DoD awards $26.4M for Academic Network Support to NEXTECH LINTECH LLC, with 4 bidders

Contract Overview

Contract Amount: $26,416,578 ($26.4M)

Contractor: Nextech Lintech LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-15

End Date: 2026-07-09

Contract Duration: 1,151 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACADEMIC NETWORK SUPPORT

Place of Performance

Location: MONTEREY, MONTEREY County, CALIFORNIA, 93944

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to NEXTECH LINTECH LLC for work described as: ACADEMIC NETWORK SUPPORT Key points: 1. Contract value of $26.4M over 3 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding environment. 3. The contract is for Computer Systems Design Services, a common IT requirement. 4. Fixed-price contract type aims to control costs for the government. 5. Delivery order structure allows for phased execution and payment. 6. The awardee, NEXTECH LINTECH LLC, is a relatively small business based on contract size.

Value Assessment

Rating: fair

The contract value of $26.4 million over approximately three years averages to about $8.8 million annually. Benchmarking this against similar academic network support contracts is difficult without more specific service details. However, the fixed-price nature suggests an attempt to manage costs. The number of bidders (4) is reasonable for a contract of this size and scope, but without knowing the specific technical requirements and market landscape, it's hard to definitively assess if the pricing represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broadly solicited, specific sources may have been excluded for defined reasons. With four bidders, the competition level appears moderate. This suggests that the market for these services is not overly saturated, but also that multiple capable vendors were available and interested, which can contribute to price discovery and potentially better terms for the government.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging vendors to offer competitive pricing to secure the contract. The presence of four bidders indicates that the government had options, likely leading to a more favorable price than a sole-source award.

Public Impact

The Department of the Army benefits from enhanced academic network support, crucial for research and educational initiatives. Services delivered include computer systems design, supporting the infrastructure for academic collaborations and data management. The geographic impact is primarily within California, where the contractor is located, but the network support likely extends to various academic institutions. Workforce implications may include specialized IT roles for network design and maintenance, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and ensure it did not unduly limit competition.
The specific nature of 'Academic Network Support' is broad; a lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
The contractor's track record with similar large-scale academic network support contracts is not detailed, posing a potential risk if they lack relevant experience.

Positive Signals

The contract is awarded under full and open competition, indicating a broad market search and a desire for competitive pricing.
The fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The contract duration of over three years allows for stability in network support services, reducing disruption.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. Contracts like this support the backbone of research and development within academic institutions, which often collaborate with government agencies. The market for specialized network design and support is competitive, with numerous firms offering a range of services. Federal spending in this category is driven by the need for robust and secure IT infrastructure to support complex operations and data-intensive research.

Small Business Impact

While the contract is not explicitly a small business set-aside, the awardee, NEXTECH LINTECH LLC, may qualify as a small business depending on its size standards for NAICS code 541512. If it is a small business, this represents a significant award for them. There is no information provided regarding subcontracting plans, so the impact on the broader small business ecosystem is unclear. Further analysis would be needed to determine if subcontracting opportunities are being leveraged to engage other small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance reports and Inspector General oversight would depend on specific agency policies and any identified issues.

Related Government Programs

DoD Research and Development IT Support
Academic Research Infrastructure Grants
Federal Network Modernization Programs
Computer Systems Design Services Contracts

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'.
Lack of detailed performance metrics makes value assessment difficult.
Contractor's specific experience in academic network support is not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to NEXTECH LINTECH LLC. ACADEMIC NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is NEXTECH LINTECH 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 $26.4 million.

What is the period of performance?

Start: 2023-05-15. End: 2026-07-09.

What is the specific nature of the 'Academic Network Support' being provided, and what are the key performance indicators (KPIs) for this contract?

The contract specifies 'Computer Systems Design Services' (NAICS 541512) for 'Academic Network Support.' This typically encompasses the design, integration, and maintenance of computer networks within academic environments. Key performance indicators (KPIs) are not detailed in the provided data but would likely include network uptime, data transfer speeds, security compliance, system response times, and user support availability. Without these specific metrics, it is challenging to fully assess the contractor's performance and the value delivered. The Department of the Army would have a Performance Work Statement (PWS) outlining these requirements and how they are measured.

How does the pricing of this contract compare to similar academic network support contracts awarded by the Department of Defense or other federal agencies?

Direct price comparison is difficult without detailed service specifications and market benchmarks for 'Academic Network Support.' However, the average annual value of approximately $8.8 million for a contract of this nature suggests a moderate investment. Factors influencing pricing include the complexity of the network, the number of users supported, the required security levels, and the specific technologies employed. The fact that it was competed under 'Full and Open Competition After Exclusion of Sources' with four bidders implies that the pricing is likely within a competitive range, but a deeper dive into comparable contract awards with similar scopes would be necessary for a definitive assessment.

What is the track record of NEXTECH LINTECH LLC in delivering large-scale academic network support services?

Information regarding NEXTECH LINTECH LLC's specific track record in delivering large-scale academic network support is not provided in the data. As a contractor for Computer Systems Design Services, they may have experience in IT infrastructure projects. However, the scale and specialized nature of 'Academic Network Support' require specific expertise. A thorough assessment would involve reviewing past performance evaluations, contract history, and client references for similar projects. The Department of Defense's Contractor Performance Assessment Reporting System (CPARS) would be a primary source for such information if available.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include the contractor's ability to meet performance requirements, cybersecurity threats to the academic network, potential cost overruns if the fixed-price model is not well-defined, and vendor lock-in. Mitigation strategies would involve robust contract oversight by the Army, clear performance standards in the PWS, regular security audits, and contingency planning. The 'Exclusion of Sources' aspect of the competition also presents a potential risk if it unduly limited the pool of qualified bidders, potentially impacting price or innovation. The government's contracting officers are responsible for managing these risks throughout the contract lifecycle.

How does this contract align with the Department of Defense's broader IT modernization and research support strategies?

This contract aligns with the DoD's strategy to support academic research and development, which often relies on advanced IT infrastructure. By ensuring robust academic network support, the DoD facilitates collaborations between military researchers and academic institutions, fostering innovation and knowledge sharing. Modernizing academic networks can also enhance cybersecurity posture and data management capabilities, which are critical for sensitive research projects. The investment in computer systems design services directly contributes to the technological foundation required for cutting-edge research and educational programs that may have defense applications.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QF423R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18481 W 10 MILE RD STE 202, SOUTHFIELD, MI, 48075

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,662,540

Exercised Options: $26,416,578

Current Obligation: $26,416,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0218

IDV Type: GWAC

Timeline