DOT awards $24.7M network refresh contract to DISYS Solutions, Inc. for IT services

Contract Overview

Contract Amount: $24,695 ($24.7K)

Contractor: Disys Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-09-27

End Date: 2024-09-26

Contract Duration: 365 days

Daily Burn Rate: $68/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MARAD FY23 NETWORK REFRESH

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $24,695.32 to DISYS SOLUTIONS, INC. for work described as: MARAD FY23 NETWORK REFRESH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for IT services. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The contract duration of one year is typical for IT refresh projects. 5. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of computer-related services. 6. The contract is not set aside for small businesses, indicating a focus on larger, established vendors.

Value Assessment

Rating: good

The contract value of $24.7 million for a one-year network refresh appears reasonable within the context of federal IT spending. Without specific benchmarks for this exact type of network refresh, it's difficult to provide a precise per-unit cost comparison. However, the award was made under full and open competition, which generally drives prices toward market rates. The firm-fixed-price contract type also indicates that the contractor assumes the risk of cost overruns, which is a positive indicator for 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 open, certain sources may have been excluded prior to the solicitation. However, the 'full and open' designation suggests a broad solicitation. The fact that it was competed indicates that multiple vendors had the opportunity to bid. The number of bids received (2) is on the lower side for a full and open competition, which could suggest a specialized requirement or a limited pool of qualified contractors.

Taxpayer Impact: A competitive award, even with two bidders, is generally favorable for taxpayers as it encourages price negotiation and potentially lower costs compared to sole-source awards. The existence of competition helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are the Department of Transportation (DOT) and its operating administrations, such as the Federal Highway Administration, which will receive updated network infrastructure. The services delivered will include IT network refresh, likely involving hardware upgrades, software implementation, and related support. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where services will be primarily delivered. The contract supports the IT workforce within DISYS SOLUTIONS, INC. and potentially its subcontractors, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The low number of bids (2) in a full and open competition could indicate potential barriers to entry for other qualified vendors or a highly specialized market.
The specific reasons for excluding other sources prior to the solicitation are not detailed, which could warrant further investigation into the fairness of the competition.
The contract is a delivery order, meaning its performance is contingent on the terms of a larger IDIQ contract, whose overall performance and oversight should also be considered.

Positive Signals

The award was made through full and open competition, which is a positive signal for a fair and transparent procurement process.
The firm-fixed-price contract type is advantageous as it caps the government's financial liability and incentivizes contractor efficiency.
The contract is for a critical IT function (network refresh), indicating proactive investment in maintaining essential government infrastructure.

Sector Analysis

The IT services sector, particularly network infrastructure and computer-related services, is a significant area of federal spending. This contract falls under the broader category of IT support services, which includes network design, implementation, maintenance, and upgrades. The market for these services is competitive, with numerous large and small businesses vying for federal contracts. Benchmarks for similar network refresh projects vary widely based on scope, technology, and duration, but multi-million dollar awards for comprehensive refreshes are common.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. The award to DISYS SOLUTIONS, INC., a presumably larger entity, suggests that the requirement was likely beyond the scope or capacity of typical small business set-aside contracts. There is no explicit mention of subcontracting requirements for small businesses within the provided data, so the direct impact on the small business ecosystem is likely minimal unless DISYS voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and program managers. As a delivery order under an IDIQ, oversight may also be influenced by the terms and oversight structure of the parent IDIQ contract. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DOT IT Modernization Initiatives
Federal Network Infrastructure Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
Cybersecurity Enhancement Programs

Risk Flags

Limited Competition (2 bidders)
Potential for Unjustified Source Exclusion
Cybersecurity Risks During Transition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24,695.32 to DISYS SOLUTIONS, INC.. MARAD FY23 NETWORK REFRESH

Who is the contractor on this award?

The obligated recipient is DISYS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $24,695.32.

What is the period of performance?

Start: 2023-09-27. End: 2024-09-26.

What is the track record of DISYS SOLUTIONS, INC. with federal IT contracts, particularly network services?

DISYS SOLUTIONS, INC. has a history of receiving federal contracts, primarily in the IT services domain. While specific details on their network services performance require deeper analysis of past contract performance evaluations (e.g., CPARS reports), their consistent award of federal contracts suggests a level of capability and compliance. Examining their portfolio for similar network refresh or infrastructure projects would provide further insight into their expertise and reliability in this specific area. A review of their past performance on contracts of similar size and scope would be crucial to assess their track record comprehensively.

How does the $24.7 million value compare to similar federal network refresh contracts?

The $24.7 million value for a one-year network refresh is substantial and falls within the typical range for large-scale federal IT infrastructure projects. Comparable contracts can vary significantly based on the agency's size, the complexity of the network, the specific technologies deployed (e.g., hardware, software, cybersecurity components), and the duration of the contract. For instance, a comprehensive refresh for a large agency like the Department of Defense could easily run into hundreds of millions, while a smaller agency's refresh might be in the low millions. This contract's value suggests a significant undertaking for the DOT, likely involving a substantial portion of its network infrastructure.

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

Key risks include potential cost overruns (though mitigated by the firm-fixed-price structure), schedule delays impacting critical IT operations, cybersecurity vulnerabilities during the transition, and performance issues if the contractor lacks adequate expertise. Mitigation strategies involve the firm-fixed-price contract type, which places cost risk on the contractor. The government's oversight, including regular progress reviews and acceptance testing, helps ensure timely and quality delivery. Strong cybersecurity protocols during the refresh process and thorough vetting of the contractor's capabilities are also crucial risk mitigation measures. The relatively short one-year duration also limits the exposure to long-term performance risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

This procurement method aims to balance the benefits of broad competition with the need to potentially exclude specific vendors for defined reasons (e.g., national security, prior performance issues, or specific technical requirements). When executed properly, it can still yield competitive pricing by allowing any qualified vendor to bid. However, the 'exclusion of sources' aspect introduces a layer of complexity; if the exclusions are not well-justified or transparent, it could limit the competitive pool and potentially lead to higher prices than a truly unrestricted full and open competition. The fact that only two bids were received warrants scrutiny to ensure the exclusions did not unduly restrict competition.

What is the historical spending trend for network refresh services within the Department of Transportation?

Analyzing historical spending trends for network refresh services within the DOT is crucial for context. Without specific historical data for this contract vehicle or similar projects, it's difficult to provide a precise trend. However, federal agencies, including the DOT, generally face increasing demands for network upgrades due to evolving technology, cybersecurity threats, and the need for greater bandwidth and efficiency. This often translates to consistent or increasing investment in network infrastructure over time. Examining DOT's budget allocations and contract awards for IT infrastructure over the past 5-10 years would reveal patterns of spending and identify any significant shifts or priorities.

What are the implications of the firm-fixed-price (FFP) contract type on contractor performance and government cost control?

The Firm-Fixed-Price (FFP) contract type is generally considered the most advantageous for the government when the scope of work is well-defined and risks are understood. It establishes a ceiling price that the contractor must adhere to, shifting the responsibility for managing costs and potential overruns to the contractor. This incentivizes the contractor to perform efficiently and control their expenses to maximize profit. For the government, it provides cost certainty and predictability, making budgeting easier. The primary risk for the government under FFP is that the contractor might cut corners on quality or scope to meet the fixed price, necessitating robust oversight and clear performance standards in the contract.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dexian, LLC

Address: 44670 CAPE CT STE 100, ASHBURN, VA, 20147

Business Categories: 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: $24,695

Exercised Options: $24,695

Current Obligation: $24,695

Actual Outlays: $24,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD73B

IDV Type: GWAC

Timeline