DoD's $24.4M ARES II contract for network engineering services awarded to Agile Defense, LLC

Contract Overview

Contract Amount: $24,393,870 ($24.4M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2014-08-01

End Date: 2017-09-19

Contract Duration: 1,145 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::CT::IGF AIR FORCE NETWORK REQUISITE ENGINEERING SERVICES II (ARES II) REQUIREMENTS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to AGILE DEFENSE, LLC for work described as: IGF::CT::IGF AIR FORCE NETWORK REQUISITE ENGINEERING SERVICES II (ARES II) REQUIREMENTS Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract value of $24.4M over its period of performance suggests a significant investment in network engineering. 3. The contract type (Delivery Order) implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 5. The contract duration of 1145 days (approx. 3 years) provides a reasonable timeframe for service delivery. 6. The awardee, Agile Defense, LLC, is a key player in the defense IT services sector.

Value Assessment

Rating: good

The contract value of $24.4M for network engineering services over approximately three years appears reasonable given the scope of IT infrastructure support for a major government agency like the Department of Defense. Benchmarking against similar large-scale network engineering contracts would provide a more precise value-for-money assessment. However, the absence of specific performance metrics or detailed cost breakdowns in the provided data makes a definitive value judgment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded based on predefined criteria, possibly related to existing contracts or specific capabilities. The presence of 8 bids indicates a degree of competition, but the exclusion of sources might limit the breadth of competitive pressure compared to a truly unrestricted full and open competition.

Taxpayer Impact: The 'exclusion of sources' clause warrants further investigation to ensure taxpayers received the best possible pricing. While 8 bidders suggest some competition, understanding the rationale behind source exclusion is crucial for taxpayer value.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its various branches, which receive enhanced network engineering and IT support. Services delivered include computer systems design and related technical support crucial for maintaining secure and efficient military networks. The geographic impact is likely concentrated within DoD facilities and operational areas, supporting national defense infrastructure. Workforce implications include the employment of skilled IT professionals by Agile Defense, LLC and potentially by subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method could potentially limit competitive pricing if not carefully managed.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The contract's duration might not align with rapidly evolving network technologies, potentially requiring future modifications or new contracts.

Positive Signals

Awarded through a competitive process (8 bids), suggesting a degree of market validation.
The contract is for essential IT services supporting national defense operations.
The awardee, Agile Defense, LLC, is likely experienced in providing such services to government entities.

Sector Analysis

The contract falls within the Information Technology (IT) and Defense sectors, specifically focusing on computer systems design and network engineering. This market is characterized by high demand for specialized skills, rapid technological advancements, and significant government spending. Comparable spending benchmarks for similar network infrastructure projects within the DoD or other federal agencies would provide context for the $24.4M award. The market size for defense IT services is substantial, with numerous contractors vying for these essential support roles.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. This suggests that the prime contract was awarded to a large business, and any subcontracting opportunities for small businesses would depend on Agile Defense, LLC's internal policies and the specific requirements of the delivery orders issued under this contract. Further analysis would be needed to determine if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Network Modernization Programs
Air Force IT Infrastructure Support Contracts
Computer Systems Design Services Contracts
Defense Information Technology Contracting

Risk Flags

Competition Method: 'Exclusion of sources' requires scrutiny to ensure maximum taxpayer value.
Performance Metrics: Lack of detailed performance data hinders objective assessment.
Technology Obsolescence: Contract duration may outpace rapid IT advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to AGILE DEFENSE, LLC. IGF::CT::IGF AIR FORCE NETWORK REQUISITE ENGINEERING SERVICES II (ARES II) REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2014-08-01. End: 2017-09-19.

What specific network engineering services were included under the ARES II contract?

The ARES II contract, with NAICS code 541512 (Computer Systems Design Services), likely encompassed a range of network engineering activities. These could include the design, development, implementation, and maintenance of complex computer networks for the Air Force. Specific services might involve network architecture planning, hardware and software integration, cybersecurity measures, network performance monitoring and optimization, and technical support for network operations. The 'Delivery Order' nature of the award suggests that detailed service requirements would be specified in individual orders placed against the contract, tailored to evolving Air Force needs.

How does the $24.4M contract value compare to similar network engineering contracts within the DoD?

The $24.4M contract value for approximately three years of network engineering services is a significant but not extraordinary amount for the Department of Defense. Large-scale IT infrastructure and network support contracts for federal agencies often range from tens to hundreds of millions of dollars over their lifecycles. To provide a precise comparison, one would need to analyze contracts with similar scope, duration, and service requirements (e.g., network design, implementation, sustainment) awarded to other large defense contractors within the same timeframe. Factors like the specific technologies supported, security requirements, and geographic scope heavily influence contract values.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while intended to be competitive, carries specific risks. The primary risk is that excluding certain potential bidders, even if justified, might inadvertently limit the pool of innovative solutions or competitive pricing available to the government. If the exclusion criteria are too narrow or not well-defined, it could lead to a less robust competition than a truly unrestricted process. This could potentially result in higher costs for taxpayers or a less optimal technical solution if the excluded sources possessed unique capabilities or offered more competitive pricing. Thorough documentation of the exclusion rationale is critical.

What is the track record of Agile Defense, LLC in performing similar government IT contracts?

Agile Defense, LLC has a history of performing IT and engineering services for various U.S. government agencies, including the Department of Defense. Their contract portfolio often includes areas such as network engineering, cybersecurity, software development, and systems integration. Analyzing their past performance ratings, contract history (including any past performance issues or awards), and the types of agencies they have served would provide insight into their capabilities and reliability. A review of their financial stability and any significant contract awards or terminations would further inform an assessment of their track record for this specific ARES II contract.

How has spending on network engineering services by the Air Force evolved over the past decade?

Spending on network engineering services by the Air Force, and the DoD more broadly, has generally trended upwards over the past decade, driven by increasing reliance on digital infrastructure, cybersecurity threats, and modernization efforts. This includes investments in upgrading legacy systems, deploying new network technologies (like cloud integration and advanced wireless), and enhancing network security. The ARES II contract represents a portion of this overall spending. Analyzing historical spending data for similar contract vehicles and service categories would reveal trends in budget allocation, technology focus, and the increasing complexity and cost associated with maintaining robust military networks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Agile Defense LLC

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,664,559

Exercised Options: $26,345,372

Current Obligation: $24,393,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0626Z

IDV Type: GWAC

Timeline