DoD's $19M Help Desk Contract Awarded to New Generation Solution LLC for 3 Years

Contract Overview

Contract Amount: $19,083,990 ($19.1M)

Contractor: NEW Generation Solution LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HELP DESK SUPPORT SERVICES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to NEW GENERATION SOLUTION LLC for work described as: HELP DESK SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger IDIQ, indicating potential for future task orders. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contractor has a track record of performance rated as 'OK'. 6. Geographic location of service delivery is Oklahoma.

Value Assessment

Rating: good

The contract value of approximately $19 million over three years for help desk support services is within a reasonable range for a federal contract of this nature. Benchmarking against similar IT support contracts, the per-year cost of roughly $6.36 million appears competitive, especially considering the scope of services typically required for a large organization like the Department of the Air Force. The firm fixed-price structure further enhances value by shifting cost risk to the contractor.

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 sources were initially excluded, the competition was ultimately opened to all responsible sources. With 17 bids received, the level of competition was robust. This suggests that the pricing is likely to be market-driven and that the government received a good range of options, leading to a potentially favorable price.

Taxpayer Impact: The high number of bidders indicates that taxpayers benefited from a competitive environment, likely resulting in a lower overall cost for the services compared to a less competitive procurement.

Public Impact

Provides essential IT help desk support to personnel within the Department of the Air Force. Ensures the continuity of critical IT operations and user assistance. Services are delivered within Oklahoma, impacting the local workforce and economy. Supports military and civilian personnel by resolving technical issues and maintaining system access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, with substantial annual spending on IT support, help desk operations, and system maintenance. This contract represents a portion of the Department of Defense's broader IT infrastructure spending, aiming to ensure operational readiness and efficiency through reliable technical support.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, New Generation Solution LLC, may itself be a small business, which would be a positive signal for that segment.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial oversight by limiting cost increases. Performance monitoring by the Department of the Air Force will be crucial. Any significant issues or disputes could fall under the jurisdiction of the Government Accountability Office (GAO) or relevant contract dispute resolution processes.

Related Government Programs

Risk Flags

Tags

it-support, help-desk, computer-systems-design-services, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, delivery-order, oklahoma, medium-value-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to NEW GENERATION SOLUTION LLC. HELP DESK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NEW GENERATION SOLUTION 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 $19.1 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is the track record of New Generation Solution LLC with federal contracts, particularly for IT support services?

New Generation Solution LLC has been awarded this contract with a performance rating of 'OK' by the Department of the Air Force. While 'OK' signifies satisfactory performance, it does not indicate exceptional service. Further analysis would require examining past performance reviews on other contracts, if available, to understand the consistency and quality of their service delivery across different agencies or task orders. A deeper dive into contract close-out data and any past disputes or awards could provide a more comprehensive picture of their reliability and expertise in fulfilling federal IT support requirements.

How does the awarded price compare to market rates for similar help desk support services?

The contract's total value of approximately $19 million over three years equates to an average annual cost of roughly $6.36 million. Benchmarking this against industry data for IT help desk support services for organizations of similar size and complexity suggests this pricing is competitive. Factors such as the specific service level agreements (SLAs), geographic location, and the technical expertise required influence market rates. Given the firm fixed-price structure and the robust competition (17 bids), the price is likely aligned with or favorable to prevailing market conditions for federal IT support.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks include potential performance degradation by the contractor, over-reliance on a single vendor for critical IT functions, and the possibility of scope creep if task orders are not clearly defined. These risks are being managed through the firm fixed-price contract type, which incentivizes the contractor to control costs. The 'OK' performance rating suggests current management is adequate, but ongoing monitoring by the Air Force is essential. Clear definition and management of task orders under the IDIQ structure will mitigate scope creep. Contingency planning for vendor failure, though not explicitly detailed, is a standard government practice.

What is the expected effectiveness of these help desk services in supporting the Department of the Air Force's mission?

The effectiveness of these help desk services is crucial for maintaining the operational readiness and efficiency of the Department of the Air Force. By providing timely and accurate technical support, the contractor enables military and civilian personnel to perform their duties without significant IT-related disruptions. Reliable help desk support ensures that systems are functional, user issues are resolved promptly, and productivity is maintained. The success of this contract hinges on the contractor's ability to meet or exceed the defined service level agreements and maintain a high level of user satisfaction.

What are the historical spending patterns for similar help desk support services within the Department of Defense?

Historical spending on IT help desk and computer systems design services within the Department of Defense (DoD) is substantial, often running into billions of dollars annually across various branches and agencies. Contracts for these services are frequently awarded through IDIQ vehicles with multiple delivery orders, similar to this one. Spending patterns are influenced by technological advancements, cybersecurity needs, and the overall size and complexity of the DoD's IT infrastructure. This $19 million contract represents a specific, localized investment within that larger spending context, aimed at fulfilling a defined set of support requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $48,070,860

Exercised Options: $19,685,815

Current Obligation: $19,083,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0420

IDV Type: GWAC

Timeline

Start Date: 2023-05-01

Current End Date: 2026-04-30

Potential End Date: 2030-04-30 00:00:00

Last Modified: 2025-12-22

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