DoD's $7.3M REMIS Modernization contract awarded to Zenlogic JV LLC for IT services
Contract Overview
Contract Amount: $7,341,655 ($7.3M)
Contractor: Zenlogic JV LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2025-09-29
Contract Duration: 732 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REMIS MODERNIZATION FOR USACE REAL ESTATE DIVISION @ HQ
Place of Performance
Location: ANNANDALE, FAIRFAX County, VIRGINIA, 22003
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.3 million to ZENLOGIC JV LLC for work described as: REMIS MODERNIZATION FOR USACE REAL ESTATE DIVISION @ HQ Key points: 1. Contract aims to modernize the USACE Real Estate Division's information management system. 2. Zenlogic JV LLC, a joint venture, secured the contract. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The contract duration is approximately two years. 5. The primary service category is 'Other Computer Related Services'. 6. This contract is a firm-fixed-price award, indicating predictable costs for the government.
Value Assessment
Rating: good
The contract value of $7.3 million over two years for IT modernization services appears reasonable, especially considering the specialized nature of real estate information management systems. Benchmarking against similar IT modernization efforts within the Department of Defense suggests this falls within a typical spending range for projects of this scope and duration. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.
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. With four bidders participating, the competition level suggests a healthy market response for this type of IT service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.
Public Impact
The U.S. Army Corps of Engineers (USACE) Real Estate Division will benefit from an upgraded information management system. Improved data management and accessibility for real estate assets managed by USACE. Potential for enhanced operational efficiency and decision-making within the USACE. The contract supports IT services, contributing to the federal government's digital transformation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if modernization requirements are not clearly defined and managed.
- Dependence on a single joint venture for critical IT modernization could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Firm-fixed-price contract provides cost predictability.
- Modernization of a critical information system is a positive step for operational efficiency.
Sector Analysis
The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a broad range of IT support and consulting. The market for government IT modernization is substantial, with agencies continually seeking to upgrade legacy systems to improve efficiency and security. Comparable spending benchmarks for similar IT modernization projects within the Department of Defense can vary widely based on complexity, but a $7.3 million award over two years is a moderate investment.
Small Business Impact
This contract was not specifically set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses in the provided data. The award went to Zenlogic JV LLC, a joint venture, which may itself involve small business participation depending on its structure. Without explicit set-aside provisions or reported subcontracting plans, the direct impact on the small business ecosystem is not immediately apparent from this award alone.
Oversight & Accountability
The contract is a delivery order under an IDIQ contract, which typically has its own set of oversight mechanisms. The firm-fixed-price nature of the award provides a degree of financial oversight by locking in costs. Further oversight would likely be managed by the contracting officer's representative (COR) and through standard government procurement regulations. Transparency is generally maintained through contract award databases like SAM.gov.
Related Government Programs
- USACE Information Technology Services
- Department of Defense IT Modernization Programs
- Federal Real Estate Information Systems
Risk Flags
- Potential for vendor lock-in if not managed carefully.
- Risk of inadequate user adoption impacting system effectiveness.
- Dependency on joint venture partners' performance.
Tags
it-services, department-of-defense, usace, real-estate-management, modernization, firm-fixed-price, full-and-open-competition, delivery-order, zenlogic-jv-llc, virginia, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.3 million to ZENLOGIC JV LLC. REMIS MODERNIZATION FOR USACE REAL ESTATE DIVISION @ HQ
Who is the contractor on this award?
The obligated recipient is ZENLOGIC JV 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 $7.3 million.
What is the period of performance?
Start: 2023-09-28. End: 2025-09-29.
What is the track record of Zenlogic JV LLC in delivering similar IT modernization projects for the federal government?
Information regarding the specific track record of Zenlogic JV LLC in delivering IT modernization projects is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. Further investigation into past performance evaluations, contract awards, and client feedback for Zenlogic JV LLC and its constituent members would be necessary to fully assess their capabilities and reliability for this REMIS modernization effort. Government contract databases and past performance questionnaires are typically used to evaluate such track records during the procurement process.
How does the $7.3 million cost compare to similar IT modernization contracts for real estate information systems within the federal government?
The $7.3 million cost for this two-year IT modernization contract appears to be within a reasonable range when compared to similar federal projects. While exact benchmarks for 'REMIS' (Real Estate Management Information System) modernization are specific, general IT modernization efforts for complex data management systems within agencies like the Department of Defense often fall within the multi-million dollar range over similar timeframes. Factors influencing cost include the scope of modernization (e.g., cloud migration, data analytics, user interface redesign), the complexity of existing systems, and the number of users. The firm-fixed-price nature of this award also aids in cost predictability, suggesting that the initial cost estimate was deemed appropriate for the defined scope.
What are the primary risks associated with modernizing the USACE Real Estate Division's information management system?
Key risks associated with modernizing the USACE Real Estate Division's information management system include technical challenges in integrating new systems with legacy infrastructure, potential data migration errors or loss, and user adoption hurdles. There's also a risk of scope creep if requirements are not meticulously managed, leading to budget overruns and schedule delays. Cybersecurity vulnerabilities during the transition phase are a significant concern, as is the potential for disruption to ongoing real estate operations. Ensuring adequate training and support for end-users post-modernization is also critical to realizing the full benefits of the new system.
How effective is the firm-fixed-price contract type in ensuring value for money for this IT modernization project?
The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for IT modernization projects when the scope of work is well-defined and understood upfront. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. For this $7.3 million REMIS modernization contract, the FFP structure means Zenlogic JV LLC is responsible for delivering the specified services within the agreed-upon price. This encourages the contractor to manage costs efficiently. However, if the scope is not precisely defined, an FFP contract can sometimes lead to the contractor cutting corners on quality or scope to maintain profitability, or conversely, the government may have paid a premium to account for contractor risk.
What is the historical spending trend for IT modernization within the USACE Real Estate Division or similar functions?
Historical spending data specifically for IT modernization within the USACE Real Estate Division is not provided. However, federal agencies, including the Department of Defense, have consistently allocated significant budgets towards IT modernization to address aging infrastructure, enhance cybersecurity, and improve operational efficiency. Spending trends in this area have generally shown an increasing emphasis on cloud computing, data analytics, and agile development methodologies. Agencies often consolidate disparate systems into more integrated platforms, which requires substantial investment. Without specific historical figures for this division, it's understood that such modernization efforts are typically multi-year, multi-million dollar endeavors reflecting the complexity and criticality of the systems being updated.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4121 WILSON BLVD, ARLINGTON, VA, 22203
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,683,843
Exercised Options: $7,341,655
Current Obligation: $7,341,655
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA027
IDV Type: IDC
Timeline
Start Date: 2023-09-28
Current End Date: 2025-09-29
Potential End Date: 2027-09-28 00:00:00
Last Modified: 2025-12-30
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