DoD's $50.8M CLOUD CITI 2.0 contract awarded to RAFT LLC for custom computer programming services

Contract Overview

Contract Amount: $50,858,686 ($50.9M)

Contractor: Raft LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-14

End Date: 2025-01-13

Contract Duration: 1,279 days

Daily Burn Rate: $39.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CLOUD CITI 2.0

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.9 million to RAFT LLC for work described as: CLOUD CITI 2.0 Key points: 1. Contract value of $50.8M over its period of performance. 2. Awarded to RAFT LLC, a single contractor. 3. Competition level: Full and Open. 4. Contract type: Time and Materials. 5. Performance period spans from July 2021 to January 2025. 6. Services fall under Custom Computer Programming Services (NAICS 541511).

Value Assessment

Rating: fair

The contract's value of $50.8M is substantial for custom computer programming services. Without specific benchmarks for similar 'CLOUD CITI 2.0' projects or detailed service breakdowns, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type can sometimes lead to higher costs if not managed closely, as it reimburses direct labor and indirect costs plus a fixed fee or percentage. Benchmarking against industry standards for custom programming would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a reasonably competitive environment, which typically helps in achieving fair market prices. However, the specific details of the bidding process and the evaluation criteria would provide a clearer picture of how effectively competition drove down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple companies vie for the contract, potentially leading to more cost-effective solutions and better pricing.

Public Impact

The Department of Defense benefits from enhanced cloud computing capabilities and custom programming solutions. Services delivered include custom computer programming, likely supporting various defense IT infrastructure needs. Geographic impact is centered around the Department of the Air Force, with performance likely in Virginia. Workforce implications include employment opportunities for skilled programmers and IT professionals at RAFT LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess efficiency.
Limited public information on the specific deliverables and outcomes of the 'CLOUD CITI 2.0' program.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Multiple bidders (8) indicate a healthy level of market interest and potential for competitive pricing.
Contract duration of over 3 years allows for sustained development and integration of services.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls within the broader category of IT services, which includes software development, system integration, and IT consulting. The market for these services is highly competitive, with numerous large and small businesses offering specialized capabilities. Federal agencies increasingly rely on such contracts to modernize their IT infrastructure, enhance cybersecurity, and develop bespoke software solutions to meet unique operational requirements. Benchmarking this contract's value against similar IT service contracts awarded by the DoD or other federal agencies would provide further context on its scale and pricing.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though RAFT LLC may engage small businesses as part of its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting officers and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense Enterprise Software Initiative (ESI)
Cloud Computing Services contracts
Custom Software Development Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of detailed public information on program objectives and performance metrics.
Reliance on a single contractor (RAFT LLC) for a significant program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.9 million to RAFT LLC. CLOUD CITI 2.0

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 $50.9 million.

What is the period of performance?

Start: 2021-07-14. End: 2025-01-13.

What is the specific nature of the 'CLOUD CITI 2.0' program and its objectives?

The 'CLOUD CITI 2.0' program, awarded under contract number FA8771-21-F-0040 to RAFT LLC, is a Department of the Air Force initiative focused on providing custom computer programming services. While the specific objectives are not detailed in the provided data, such programs typically aim to enhance cloud computing capabilities, develop new software applications, modernize existing systems, or provide specialized IT support for defense operations. The '2.0' designation suggests it may be a follow-on or updated version of a previous program, implying a need for evolving or advanced solutions. The contract's duration and value indicate a significant undertaking in supporting the Air Force's IT infrastructure and operational needs through tailored software development and integration.

How does the Time and Materials (T&M) contract type compare to other contract types for similar IT services?

Time and Materials (T&M) contracts are used when the exact extent or duration of the work cannot be determined in advance. They reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. For IT services like custom programming, T&M can offer flexibility, allowing for adjustments as project requirements evolve. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. Agencies often use T&M for smaller projects, research and development, or when the scope is uncertain, but prefer firm-fixed-price contracts for well-defined projects to ensure cost certainty and encourage contractor efficiency.

What is RAFT LLC's track record with government contracts, particularly with the Department of Defense?

RAFT LLC has been awarded this $50.8 million contract by the Department of the Air Force. Further analysis of RAFT LLC's contract history would be required to fully assess their track record. This would involve examining past performance evaluations, the types and values of previous contracts, their success in meeting delivery schedules and technical requirements, and any history of contract disputes or terminations. A review of their performance on this 'CLOUD CITI 2.0' contract, once sufficient data is available, will also be crucial in understanding their capabilities and reliability in serving the Department of Defense.

Are there any specific performance metrics or deliverables associated with this contract that can be evaluated?

The provided data does not include specific performance metrics or detailed deliverables for the 'CLOUD CITI 2.0' contract. Typically, such metrics would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These could include software functionality requirements, system uptime percentages, bug resolution times, or adherence to development timelines. Without access to these details, it is challenging to quantitatively assess the contractor's performance or the program's effectiveness in meeting its intended objectives. The Time and Materials nature of the contract suggests that performance may be tracked through labor hours and progress reports rather than strict output-based metrics.

How does the $50.8 million award compare to historical spending on similar custom computer programming services by the Air Force?

To compare the $50.8 million award for 'CLOUD CITI 2.0' to historical spending, one would need to analyze past contracts for custom computer programming services awarded by the Department of the Air Force. This analysis should consider contracts with similar scope, complexity, and duration. For instance, examining spending trends in NAICS code 541511 (Custom Computer Programming Services) over the last 5-10 years would reveal if this award is within the typical range or represents a significant deviation. Factors such as inflation, evolving technological needs, and the specific strategic importance of the 'CLOUD CITI 2.0' program would also influence the comparison, making a direct dollar-value comparison potentially insufficient without further context.

What are the potential risks associated with a Time and Materials contract for a program of this scale?

The primary risk associated with a Time and Materials (T&M) contract for a $50.8 million program like 'CLOUD CITI 2.0' is the potential for cost escalation. Since the government pays for actual labor hours and materials, there's a risk that costs could exceed initial estimates if project scope creeps, inefficiencies arise, or if the contractor does not manage resources effectively. Without strong oversight and clearly defined ceilings or milestones, the total expenditure can become unpredictable. This contrasts with fixed-price contracts, where the contractor bears more risk for cost overruns. Effective management, detailed progress tracking, and robust communication are crucial to mitigate these risks in a T&M arrangement.

Industry Classification

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

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

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: $60,781,863

Exercised Options: $60,781,863

Current Obligation: $50,858,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FA830721G0020

IDV Type: BOA

Timeline