DoD Awards $57M IT & Data Management Support to DDC IT Services LLC, a Follow-On Contract
Contract Overview
Contract Amount: $57,149,919 ($57.1M)
Contractor: DDC IT Services LLC
Awarding Agency: Department of Defense
Start Date: 2021-01-29
End Date: 2026-03-30
Contract Duration: 1,886 days
Daily Burn Rate: $30.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LOGISTICS INFORMATION TECHNOLOGY AND DATA MANAGEMENT FUNCTIONS SUPPORT SERVICES FOLLOW-ON CONTRACT
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85250
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $57.1 million to DDC IT SERVICES LLC for work described as: LOGISTICS INFORMATION TECHNOLOGY AND DATA MANAGEMENT FUNCTIONS SUPPORT SERVICES FOLLOW-ON CONTRACT Key points: 1. Contract value of $57.15M over approximately 5 years. 2. Follow-on contract awarded to DDC IT SERVICES LLC. 3. Potential risk associated with sole-source or limited competition. 4. Services fall under IT and Data Management within the Defense sector.
Value Assessment
Rating: fair
The contract is a follow-on, suggesting a history of performance. However, without specific pricing details or benchmarks for similar IT support services, a definitive value assessment is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is noted as 'NOT AVAILABLE FOR COMPETITION', indicating a limited or sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are committed to a single vendor without competitive pressure, which could result in a less optimal price for the services rendered.
Public Impact
Ensures continuity of critical logistics IT and data management functions for the Air Force. Supports operational efficiency and decision-making through data management. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for cost overruns without competitive bidding
Positive Signals
- Follow-on contract implies vendor familiarity and potential for smooth transition
- Firm fixed-price contract provides cost predictability
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT and data management support services for logistics. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor is DDC IT SERVICES LLC.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight, but the limited competition aspect warrants close monitoring of performance and costs.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in the justification for limited competition.
- Potential for vendor lock-in.
- Performance risks associated with sole-source provider.
Tags
other-computer-related-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.1 million to DDC IT SERVICES LLC. LOGISTICS INFORMATION TECHNOLOGY AND DATA MANAGEMENT FUNCTIONS SUPPORT SERVICES FOLLOW-ON CONTRACT
Who is the contractor on this award?
The obligated recipient is DDC IT SERVICES 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 $57.1 million.
What is the period of performance?
Start: 2021-01-29. End: 2026-03-30.
What is the justification for awarding this contract on a limited/non-competitive basis, and what steps are being taken to ensure fair pricing?
The justification for limited competition is crucial for understanding potential cost implications. Agencies typically require detailed documentation outlining why full and open competition is not feasible. Without this justification, it's difficult to assess if taxpayers are receiving fair value. Robust oversight and regular price analysis are essential to mitigate risks associated with non-competitive awards.
How does the performance of DDC IT SERVICES LLC on this follow-on contract compare to its previous performance, and are there any indicators of cost creep?
Assessing performance on follow-on contracts is vital for ensuring continued value. Comparing current performance metrics against historical data and industry benchmarks can reveal trends. Monitoring for cost creep, especially in firm fixed-price contracts, involves scrutinizing any change orders or contract modifications. Proactive communication and performance reviews are key to managing these aspects effectively.
What is the long-term strategy for IT and data management support services within the Department of the Air Force, and how does this contract fit into that strategy?
Understanding the broader strategic context is important for evaluating individual contract awards. This contract likely supports specific operational needs. However, its role within a larger, long-term IT modernization or sustainment plan is unclear from the provided data. A clear strategy helps justify continued investment and ensures alignment with agency goals, potentially paving the way for future competitive opportunities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA860421R3000
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8840 E CHAPARRAL RD STE 145, SCOTTSDALE, AZ, 85250
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,164,456
Exercised Options: $57,177,819
Current Obligation: $57,149,919
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA860421D3000
IDV Type: IDC
Timeline
Start Date: 2021-01-29
Current End Date: 2026-03-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-03-11
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