DoD awards $56.2M for Global Application Delivery Network services to Agile Defense, LLC

Contract Overview

Contract Amount: $56,229,236 ($56.2M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-05

End Date: 2026-05-04

Contract Duration: 1,460 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: GLOBAL APPLICATION DELIVERY NETWORK

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.2 million to AGILE DEFENSE, LLC for work described as: GLOBAL APPLICATION DELIVERY NETWORK Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days indicates a significant, long-term need for these services. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. The award is a Delivery Order under a larger contract vehicle, implying a pre-established framework. 5. The contractor, Agile Defense, LLC, is positioned to deliver critical IT services to the Air Force. 6. The contract value of $56.2M represents a substantial investment in application delivery infrastructure.

Value Assessment

Rating: fair

The contract value of $56.2M for a 4-year period for Computer Systems Design Services appears within a reasonable range for large-scale IT infrastructure projects. However, without specific benchmarks for 'Global Application Delivery Network' services, a precise value-for-money assessment is difficult. The Time and Materials pricing structure introduces inherent risk for cost overruns compared to fixed-price contracts. Further analysis would require comparing this to similar DoD contracts for network infrastructure and application support, considering the scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders (as indicated by 'no': 3) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the actual competitiveness can vary. The number of bidders is a key indicator, and more bidders typically lead to better pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings and better service quality. This approach helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The Department of the Air Force benefits from enhanced application delivery capabilities. Military personnel and operations relying on these applications will experience improved performance and reliability. The contract supports the modernization of critical IT infrastructure within the Department of Defense. Workforce implications may include the need for specialized IT personnel to manage and maintain the network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not diligently monitored and controlled.
The 'Global Application Delivery Network' scope is broad and may involve complex integration challenges.
Dependence on a single contractor for a critical network function could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract duration suggests a stable, long-term commitment to critical IT services.
The contractor, Agile Defense, LLC, is likely experienced in providing defense-related IT solutions.

Sector Analysis

The IT services sector, particularly within defense, is characterized by significant government spending on complex systems and infrastructure. Contracts for network design, implementation, and maintenance are crucial for maintaining operational readiness. The market size for defense IT is substantial, with agencies like the Department of Defense being major clients. This contract for a Global Application Delivery Network fits within the broader category of IT infrastructure and systems integration services, a competitive but essential segment of the IT market.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Agile Defense, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Enterprise IT Services
Cloud Computing Services
Network Infrastructure Modernization
Application Modernization Programs
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Complexity of managing a 'Global' network infrastructure.
Cybersecurity risks associated with a centralized delivery network.
Dependence on a single contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.2 million to AGILE DEFENSE, LLC. GLOBAL APPLICATION DELIVERY NETWORK

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, 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 $56.2 million.

What is the period of performance?

Start: 2022-05-05. End: 2026-05-04.

What is the track record of Agile Defense, LLC in delivering similar large-scale IT network infrastructure projects for the Department of Defense?

Assessing Agile Defense, LLC's track record requires a review of their past performance on similar contracts. This includes examining contract awards, performance evaluations (e.g., CPARS), and any history of contract disputes or terminations. For a 'Global Application Delivery Network,' specific experience in designing, implementing, and managing complex, geographically dispersed IT systems is crucial. A review of their portfolio would reveal their capabilities in areas such as network architecture, cybersecurity integration, performance optimization, and support for mission-critical applications within a defense context. Without direct access to CPARS or detailed project histories, it's challenging to provide a definitive assessment, but their ability to win a $56.2M contract suggests they possess relevant experience and capabilities deemed sufficient by the Air Force.

How does the awarded value of $56.2M compare to similar 'Global Application Delivery Network' contracts within the DoD or other federal agencies?

Benchmarking the $56.2M award requires identifying comparable contracts for 'Global Application Delivery Networks' or similar large-scale IT infrastructure projects within the federal government. Factors such as contract duration (1460 days), scope of services (computer systems design), and the specific technologies involved are critical for a fair comparison. If similar contracts of comparable scope and duration have been awarded at significantly lower or higher price points, it could indicate potential overpricing or exceptional value. However, the unique nature of 'Global Application Delivery Networks' and the specific requirements of the Air Force may justify the awarded amount. A detailed analysis would involve searching contract databases for similar awards and adjusting for inflation, scope differences, and market conditions over time.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract, and how are they being mitigated?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This structure can incentivize longer project durations or less efficient work if not managed rigorously. Mitigation strategies typically include establishing labor hour ceilings, requiring detailed progress reports, implementing strict oversight by contracting officers' representatives (CORs), and defining clear milestones. For this contract, the Air Force would need robust project management and financial tracking to ensure that costs remain within the anticipated budget and that the contractor is delivering efficiently. The duration of the contract (1460 days) amplifies the importance of these controls.

What is the expected impact of this contract on the operational effectiveness and efficiency of the Department of the Air Force's IT systems?

This contract is expected to significantly enhance the operational effectiveness and efficiency of the Department of the Air Force's IT systems by improving the delivery of applications globally. A well-designed Global Application Delivery Network can lead to faster application response times, increased reliability, better user experience for military personnel, and improved data accessibility. This is crucial for supporting command and control, intelligence, logistics, and other mission-critical functions. By ensuring applications are delivered efficiently and reliably across various locations, the contract directly contributes to the Air Force's ability to execute its missions in a timely and effective manner, potentially reducing downtime and increasing productivity.

How does the current spending on 'Global Application Delivery Network' services compare to historical spending patterns for similar network infrastructure projects within the DoD?

Analyzing historical spending patterns for similar network infrastructure projects within the DoD is essential for context. This involves examining trends in IT infrastructure investments over the past 5-10 years, noting shifts in technology (e.g., cloud adoption, software-defined networking) and associated costs. If spending on network delivery systems has been increasing due to evolving threats and operational demands, this $56.2M award might align with those trends. Conversely, if spending has been decreasing or shifting towards different solutions, this award warrants closer scrutiny. Understanding the historical budget allocation for network modernization and application support within the Air Force provides a baseline against which this contract's value and necessity can be evaluated.

What are the potential cybersecurity implications of consolidating application delivery through a single 'Global Application Delivery Network' managed by Agile Defense, LLC?

Consolidating application delivery through a single network, while offering efficiency benefits, also presents significant cybersecurity implications. A centralized network becomes a more attractive target for adversaries. The security posture of the Global Application Delivery Network, including its architecture, access controls, monitoring capabilities, and incident response protocols, is paramount. The contract must stipulate stringent cybersecurity requirements, compliance with DoD security standards (e.g., RMF), and regular security audits. Agile Defense, LLC's ability to secure this network against sophisticated threats, protect sensitive data, and ensure the integrity of application delivery is critical. Any vulnerabilities in this network could have widespread impacts across Air Force operations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1430 SPRING HILL RD STE 200, MCLEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $120,697,965

Exercised Options: $68,138,648

Current Obligation: $56,229,236

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $27,128,496

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0015

IDV Type: GWAC

Timeline