

Contractor: Acquisition Logistics Support Group

Awarding Agency: Department of Defense

Start Date: 2017-09-21

End Date: 2022-08-31

Contract Duration: 1,805 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF ATIA SUSTAINMENT

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to ACQUISITION LOGISTICS SUPPORT GROUP for work described as: IGF::CT::IGF ATIA SUSTAINMENT Key points: 1. The contract value of $23.7 million over five years suggests a significant investment in IT sustainment services. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, though the specific exclusion warrants further review. 3. The firm-fixed-price contract type generally offers good cost control for the government. 4. The duration of 1805 days (nearly 5 years) points to a long-term need for these services. 5. The contract's focus on 'Custom Computer Programming Services' places it within a critical IT support sector. 6. The award to Acquisition Logistics Support Group, a single entity, highlights the importance of specialized IT support providers.

Value Assessment

Rating: fair

Benchmarking the value of this $23.7 million contract requires more granular data on the specific services provided under ATIA sustainment. However, the duration of nearly five years suggests a substantial, ongoing need. The firm-fixed-price structure is generally favorable for cost predictability. Without comparable contract data for similar IT sustainment services within the Department of Defense or other agencies, a precise value-for-money assessment is challenging. The number of bids received (10) provides some indication of market interest, but the final price relative to estimated costs is key.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific sources were excluded for reasons that are not detailed in the provided data. The fact that 10 bids were received indicates a healthy level of interest from potential contractors, which is a positive sign for competition. However, the exclusion of certain sources could potentially limit the breadth of competition and may have influenced the final pricing.

Taxpayer Impact: The exclusion of sources, even with 10 bidders, raises a flag for taxpayers. While competition occurred, understanding the rationale behind exclusions is crucial to ensure the government secured the best possible value and didn't inadvertently limit options that could have led to lower costs.

Public Impact

The primary beneficiaries are the Department of the Army, receiving critical IT sustainment for the ATIA system. Services delivered include custom computer programming and likely ongoing maintenance and support for the ATIA platform. The geographic impact is primarily within the Department of Defense's operational footprint, likely supporting military and civilian personnel. Workforce implications include the employment of IT professionals by the contractor to fulfill the sustainment requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the 'exclusion of sources' in the competition process.
The specific nature of 'ATIA Sustainment' is not detailed, making it difficult to assess the full scope of services and potential risks.
Limited information on contractor performance history for this specific type of sustainment work.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
A significant number of bids (10) suggests a competitive marketplace for these services.
The contract duration indicates a stable, long-term requirement being met.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming and sustainment services. The IT services market is vast and highly competitive, with significant government spending allocated to software development, maintenance, and support. Contracts like this are essential for maintaining the operational readiness of critical government systems. Comparable spending benchmarks would involve looking at other large-scale IT sustainment contracts awarded by the DoD or other federal agencies for similar system complexities and durations.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities if Acquisition Logistics Support Group engages in such practices. However, without explicit subcontracting plans or goals, the direct benefit to small businesses from this particular award appears limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability regarding cost. Transparency is moderate, as the contract award is public, but details regarding the 'exclusion of sources' and specific performance metrics are not readily available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Logistics Information Systems
Custom Software Development Contracts
IT Services for National Security
Acquisition Logistics Support Contracts

Risk Flags

Competition Exclusion Rationale
Scope Definition for Custom Programming
Long-Term Technology Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to ACQUISITION LOGISTICS SUPPORT GROUP. IGF::CT::IGF ATIA SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is ACQUISITION LOGISTICS SUPPORT GROUP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2017-09-21. End: 2022-08-31.

What is the specific nature of the ATIA system being sustained, and what are the key performance requirements of this contract?

The provided data identifies the contract as 'ATIA SUSTAINMENT' and the service category as 'Custom Computer Programming Services.' However, the specific functionalities and criticality of the ATIA system are not detailed. To fully assess the contract's value and risk, understanding the ATIA system's role within the Department of the Army's operations is crucial. Key performance requirements would typically include system uptime, response times for support, bug resolution timelines, and successful implementation of any required updates or enhancements. Without this granular detail, it's difficult to benchmark performance or assess if the $23.7 million investment is commensurate with the system's importance and the required service levels.

How does the $23.7 million contract value compare to similar IT sustainment contracts for comparable systems within the DoD?

Comparing the $23.7 million value requires identifying similar IT sustainment contracts for systems of comparable complexity and duration within the Department of Defense. The contract's nearly five-year term (1805 days) suggests a significant, long-term commitment. If the ATIA system is a core operational platform, this value might be within the expected range. However, without knowing the specific number of users, the system's criticality, or the scope of 'custom computer programming services' (e.g., major upgrades vs. routine maintenance), a direct comparison is challenging. Benchmarking against contracts for other logistics or command-and-control systems of similar scale would provide a more robust assessment of whether this represents good value for money.

What was the rationale behind the 'exclusion of sources' in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be open, certain potential bidders were deliberately excluded. The specific reasons for these exclusions are not provided in the data. Common justifications for excluding sources can include national security concerns, proprietary technology limitations, or specific requirements that only a limited number of vendors can meet. Understanding this rationale is critical for assessing the integrity of the competition. If the exclusions were arbitrary or not well-justified, it could suggest a potential limitation on competition that might have impacted the final price or the range of innovative solutions available to the government.

What is the track record of Acquisition Logistics Support Group in delivering custom computer programming and IT sustainment services to the federal government?

The provided data identifies Acquisition Logistics Support Group (ALSG) as the contractor for this $23.7 million ATIA Sustainment contract. To assess ALSG's track record, one would need to examine their past performance on similar federal contracts, particularly those involving custom computer programming and long-term IT sustainment. Key areas to investigate would include their history of meeting deadlines, staying within budget, delivering quality services, and their overall customer satisfaction ratings from previous government clients. Information from sources like the Federal Procurement Data System (FPDS) or contract performance reports could shed light on their reliability and expertise in this domain.

What are the potential risks associated with a five-year firm-fixed-price contract for custom computer programming services?

A five-year firm-fixed-price (FFP) contract for custom computer programming services carries several potential risks. For the contractor, the primary risk is underestimating the scope or complexity of the work, leading to reduced profitability or even losses if costs escalate unexpectedly. For the government, the risk lies in the potential for scope creep if requirements are not clearly defined upfront, which can be difficult to manage under an FFP structure. Additionally, if the technology landscape changes significantly over five years, the contracted services might become outdated, or the fixed price might not reflect the most current market rates for evolving technologies. Ensuring robust change management processes and clear initial scope definition is crucial to mitigate these risks.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911S017R0015

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 502 BRANWAY DR, RICHMOND, VA, 23229

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,718,318

Exercised Options: $23,718,318

Current Obligation: $23,718,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline