DoD's $13.3M IT support contract for Kuwait AOR awarded to Intelligent Waves LLC

Contract Overview

Contract Amount: $13,305,678 ($13.3M)

Contractor: Intelligent Waves LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ELOG FSR SUPPORT KUWAIT AOR

Plain-Language Summary

Department of Defense obligated $13.3 million to INTELLIGENT WAVES LLC for work described as: ELOG FSR SUPPORT KUWAIT AOR Key points: 1. Contract value appears reasonable for IT support services in a complex operational environment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include performance continuity and contractor dependency in a remote location. 4. This contract supports critical IT infrastructure in the Middle East theater. 5. The IT services sector is highly competitive, with many firms capable of providing these services. 6. The contract duration of five years allows for sustained support but also carries long-term risk.

Value Assessment

Rating: good

The contract's value of $13.3 million over five years for IT support in Kuwait seems within a reasonable range for similar services in deployed environments. Benchmarking against other IT support contracts in the Defense Information Systems Agency (DISA) portfolio would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the specific scope of services will ultimately determine the true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while initial sources might have been excluded, the final award was made through a broad competitive process. The number of bidders is not specified, but this method generally promotes price discovery and allows multiple qualified vendors to compete, potentially leading to better pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the opportunity to secure the best possible price and service quality for the government.

Public Impact

Military personnel and operations in the Kuwait Area of Responsibility (AOR) benefit from reliable IT infrastructure and support. Essential IT services, including computer facilities management, are delivered to support command and control and operational readiness. The geographic impact is focused on U.S. Central Command's operations within Kuwait. The contract supports a workforce of IT professionals, potentially including both U.S. citizens and local hires, depending on Intelligent Waves LLC's staffing strategy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized knowledge of the Kuwait AOR IT environment.
Dependency on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
Ensuring consistent service quality and security compliance over a five-year period requires robust oversight.

Positive Signals

Intelligent Waves LLC's experience in supporting military operations is a positive signal.
The use of full and open competition suggests a commitment to leveraging market efficiencies.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer facilities management. The IT services market is vast and highly dynamic, with significant government spending allocated to maintaining and modernizing digital infrastructure. Comparable spending benchmarks for IT support in deployed overseas locations would typically vary based on the complexity of the environment, security requirements, and the specific services rendered.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Intelligent Waves LLC chooses to engage small businesses for specific tasks. Without a set-aside, larger prime contractors are typically awarded the contract, and their subcontracting plans dictate small business participation.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Information Systems Agency (DISA) contracting officers and technical representatives. Accountability measures would be embedded in the contract's performance work statement (PWS) and delivery terms. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
U.S. Central Command (CENTCOM) IT Infrastructure
Overseas IT Services Contracts
Computer Facilities Management Services
Information Technology Support Services

Risk Flags

Potential for vendor lock-in
Dependency on contractor performance
Cybersecurity risks in a deployed environment
Geopolitical instability impacting service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to INTELLIGENT WAVES LLC. ELOG FSR SUPPORT KUWAIT AOR

Who is the contractor on this award?

The obligated recipient is INTELLIGENT WAVES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What is Intelligent Waves LLC's track record with similar IT support contracts for the Department of Defense, particularly in overseas environments?

Intelligent Waves LLC has a history of supporting Department of Defense contracts, including those involving IT services and operations in challenging environments. Their experience often includes providing communication, cybersecurity, and IT infrastructure support. Assessing their performance on previous, similar contracts, especially those managed by DISA or within CENTCOM's area of responsibility, would be crucial. This includes reviewing past performance evaluations, any contract disputes, and their ability to meet delivery timelines and technical requirements. A deeper dive into their specific capabilities in Kuwait, if any, would further inform this assessment.

How does the awarded price of $13.3 million compare to market rates for similar IT support services in the Kuwait Area of Responsibility?

Benchmarking the $13.3 million contract value against market rates requires detailed analysis of the specific services included (e.g., network management, hardware maintenance, cybersecurity, help desk support) and the prevailing labor and operational costs in Kuwait. Industry reports on IT service costs in the Middle East, coupled with data from similar government contracts awarded to other vendors in the region, would be necessary for a robust comparison. Factors like security clearances, logistical support, and the duration of the contract also influence pricing. Without a detailed breakdown of the services and associated costs, a precise market comparison is difficult, but the five-year duration suggests a need for sustained, comprehensive support.

What are the primary performance risks associated with this contract, and what mitigation strategies are in place?

Key performance risks include potential disruptions to IT services due to geopolitical instability, logistical challenges in Kuwait, contractor personnel turnover, and the evolving nature of cyber threats. Mitigation strategies typically involve robust service level agreements (SLAs) within the contract, contingency plans for service continuity, stringent security protocols, and regular performance reviews. The government's oversight team plays a critical role in monitoring performance and enforcing contract terms. The firm-fixed-price nature of the contract incentivizes the contractor to manage costs and performance efficiently, but requires clear definition of deliverables and performance standards.

How effective has 'full and open competition after exclusion of sources' been in ensuring competitive pricing for similar DISA contracts?

The 'full and open competition after exclusion of sources' (FCAES) method is designed to broaden competition while allowing for specific exclusions based on justified reasons, such as national security or prior unique development. Its effectiveness in ensuring competitive pricing depends heavily on the specific justifications for exclusion and the subsequent outreach to potential bidders. When properly implemented, FCAES can lead to competitive pricing by ensuring a wide pool of qualified vendors can participate. However, if the exclusions are overly broad or poorly justified, it could inadvertently limit competition and potentially lead to higher prices than true full and open competition.

What is the historical spending trend for IT support services within the Kuwait AOR by the Department of Defense?

Analyzing historical spending trends for IT support in the Kuwait AOR requires accessing DISA or CENTCOM procurement data over several fiscal years. This would involve identifying contracts with similar scopes of work and geographic focus. Trends might indicate increasing or decreasing reliance on contracted IT support, shifts in technology requirements, or changes in the competitive landscape. Understanding these patterns can help assess whether the current $13.3 million award is consistent with past investments, reflects changing operational needs, or represents a significant deviation, potentially signaling new requirements or market dynamics.

What are the implications of the five-year contract duration (1825 days) on long-term IT modernization and vendor dependency?

A five-year contract duration provides stability and allows the contractor to develop deep expertise in the specific IT environment. However, it also carries risks of vendor lock-in, where the government becomes overly reliant on a single provider, potentially hindering the adoption of newer technologies or competitive re-bidding. Long-term contracts can sometimes slow down IT modernization if the contractor's focus remains on maintaining existing systems rather than integrating innovative solutions. Regular reviews and clear contract clauses addressing technology refresh and performance standards are essential to mitigate these risks and ensure the contract remains aligned with evolving military requirements.

Industry Classification

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1801 ROBERT FULTON DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,334,959

Exercised Options: $13,334,959

Current Obligation: $13,305,678

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101319D0003

IDV Type: IDC

Timeline