DoD's $5.77M contract for custom computer programming services awarded to RAFT LLC

Contract Overview

Contract Amount: $5,770,804 ($5.8M)

Contractor: Raft LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-21

End Date: 2026-02-20

Contract Duration: 914 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: P1 OPS - CNAP - TEAM 1

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to RAFT LLC for work described as: P1 OPS - CNAP - TEAM 1 Key points: 1. Value for money appears fair given the firm-fixed-price structure and competition. 2. The contract was fully and openly competed, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a fixed-price contract and established competition. 4. Performance context is within custom computer programming services, a common IT need. 5. Sector positioning is within the IT services sector, supporting defense operations. 6. The contract duration of 914 days provides a stable period for service delivery.

Value Assessment

Rating: fair

The contract's firm-fixed-price nature provides cost certainty. Benchmarking against similar custom computer programming services contracts is challenging without more specific service details. However, the presence of six bidders in a full and open competition suggests that the pricing is likely within a reasonable market range. The total award amount of $5.77 million over approximately 30 months indicates a moderate investment for specialized IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This level of competition is generally positive, indicating that multiple vendors were interested and capable of performing the required services. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The full and open competition suggests that taxpayers are likely receiving a fair price due to the pressure of multiple vendors vying for the contract. This process helps ensure that government funds are used efficiently by preventing inflated costs.

Public Impact

The Department of Defense benefits from specialized custom computer programming services. Services delivered likely include software development, system integration, or IT support. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include employment opportunities for skilled IT professionals at RAFT LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Dependence on a single contractor for critical custom programming services.
Ensuring continued relevance of custom solutions in a rapidly evolving IT landscape.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition indicates a healthy market and potential for competitive pricing.
Contract awarded to a single entity (RAFT LLC) can foster focused expertise.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. This sector is characterized by rapid innovation and a high demand for specialized skills. The market size for IT services supporting the federal government is substantial, with agencies constantly seeking to modernize systems and enhance capabilities. This contract represents a typical investment in bespoke software solutions to meet unique operational requirements within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, RAFT LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses for subcontracting opportunities, which would need to be tracked separately to assess the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract structure, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Custom Computer Programming Services
IT Services
Defense IT Contracts
Software Development Contracts

Risk Flags

Potential for scope creep
Cybersecurity risks
Technology obsolescence
Contractor performance uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to RAFT LLC. P1 OPS - CNAP - TEAM 1

Who is the contractor on this award?

The obligated recipient is RAFT 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 $5.8 million.

What is the period of performance?

Start: 2023-08-21. End: 2026-02-20.

What is the track record of RAFT LLC in performing similar custom computer programming services for the federal government?

Assessing RAFT LLC's track record requires a deeper dive into their past performance on federal contracts, particularly those involving custom computer programming. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Without access to CPARS data, it's difficult to definitively evaluate their past performance, including on-time delivery, quality of work, and adherence to budget on previous projects. However, their selection in a full and open competition suggests they met the minimum qualifications and were deemed capable by the Department of the Air Force.

How does the awarded price of $5.77 million compare to market rates for similar custom programming services over a 914-day period?

Benchmarking the $5.77 million award against market rates for similar custom programming services over 914 days (approximately 30 months) is complex without specific service details. Factors like the complexity of the programming, required security clearances, and the specific technologies involved significantly influence pricing. Given the firm-fixed-price structure and six bidders, the price is likely competitive. However, a precise comparison would necessitate analyzing the Statement of Work (SOW) and comparing it to industry benchmarks for equivalent custom development projects, considering labor rates, overhead, and profit margins prevalent in the IT services market for defense contracts.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract include potential cost overruns if the scope of work is not precisely defined and managed, leading to change orders that could exceed the initial $5.77 million award. There's also a risk of vendor lock-in if the custom-developed solutions are highly proprietary and difficult to transition to other providers or internal teams. Furthermore, the rapid evolution of technology means the custom solutions developed might become obsolete quickly, requiring ongoing maintenance or costly upgrades. Ensuring the contractor, RAFT LLC, maintains adequate cybersecurity practices to protect sensitive DoD data is also a critical risk area.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for custom programming?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for well-defined projects, as it shifts the risk of cost overruns to the contractor. For custom programming, its effectiveness hinges on the clarity and completeness of the Statement of Work (SOW). If the SOW is detailed and unambiguous, FFP can drive efficiency and ensure the contractor delivers the specified functionality within budget. However, if the SOW is vague or requirements evolve significantly, FFP can lead to disputes, change orders, or a contractor cutting corners to maintain profitability, potentially compromising the quality or ultimate effectiveness of the delivered software. Robust oversight is crucial to mitigate these risks.

What has been the historical spending pattern for custom computer programming services by the Department of the Air Force?

Historical spending patterns for custom computer programming services by the Department of the Air Force (DAF) typically show consistent investment in IT modernization and specialized software development. Agencies like the DAF frequently procure such services to maintain and upgrade complex legacy systems, develop new operational capabilities, and integrate diverse IT platforms. Spending in this category can fluctuate based on strategic priorities, budget allocations, and the lifecycle of major IT programs. Analyzing past DAF contract awards for NAICS code 541511 (Custom Computer Programming Services) would reveal trends in contract values, durations, and the types of services most frequently procured.

What is the significance of the contract being awarded as a Delivery Order (DO) under a larger contract vehicle?

The designation of this award as a 'Delivery Order' (DO) implies it was issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the Department of Defense (DoD) likely already established the terms, conditions, and potentially some pricing structures through a broader competitive process for the parent contract. Issuing a Delivery Order allows for task-specific procurement without needing to recompete the entire requirement. This can expedite the acquisition process and provide flexibility, but the overall value and effectiveness depend on the initial competition and oversight of the parent IDIQ contract.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11800 SUNRISE VALLEY DR STE 400, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, 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: $8,968,236

Exercised Options: $6,849,892

Current Obligation: $5,770,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830721G0020

IDV Type: BOA

Timeline