Department of Defense awards $26M contract for IT sustainment support to DDC IT Services LLC

Contract Overview

Contract Amount: $25,998,274 ($26.0M)

Contractor: DDC IT Services LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-01

End Date: 2023-06-30

Contract Duration: 1,490 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUSTAINMENT SUPPORT FOR CONTRACTOR PERSONNEL TO PROVIDE SUSTAINMENT FUNCTIONALITY TO SUPPORT DOD MISSION PARTNERS AND DISA CUSTOMERS' APPLICATIONS AND DATABASES.

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to DDC IT SERVICES LLC for work described as: SUSTAINMENT SUPPORT FOR CONTRACTOR PERSONNEL TO PROVIDE SUSTAINMENT FUNCTIONALITY TO SUPPORT DOD MISSION PARTNERS AND DISA CUSTOMERS' APPLICATIONS AND DATABASES. Key points: 1. Contract provides essential sustainment functionality for critical Department of Defense applications and databases. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The contract duration of approximately 4 years (1490 days) suggests a long-term need for these services. 5. The award was made via a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', a broad category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of approximately $26 million over nearly five years suggests a moderate annual spend. The firm-fixed-price structure is generally favorable for the government, as it shifts cost risk to the contractor. However, without insight into the specific services rendered and their criticality, a definitive value assessment is difficult. Further analysis would require understanding the scope of work and comparing it to industry standards for IT sustainment.

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. The presence of 11 bidders (no) suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential IT sustainment services.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) mission partners and Defense Information Systems Agency (DISA) customers, who receive uninterrupted access to critical applications and databases. The services delivered ensure the operational readiness and effectiveness of various DoD IT systems. The geographic impact is likely nationwide, supporting DoD operations across different locations. Workforce implications include the potential for sustained employment for IT professionals employed by DDC IT SERVICES LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the sustainment services provided.
The broad NAICS code (541519) can sometimes obscure the specific nature and complexity of the IT services being procured.
Without details on the specific applications and databases supported, it's hard to gauge the criticality and potential impact of any service disruptions.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
Firm-fixed-price contract type shifts cost risk to the contractor, which is generally favorable for the government.
The contract duration suggests a stable, long-term requirement, allowing for consistent support.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on application and database sustainment. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading existing systems. Comparable spending benchmarks for IT sustainment can vary widely based on the complexity of the systems, the criticality of the applications, and the specific services required. The Department of Defense is a major consumer of IT services, often utilizing large IDIQ vehicles to procure a wide range of support.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, DDC IT SERVICES LLC, as the prime contractor, may engage small businesses as subcontractors to fulfill parts of the contract requirements. The extent of subcontracting to small businesses would depend on the contractor's strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Defense and the Defense Information Systems Agency (DISA). As a delivery order under a potential larger contract vehicle, oversight mechanisms would likely be defined within that parent contract. Accountability measures would include adherence to the firm-fixed-price terms, delivery schedules, and any performance standards outlined in the statement of work. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense Application Maintenance Services
Federal IT Sustainment and Operations
DoD Database Management and Support

Risk Flags

Potential for scope creep if not clearly defined.
Reliance on contractor personnel could pose continuity risks.
Cybersecurity vulnerabilities in supported applications/databases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to DDC IT SERVICES LLC. SUSTAINMENT SUPPORT FOR CONTRACTOR PERSONNEL TO PROVIDE SUSTAINMENT FUNCTIONALITY TO SUPPORT DOD MISSION PARTNERS AND DISA CUSTOMERS' APPLICATIONS AND DATABASES.

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 $26.0 million.

What is the period of performance?

Start: 2019-06-01. End: 2023-06-30.

What is the track record of DDC IT SERVICES LLC in performing similar IT sustainment contracts for the Department of Defense?

Assessing the track record of DDC IT SERVICES LLC requires a deeper dive into their contract history beyond this single award. While this contract indicates they are capable of securing significant DoD work, their past performance on similar sustainment tasks is crucial. Information on previous contracts, including their value, duration, and client agencies, would provide insight into their experience. Performance evaluations, if available through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS), would offer direct feedback on their reliability, quality of service, and adherence to contract terms. A review of their financial stability and any past disputes or corrective actions would also contribute to a comprehensive understanding of their capabilities and risks.

How does the per-unit cost or annual cost of this contract compare to similar IT sustainment contracts within the DoD or other federal agencies?

Directly comparing the per-unit cost or annual cost of this $26 million contract is challenging without a detailed breakdown of the services provided and the specific metrics used for pricing. The NAICS code 541519 is very broad. To benchmark effectively, one would need to identify comparable contracts that procure similar sustainment services for comparable applications or databases, considering factors like system complexity, security requirements, and service level agreements. Annualizing this contract's value ($26M / ~4.1 years = ~$6.3M/year) provides a general figure, but its true value is determined by the scope of work. Without access to detailed pricing structures or a database of comparable contract costs, a precise benchmark is not feasible.

What are the key performance indicators (KPIs) used to measure the success of this sustainment support contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of this sustainment support contract. Typically, for IT sustainment, KPIs might include metrics such as application uptime percentage, response time for issue resolution, patch management timeliness, database performance metrics, and user satisfaction ratings. The firm-fixed-price nature of the contract suggests that the contractor is incentivized to meet defined service levels, but the specific targets and measurement methods would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without access to these documents, the exact KPIs remain unknown.

What is the potential risk associated with the contractor, DDC IT SERVICES LLC, based on their financial health and past performance?

Evaluating the potential risk associated with DDC IT SERVICES LLC requires access to their financial health reports and a comprehensive review of their past performance data, which is not fully available in the provided summary. While securing a $26 million contract indicates a certain level of capability and trust from the awarding agency, it doesn't inherently guarantee low risk. Factors to consider include their financial stability (e.g., debt-to-equity ratio, liquidity), any history of contract disputes, past performance ratings (e.g., from FAPIIS), and any ongoing investigations or sanctions. Without this specific information, assessing the risk level remains speculative. However, the 'fair' rating for value assessment suggests some caution is warranted.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this contract fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a steady increase over the past five years, driven by the ongoing digital transformation across government agencies and the need for specialized IT support. This $26 million contract for sustainment support aligns with this trend, reflecting the government's continuous investment in maintaining and operating its complex IT infrastructure. While this single contract represents a fraction of the total federal spending in this category, it highlights the consistent demand for services related to application and database maintenance, which are critical for mission operations. The DoD, being a significant technology consumer, consistently contributes a large portion to this spending category.

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: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $31,158,943

Exercised Options: $25,998,274

Current Obligation: $25,998,274

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F435DA

IDV Type: FSS

Timeline