DoD Awards $10.9M for ASK SAGE Annual Subscription and Cloud Services to Support CIO G6
Contract Overview
Contract Amount: $10,884,410 ($10.9M)
Contractor: ASK Sage, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-12
End Date: 2026-09-29
Contract Duration: 566 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS TASK ORDER IS ISSUED FOR AN ASK SAGE ANNUAL SUBSCRIPTION, YEARLY LICENSE, TRAINING, CLOUD STORAGE AND CUSTOM SERVICES IN SUPPORT OF THE CIO G6.
Place of Performance
Location: BENTONVILLE, WARREN County, VIRGINIA, 22610
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to ASK SAGE, INC. for work described as: THIS TASK ORDER IS ISSUED FOR AN ASK SAGE ANNUAL SUBSCRIPTION, YEARLY LICENSE, TRAINING, CLOUD STORAGE AND CUSTOM SERVICES IN SUPPORT OF THE CIO G6. Key points: 1. The contract is for essential IT services including subscriptions, training, and cloud storage. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. The contract duration is 566 days, ending in September 2026. 4. The primary vendor is ASK SAGE, INC., specializing in Computer Systems Design Services.
Value Assessment
Rating: fair
The contract value of $10.9M for a 566-day period appears reasonable for specialized IT services. Benchmarking against similar cloud subscription and custom service contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method implies that while competition was sought, specific sources may have been excluded, potentially impacting price discovery.
Taxpayer Impact: Taxpayers are funding essential IT infrastructure and services for the Department of the Army's CIO G6.
Public Impact
Ensures continued operation of critical IT systems for the Army's CIO. Supports cloud storage and custom services, vital for modern data management. Includes training, enhancing user proficiency with the ASK SAGE platform. Annual subscription model suggests ongoing operational costs for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized services.
- Clarity on the 'exclusion of sources' rationale is needed.
- Long-term cost implications of cloud storage and custom services.
Positive Signals
- Procurement supports critical IT functions.
- Includes training to maximize software utility.
- Fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending benchmarks for similar annual subscriptions, cloud services, and custom IT support vary widely based on scope and vendor.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this procurement. The vendor, ASK SAGE, INC., is not identified by size.
Oversight & Accountability
The contract is a Delivery Order under a larger agreement. Oversight would likely involve monitoring performance, deliverables, and adherence to the contract terms by the Department of the Army.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if usage exceeds projections.
- Dependence on a single vendor for critical IT functions.
- Lack of transparency regarding source exclusion.
- Need for ongoing cost-benefit analysis of subscription services.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to ASK SAGE, INC.. THIS TASK ORDER IS ISSUED FOR AN ASK SAGE ANNUAL SUBSCRIPTION, YEARLY LICENSE, TRAINING, CLOUD STORAGE AND CUSTOM SERVICES IN SUPPORT OF THE CIO G6.
Who is the contractor on this award?
The obligated recipient is ASK SAGE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2025-03-12. End: 2026-09-29.
What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?
The rationale for excluding specific sources needs further investigation. Typically, such exclusions are based on unique capabilities, existing infrastructure integration, or specific security requirements that only a limited number of vendors can meet. Understanding these criteria is crucial for assessing whether the competition was truly maximized or if it inadvertently limited potential cost savings for taxpayers.
How does the annual subscription cost compare to industry benchmarks for similar cloud storage and custom service packages?
A detailed cost-benefit analysis against industry benchmarks is necessary. The $10.9M contract value over 566 days needs to be broken down into per-unit costs for subscriptions, storage, and custom services. Comparing these to market rates for comparable solutions will determine if the government is receiving competitive pricing or if there's an opportunity for negotiation.
What is the long-term strategy for managing the costs associated with this annual subscription and cloud services?
The annual subscription model implies recurring costs. A long-term strategy should outline how these costs will be managed, including potential for renegotiation, exploring alternative solutions, or optimizing cloud usage to control expenses. Without a clear long-term plan, the government risks escalating costs over multiple contract periods.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 181 TIMBERLAND MANOR DR, BENTONVILLE, VA, 22610
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,884,410
Exercised Options: $10,884,410
Current Obligation: $10,884,410
Actual Outlays: $10,369,450
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128Z25DA001
IDV Type: IDC
Timeline
Start Date: 2025-03-12
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-09-30
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