DoD Awards $25.3M for IT Services to ITES VENTURE LLC Under Full and Open Competition
Contract Overview
Contract Amount: $25,354,893 ($25.4M)
Contractor: Ites Venture LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-18
End Date: 2025-09-20
Contract Duration: 1,828 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 26
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE YR LABOR
Place of Performance
Location: FORT RUCKER, DALE County, ALABAMA, 36362
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to ITES VENTURE LLC for work described as: BASE YR LABOR Key points: 1. Significant contract value of $25.3 million over 5 years. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with a single delivery order for a long duration. 4. Spending falls within the IT services sector, specifically 'Other Computer Related Services'.
Value Assessment
Rating: good
The contract value of $25.3 million over 5 years averages approximately $5 million annually. Benchmarking against similar IT service contracts requires more granular data on specific services and performance metrics. However, the duration and value suggest a substantial, but not necessarily excessive, investment for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value. The use of a delivery order under a larger contract structure is common for task-specific needs.
Taxpayer Impact: Full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and improves service quality.
Public Impact
Ensures the Department of the Army has access to necessary computer-related services. Supports military operations and administrative functions through IT infrastructure. Potential for job creation within the IT services sector. The long-term nature of the contract provides stability for the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long duration of the delivery order (5 years) could lead to price escalation or outdated services.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract provides essential IT services to a major government agency.
- Firm Fixed Price contract type helps control costs.
Sector Analysis
This contract falls under the Information Technology (IT) sector, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this category is substantial across government agencies, supporting a wide range of functions from cybersecurity to data management. Benchmarks vary widely based on the specific services rendered.
Small Business Impact
The data indicates this contract was awarded to ITES VENTURE LLC. There is no explicit information provided regarding small business participation or subcontracting goals within this specific delivery order. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract is subject to standard government oversight processes. The use of a delivery order under a larger contract vehicle implies that the initial contract likely underwent significant review. However, the long duration of this specific order warrants ongoing monitoring to ensure continued value and performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration for a single delivery order.
- Lack of specific service details for cost comparison.
- No clear performance metrics provided.
- Potential for vendor lock-in over the 5-year period.
Tags
other-computer-related-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to ITES VENTURE LLC. BASE YR LABOR
Who is the contractor on this award?
The obligated recipient is ITES VENTURE 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 $25.4 million.
What is the period of performance?
Start: 2020-09-18. End: 2025-09-20.
What specific 'Other Computer Related Services' are included in this contract, and how do their costs compare to market rates?
The provided data lacks the specific details of the 'Other Computer Related Services' covered by this $25.3 million delivery order. To assess value, a detailed breakdown of services (e.g., software development, IT consulting, network management) and their associated labor categories and rates would be necessary. Comparing these to industry benchmarks for similar government or commercial contracts would reveal if the pricing is competitive or inflated.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured to mitigate risk?
The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement methodology for this contract. Effective oversight requires clearly defined KPIs tied to service delivery, response times, and quality. Without this information, it's challenging to assess whether ITES VENTURE LLC is meeting expectations and to proactively identify and mitigate risks related to performance shortfalls or cost overruns.
How does the $25.3 million award compare to historical spending for similar IT services by the Department of the Army?
Comparing this $25.3 million award to historical spending requires access to past contract data for similar 'Other Computer Related Services' procured by the Department of the Army. While the value is substantial, its effectiveness as a benchmark depends on the scope, duration, and specific services rendered in prior contracts. A trend analysis of IT service spending would provide context on whether this award represents an increase, decrease, or stable investment.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 26
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2701 PROSPERITY AVE STE 205, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,381,439
Exercised Options: $25,381,439
Current Obligation: $25,354,893
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA104
IDV Type: IDC
Timeline
Start Date: 2020-09-18
Current End Date: 2025-09-20
Potential End Date: 2025-09-20 00:00:00
Last Modified: 2024-08-29
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