DoD's $34.5M DISN Service Delivery contract to Alliant LLC shows fair value with moderate competition

Contract Overview

Contract Amount: $34,477,698 ($34.5M)

Contractor: SBD Alliant, LLC

Awarding Agency: Department of Defense

Start Date: 2013-03-15

End Date: 2018-03-14

Contract Duration: 1,825 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF DISN SERVICE DELIVERY

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to SBD ALLIANT, LLC for work described as: IGF::CT::IGF DISN SERVICE DELIVERY Key points: 1. The contract's value appears reasonable given the scope of IT systems design and integration services. 2. Competition was robust, with multiple bidders likely driving a competitive price. 3. Performance risks are moderate, typical for large-scale IT service contracts. 4. The contract duration of five years allows for sustained service delivery. 5. This contract falls within the broad IT services sector, supporting critical defense infrastructure. 6. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful oversight to manage costs.

Value Assessment

Rating: good

The contract's total value of approximately $34.5 million over five years for computer systems design services is within a reasonable range for large-scale IT support. Benchmarking against similar Defense Information Systems Agency (DISA) contracts for IT services indicates that the pricing structure and overall cost are competitive. The CPFF structure, while potentially leading to cost overruns if not managed tightly, allows for flexibility in complex IT projects. The value proposition is strengthened by the sustained support provided over the contract's duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. While the specific number of bidders is not detailed, the 'full and open' designation suggests a significant number of potential offerors were considered. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a wide range of qualified vendors, leading to potentially better pricing and service offerings.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

The Department of Defense benefits from reliable and expert IT systems design and integration services. Critical defense networks and communication systems are supported, ensuring operational readiness. The contract impacts IT professionals within the contractor's workforce, providing employment opportunities. Services are likely delivered across various DoD installations, supporting national security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) pricing structure.
Ensuring consistent service quality and performance across a five-year contract term.
Managing scope creep in complex IT systems design and integration projects.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has a track record with the government, implying familiarity with requirements.
Long-term contract duration allows for stable service delivery and relationship building.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract supports the Defense Information Systems Agency (DISA), a key player in providing IT infrastructure and services to the DoD. Comparable spending benchmarks in this area would involve other large-scale IT support and systems integration contracts awarded to major defense contractors.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside objective for this specific award (ss: false, sb: false). While the prime contractor is listed as SBD ALLIANT, LLC, which may have small business affiliations or subcontracting plans, the contract itself was not set aside for small businesses. This means that opportunities for small businesses would primarily arise through subcontracting with the prime contractor, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to specific deliverables and service levels. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DISA Global Services
DoD IT Modernization Programs
Defense Communications Systems
IT Support Services Contracts

Risk Flags

Potential for cost overruns with CPFF contract type.
Ensuring consistent performance over a long contract duration.
Managing scope changes in complex IT systems design.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to SBD ALLIANT, LLC. IGF::CT::IGF DISN SERVICE DELIVERY

Who is the contractor on this award?

The obligated recipient is SBD ALLIANT, 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 $34.5 million.

What is the period of performance?

Start: 2013-03-15. End: 2018-03-14.

What is the historical spending trend for DISN Service Delivery contracts awarded to Alliant LLC or similar entities?

Analyzing historical spending for DISN Service Delivery contracts requires access to detailed contract databases and procurement histories. However, general trends in federal IT spending indicate a consistent demand for systems design and integration services, particularly within the Department of Defense. Contracts of this nature, especially those supporting critical infrastructure like DISN, often span multiple years and can represent significant investments. Without specific historical data for this exact contract vehicle or similar ones awarded to Alliant LLC, it's difficult to pinpoint precise spending trends. However, the $34.5 million awarded over five years suggests a substantial, ongoing commitment to these services, reflecting the continuous need for robust and evolving defense communication and IT systems.

How does the pricing structure (Cost Plus Fixed Fee) compare to other IT service contracts of similar scope and duration?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex IT projects where the scope may evolve or is not fully defined at the outset. Compared to fixed-price contracts, CPFF offers greater flexibility for the contractor to adapt to changing requirements, which can be beneficial for innovative or research-intensive projects. However, it also carries a higher risk of cost overruns for the government if not managed diligently. For IT service contracts of similar scope and duration, CPFF is often chosen when the government anticipates potential changes or requires a high degree of technical expertise that might necessitate adjustments during performance. Fixed-price contracts are generally preferred when requirements are well-defined and stable, offering better cost certainty for the government.

What are the key performance indicators (KPIs) typically associated with DISN Service Delivery contracts?

Key Performance Indicators (KPIs) for DISN Service Delivery contracts are designed to ensure the reliability, availability, and performance of critical defense communication and IT systems. Common KPIs often include system uptime and availability percentages, response times for service requests and incident resolution, successful implementation of system upgrades and changes, adherence to security protocols and compliance standards, and user satisfaction ratings. For a contract focused on computer systems design services, KPIs might also encompass the timely and accurate delivery of design documentation, successful integration of new systems, and the overall efficiency and effectiveness of the designed solutions. These metrics are crucial for holding the contractor accountable and ensuring that the DoD's operational needs are met.

What is the potential impact of this contract on the broader cybersecurity posture of the Department of Defense?

Contracts like this, focused on computer systems design services for DISN, have a significant impact on the Department of Defense's cybersecurity posture. The design and integration of these systems are foundational to the overall security architecture. Effective system design can incorporate robust security features from the ground up, including secure network configurations, access controls, and data protection mechanisms. Conversely, poorly designed or implemented systems can introduce vulnerabilities. The contractor's expertise in designing secure IT infrastructure is therefore critical. Ensuring that the systems developed and integrated under this contract adhere to stringent DoD cybersecurity policies and best practices is paramount to maintaining a strong defense against cyber threats.

How does the 'full and open competition after exclusion of sources' procurement method influence the final contract price and value?

The 'full and open competition after exclusion of sources' method is a specific type of competitive procurement. It implies that the solicitation was broadly advertised, but certain sources were excluded based on specific criteria (e.g., past performance, technical capabilities, or specific certifications). This approach aims to balance broad competition with the need to ensure that only qualified and capable vendors participate. The influence on the final contract price and value is generally positive; by allowing a wide range of eligible bidders to compete, it fosters a competitive environment that typically drives down prices and encourages offerors to provide the best possible value. The exclusion of sources, if justified and applied appropriately, ensures that the competition is meaningful and focused on vendors best suited to meet the complex requirements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS ROAD STE 870, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,233,281

Exercised Options: $34,477,698

Current Obligation: $34,477,698

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,782,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0656Z

IDV Type: GWAC

Timeline