DoD awards $9.4M for USASOC equipment, with limited competition and no small business set-aside

Contract Overview

Contract Amount: $9,415,019 ($9.4M)

Contractor: Coho Technology Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $25.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USASOC EQUIPMENT PURCHASE

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to COHO TECHNOLOGY SOLUTIONS, LLC for work described as: USASOC EQUIPMENT PURCHASE Key points: 1. Contract awarded to Coho Technology Solutions, LLC for computer facilities management. 2. Limited competition raises questions about price discovery and potential value. 3. No small business participation noted, impacting broader economic inclusion goals. 4. The contract duration of one year suggests a focused, short-term need. 5. Fixed-price contract type offers cost certainty for the government. 6. Geographic focus on North Carolina for delivery.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to the limited competition and lack of detailed cost breakdowns. The fixed-price nature provides some cost control, but without competitive bids, it's difficult to ascertain if the $9.4 million represents optimal value for the services rendered. Further analysis would require comparing this to similar, competitively bid contracts for comparable equipment and management services within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the solicitation was not broadly advertised or competed among multiple vendors. This limited competition suggests potential reasons such as a lack of available vendors, a specific requirement that only one vendor could meet, or a previous relationship that led to this award. The absence of a competitive bidding process means that the government did not benefit from the price discovery that typically occurs when multiple companies vie for a contract.

Taxpayer Impact: Limited competition can lead to higher costs for taxpayers as the government may not secure the most competitive pricing available in the market. It also reduces opportunities for new or smaller businesses to enter into government contracts.

Public Impact

US Special Operations Command (USASOC) personnel will benefit from the procured equipment and associated management services. The services delivered are related to computer facilities management, crucial for operational readiness. The contract has a geographic impact primarily in North Carolina, where the equipment will be managed. The contract supports the technology infrastructure necessary for military operations and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of small business participation misses opportunities for economic inclusion.
The specific nature of 'equipment purchase' without further detail raises questions about necessity and potential alternatives.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
The contract is for a defined period, allowing for reassessment of needs.
Award to a specific LLC suggests a focused vendor relationship.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer facilities management. The market for such services is robust, with numerous providers ranging from large corporations to specialized small businesses. The Department of Defense is a significant consumer of IT services, often requiring specialized solutions due to security and operational demands. Benchmarking this $9.4 million award requires comparison against similar IT infrastructure and management contracts within the federal government and defense sector, considering the specific technical requirements and security protocols involved.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Furthermore, the 'st': 'NC' (North Carolina) designation does not automatically imply small business subcontracting. The absence of a small business set-aside means that opportunities for small businesses to directly compete for or subcontract on this award were not prioritized or mandated. This could limit the participation of the small business ecosystem in fulfilling this particular government need.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the US Special Operations Command (USASOC). As a delivery order under a larger contract vehicle (though the parent vehicle is not specified), oversight would involve monitoring performance against the contract terms, ensuring timely delivery, and verifying that services meet the required standards. Transparency is facilitated through contract databases, but the limited competition aspect reduces public visibility into the justification for the award and the negotiation process. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USASOC Equipment Procurement
Department of Defense IT Services
Computer Facilities Management Contracts
Limited Competition Awards

Risk Flags

Limited Competition
Lack of Small Business Participation
Potential for Overpricing
Lack of Transparency in Award Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to COHO TECHNOLOGY SOLUTIONS, LLC. USASOC EQUIPMENT PURCHASE

Who is the contractor on this award?

The obligated recipient is COHO TECHNOLOGY 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 $9.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the specific type of equipment being purchased under this contract?

The provided data indicates the contract is for 'USASOC EQUIPMENT PURCHASE' and falls under the 'Computer Facilities Management Services' (NAICS 541513) category. However, the specific type of equipment is not detailed in the provided data. This could range from servers, networking hardware, data storage solutions, to specialized IT infrastructure components. Without further information, it's difficult to assess the necessity, cost-effectiveness, or technological relevance of the purchased equipment. Further inquiry into the contract's statement of work or technical specifications would be required to identify the exact nature of the equipment.

How does the $9.4 million cost compare to similar equipment purchases for computer facilities management within the DoD?

Direct comparison of the $9.4 million cost is challenging without knowing the exact equipment specifications and the scope of management services included. However, for context, IT equipment and facilities management contracts within the DoD can vary significantly in price. Larger, more complex procurements involving advanced hardware, extensive software licenses, and long-term support can easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused purchases for specific components or short-term management might be in the low millions. The 'NOT AVAILABLE FOR COMPETITION' status suggests this price might not be the most competitive market rate, making a direct benchmark against competitively bid contracts crucial for a true value assessment.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract award of this magnitude?

The primary risk associated with a 'NOT AVAILABLE FOR COMPETITION' award of $9.4 million is the potential for inflated pricing and reduced value for money. Without competitive bidding, the government may overpay for the equipment and services, as there is less pressure on the contractor to offer the lowest possible price. Another risk is the lack of innovation; a sole-source or limited-competition environment may not encourage the contractor to propose the most efficient or technologically advanced solutions. Furthermore, it can create a perception of favoritism or a lack of transparency, potentially undermining public trust and discouraging other capable vendors from pursuing future government contracts.

What is the track record of Coho Technology Solutions, LLC in performing similar government contracts?

Information regarding the specific track record of Coho Technology Solutions, LLC in performing similar government contracts is not detailed in the provided data. A thorough assessment would require examining their past performance history, including contract awards, completion records, client feedback, and any instances of contract disputes or terminations. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically hold this information. Without access to these records, it's difficult to definitively assess their capability and reliability for this $9.4 million award.

What are the implications of this contract being a 'Delivery Order' rather than a new contract?

The designation of this award as a 'Delivery Order' (aw) implies that it is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means that the foundational terms, conditions, and potentially some pricing structures were likely established when the parent contract was awarded, possibly through a competitive process. However, the specific details of this delivery order, including the $9.4 million value and the 'NOT AVAILABLE FOR COMPETITION' status, suggest that this particular task might have been awarded non-competitively under the umbrella of the larger contract. This can streamline the acquisition process but still warrants scrutiny regarding the justification for non-competition at the task order level.

How does the duration of 364 days impact the overall value and strategic importance of this equipment purchase?

A contract duration of 364 days, just shy of a full year, suggests a short-term or tactical need for the equipment and associated services. This duration implies that the equipment might be for a specific project, a temporary surge in demand, or a placeholder until a more permanent or competitively sourced solution can be implemented. From a value perspective, a shorter duration can sometimes limit the potential for long-term cost savings or economies of scale that might be achieved with a multi-year contract. Strategically, it indicates that the USASOC may be reassessing its long-term equipment needs or seeking to avoid long-term commitments until requirements are better defined or market conditions change.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DY24R0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1577 C STREET, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,415,019

Exercised Options: $9,415,019

Current Obligation: $9,415,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY24D0068

IDV Type: IDC

Timeline