DoD's $44.8M IT services contract awarded to DIRECTVIZ SOLUTIONS, LLC shows strong competition

Contract Overview

Contract Amount: $44,852,512 ($44.9M)

Contractor: Directviz Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-24

End Date: 2026-09-27

Contract Duration: 1,829 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AMCOM - LABOR BASE PERIOD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $44.9 million to DIRECTVIZ SOLUTIONS, LLC for work described as: AMCOM - LABOR BASE PERIOD Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract value of $44.8M over approximately 5 years suggests a significant investment in IT services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. Awarded to a single vendor, DIRECTVIZ SOLUTIONS, LLC, for specific IT support. 6. The contract duration of 1829 days (approx. 5 years) allows for sustained service delivery. 7. Geographic location of award is Alabama, potentially impacting local IT workforce.

Value Assessment

Rating: good

The contract value of $44.8M over nearly five years for IT services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific deliverables or performance metrics, a detailed value assessment is challenging, but the overall investment aligns with typical federal IT modernization efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of 30 bids indicates a highly competitive environment. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers. The large number of bidders suggests that the market for these services is robust and that DIRECTVIZ SOLUTIONS, LLC was selected from a strong pool of qualified companies.

Taxpayer Impact: A competitive bidding process like this typically results in better pricing for taxpayers, as vendors vie to offer the most attractive terms and cost structures.

Public Impact

The Department of the Army benefits from specialized IT services to support its operations. This contract ensures the delivery of essential computer-related services, likely impacting various Army functions. The geographic impact is centered in Alabama, where the contract is managed and potentially where services are delivered. The contract may have implications for the IT workforce in Alabama, providing employment opportunities or requiring specialized skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring adequate oversight to maintain service quality and adherence to contract terms over the long duration.

Positive Signals

Awarded through full and open competition, indicating a strong market response and potential for competitive pricing.
Firm fixed-price contract type helps manage cost certainty for the government.
The contract duration allows for stable, long-term IT support, fostering continuity.
The large number of bids (30) suggests a healthy competitive landscape for these services.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide array of support, development, and maintenance activities. This contract, under NAICS code 541519 (Other Computer Related Services), falls into a broad category that includes IT consulting, system integration, and technical support. Federal spending in this area is consistently high as agencies modernize infrastructure and adopt new technologies. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by the Department of Defense or other major federal agencies for similar scopes of work.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the primary focus of this award was likely on large business capabilities or achieving the best overall value through open competition. The absence of set-aside provisions means that small businesses may not directly benefit from this specific award, though they could potentially be involved as subcontractors if DIRECTVIZ SOLUTIONS, LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded within the contract's performance work statement and delivery terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to the contract's execution.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
Federal Civilian IT Services
IT Professional Services Contracts
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Potential for performance issues if contractor lacks sufficient expertise for the specific IT services required.
Risk of cost increases if contract terms are not tightly defined or if scope creep occurs.
Dependency on a single vendor for critical IT functions could impact operational continuity if issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to DIRECTVIZ SOLUTIONS, LLC. AMCOM - LABOR BASE PERIOD

Who is the contractor on this award?

The obligated recipient is DIRECTVIZ SOLUTIONS, 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 $44.9 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-09-27.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT support functions beyond standard software development or hardware maintenance. This can include IT consulting, system integration, network management, data processing services, IT security consulting, and technical support. Without the specific Performance Work Statement (PWS) for this contract, the exact services are not detailed. However, given it's for the Department of the Army, it likely involves supporting critical operational systems, infrastructure maintenance, or specialized IT solutions tailored to military needs. The contract's duration and value suggest a comprehensive, ongoing service requirement rather than a one-off project.

How does the $44.8M contract value compare to similar IT service contracts awarded by the DoD?

The $44.8M contract value over approximately five years places this award in the mid-to-large tier for federal IT service contracts. The Department of Defense, being the largest federal agency, awards numerous IT contracts annually, many of which exceed this amount, particularly for large-scale system modernization or enterprise-wide support. For instance, major cloud migration projects, cybersecurity initiatives, or enterprise resource planning (ERP) system implementations can run into hundreds of millions or even billions of dollars. However, for specific, targeted IT support services like those likely covered by NAICS 541519, $44.8M represents a substantial commitment, suggesting a significant scope of work or a critical function being supported. A direct comparison would require analyzing contracts with similar PWS requirements and durations within the DoD.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These critical elements are typically detailed within the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract award. KPIs and SLAs define the expected level of service, performance standards, and metrics used to evaluate the contractor's success. For IT services, common KPIs might include system uptime percentages, response times for technical support, incident resolution rates, or project completion timelines. The absence of this information in the summary data makes it difficult to assess the contractor's performance obligations and the government's ability to measure value beyond the financial outlay.

What is DIRECTVIZ SOLUTIONS, LLC's track record with federal IT contracts, particularly with the Department of the Army?

Assessing DIRECTVIZ SOLUTIONS, LLC's track record requires examining their past performance on federal contracts. While this specific award is for $44.8M, their history might include smaller contracts, different service types, or awards from other agencies. Information on past performance, including contract values, durations, and any reported issues or successes, is often available through federal procurement databases (like FPDS or SAM.gov). A positive track record with the Department of the Army or similar agencies would indicate reliability and capability. Conversely, a history of performance issues, contract disputes, or terminations could raise concerns about the current award's risk. Without access to their full contract history, it's difficult to definitively assess their suitability beyond their winning bid for this specific requirement.

What is the historical spending trend for 'Other Computer Related Services' by the Department of the Army?

Historical spending trends for 'Other Computer Related Services' (NAICS 541519) by the Department of the Army are generally on an upward trajectory, mirroring the broader federal government's increasing reliance on IT solutions. Agencies like the Army continuously invest in upgrading systems, enhancing cybersecurity, migrating to cloud environments, and acquiring specialized IT support. While specific year-over-year figures for this NAICS code require detailed data analysis from procurement databases, it's safe to assume that spending in this category has been substantial and likely growing as technology evolves and threats increase. This $44.8M award fits within this broader trend of significant federal investment in diverse IT services.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 30

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRING HILL RD STE 600, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $53,712,538

Exercised Options: $50,687,549

Current Obligation: $44,852,512

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,153,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA036

IDV Type: IDC

Timeline