DoD's $63.7M Computer Systems Design Services Contract Awarded to OCTO CONSULTING GROUP LLC

Contract Overview

Contract Amount: $63,750,255 ($63.8M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of Defense

Start Date: 2016-01-26

End Date: 2022-02-15

Contract Duration: 2,212 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $63.8 million to OCTO CONSULTING GROUP LLC for work described as: IGF::CL::IGF Key points: 1. Significant contract value of $63.7 million over six years. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential for cost savings through fixed-price contract type. 4. Services fall within the IT sector, a critical area for government operations.

Value Assessment

Rating: good

The contract's fixed-price nature suggests a focus on predictable costs. Benchmarking against similar IT service contracts would be necessary for a definitive value assessment, but the duration and scope appear reasonable for the stated services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, suggesting a robust process to ensure fair pricing and access for qualified vendors. This method generally leads to better price discovery.

Taxpayer Impact: The competitive nature of the award is likely to have resulted in a fair price, maximizing the value of taxpayer dollars spent on essential IT services.

Public Impact

Ensures continued IT support for the Department of the Army. Supports a private sector company, contributing to the economy. Provides critical computer systems design services for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is extensive (over 6 years).
Small business participation is not indicated.

Positive Signals

Awarded via full and open competition.
Fixed-price contract type.

Sector Analysis

This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, supporting modernization and operational needs. Benchmarks for similar contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside goals were considered or if opportunities were missed for small business participation.

Oversight & Accountability

The contract was awarded under a Delivery Order mechanism, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on task order performance and adherence to the parent contract's terms.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Extensive contract duration.
No clear indication of small business participation.
Potential for technology obsolescence over six years.
Reliance on a single vendor for a significant period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.8 million to OCTO CONSULTING GROUP LLC. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP 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 $63.8 million.

What is the period of performance?

Start: 2016-01-26. End: 2022-02-15.

What specific computer systems design services were rendered under this contract, and how do they align with the Department of the Army's strategic IT objectives?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). These services typically encompass designing, developing, and implementing computer systems, including hardware, software, and network infrastructure. For the Department of the Army, this likely involves supporting the modernization of command and control systems, data management platforms, cybersecurity infrastructure, and other critical IT assets essential for military operations and readiness.

Given the six-year duration, what mechanisms are in place to ensure the services remain relevant and cost-effective as technology evolves?

The fixed-price contract type provides cost certainty upfront. However, to ensure ongoing relevance and cost-effectiveness, the contract likely includes provisions for regular performance reviews, potential scope adjustments through modification, and possibly service level agreements (SLAs) that can be updated. The agency's program management and contracting officers play a crucial role in monitoring technological advancements and ensuring the contractor's deliverables keep pace.

How was the 'exclusion of sources' clause in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' utilized, and did it impact the final price or vendor pool?

This clause typically means that while the competition was intended to be full and open, specific sources were excluded based on pre-defined criteria (e.g., security clearances, specific technical capabilities, or prior performance). The impact on price and vendor pool depends on the justification for exclusion. If exclusions were narrowly tailored and well-justified, it could lead to a more specialized, competitive pool, potentially resulting in better-suited solutions and fair pricing. Overly broad exclusions could limit competition and negatively impact price.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Octo Consulting Group LLC

Address: 1600 INTERNATIONAL DR 5TH FL, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,390,784

Exercised Options: $63,750,255

Current Obligation: $63,750,255

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J15D0015

IDV Type: IDC

Timeline