DoD's $36.5M Cyber Operations Contract with Dependable Global Solutions Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $36,519,055 ($36.5M)

Contractor: Dependable Global Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-01

End Date: 2021-08-31

Contract Duration: 2,191 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF AF DEFENSE CYBER OPERATIONS (DCO) MAINTENANCE&ENABLER (M&E) SERVICE FOR 33 NWS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to DEPENDABLE GLOBAL SOLUTIONS, LLC for work described as: IGF::CT::IGF AF DEFENSE CYBER OPERATIONS (DCO) MAINTENANCE&ENABLER (M&E) SERVICE FOR 33 NWS Key points: 1. The contract awarded to Dependable Global Solutions, LLC for Cyber Operations Maintenance & Enabler services represents a significant investment by the Air Force. 2. Competition was limited after exclusion of sources, raising questions about the breadth of market engagement and potential price discovery. 3. The firm-fixed-price contract structure aims to control costs, but the lack of broad competition could impact overall value for taxpayers. 4. The sector is IT services, specifically Computer Systems Design, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract's value of $36.5 million over six years for IT services needs further benchmarking against similar DoD cyber operations support contracts. The 'after exclusion of sources' clause suggests a potentially narrow competitive field, which could inflate costs compared to a fully open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific sources were excluded. This method can limit the pool of potential bidders and may not achieve the most competitive pricing possible.

Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for these essential cyber operations services, potentially leading to suboptimal use of taxpayer funds.

Public Impact

Taxpayers may be overpaying for critical cyber defense capabilities due to restricted competition. The effectiveness of cyber operations could be impacted if the chosen vendor is not the most innovative or cost-efficient available. Lack of transparency in the exclusion of sources process hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises value concerns.
Exclusion of sources lacks transparency.
Potential for inflated costs.
Long contract duration without clear performance reviews.

Positive Signals

Contract aims for firm fixed price to control costs.
Services are critical for national defense.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services, which is a rapidly evolving and crucial area for defense. Spending benchmarks for similar cyber operations maintenance and enabler services are difficult to ascertain without more specific service details, but significant investments are common in this high-demand field.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). This suggests that opportunities for small businesses in providing these specialized cyber operations services were likely limited or non-existent under this specific award.

Oversight & Accountability

The contract's duration and the 'exclusion of sources' clause warrant closer oversight to ensure fair pricing and effective service delivery. Accountability would be strengthened by a public justification for the source exclusions and regular performance reviews.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency in source exclusion.
Potential for suboptimal value for taxpayer money.
Long contract duration without clear performance benchmarks.
No explicit small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to DEPENDABLE GLOBAL SOLUTIONS, LLC. IGF::CT::IGF AF DEFENSE CYBER OPERATIONS (DCO) MAINTENANCE&ENABLER (M&E) SERVICE FOR 33 NWS

Who is the contractor on this award?

The obligated recipient is DEPENDABLE GLOBAL SOLUTIONS, 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 $36.5 million.

What is the period of performance?

Start: 2015-09-01. End: 2021-08-31.

What was the specific justification for excluding other potential sources from this competition, and how was the 'best value' determined under these limited conditions?

The justification for excluding sources is critical for understanding the competitive landscape. Without a clear rationale, it's difficult to assess if the government truly explored all viable options. Determining 'best value' under limited competition requires rigorous analysis of technical capabilities, past performance, and price, ensuring the selected vendor offers superior overall merit despite a smaller bidder pool.

How does the per-unit cost or overall service cost compare to industry benchmarks for similar cyber operations maintenance and enabler services, especially considering the limited competition?

Benchmarking is essential to validate cost-effectiveness. If the contract price significantly exceeds comparable services obtained through broader competition, it suggests potential overpayment. The 'exclusion of sources' clause necessitates a higher burden of proof that the negotiated price reflects fair market value, given the reduced competitive pressure.

What mechanisms are in place to ensure the ongoing effectiveness and efficiency of Dependable Global Solutions' cyber operations support throughout the contract's duration?

Effective oversight requires clearly defined performance metrics, regular reporting, and mechanisms for addressing deficiencies. For a long-term contract like this, periodic reviews and potential re-competition or contract modifications are crucial to adapt to evolving threats and technological advancements, ensuring sustained value and operational effectiveness.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA877314R8002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 3110 FAIRVIEW PK DR STE 950, FALLS CHURCH, VA, 22042

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,392,673

Exercised Options: $36,519,055

Current Obligation: $36,519,055

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline