DoD's $38.4M IT services contract for regional enterprise network centers awarded to All Native Synergies Company

Contract Overview

Contract Amount: $38,451,070 ($38.5M)

Contractor: ALL Native Synergies Company

Awarding Agency: Department of Defense

Start Date: 2021-01-15

End Date: 2024-04-08

Contract Duration: 1,179 days

Daily Burn Rate: $32.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICES TO THE REGIONAL NETWORK ENTERPRISE CENTER FT BELVOIR VA: FT MYER,FT AP HILL, VA FT MCNAIR,DC FT MEADE, MD MARINE CORPS BASE QUANTICO, FT LEE, VA, FT GORDON, GA,

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to ALL NATIVE SYNERGIES COMPANY for work described as: IT SERVICES TO THE REGIONAL NETWORK ENTERPRISE CENTER FT BELVOIR VA: FT MYER,FT AP HILL, VA FT MCNAIR,DC FT MEADE, MD MARINE CORPS BASE QUANTICO, FT LEE, VA, FT GORDON, GA, Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. The contract duration of nearly four years indicates a significant, ongoing need for services. 4. Services cover a broad range of IT support across multiple Department of Defense installations. 5. The 'Other Computer Related Services' NAICS code suggests a diverse scope of IT functions. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract's value of $38.4 million over nearly four years for IT services is substantial. Benchmarking this against similar 'Other Computer Related Services' contracts is challenging without more specific service details. However, the sole-source nature of the award raises concerns about whether the government achieved the best possible pricing. The firm fixed-price structure provides cost predictability, but the absence of competition means a direct comparison to market rates for equivalent services is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. The data indicates 'NOT AVAILABLE FOR COMPETITION,' suggesting a specific reason, such as a unique capability or prior relationship, was cited for bypassing a competitive process. With only one bidder considered, there was no opportunity for multiple companies to offer proposals, which typically drives down prices and fosters innovation.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.

Public Impact

The Department of Defense benefits from continuous IT support for its regional enterprise network. Military personnel and civilian staff at multiple installations receive reliable network services. Installations in Virginia, Maryland, and Georgia are directly impacted by these IT services. The contract supports the operational readiness and communication infrastructure of the Army and Marine Corps.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source award.
Broad IT services category makes specific performance assessment difficult without further detail.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need being met.
Services support critical regional enterprise network infrastructure for multiple installations.

Sector Analysis

This contract falls within the IT services sector, specifically under the 'Other Computer Related Services' category. The IT services market is highly competitive, with numerous providers offering a wide array of solutions. Contracts of this size and duration are common for supporting large government IT infrastructures. Benchmarking requires comparing to similar managed IT services or network support contracts within the federal government, particularly those supporting defense agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless they are specifically identified and utilized by the prime contractor. This procurement does not appear to actively contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the specific justification for the sole-source award and detailed performance metrics would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Regional Enterprise Network Contracts
Other Computer Related Services
Sole Source IT Procurements
Firm Fixed Price IT Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed service scope in public data.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to ALL NATIVE SYNERGIES COMPANY. IT SERVICES TO THE REGIONAL NETWORK ENTERPRISE CENTER FT BELVOIR VA: FT MYER,FT AP HILL, VA FT MCNAIR,DC FT MEADE, MD MARINE CORPS BASE QUANTICO, FT LEE, VA, FT GORDON, GA,

Who is the contractor on this award?

The obligated recipient is ALL NATIVE SYNERGIES COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2021-01-15. End: 2024-04-08.

What specific services are included under 'Other Computer Related Services' for this contract?

The 'Other Computer Related Services' NAICS code (541519) is broad and encompasses a wide range of IT support activities not classified elsewhere. For this specific contract, it likely includes services such as IT network management, system administration, technical support, hardware/software maintenance, and potentially cybersecurity support for the regional enterprise network. Without a detailed statement of work, the precise scope remains general. However, given the context of supporting enterprise networks across multiple military bases, it implies comprehensive IT operational support, ensuring the availability, integrity, and performance of critical communication and data infrastructure for the Department of Defense.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' and awarded as 'sole-source.' Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required services, or in cases of urgent need where competition is not feasible. For this contract, the justification likely relates to unique capabilities, proprietary technology, or a specific requirement that only All Native Synergies Company could fulfill at the time of award. A formal justification document (e.g., a Justification and Approval - J&A) would typically be required and publicly available, detailing the rationale and demonstrating why competition was not practicable or not in the government's best interest.

How does the $38.4 million value compare to similar IT service contracts for regional networks?

Comparing the $38.4 million value requires context regarding the contract's duration and scope. This contract spans nearly four years (1179 days), averaging approximately $10 million per year. This figure is substantial but not unusual for comprehensive IT support of regional enterprise networks serving multiple military installations. Similar contracts supporting large-scale network infrastructure, system integration, and ongoing IT operations for federal agencies can range from tens to hundreds of millions of dollars over several years. The sole-source nature, however, prevents a direct value-for-money comparison against competitive bids, making it difficult to ascertain if this price represents optimal market value.

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

A primary risk of sole-source contracts is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may not receive the best value if alternative solutions or lower prices were available through competition. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility and innovation. Furthermore, without the vetting process of a competitive bid, there's a slightly elevated risk regarding the contractor's long-term capability, financial stability, or adherence to evolving security standards, although due diligence is still expected. The absence of multiple bidders also means less opportunity for diverse approaches to problem-solving.

What is the historical spending pattern for IT services at these specific installations?

Analyzing historical spending patterns for IT services at the listed installations (Fort Belvoir, Fort Myer, Fort AP Hill, VA Fort McNair, DC, Fort Meade, MD, Marine Corps Base Quantico, Fort Lee, VA, Fort Gordon, GA) would require accessing historical contract databases. This specific contract, awarded in January 2021, represents a significant portion of IT spending for these locations during its performance period. Understanding past spending would involve identifying previous contracts for similar IT services at these bases, their values, durations, and award types. This analysis could reveal trends in IT outsourcing, changes in service providers, and fluctuations in spending levels, providing context for the current contract's scale and necessity.

What performance metrics or oversight mechanisms are in place for this contract?

While the provided data does not detail specific performance metrics or oversight mechanisms, standard federal contracting practices would apply. The contract likely includes clauses for performance standards, quality assurance surveillance plans (QASPs), and reporting requirements. The Contracting Officer's Representative (COR) would be responsible for monitoring contractor performance and ensuring compliance with the contract terms. Given the critical nature of network infrastructure, performance would likely be evaluated on factors such as system uptime, response times for support requests, security compliance, and successful implementation of any required updates or maintenance. Regular performance reviews and milestone tracking are standard oversight tools.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91RUS21R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

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

Financial Breakdown

Contract Ceiling: $38,730,339

Exercised Options: $38,730,339

Current Obligation: $38,451,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline