Dod's $34M Mainframe Support East Contract Awarded to DDC IT Services LLC for IT Services

Contract Overview

Contract Amount: $34,193,317 ($34.2M)

Contractor: DDC IT Services LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-08

End Date: 2023-09-30

Contract Duration: 1,667 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINFRAME SUPPORT EAST - LABOR

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to DDC IT SERVICES LLC for work described as: MAINFRAME SUPPORT EAST - LABOR Key points: 1. The contract value of $34.2 million over its period of performance suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The firm-fixed-price nature of the contract shifts cost risk to the contractor, potentially leading to more predictable spending. 4. The contract duration of 1667 days indicates a long-term need for these IT services. 5. The primary service category is 'Other Computer Related Services', suggesting a broad scope of IT support. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for cost control. Benchmarking against similar large-scale IT support contracts would provide a clearer picture of value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award suggests a reasonable price was likely negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of 4 bids suggests a healthy level of interest and competition for this requirement.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of Defense benefits from continued mainframe support, ensuring the operational readiness of critical systems. IT services are delivered to support the Defense Information Systems Agency's mission. The contract's geographic impact is centered in Pennsylvania, where the services are likely performed. The contract supports a workforce skilled in mainframe operations and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by DDC IT SERVICES LLC.
Reliance on a single delivery order under a potentially larger IDIQ could obscure overall spending trends.
The broad 'Other Computer Related Services' category might mask specific cost drivers or inefficiencies.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Long contract duration indicates a stable, ongoing need and potential for established service quality.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Defense Information Systems Agency's overall IT spending, which is crucial for national security operations. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts within the federal government, particularly those supporting legacy systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, DDC IT SERVICES LLC, may engage small businesses as subcontractors, though this is not explicitly detailed in the given information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The firm-fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is facilitated by the contract award being publicly available, but detailed performance reports and specific oversight mechanisms are not provided in this data.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Federal Mainframe Modernization Programs
IT Services for Department of Defense
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for cost overruns if scope creep occurs.
Dependence on a single contractor for critical IT infrastructure.
Risk of outdated technology if modernization is not prioritized.
Performance degradation impacting mission-critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to DDC IT SERVICES LLC. MAINFRAME SUPPORT EAST - LABOR

Who is the contractor on this award?

The obligated recipient is DDC 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 $34.2 million.

What is the period of performance?

Start: 2019-03-08. End: 2023-09-30.

What is the track record of DDC IT SERVICES LLC in performing similar large-scale IT support contracts for the federal government?

Assessing the track record of DDC IT SERVICES LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A history of successful, on-time, and within-budget performance on comparable IT support or mainframe services contracts would indicate a lower risk. Conversely, a history of performance issues, contract disputes, or significant cost overruns would raise concerns about their capability to execute this current $34.2 million contract effectively. Without specific past performance data, it's difficult to definitively gauge their reliability for this particular engagement.

How does the per-unit cost or overall value of this contract compare to similar mainframe support services awarded by the DoD or other federal agencies?

To benchmark the value of this $34.2 million contract, one would need to compare its cost against similar mainframe support services. This involves identifying contracts with comparable scope, duration, and service levels awarded by the Department of Defense or other federal agencies. Key metrics for comparison could include hourly labor rates for different skill sets, the cost per server supported, or the overall cost as a percentage of the agency's IT budget. Given that this contract is for 'Other Computer Related Services' and specifically 'MAINFRAME SUPPORT EAST - LABOR', comparisons should focus on contracts providing similar technical expertise and operational support for legacy systems. A higher cost relative to benchmarks might indicate potential overpricing or a more complex service requirement, while a lower cost could suggest efficient service delivery or a more competitive bid.

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

Primary risks for this contract include potential cost overruns if the firm-fixed-price structure is not adequately managed, vendor lock-in due to specialized knowledge, and performance issues impacting critical DoD systems. Mitigation strategies often involve robust contract oversight by the government, clear performance metrics and Service Level Agreements (SLAs), and regular performance reviews. For vendor lock-in, agencies may require knowledge transfer clauses or plan for future competition. Performance risks are typically managed through the Contractor Performance Assessment Reporting System (CPARS) and by having contingency plans in place. The firm-fixed-price nature itself is a risk mitigation tool for the government, transferring cost overrun risk to the contractor.

How effective has the Defense Information Systems Agency (DISA) been in managing similar IT support contracts in the past?

The effectiveness of DISA in managing IT support contracts can be evaluated by examining their historical performance data, including contract award trends, contract close-out rates, and any reported issues with contractor performance or program execution. DISA manages a vast portfolio of IT contracts critical to national security, and their effectiveness is often measured by the reliability and security of the systems they support. Analyzing publicly available reports from the Government Accountability Office (GAO) or the DoD Inspector General (IG) can provide insights into DISA's contract management practices, identifying areas of strength and weakness. Successes might include seamless transitions and sustained system uptime, while challenges could involve contract disputes or delays in service delivery.

What has been the historical spending pattern for mainframe support services by the Department of Defense over the last five years?

Analyzing the historical spending pattern for mainframe support services by the Department of Defense over the last five years would involve aggregating data from various contract vehicles and awards. This would reveal trends in overall expenditure, identify major contractors, and highlight shifts in technology focus (e.g., modernization vs. sustainment). Such an analysis would likely show a significant, albeit potentially decreasing, investment in maintaining legacy mainframe systems, balanced by increasing investments in cloud migration and newer technologies. Understanding this pattern helps contextualize the $34.2 million awarded for MAINFRAME SUPPORT EAST, indicating whether it represents a typical level of investment or a deviation from historical norms. It also informs future budget planning and strategic IT decisions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: North Stone LLC

Address: 8840 E CHAPARRAL RD STE 145, SCOTTSDALE, AZ, 85250

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,396,661

Exercised Options: $34,193,317

Current Obligation: $34,193,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F435DA

IDV Type: FSS

Timeline