DoD's $114M Enterprise Military Housing II contract awarded to Next Tier Concepts Inc. for IT services

Contract Overview

Contract Amount: $113,896,895 ($113.9M)

Contractor: Next Tier Concepts Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2025-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $56.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE MILITARY HOUSING II

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $113.9 million to NEXT TIER CONCEPTS INC for work described as: ENTERPRISE MILITARY HOUSING II Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration extends over multiple years, indicating a long-term need for services. 3. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract's primary location is Washington D.C., indicating a concentration of federal IT services in the capital region. 6. The contract is not set aside for small businesses, suggesting large prime contractors are expected to perform the work.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without more detailed service breakdowns and comparable contract data. The Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to cost overruns if not managed tightly. However, the presence of a fixed fee provides some incentive for the contractor to control costs. Further analysis would require comparing the labor rates and overhead applied to similar IT service contracts within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible responsible sources. This method is designed to maximize competition and potentially achieve better pricing and quality. The fact that it was competed openly suggests that multiple bidders likely vied for this contract, providing the agency with a range of options.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to more cost-effective service delivery.

Public Impact

The primary beneficiaries are likely military personnel and their families who rely on efficient housing management systems. The services delivered are expected to support the operational efficiency of military housing infrastructure. The geographic impact is concentrated in Washington D.C., where the contract is managed and potentially where services are rendered. Workforce implications may include employment opportunities for IT professionals and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The broad NAICS code (541519) could encompass a wide array of services, making it difficult to precisely track spending against specific deliverables without further detail.
The contract's duration and potential for modifications warrant ongoing monitoring to manage scope creep and budget adherence.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The delivery order structure suggests it's part of a potentially larger, pre-vetted IDIQ vehicle, implying some level of established performance.
The contract has a defined end date, providing a clear timeframe for service delivery and evaluation.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract, under NAICS code 541519 (Other Computer Related Services), likely falls into a category of IT support or integration services. Federal spending in IT services is consistently high, driven by the need to modernize systems, enhance cybersecurity, and improve operational efficiency across all agencies. Comparable spending benchmarks would typically involve looking at other large IT service contracts awarded by the Department of Defense or other federal agencies for similar types of support.

Small Business Impact

This contract was not set aside for small businesses, meaning the prime contract was likely awarded to a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the contract. The extent of small business participation will depend on the prime contractor's subcontracting plan and the nature of the services required. Without specific subcontracting data, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Defense Information Systems Agency (DISA), and the Department of Defense. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency is typically managed through contract reporting systems like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Enterprise Military Housing
Defense Information Systems Agency IT Services
Department of Defense IT Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure if not closely managed.
Broad scope of 'Other Computer Related Services' requires clear deliverable tracking.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.9 million to NEXT TIER CONCEPTS INC. ENTERPRISE MILITARY HOUSING II

Who is the contractor on this award?

The obligated recipient is NEXT TIER CONCEPTS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $113.9 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-03-29.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and can encompass a wide range of activities including IT consulting, systems integration, data processing, computer facilities management, and disaster recovery services. Without more specific details within the contract award documentation or performance statements, it is difficult to pinpoint the exact services. However, given the 'Enterprise Military Housing' title, these services likely relate to the management, maintenance, or enhancement of IT systems supporting military housing operations, potentially including software development, network support, or database management for housing databases and related infrastructure.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar IT service contracts within the DoD?

Cost Plus Fixed Fee (CPFF) contracts are common in the federal government, particularly for services where the scope may evolve or is not fully defined at the outset. This structure involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost growth if not managed diligently. Within the DoD, CPFF is often used for complex IT projects, research and development, and services requiring significant flexibility. Benchmarking requires comparing the negotiated fixed fee percentage and the projected cost base against similar contracts, considering factors like contract complexity, risk, and duration. Without specific data on the fee percentage and projected costs for this contract, a precise comparison is difficult, but it aligns with common DoD practices for service-based IT procurements.

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

Key Performance Indicators (KPIs) for a contract like 'Enterprise Military Housing II' would typically focus on the reliability, availability, and performance of the IT systems supporting military housing. Examples could include system uptime percentages, response times for IT support requests, successful data processing rates, and the successful implementation of any system upgrades or new functionalities. For a CPFF contract, KPIs also indirectly relate to cost control and adherence to schedule milestones. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). Regular performance reviews would assess the contractor's achievement against these metrics.

What is the historical spending pattern for 'Enterprise Military Housing' contracts, and how does this award compare?

Historical spending data for 'Enterprise Military Housing' contracts would need to be accessed through federal procurement databases (e.g., FPDS-NG). Assuming 'Enterprise Military Housing II' is a follow-on or successor contract, its value ($113.9 million) should be compared to its predecessor(s). If previous contracts were significantly smaller or larger, it could indicate changes in scope, service requirements, or market pricing. A substantial increase might warrant scrutiny into expanded requirements or inflation, while a decrease could suggest scope reduction or more competitive pricing. Without the specific historical data for 'Enterprise Military Housing I' or other related contracts, a direct comparison and trend analysis cannot be performed here.

What is the track record of Next Tier Concepts Inc. in performing similar large-scale IT service contracts for the federal government?

Assessing the track record of Next Tier Concepts Inc. requires reviewing their past performance on federal contracts, particularly those of similar size, scope, and complexity within the IT services domain. Information on past performance, including contract awards, completion status, and any reported issues or accolades, can often be found in federal procurement databases. A review would look for evidence of successful delivery, adherence to budget and schedule, and positive past performance evaluations. If Next Tier Concepts Inc. has a history of successfully managing large IT contracts for agencies like the DoD, it would be a positive indicator for the 'Enterprise Military Housing II' contract. Conversely, a history of performance issues or contract disputes would raise concerns.

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

Solicitation ID: HC102815R0030

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8150 LEESBURG PIKE STE 1400, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $126,879,560

Exercised Options: $115,085,419

Current Obligation: $113,896,895

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $24,185,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0017

IDV Type: IDC

Timeline