DoD awards $12.4M IT contract to IT Enterprise Services and Solutions for Korea-based services
Contract Overview
Contract Amount: $12,398,334 ($12.4M)
Contractor: IT Enterprise Services and Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-03
End Date: 2026-11-02
Contract Duration: 913 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DCO SERVICES FOR RCC KOREA
Plain-Language Summary
Department of Defense obligated $12.4 million to IT ENTERPRISE SERVICES AND SOLUTIONS, LLC for work described as: DCO SERVICES FOR RCC KOREA Key points: 1. Contract value represents a significant investment in IT enterprise services for overseas operations. 2. Competition dynamics suggest a potentially competitive bidding process for this IT services contract. 3. Performance risk may be elevated due to the overseas location and complexity of IT enterprise services. 4. This contract aligns with broader DoD efforts to modernize and maintain IT infrastructure globally. 5. The IT services sector is characterized by rapid technological advancements and evolving security needs.
Value Assessment
Rating: good
The contract value of $12.4 million for IT enterprise services over approximately 2.5 years appears reasonable when benchmarked against similar large-scale IT support contracts for overseas military installations. While specific per-unit cost data is not provided, the overall award amount suggests a competitive pricing strategy was likely employed given the full and open competition. Further analysis would require detailed breakdowns of labor categories, service levels, and geographic cost-of-living adjustments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (4 indicated) suggests a healthy level of competition, which typically drives down prices and encourages innovation. The specific number of bids received and the evaluation criteria would provide a clearer picture of the intensity of the competition.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for IT enterprise services, potentially leading to cost savings and higher quality service delivery.
Public Impact
Service members and civilian personnel in Korea will benefit from enhanced IT enterprise services. The contract ensures the continued operation and maintenance of critical IT infrastructure supporting DoD missions. Geographic impact is concentrated in the Republic of Korea, supporting U.S. Forces Korea (USFK) operations. Workforce implications may include the potential for local hiring or the deployment of specialized IT personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in IT enterprise services requiring robust contract management.
- Dependency on contractor performance for critical IT infrastructure in a strategic location.
- Cybersecurity risks associated with managing IT systems in an overseas environment.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market for these services.
- Contract duration of over two years allows for stable service delivery and planning.
- Clear statement of work is expected for IT enterprise services, aiding performance monitoring.
Sector Analysis
The IT enterprise services sector is a large and dynamic market driven by continuous technological advancements and the increasing reliance of government agencies on robust digital infrastructure. This contract falls within the broader category of IT professional services, which includes areas like network management, cybersecurity, and system integration. Comparable spending benchmarks for similar IT support contracts in overseas locations can vary significantly based on the scope of services, security requirements, and local economic factors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, IT Enterprise Services and Solutions, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers responsible for IT services in Korea. Accountability measures will be defined within the contract's performance work statement (PWS) and service level agreements (SLAs). Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports are not publicly available.
Related Government Programs
- DoD IT Modernization Programs
- USFK Information Technology Support
- Global IT Enterprise Services
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee contract type.
- Cybersecurity vulnerabilities in overseas IT infrastructure.
- Performance degradation impacting critical military operations.
- Logistical challenges associated with supporting IT in a foreign country.
Tags
it-enterprise-services, department-of-defense, department-of-the-army, republic-of-korea, full-and-open-competition, delivery-order, cost-plus-fixed-fee, it-professional-services, overseas-operations, network-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to IT ENTERPRISE SERVICES AND SOLUTIONS, LLC. DCO SERVICES FOR RCC KOREA
Who is the contractor on this award?
The obligated recipient is IT ENTERPRISE SERVICES AND 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 $12.4 million.
What is the period of performance?
Start: 2024-05-03. End: 2026-11-02.
What is the track record of IT Enterprise Services and Solutions, LLC with the Department of Defense?
Information regarding the specific track record of IT Enterprise Services and Solutions, LLC with the Department of Defense is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, previous contract awards, and any reported issues or successes on prior DoD engagements. Understanding their history with similar IT enterprise services, particularly in overseas environments, would be crucial for evaluating their capability and reliability on this new contract. This includes examining their experience with cost-plus-fixed-fee contracts and their ability to manage complex IT projects within budget and schedule constraints.
How does the awarded amount compare to similar IT enterprise service contracts for overseas locations?
The awarded amount of $12.4 million for approximately 2.5 years of IT enterprise services for Korea is a significant figure. Benchmarking this against similar contracts requires access to a database of comparable awards, considering factors like geographic location, specific services rendered (e.g., network management, cybersecurity, help desk support), contract type (Cost Plus Fixed Fee), and the number of users supported. Without direct comparative data, it's challenging to definitively state if this represents excellent, fair, or questionable value. However, given the complexities of operating IT infrastructure in overseas military installations, which often involve higher security protocols and logistical challenges, the price point may be within an expected range for comprehensive support.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks associated with this contract likely include performance failures in delivering critical IT enterprise services, cybersecurity threats targeting sensitive military networks, and potential cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts. Mitigation strategies typically involve robust contract oversight by the Army Contracting Command, adherence to strict performance work statements (PWS) with defined service level agreements (SLAs), and rigorous cybersecurity protocols mandated by DoD. The CPFF structure itself requires careful monitoring to ensure the contractor exercises cost control. Additionally, the overseas location may introduce logistical and personnel-related risks that need proactive management.
What is the expected effectiveness of these IT enterprise services in supporting DoD missions in Korea?
The expected effectiveness of these IT enterprise services is high, assuming the contractor, IT Enterprise Services and Solutions, LLC, performs as stipulated in the contract. These services are crucial for maintaining the operational readiness and communication capabilities of U.S. Forces Korea (USFK). Effective IT support ensures seamless functioning of command and control systems, data management, network security, and user support, all of which are vital for mission accomplishment in a strategic theater. The contract's duration and the full and open competition suggest an intent to secure reliable and high-quality services necessary for sustained DoD operations.
What are the historical spending patterns for similar IT enterprise services in the Department of Defense?
Historical spending patterns for IT enterprise services within the Department of Defense are substantial and represent a significant portion of the overall defense budget. The DoD consistently invests billions annually in IT infrastructure, services, and modernization across various branches and commands. Spending in this category often fluctuates based on strategic priorities, technological obsolescence, and the need to maintain readiness in diverse global locations. Contracts for overseas IT support, like the one awarded for Korea, are a recurring necessity, reflecting the ongoing global presence of U.S. military forces and their reliance on robust, secure, and continuously updated IT systems.
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 - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1945 OLD GALLOWS RD STE 500, VIENNA, VA, 22182
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: $28,854,059
Exercised Options: $15,999,559
Current Obligation: $12,398,334
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $15,611,705
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA030
IDV Type: IDC
Timeline
Start Date: 2024-05-03
Current End Date: 2026-11-02
Potential End Date: 2028-09-02 00:00:00
Last Modified: 2026-01-15
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