Department of the Army awards $16.87M contract for Industrial Controls System (ICS) modernization to Dewberry Design-Builders Inc

Contract Overview

Contract Amount: $16,867,108 ($16.9M)

Contractor: Dewberry Design-Builders Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-08

End Date: 2026-07-28

Contract Duration: 1,603 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REPLACE THE INDUSTRIAL CONTROLS SYSTEM (ICS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to DEWBERRY DESIGN-BUILDERS INC for work described as: REPLACE THE INDUSTRIAL CONTROLS SYSTEM (ICS) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 4 years indicates a significant, long-term project. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The project is located in the District of Columbia, impacting local infrastructure. 5. This contract falls under Computer Systems Design Services, a key area for modernizing critical infrastructure.

Value Assessment

Rating: good

The contract value of $16.87 million for a 4-year Industrial Controls System (ICS) modernization project appears reasonable given the scope and duration. Benchmarking against similar large-scale ICS modernization projects for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor has a clear understanding of the project's requirements and associated costs, which can lead to better cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 5 bids received, the competition level suggests a healthy market interest in this type of federal contract. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The Department of the Army benefits from modernized and potentially more secure Industrial Controls Systems. This contract supports the delivery of essential services by ensuring the reliability of critical infrastructure. The project's geographic impact is concentrated in the District of Columbia. The contract may lead to job creation or require specialized technical expertise within the IT and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during modernization.
Ensuring seamless integration with existing legacy systems could pose a technical risk.
Cybersecurity vulnerabilities in ICS systems require continuous monitoring and mitigation.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a well-defined scope and competitive pricing.
Long-term contract duration allows for phased implementation and thorough testing.

Sector Analysis

The Industrial Controls System (ICS) market is a critical segment within the broader IT and engineering services sector, focusing on the automation and control of industrial processes. This contract for ICS modernization aligns with government-wide efforts to upgrade aging infrastructure and enhance the security and efficiency of operational technology. Comparable spending in this sector often involves significant investments in hardware, software, integration services, and cybersecurity measures to protect critical national infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Dewberry Design-Builders Inc., a larger entity, suggests that the primary focus was on technical capability and capacity for this complex project. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

The firm-fixed-price contract type provides a degree of cost certainty. Oversight will likely be managed through the Department of the Army's contracting and project management offices, with performance metrics defined in the contract. Transparency is generally maintained through federal contract databases, but detailed project execution and oversight specifics are typically internal.

Related Government Programs

Department of Defense IT Modernization Programs
Federal Infrastructure Modernization Initiatives
Cybersecurity Enhancement Programs for Critical Infrastructure

Risk Flags

Cybersecurity Risk
Integration Complexity
Operational Disruption Potential
Technology Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to DEWBERRY DESIGN-BUILDERS INC. REPLACE THE INDUSTRIAL CONTROLS SYSTEM (ICS)

Who is the contractor on this award?

The obligated recipient is DEWBERRY DESIGN-BUILDERS 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 $16.9 million.

What is the period of performance?

Start: 2022-03-08. End: 2026-07-28.

What is the track record of Dewberry Design-Builders Inc. in performing similar Industrial Controls System (ICS) modernization contracts for the federal government?

Dewberry Design-Builders Inc. has a history of performing various design and construction services for federal agencies, including projects related to infrastructure and facilities. While specific ICS modernization contract details for the federal government are not immediately available in this summary, their broader experience in design-build projects suggests a capability to manage complex technical undertakings. A deeper dive into their past performance reports, contract history on platforms like SAM.gov, and client feedback would be necessary to fully assess their track record specifically for ICS modernization. This would include evaluating their success in meeting deadlines, staying within budget, and delivering on technical specifications for similar systems.

How does the awarded price of $16.87 million compare to the estimated market value for similar ICS modernization projects of this scale and complexity?

The awarded price of $16.87 million for a 4-year ICS modernization project by the Department of the Army requires comparison with industry benchmarks. Without specific details on the scope of modernization (e.g., number of facilities, systems involved, level of integration), a precise comparison is challenging. However, large-scale ICS projects for critical infrastructure can range from tens to hundreds of millions of dollars depending on complexity. The fact that this contract was awarded under full and open competition with five bids suggests that the pricing is likely competitive within the market. Further analysis would involve reviewing government cost estimates, independent cost research, and data from similar projects awarded to other agencies or contractors.

What are the primary risks associated with modernizing Industrial Controls Systems (ICS) for a military branch like the Department of the Army?

Modernizing ICS for the Department of the Army presents several significant risks. A primary concern is cybersecurity, as ICS systems are critical for operational functions and can be targets for sophisticated adversaries. Ensuring robust security protocols during and after modernization is paramount. Technical risks include the complexity of integrating new systems with legacy infrastructure, potential compatibility issues, and the need for specialized expertise. Operational risks involve minimizing disruption to ongoing military operations during the transition. Furthermore, ensuring the reliability and resilience of the modernized systems under demanding military conditions is crucial. The long duration of the contract also introduces risks related to evolving technology and potential obsolescence if not managed proactively.

What is the expected impact of this contract on the overall effectiveness and security of the Department of the Army's operational infrastructure?

This contract is expected to significantly enhance the effectiveness and security of the Department of the Army's operational infrastructure by modernizing its Industrial Controls Systems (ICS). Upgraded ICS are typically more efficient, reliable, and easier to manage, leading to improved operational performance and reduced downtime. Crucially, modern ICS often incorporate advanced cybersecurity features designed to protect against cyber threats, which are increasingly targeting critical infrastructure. By replacing potentially outdated and vulnerable systems, this contract aims to bolster the resilience of essential Army functions against both physical and cyber attacks, thereby ensuring greater operational continuity and mission success.

How has federal spending on Computer Systems Design Services (NAICS 541512) evolved, and how does this contract fit into that trend?

Federal spending on Computer Systems Design Services (NAICS 541512) has generally seen consistent growth over the years, driven by the increasing digitization of government operations and the need for advanced IT solutions. Agencies across the government rely on these services for everything from software development and system integration to cybersecurity and cloud migration. This $16.87 million contract for ICS modernization represents a significant investment within this category, specifically targeting the critical infrastructure segment. It aligns with the broader trend of federal agencies seeking to upgrade their technological capabilities to improve efficiency, security, and operational effectiveness. Such contracts are vital for maintaining and enhancing the government's IT backbone.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2610 WYCLIFF RD STE 410, RALEIGH, NC, 27607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,867,108

Exercised Options: $16,867,108

Current Obligation: $16,867,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0029

IDV Type: IDC

Timeline