AGILE DEFENSE, LLC awarded $84.3M for Computer Systems Design Services by GSA, with 10 bids received

Contract Overview

Contract Amount: $84,327,207 ($84.3M)

Contractor: Agile Defense, LLC

Awarding Agency: General Services Administration

Start Date: 2014-07-26

End Date: 2019-07-25

Contract Duration: 1,825 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CAOC COMMUNICATIONS SUPPORT "IGF::OT::IGF"

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $84.3 million to AGILE DEFENSE, LLC for work described as: CAOC COMMUNICATIONS SUPPORT "IGF::OT::IGF" Key points: 1. Contract value of $84.3M over 5 years suggests a significant investment in IT infrastructure support. 2. The contract was competed Full and Open, indicating a broad market solicitation. 3. A high number of bids (10) suggests robust competition, potentially driving favorable pricing. 4. The firm-fixed-price structure shifts performance risk to the contractor. 5. The contract's duration of 1825 days aligns with typical IT system lifecycle support needs. 6. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 7. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $84.3M over five years averages to approximately $16.86M annually. Benchmarking this against similar large-scale IT support contracts is challenging without more specific service details. However, the presence of 10 bidders in a full and open competition suggests that the pricing was likely competitive. The firm-fixed-price nature of the award also indicates that the government secured a defined cost for the services, with the contractor assuming cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition After Exclusion of Sources' solicitation. The fact that 10 bids were received indicates a healthy level of competition for this requirement. A larger number of bidders generally provides the government with a wider range of technical solutions and pricing options, increasing the likelihood of achieving best value.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in more competitive pricing and a better overall value for the services rendered. It ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are likely federal agencies requiring sophisticated computer systems design and support services. The contract delivers essential IT infrastructure and operational support, crucial for government functions. The geographic impact is not specified but likely supports federal operations nationwide or at specific installations. Workforce implications include employment opportunities for IT professionals, system designers, and support staff within AGILE DEFENSE, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the long duration.
Dependence on a single contractor for critical IT systems could pose a risk if performance degrades.
Ensuring continued innovation and adaptation to evolving technology over the contract's lifespan.

Positive Signals

Full and open competition suggests a well-defined requirement and a competitive market.
Firm-fixed-price contract aligns cost expectations and incentivizes contractor efficiency.
Multiple bidders indicate a healthy market response and potential for strong performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically computer systems design. The federal government is a major consumer of these services, with significant annual spending allocated to IT modernization, cybersecurity, and operational support. The market for such services is competitive, featuring a mix of large prime contractors and specialized small businesses. This contract represents a portion of the government's overall investment in maintaining and enhancing its digital infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While AGILE DEFENSE, LLC is the prime contractor, there is no explicit information regarding small business subcontracting goals or performance within this specific award notice. Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Integration
Information Technology Professional Services
IT Services for Defense Agencies
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for vendor lock-in due to long contract duration.
Risk of technological obsolescence if not managed proactively.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $84.3 million to AGILE DEFENSE, LLC. CAOC COMMUNICATIONS SUPPORT "IGF::OT::IGF"

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $84.3 million.

What is the period of performance?

Start: 2014-07-26. End: 2019-07-25.

What is the track record of AGILE DEFENSE, LLC in performing similar large-scale IT support contracts?

AGILE DEFENSE, LLC has a history of performing various federal contracts, including those related to IT services. Analyzing their past performance on contracts of similar size, scope, and duration is crucial. This involves reviewing past performance evaluations, any contract modifications, and their history of meeting delivery schedules and quality standards. A review of their contract portfolio would reveal their experience with firm-fixed-price awards and their ability to manage complex IT projects. Understanding their financial stability and capacity to handle an $84.3 million contract is also important for assessing their reliability as a contractor.

How does the awarded price compare to industry benchmarks for similar computer systems design services?

Benchmarking the awarded price of $84.3 million for computer systems design services requires detailed comparison with market data for similar contracts. Factors such as the specific technologies involved, the level of expertise required, the geographic location of service delivery, and the duration of the contract all influence pricing. Without more granular details on the services provided, a precise benchmark is difficult. However, the presence of 10 bidders in a full and open competition suggests that the pricing was likely competitive within the market. Further analysis could involve comparing the average annual value ($16.86M) to publicly available contract award data for similar NAICS codes and service types.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential cost overruns (mitigated by the firm-fixed-price structure), performance failures, contractor default, and technological obsolescence. The firm-fixed-price nature shifts cost overrun risk to the contractor. Performance risk is managed through contract surveillance, performance metrics, and potential penalties. Technological obsolescence is a longer-term risk that requires proactive contract management to ensure services remain relevant and updated. The long duration also presents a risk of contractor dependency, which can be mitigated through clear exit strategies and knowledge transfer requirements.

How effective has GSA been in managing similar large IT contracts to ensure value for taxpayers?

The General Services Administration (GSA) is a primary procurement agency for the federal government and manages a vast portfolio of IT contracts. Their effectiveness in managing large IT contracts is generally considered good, leveraging established procurement processes and experienced contracting officers. GSA's Federal Acquisition Service (FAS) often manages large IDIQ vehicles from which delivery orders like this one are issued. Success is measured by their ability to foster competition, negotiate favorable terms, and ensure contractor performance meets government requirements. However, like any large organization, GSA faces challenges in adapting quickly to rapidly evolving technologies and ensuring consistent oversight across all its contracts.

What is the historical spending trend for computer systems design services by the federal government?

Federal spending on computer systems design services has historically been substantial and generally increasing, driven by the continuous need for IT modernization, cybersecurity enhancements, and digital transformation across government agencies. The government relies heavily on external contractors for specialized IT expertise. Spending in this category often fluctuates based on major technology initiatives, budget appropriations, and national security priorities. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract awards, average contract values, and the distribution of spending across different agencies and service types within the computer systems design domain.

What is the significance of the 'Delivery Order' award type in this context?

The 'Delivery Order' award type signifies that this contract is likely a task order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. IDIQ contracts allow agencies to procure supplies or services from pre-qualified vendors over a set period. Delivery orders specify the exact quantity, delivery date, and price for a particular shipment or service requirement. This approach provides flexibility for the government to acquire services as needed, while the underlying IDIQ contract established the terms and conditions, and often the competition framework, for these orders.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04140056

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $100,558,640

Exercised Options: $90,060,789

Current Obligation: $84,327,207

Actual Outlays: $-127,516

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