DoD's $52M IT contract with By Light Professional IT Services shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $52,006,495 ($52.0M)

Contractor: BY Light Professional IT Services LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-09

End Date: 2020-12-31

Contract Duration: 906 days

Daily Burn Rate: $57.4K/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

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to BY LIGHT PROFESSIONAL IT SERVICES LLC for work described as: IGF::CT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services, suggesting fair pricing. 2. Competition was limited, with only one bid received, potentially impacting price discovery and value for taxpayers. 3. The contract's duration and cost-plus-fixed-fee structure present moderate performance and cost overrun risks. 4. This contract falls within the broader IT services sector, a significant area of federal spending. 5. The award to By Light Professional IT Services LLC indicates a focus on established IT providers. 6. The 'Delivery Order' type suggests this is part of a larger, pre-existing contract vehicle.

Value Assessment

Rating: good

The total award amount of $52,006,495.12 for computer systems design services appears to be within a reasonable range when compared to similar IT service contracts awarded by the Department of Defense. The cost-plus-fixed-fee (CPFF) pricing structure, while carrying inherent risks, was likely chosen to accommodate the evolving nature of IT projects. Benchmarking against market rates for similar services suggests that the fixed fee component was likely negotiated fairly, though a more granular analysis of the labor categories and hours would provide greater certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a less common and potentially restrictive method. While it implies some form of competition was considered, the fact that only one bid was received is a significant indicator of limited market engagement. This could be due to the specific requirements of the task order, the specialized nature of the services, or the chosen contract vehicle. The limited number of bidders restricts the government's ability to leverage a wider range of innovative solutions and potentially secure more competitive pricing.

Taxpayer Impact: When only one bid is received, taxpayers may not benefit from the most competitive pricing achievable through broader market engagement. This can lead to higher costs for the government and, consequently, for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and its components, receiving essential computer systems design services. The services delivered likely support critical defense information systems and infrastructure, ensuring operational readiness. The contract's geographic impact is centered in Maryland, where the contractor is located and likely where services are performed. Workforce implications include employment opportunities for IT professionals within By Light Professional IT Services LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
The CPFF contract type introduces risk of cost overruns if not closely managed.
The 'Exclusion of Sources' clause warrants further investigation into the rationale for limiting the competitive pool.
The contract's duration of 906 days (approx. 2.5 years) requires ongoing monitoring for performance and scope creep.

Positive Signals

The award went to an established IT services provider, By Light Professional IT Services LLC.
The contract is for essential computer systems design services, supporting critical defense functions.
The fixed fee component provides some cost certainty for the government within the CPFF structure.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies consistently seeking solutions for systems design, integration, and maintenance. This contract for computer systems design services, valued at approximately $52 million, fits within the broader category of IT support for defense agencies. Comparable spending benchmarks in this sector often see contracts ranging from tens to hundreds of millions of dollars, depending on the scope and duration. The specific NAICS code (541512) indicates a focus on the design and development aspects of IT systems.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). As a result, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, By Light Professional IT Services LLC, will likely manage the execution of the contract. Opportunities for small businesses would typically arise if By Light chooses to subcontract portions of the work, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically the Defense Information Systems Agency (DISA). The Inspector General's office for the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, where award details are recorded. However, the specifics of internal oversight mechanisms, performance reviews, and accountability measures are not detailed in the provided data.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Services for National Security Agencies

Risk Flags

Limited competition
Cost-plus contract type risk
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to BY LIGHT PROFESSIONAL IT SERVICES LLC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is BY LIGHT PROFESSIONAL IT SERVICES 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 $52.0 million.

What is the period of performance?

Start: 2018-07-09. End: 2020-12-31.

What is the track record of By Light Professional IT Services LLC with the Department of Defense?

By Light Professional IT Services LLC has a history of receiving contracts from the Department of Defense, as indicated by this award and potentially others. Analyzing their past performance on similar IT services contracts would provide insight into their reliability, quality of service, and ability to manage costs effectively. A review of past performance evaluations and any reported issues or successes would be crucial for a comprehensive assessment. Without specific past performance data, it's difficult to definitively gauge their track record beyond the fact that they are an active participant in the federal contracting space.

How does the pricing of this contract compare to other similar IT services contracts awarded by DISA?

The total award of $52,006,495.12 for computer systems design services needs to be benchmarked against similar contracts awarded by DISA or other DoD components. Factors such as contract duration (906 days), labor categories, and specific services rendered are critical for a fair comparison. While the provided data suggests 'fair value,' a detailed analysis comparing the average hourly rates, fixed fee percentages, and overall cost per service unit against a basket of comparable contracts would offer a more robust assessment. The CPFF structure also requires scrutiny of the 'cost' component to ensure it aligns with reasonable expenditures for the services provided.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns. While the fixed fee provides a ceiling for the contractor's profit, the 'cost' portion is reimbursable. If the contractor's actual costs exceed initial estimates, the government pays those higher costs, potentially leading to a final award price significantly higher than initially anticipated. Effective oversight, detailed cost tracking, and robust performance metrics are essential to mitigate this risk and ensure the contractor remains efficient and within budget expectations.

What does the limited competition (one bid) imply for the effectiveness of the procurement process?

The fact that only one bid was received under 'Full and Open Competition After Exclusion of Sources' raises questions about the effectiveness of the procurement process in attracting a competitive field. This could indicate that the solicitation's requirements were overly restrictive, the contract vehicle used was not widely known or accessible, or the market for these specific services is limited. While the government may have received a technically acceptable proposal, the lack of competition hinders price discovery and potentially leads to a higher overall cost for taxpayers. It suggests that future solicitations for similar services might benefit from broader outreach or revised requirements to encourage more bidders.

How has federal spending on computer systems design services (NAICS 541512) evolved over the past five years?

Federal spending on computer systems design services (NAICS 541512) has generally seen a consistent upward trend over the past five years, reflecting the increasing reliance of government agencies on advanced IT solutions. This category encompasses a wide range of services, from system design and integration to custom software development and IT consulting. Agencies like the Department of Defense, Health and Human Services, and Homeland Security are major contributors to this spending. Factors driving this growth include modernization efforts, cybersecurity enhancements, cloud migration initiatives, and the need for sophisticated data analytics capabilities across the federal government.

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

Solicitation ID: HC102810R2001

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD STE 850, ARLINGTON, VA, 22201

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,006,495

Exercised Options: $52,006,495

Current Obligation: $52,006,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102813D0011

IDV Type: IDC

Timeline