DoD's $25.7M Joint Services System Support contract awarded to Goldbelt Wolf, LLC, faces scrutiny over competition and value

Contract Overview

Contract Amount: $25,737,968 ($25.7M)

Contractor: Goldbelt Wolf, LLC

Awarding Agency: Department of Defense

Start Date: 2015-04-14

End Date: 2018-10-31

Contract Duration: 1,296 days

Daily Burn Rate: $19.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF JOINT SERVICES SYSTEM (JSS) SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to GOLDBELT WOLF, LLC for work described as: IGF::OT::IGF JOINT SERVICES SYSTEM (JSS) SUPPORT Key points: 1. Contract awarded via "NOT AVAILABLE FOR COMPETITION" route, raising questions about market fairness. 2. Significant duration of 1296 days suggests a long-term need for these services. 3. The contract's fixed-price nature aims to control costs, but value needs further assessment. 4. The specific North American Industry Classification System (NAICS) code 519130 points to internet publishing and web search portals. 5. Awarded to a single entity, Goldbelt Wolf, LLC, limiting potential for competitive pricing. 6. The contract's value of $25.7M over its term warrants a detailed cost-benefit analysis.

Value Assessment

Rating: questionable

Benchmarking the value of this $25.7 million contract is challenging without specific performance metrics or comparable contract data. The fixed-price structure suggests an attempt to manage costs, but the lack of competition makes it difficult to ascertain if the pricing reflects fair market value. Further analysis would require comparing the delivered services and their outcomes against industry standards and the pricing of similar, competitively bid contracts, if available. The absence of a competitive bidding process inherently limits the ability to confirm cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a "NOT AVAILABLE FOR COMPETITION" designation, indicating that a full and open competition was not conducted. This typically occurs when only one responsible source can provide the required supplies or services. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government than if multiple vendors had vied for the contract. The rationale for this sole-source award would need to be thoroughly documented to justify the absence of competition.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing bids, the government could not leverage market forces to secure the most cost-effective solution, potentially resulting in less efficient use of public funds.

Public Impact

The Department of the Army benefits from the continued operation and support of the Joint Services System (JSS). Services delivered likely include maintenance, updates, and operational support for the JSS platform. The geographic impact is primarily within the Department of Defense's operational sphere, potentially supporting various military branches. Workforce implications may involve specialized IT personnel required for system support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
Sole-source awards can limit innovation by not exposing the government to a wider range of solutions.
The long contract duration without competitive re-evaluation could lead to complacency or reduced service quality over time.
Transparency regarding the justification for the sole-source award is crucial for public trust.

Positive Signals

The contract is a definitive contract, providing a clear framework for the service agreement.
The firm fixed-price (FFP) contract type helps to manage cost uncertainty for the government.
The award was made to Goldbelt Wolf, LLC, indicating a specific entity is responsible for delivering the services.

Sector Analysis

The contract falls within the IT services sector, specifically related to internet publishing and web search portals, as indicated by NAICS code 519130. This sector is characterized by rapid technological advancements and a dynamic market. The contract's value of $25.7 million over approximately 3.5 years places it as a significant, though not massive, IT services contract within the federal landscape. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts for government systems, particularly those involving specialized platforms like the Joint Services System.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this contract. There is no indication of small business set-asides or subcontracting plans. This suggests that the focus was on the capabilities of the prime contractor, Goldbelt Wolf, LLC, rather than on fostering small business involvement. Consequently, the impact on the small business ecosystem for this specific contract appears minimal.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures are established through the terms and conditions of the definitive contract, including performance standards and payment schedules. Transparency is often enhanced through contract databases like FPDS, although the justification for sole-source awards can sometimes be less publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Joint Services System (JSS)
Department of Defense IT Services
Web Portal Development and Maintenance
Internet Publishing Services
Sole-Source IT Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for reduced value for taxpayer money due to lack of competition.
Limited transparency regarding the justification for sole-source award.
Long contract duration without re-competition may reduce incentive for efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to GOLDBELT WOLF, LLC. IGF::OT::IGF JOINT SERVICES SYSTEM (JSS) SUPPORT

Who is the contractor on this award?

The obligated recipient is GOLDBELT WOLF, 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 $25.7 million.

What is the period of performance?

Start: 2015-04-14. End: 2018-10-31.

What is the specific nature of the services provided under the Joint Services System (JSS) Support contract?

The contract, identified by NAICS code 519130 (Internet Publishing and Broadcasting and Web Search Portals), suggests services related to the operation, maintenance, and potentially development of web-based systems and information dissemination platforms. Given it supports the Joint Services System (JSS) within the Department of the Army, these services likely encompass ensuring the functionality, availability, and security of a critical IT infrastructure. This could include tasks such as system administration, software updates, bug fixes, user support, data management, and potentially content management or portal enhancements to facilitate information sharing and operational coordination among different military services.

What is the justification for awarding this $25.7 million contract to Goldbelt Wolf, LLC on a sole-source basis?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this designation is not detailed in the provided data but typically stems from circumstances where only one responsible contractor can provide the required services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or if the contract is a follow-on to a previous sole-source award where the original source possesses unique knowledge or assets. A thorough review of the contract file and justification documentation (e.g., Justification and Approval - J&A) would be necessary to understand the precise reasons why full and open competition was deemed inappropriate for this $25.7 million award.

How does the $25.7 million contract value compare to similar IT support contracts within the Department of Defense?

Comparing the $25.7 million value requires context regarding the contract's duration (approximately 3.5 years) and the specific services rendered. For large-scale IT support contracts within the DoD, $25.7 million over this period might be considered moderate. However, without knowing the scope and complexity of the JSS support, direct comparisons are difficult. The DoD procures a vast array of IT services, ranging from enterprise-wide software licenses and cloud services to specialized system maintenance. If JSS is a niche or legacy system, the cost might be higher relative to its complexity. Conversely, if it's a widely used platform, this value might be competitive if it were bid openly. The sole-source nature, however, prevents a direct value-for-money comparison against potential competitors.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially those of significant value ($25.7 million) and long duration (over 3 years), carry inherent risks. A primary risk is the lack of price competition, which can lead to the government paying more than necessary. Without competitive pressure, the contractor may have less incentive to innovate or improve efficiency, potentially impacting service quality or cost-effectiveness over time. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, making future transitions difficult and costly. Furthermore, the absence of multiple bidders can reduce transparency and make it harder to identify potential performance issues or overcharges until they become significant problems.

What is Goldbelt Wolf, LLC's track record with federal contracts, particularly within the Department of Defense?

Information regarding Goldbelt Wolf, LLC's specific track record with federal contracts, especially within the Department of Defense, is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review past awards, contract types, values, and performance ratings. Understanding their experience with similar IT support services, their history of meeting deadlines and quality standards, and any past performance issues or commendations would be crucial for a comprehensive risk assessment. This specific $25.7 million contract represents a significant award, and their ability to successfully execute it depends heavily on their prior experience and demonstrated capabilities.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9133L15Q0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Goldbelt, Incorporated (UEI: 096763800)

Address: 5500 CHEROKEE AVE STE 100, ALEXANDRIA, VA, 22312

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,745,212

Exercised Options: $25,737,968

Current Obligation: $25,737,968

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline