Army Cyber Center IT Support Contract Awarded to Directviz Solutions for $245.6M Over 6 Years

Contract Overview

Contract Amount: $245,582,664 ($245.6M)

Contractor: Directviz Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2025-11-30

Contract Duration: 2,376 days

Daily Burn Rate: $103.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CONTRACT AWARD FOR A NONPERSONAL, SEVERABLE, INCREMENTALLY FUNDED, COST PLUS FIXED FEE CONTRACT FOR LABOR, OVERTIME, TRAVEL AND TRAINING TO PROVIDE MANAGEMENT, ADMINISTRATIVE AND TECHNICAL INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY REGIONAL CYBER CENTER CONTINENTAL UNITED STATES MISSION TO OPERATE, MAINTAIN AND DEFEND THE ARMY S PORTION OF THE GLOBAL INFORMATION GRID, LANDWARNET.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $245.6 million to DIRECTVIZ SOLUTIONS, LLC for work described as: CONTRACT AWARD FOR A NONPERSONAL, SEVERABLE, INCREMENTALLY FUNDED, COST PLUS FIXED FEE CONTRACT FOR LABOR, OVERTIME, TRAVEL AND TRAINING TO PROVIDE MANAGEMENT, ADMINISTRATIVE AND TECHNICAL INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY REGIONAL CYBER… Key points: 1. Contract aims to ensure the operational readiness and defense of the Army's global information grid. 2. Focus on management, administrative, and technical IT support services. 3. Incremental funding suggests phased delivery and potential for adjustments. 4. Cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 5. Contract duration of over 6 years indicates a long-term strategic need. 6. Services are critical for maintaining the Army's cyber defense posture.

Value Assessment

Rating: good

The contract's total value of $245.6 million over approximately 6.5 years suggests a significant investment in IT support. Benchmarking this against similar large-scale IT support contracts for military branches would provide a clearer picture of value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Without specific performance metrics or comparisons to industry standards for similar services, a definitive value assessment is challenging, but the scale implies a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. This suggests a specific reason for exclusion, potentially related to specialized capabilities or prior performance, which could limit the breadth of competition. The number of bidders (21) is a positive sign of interest, but the 'exclusion of sources' aspect warrants further investigation to understand its impact on the final price and the range of solutions considered. A truly open competition typically involves all responsible sources.

Taxpayer Impact: While 21 bidders participated, the exclusion of certain sources may have limited the competitive pressure, potentially impacting the most favorable pricing for taxpayers. Further analysis into the rationale for source exclusion is needed to fully assess the competitive dynamics.

Public Impact

The primary beneficiaries are the United States Army Regional Cyber Center (CONUS), ensuring the continuity and security of its IT infrastructure. Services delivered include management, administrative, and technical IT support crucial for operating and defending the Army's portion of the Global Information Grid. The geographic impact is focused on the Continental United States (CONUS) where the Army's cyber operations are centered. Workforce implications include the potential for Directviz Solutions to employ a significant number of IT professionals, including cybersecurity specialists, system administrators, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
The 'exclusion of sources' in the competition could indicate a lack of robust market research or a justification that may not fully serve taxpayer interests.
Long-term nature of the contract (over 6 years) may reduce flexibility to adopt newer technologies or approaches if market evolves rapidly.

Positive Signals

The large number of bidders (21) suggests significant market interest and potential for a qualified pool of contractors.
The contract's focus on critical cyber defense for the Army indicates a high level of strategic importance and likely adherence to stringent security standards.
Incremental funding allows for phased execution and potential adjustments based on evolving mission requirements and budget availability.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer facilities management and cybersecurity support. The market for IT services supporting defense agencies is substantial, driven by the increasing reliance on digital infrastructure and the growing threat landscape. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by the Department of Defense or other federal agencies for similar mission-critical functions. The size of this award indicates a significant portion of the Army's cyber support needs are being met through this single contract.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside objective for this award. This suggests that the primary focus was on securing specialized IT support services, likely requiring large-scale capabilities. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Consequently, the direct impact on the small business IT ecosystem may be limited unless Directviz Solutions voluntarily engages small businesses for specific components of the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, with specific program managers responsible for monitoring performance, costs, and adherence to contract terms. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically internal or classified. Accountability measures would be embedded in the contract's performance work statement and award fee criteria, if applicable.

Related Government Programs

Global Information Grid (GIG) Services
Army Network Enterprise Technology Command (NETCOM) Contracts
Cybersecurity Support Services
IT Infrastructure Management
Department of Defense IT Modernization Programs

Risk Flags

Potential for cost creep in CPFF contracts
Limited competition due to source exclusion
Long contract duration may not adapt to rapid tech changes
Cybersecurity risks inherent in critical infrastructure support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $245.6 million to DIRECTVIZ SOLUTIONS, LLC. CONTRACT AWARD FOR A NONPERSONAL, SEVERABLE, INCREMENTALLY FUNDED, COST PLUS FIXED FEE CONTRACT FOR LABOR, OVERTIME, TRAVEL AND TRAINING TO PROVIDE MANAGEMENT, ADMINISTRATIVE AND TECHNICAL INFORMATION TECHNOLOGY SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY REGIONAL CYBER CENTER CONTINENTAL UNITED STATES MISSION TO OPERATE, MAINTAIN AND DEFEND THE ARMY S PORTION OF THE GLOBAL INFORMATION GRID, LANDWARNET.

Who is the contractor on this award?

The obligated recipient is DIRECTVIZ 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 $245.6 million.

What is the period of performance?

Start: 2019-05-30. End: 2025-11-30.

What is the track record of Directviz Solutions, LLC in performing similar large-scale IT support contracts for the Department of Defense?

Directviz Solutions, LLC has a history of performing IT support services for government agencies. While specific details on past performance for contracts of this magnitude and complexity are not fully detailed in the provided data, their award for this significant Army cyber support contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance reviews, any reported issues, and the scale of previous projects, would be necessary for a comprehensive assessment. Government contract databases and past performance evaluations are key resources for this analysis. Their ability to secure this contract indicates a level of trust and demonstrated capability by the Department of the Army.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry benchmarks for similar IT support services?

Cost Plus Fixed Fee (CPFF) contracts are common for complex services where the scope may evolve or is difficult to precisely define upfront, such as IT support for critical infrastructure. The 'fixed fee' component provides the contractor with a target profit, while the 'cost plus' element allows for reimbursement of allowable costs. Industry benchmarks for CPFF contracts vary widely based on the specific services, risk, and duration. For IT support, the fee percentage typically ranges from 5-15% of the estimated cost. The effectiveness of CPFF hinges on robust government oversight to control costs and ensure the fee remains reasonable relative to the contractor's performance and risk. Without specific cost data and performance metrics, it's challenging to definitively benchmark this contract's pricing against industry standards, but the structure itself is a recognized, albeit scrutinized, method for procuring complex services.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to the CPFF structure, contractor performance issues in delivering critical cyber defense services, and the risk of technological obsolescence over the contract's long duration. Mitigation strategies typically involve strong government oversight, including regular performance reviews, audits of costs, and clear performance standards outlined in the Performance Work Statement (PWS). The incremental funding also allows for adjustments and potential termination if performance falters. Furthermore, contract clauses related to security, data protection, and service level agreements are crucial for mitigating risks associated with cyber defense. The exclusion of certain sources in the competition might also represent a risk if it limited the range of innovative solutions or competitive pricing.

What is the historical spending pattern for IT support services at the Army Regional Cyber Center (CONUS)?

Analyzing historical spending patterns for IT support at the Army Regional Cyber Center (CONUS) is crucial for context. This $245.6 million award over approximately 6.5 years represents an average annual spend of roughly $37.8 million. To understand if this is an increase, decrease, or consistent with past spending, one would need to examine previous contracts awarded for similar services to this specific center or its predecessors. Trends in IT spending within the Army and DoD more broadly, driven by evolving cyber threats and modernization efforts, should also be considered. A significant deviation from historical norms might warrant further investigation into the drivers behind the change, such as expanded mission scope or new technological requirements.

How does the competition level (21 bidders, but with source exclusion) impact the potential for cost savings for the taxpayer?

Having 21 bidders initially suggests a competitive marketplace for these IT support services. However, the 'exclusion of sources' complicates the assessment of true competition. If the excluded sources represented significant potential competitors or offered unique capabilities, their absence could have reduced the overall competitive pressure, potentially leading to higher prices than might have been achieved in a fully open competition. Conversely, if the exclusions were based on objective criteria that narrowed the field to highly qualified, specialized firms, the competition among the remaining bidders could still yield good value. The ultimate impact on taxpayer savings depends on the specific reasons for exclusion and the pricing strategies of the participating bidders. A thorough review of the justification for excluding sources is essential.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91RUS18RDA04

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRING HILL ROAD, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $246,164,678

Exercised Options: $246,164,678

Current Obligation: $245,582,664

Actual Outlays: $3,023,180

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,863,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline