DoD awards $68.7M IT services contract to NationWide IT Services Inc. for nationwide support
Contract Overview
Contract Amount: $68,763,100 ($68.8M)
Contractor: Nationwide IT Services Inc
Awarding Agency: Department of Defense
Start Date: 2024-01-12
End Date: 2027-01-04
Contract Duration: 1,088 days
Daily Burn Rate: $63.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AFDW MOORMAN/WARREN/PKS STAQSS II AWARD
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $68.8 million to NATIONWIDE IT SERVICES INC for work described as: AFDW MOORMAN/WARREN/PKS STAQSS II AWARD Key points: 1. Contract value of $68.7 million over approximately three years represents a significant investment in IT infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, aiming for best value. 3. The contract's duration and nationwide scope indicate a need for sustained and widespread IT support. 4. Fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 5. The award to NationWide IT Services Inc. positions them as a key provider for the Air Force's IT needs. 6. Engineering services NAICS code (541330) suggests a focus on technical and engineering aspects of IT solutions.
Value Assessment
Rating: good
The contract's value of $68.7 million for approximately three years of nationwide IT services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the onus of cost management on the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had restrictions, the final award was made through a broad competitive process. With seven bidders, the competition level appears healthy, suggesting that multiple firms were interested and capable of meeting the requirements. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions.
Public Impact
The Department of the Air Force benefits from sustained and comprehensive IT support across its nationwide operations. Nationwide IT Services Inc. will deliver essential IT services, likely including network management, system maintenance, and technical support. The geographic impact is nationwide, supporting Air Force installations and personnel across the United States. Workforce implications include potential job creation or expansion for NationWide IT Services Inc. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services become highly specialized and integrated.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Ensuring continued innovation and adaptation to evolving IT threats and technologies over the contract term.
Positive Signals
- Firm fixed-price contract aligns incentives for cost control and efficient service delivery.
- Nationwide scope suggests the contractor has the capacity and infrastructure to support diverse locations.
- The competitive award process indicates a selection based on merit and value.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, a critical component of federal spending. The IT services market is highly competitive and dynamic, with significant government investment aimed at modernizing infrastructure, enhancing cybersecurity, and improving operational efficiency. Comparable spending benchmarks for large-scale IT support contracts often run into tens or hundreds of millions of dollars, reflecting the complexity and scale of federal IT requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated for small businesses within this specific award. The primary focus is on the prime contractor's ability to deliver services nationwide. While not a set-aside, large prime contractors often engage small businesses for specialized IT support as subcontractors, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon costs and timelines. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Infrastructure Modernization Programs
- Cybersecurity Support Services
- Enterprise IT Services
- Network Operations and Maintenance
- Cloud Computing Services
Risk Flags
- Potential for performance degradation due to nationwide scope.
- Risk of cybersecurity breaches across distributed systems.
- Contractor's ability to adapt to rapidly changing IT landscape.
- Dependence on a single vendor for critical infrastructure.
Tags
it-services, department-of-defense, department-of-the-air-force, nationwide, firm-fixed-price, full-and-open-competition, engineering-services, it-support, large-contract, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.8 million to NATIONWIDE IT SERVICES INC. AFDW MOORMAN/WARREN/PKS STAQSS II AWARD
Who is the contractor on this award?
The obligated recipient is NATIONWIDE IT SERVICES INC.
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 $68.8 million.
What is the period of performance?
Start: 2024-01-12. End: 2027-01-04.
What is the track record of NationWide IT Services Inc. in performing similar large-scale federal IT contracts?
Assessing the track record of NationWide IT Services Inc. requires a review of their past performance on federal contracts, particularly those involving nationwide IT support for agencies of similar size and complexity to the Department of Defense. Key indicators include on-time delivery, adherence to budget, quality of services rendered, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be crucial. A history of successful, large-scale IT service delivery would indicate a lower risk for this new award, while a pattern of underperformance or unresolved issues would raise concerns about the contractor's capability to meet the demands of this significant contract.
How does the awarded price compare to the estimated value or independent government cost estimate for these services?
To determine if the $68.7 million award represents good value, it's essential to compare it against the government's independent cost estimate (ICE) or the contractor's proposed price relative to the scope of work. If the award is significantly below the ICE, it could indicate aggressive pricing by the contractor or potential underestimation of the work required. Conversely, an award substantially above the ICE might suggest issues with the government's estimate or a lack of sufficient competition. Without access to the ICE or detailed pricing breakdowns, a definitive value assessment is challenging, but the fact that it was awarded under full and open competition suggests the price was deemed acceptable relative to the requirements and other bids.
What are the primary risks associated with a nationwide IT services contract of this magnitude and duration?
Key risks for a nationwide IT services contract of this scale include potential cybersecurity vulnerabilities across a distributed network, challenges in maintaining consistent service quality across diverse geographic locations, and the risk of vendor lock-in. The long duration (approximately three years) increases the exposure to evolving technological landscapes and potential obsolescence of current solutions. Furthermore, reliance on a single contractor for critical IT infrastructure can create significant operational disruption if the contractor fails to perform adequately or experiences financial instability. Effective risk mitigation strategies, including robust oversight, clear performance metrics, and contingency planning, are crucial.
How effective are the current oversight mechanisms for ensuring the contractor meets performance expectations?
The effectiveness of oversight mechanisms hinges on the clarity of the contract's performance work statement (PWS), the establishment of measurable key performance indicators (KPIs), and the diligence of the government's contract administration team. Regular performance reviews, site visits (where applicable), and analysis of service delivery reports are standard oversight practices. For this contract, the Department of the Air Force will likely assign a Contracting Officer's Representative (COR) to monitor performance closely. The firm fixed-price nature of the contract provides a strong incentive for the contractor to meet expectations, but proactive oversight is still necessary to identify and address any emerging issues before they impact service delivery.
What is the historical spending trend for similar IT services within the Department of the Air Force?
Analyzing historical spending trends for IT services within the Department of the Air Force (DAF) reveals a consistent and substantial investment in maintaining and modernizing its technological infrastructure. Over the past several fiscal years, the DAF has allocated billions of dollars annually towards IT-related contracts, encompassing everything from network operations and cybersecurity to software development and hardware procurement. This specific $68.7 million award represents a portion of that larger, ongoing investment. Understanding these trends helps contextualize the current award, indicating whether spending is increasing, decreasing, or remaining stable, and highlighting the DAF's continuous reliance on external IT support.
What are the implications of the 'After Exclusion of Sources' clause in the competition type?
The 'Full and Open Competition After Exclusion of Sources' designation suggests that the initial solicitation or pre-qualification phase might have had specific criteria that excluded certain potential bidders. However, the subsequent 'Full and Open Competition' phase means that all responsible sources meeting those criteria were allowed to compete. This approach can be used to ensure that bidders possess specific capabilities or clearances necessary for the requirement, while still allowing for broad competition among qualified entities. It aims to balance the need for specialized expertise with the government's mandate to seek the best value through competition, potentially leading to a more targeted yet still competitive outcome.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA701423R0012
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4025 FAIR RIDGE DR, FAIRFAX, VA, 22033
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $147,435,251
Exercised Options: $82,664,670
Current Obligation: $68,763,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD20D1125
IDV Type: IDC
Timeline
Start Date: 2024-01-12
Current End Date: 2027-01-04
Potential End Date: 2029-01-04 00:00:00
Last Modified: 2025-12-22
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