DoD's $39.5M Base Operations Support contract to Agile Defense, LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $39,486,189 ($39.5M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2015-12-01

End Date: 2020-10-31

Contract Duration: 1,796 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF 61 CS BASE OPERATIONS SUPPORT (BOS)

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to AGILE DEFENSE, LLC for work described as: IGF::OT::IGF 61 CS BASE OPERATIONS SUPPORT (BOS) Key points: 1. Contract value of $39.5M over 5 years suggests a moderate annual spend. 2. Limited competition may have impacted price discovery and potentially increased costs. 3. The contract's duration of 1796 days indicates a long-term need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The 'Computer Systems Design Services' NAICS code suggests a focus on IT infrastructure and support. 6. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', a nuanced competition type. 7. The contractor, Agile Defense, LLC, has a track record with the Department of Defense.

Value Assessment

Rating: fair

The total contract value of $39.5M over approximately five years averages to about $7.9M annually. Benchmarking this against similar Base Operations Support contracts within the Department of Defense is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. The absence of detailed performance metrics makes a definitive value assessment difficult, but the price appears within a reasonable range for comprehensive support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources', which implies that while the competition was intended to be open, certain sources were excluded. This is not a standard 'full and open' competition. The data indicates 10 bids were received, suggesting a reasonable level of interest. However, the specific exclusion criteria could limit the pool of potential bidders, potentially impacting the breadth of competition and price negotiation.

Taxpayer Impact: The limited nature of the competition, despite multiple bids, means taxpayers may not have benefited from the most competitive pricing achievable through a truly open process. This could translate to higher costs than might have been secured with broader participation.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel, who receive essential base operations support. Services delivered likely include IT infrastructure management, system design, and potentially other operational support functions critical to base functioning. The geographic impact is concentrated within California, where the contract is being performed. Workforce implications include direct and indirect employment opportunities for IT professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises questions about the extent of true competition and potential fairness to all capable vendors.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The specific reasons for excluding certain sources are not detailed, which could indicate potential limitations or biases in the procurement process.

Positive Signals

The contract is Firm Fixed Price, which transfers cost overrun risk to the contractor, potentially leading to better cost control.
Receiving 10 bids indicates a significant level of interest from the market, suggesting the opportunity was attractive.
The contract duration suggests a stable, long-term requirement, allowing for efficient planning and resource allocation by the contractor.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related support. The market for such services to government entities is substantial, driven by the ongoing need for modernization and maintenance of complex IT infrastructures. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by federal agencies, particularly within the Department of Defense, to assess pricing and scope efficiency.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding process. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within budget. Transparency is facilitated through contract databases like FPDS, though detailed performance reports and IG oversight findings would require further investigation.

Related Government Programs

Base Operations Support Services
IT Infrastructure Management
Computer Systems Design Services
Department of Defense IT Contracts
Air Force Support Contracts

Risk Flags

Limited Competition
Unclear Source Exclusion Rationale
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to AGILE DEFENSE, LLC. IGF::OT::IGF 61 CS BASE OPERATIONS SUPPORT (BOS)

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $39.5 million.

What is the period of performance?

Start: 2015-12-01. End: 2020-10-31.

What is the track record of Agile Defense, LLC with the Department of Defense, particularly on similar contracts?

Agile Defense, LLC has a history of performing contracts with the Department of Defense. While specific details on past performance quality for this particular BOS contract are not provided in the summary data, their continued engagement with the DoD suggests a level of capability and reliability. To fully assess their track record, one would need to examine past performance evaluations, any contract disputes or awards, and the scope and value of their previous DoD engagements. This would provide context on their ability to deliver services effectively and manage complex projects within the federal environment.

How does the awarded price compare to market rates for similar Base Operations Support services?

A precise comparison of the awarded price ($39.5M over ~5 years) to market rates for similar Base Operations Support (BOS) services is difficult without granular data on the specific tasks included in this contract and prevailing market rates in California. BOS contracts can encompass a wide range of services, from IT and facilities management to security and logistics. However, the annual average of approximately $7.9M suggests a significant investment. Benchmarking would require identifying comparable contracts with detailed scopes of work and analyzing their pricing structures, considering factors like geographic location, service complexity, and contract type.

What are the primary risks associated with this contract for the government and the contractor?

For the government, the primary risks include potential underperformance by the contractor, leading to disruptions in base operations, and the possibility of paying above-market rates due to the limited competition. The 'Exclusion of Sources' aspect also introduces a risk if it inadvertently excluded highly capable vendors. For the contractor, Agile Defense, LLC, the main risks stem from the Firm Fixed Price (FFP) nature of the contract. They bear the financial burden of any cost overruns due to unforeseen technical challenges, scope creep not properly managed, or inefficient operations. Failure to meet performance standards could also lead to contract termination or penalties.

How effective has the 'Full and Open Competition After Exclusion of Sources' approach been in ensuring value for money in this instance?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value for money is questionable without understanding the rationale behind the source exclusions. While 10 bids were received, indicating market interest, the exclusion of certain vendors could have artificially limited the competitive landscape. This specific procurement type suggests a deliberate decision to narrow the field, potentially for reasons related to specific technical requirements or past performance. If the excluded sources were capable and could have offered better pricing or innovative solutions, then value for money may have been compromised. A truly open competition typically yields the best price discovery.

What is the historical spending trend for Base Operations Support services within the Department of the Air Force?

Historical spending on Base Operations Support (BOS) services by the Department of the Air Force (and the DoD broadly) is substantial and has generally trended upwards over the years, driven by increasing reliance on outsourced services and the need to maintain complex infrastructure. BOS contracts are critical for enabling military readiness and daily operations. Analyzing specific historical spending patterns for BOS within the Air Force would involve reviewing multi-year budget allocations and contract awards data. This contract represents a portion of that overall spending, reflecting a consistent demand for these types of support functions.

Are there any specific performance metrics or KPIs tied to this contract that indicate success or failure?

The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, government contracts, especially those for essential services like Base Operations Support, include detailed performance standards, service level agreements (SLAs), and associated award-fee or penalty clauses. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to determine the specific metrics used to evaluate Agile Defense, LLC's performance and whether they have met or exceeded expectations.

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

Solicitation ID: FA281615R0006

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,486,189

Exercised Options: $39,486,189

Current Obligation: $39,486,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0626Z

IDV Type: GWAC

Timeline