DoD's $8.5M Custom Computer Programming Contract with D7, LLC Lacks Competition
Contract Overview
Contract Amount: $8,554,152 ($8.6M)
Contractor: D7, LLC
Awarding Agency: Department of Defense
Start Date: 2021-01-06
End Date: 2026-01-05
Contract Duration: 1,825 days
Daily Burn Rate: $4.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NMC2 SERVICES IAW THE PWS
Place of Performance
Location: BARKSDALE AFB, BOSSIER County, LOUISIANA, 71110
Plain-Language Summary
Department of Defense obligated $8.6 million to D7, LLC for work described as: NMC2 SERVICES IAW THE PWS Key points: 1. Contract awarded to D7, LLC for custom computer programming services. 2. Significant spending of $8.5M over 5 years. 3. Contract was not competed under the Simplified Acquisition Procedures (SAP). 4. Potential for higher costs due to lack of competition.
Value Assessment
Rating: questionable
The contract's value of $8.5M over five years for custom computer programming services warrants scrutiny. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored all available vendors, potentially impacting price discovery and leading to a less favorable price for the government.
Taxpayer Impact: The lack of full and open competition raises concerns about taxpayer value, as a more competitive process could have potentially secured lower prices or better service offerings.
Public Impact
Taxpayers may be overpaying for custom computer programming services due to limited competition. The Department of the Air Force's reliance on a single vendor for this service could create vendor lock-in. Lack of transparency in the procurement process hinders public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of transparency
Positive Signals
- Firm Fixed Price contract type can provide cost certainty
- Long-term contract provides stability for service delivery
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The benchmark for IT services can vary widely based on complexity and specialization. Without more detail on the specific services rendered, direct comparison is challenging, but $8.5M over 5 years is a substantial investment.
Small Business Impact
The contract was awarded to D7, LLC, and there is no indication that small businesses were involved in the subcontracting process. Further investigation is needed to determine if small business participation was considered or required.
Oversight & Accountability
The procurement method, 'NOT COMPETED UNDER SAP,' suggests that standard competitive procedures were bypassed. This raises questions about the oversight applied to ensure the government received the best value and that the decision to limit competition was justified.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for non-competitive pricing
- Limited transparency in procurement
- No clear small business participation noted
Tags
custom-computer-programming-services, department-of-defense, la, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to D7, LLC. NMC2 SERVICES IAW THE PWS
Who is the contractor on this award?
The obligated recipient is D7, 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 $8.6 million.
What is the period of performance?
Start: 2021-01-06. End: 2026-01-05.
What specific custom computer programming services are being provided under this contract, and how do they align with the stated need?
The contract specifies 'Custom Computer Programming Services' under NAICS code 541511. While the PWS (Performance Work Statement) would detail the exact services, this category typically includes designing, developing, and testing software tailored to a specific user's needs. Without access to the PWS, it's difficult to ascertain the precise alignment with the Air Force's requirements, but the broad category suggests bespoke software solutions rather than off-the-shelf products.
What justification was provided for not competing this contract under the Simplified Acquisition Procedures (SAP) or other competitive methods?
The data indicates the contract was 'NOT COMPETED UNDER SAP.' This implies that either the contract value exceeded SAP thresholds, or a specific justification for limited competition was invoked. Common reasons include sole-source requirements due to unique capabilities, urgent needs, or follow-on work. A thorough review of the contract file would be necessary to understand the specific justification and ensure it was adequately documented and approved.
How does the $8.5M contract value compare to industry benchmarks for similar custom programming services over a 5-year period?
Benchmarking $8.5M for custom computer programming over five years is complex without detailed service specifications. However, for a firm fixed-price contract of this magnitude, it suggests a significant scope of work. Industry averages can range from hundreds to thousands of dollars per hour depending on developer skill, location, and project complexity. A competitive bidding process would typically yield a clearer understanding of the fair market price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1755 TELSTAR DR STE 500, COLORADO SPRINGS, CO, 80920
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,008,459
Exercised Options: $8,564,330
Current Obligation: $8,554,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-01-06
Current End Date: 2026-01-05
Potential End Date: 2026-03-05 00:00:00
Last Modified: 2025-12-31
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