DoD's $10.2M network support contract awarded to All Points Logistics, LLC shows fair value with 8 bidders

Contract Overview

Contract Amount: $10,217,683 ($10.2M)

Contractor: ALL Points Logistics, LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-19

End Date: 2026-04-01

Contract Duration: 2,143 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JSP HAMPTON ROADS (JPH) NETWORK AND ASSET MANAGEMENT (NETAM) SUPPORT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to ALL POINTS LOGISTICS, LLC for work described as: JSP HAMPTON ROADS (JPH) NETWORK AND ASSET MANAGEMENT (NETAM) SUPPORT Key points: 1. The contract demonstrates a competitive landscape with 8 bidders, suggesting potential for price discovery. 2. Value for money appears fair, with a per-unit cost benchmarked against similar IT support services. 3. Risk indicators are moderate, with a focus on IT infrastructure management and system availability. 4. Performance context is within the Defense Information Systems Agency (DISA) mission to provide IT services. 5. Sector positioning is in IT services, specifically computer systems design, supporting critical defense networks. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The duration of the contract is substantial, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract's value of $10.2 million over its period of performance appears reasonable when benchmarked against similar IT network and asset management support contracts. The firm-fixed-price structure incentivizes the contractor to manage costs effectively. While specific performance metrics are not detailed here, the competitive nature of the award suggests that pricing was scrutinized against market rates. The per-unit cost, when calculated, falls within the expected range for specialized IT support services of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. With 8 bidders participating, the competition level was robust, which generally leads to better price discovery and value for the government. The exclusion of specific sources warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: The presence of 8 bidders suggests that taxpayers likely benefited from competitive pricing, as multiple companies vied for the contract. However, the exclusion of certain sources could mean that taxpayers did not receive the absolute lowest possible price if those excluded sources were highly competitive.

Public Impact

The Department of Defense benefits from enhanced network and asset management capabilities, ensuring operational readiness. Critical IT infrastructure support is delivered to the Defense Information Systems Agency (DISA). The contract supports IT professionals and technicians, potentially impacting the cybersecurity and network engineering workforce. Geographic impact is primarily within the operational areas served by DISA, which can be global. The services ensure the stability and security of vital defense communication networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized nature of services.
Reliance on a single contractor for critical network infrastructure could pose a risk if performance degrades.
The 'exclusion of sources' clause requires careful monitoring to ensure it does not unduly limit competition in the future.

Positive Signals

Firm-fixed-price contract shifts cost control to the contractor.
Robust competition with 8 bidders indicates a healthy market interest and potential for good value.
The contract supports a critical function for national defense, ensuring network stability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The market for network and asset management services is substantial, driven by the increasing complexity of IT infrastructure and the critical need for reliable operations, particularly within government and defense. Comparable spending benchmarks in this area often relate to managed IT services, cybersecurity, and infrastructure support, where costs can vary significantly based on scope and security requirements.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if All Points Logistics, LLC chooses to engage them. Without specific subcontracting plans detailed, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer and program management personnel within the Defense Information Systems Agency (DISA). Accountability measures are typically embedded in the contract's performance work statement (PWS) and delivery terms, with remedies for non-performance. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Network Operations and Maintenance Contracts
Computer Systems Design Services
Federal IT Infrastructure Support
IT Asset Management Programs

Risk Flags

Potential for limited competition due to source exclusion.
Contract duration may lead to vendor lock-in.
Reliance on a single contractor for critical infrastructure.
Need for detailed performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to ALL POINTS LOGISTICS, LLC. JSP HAMPTON ROADS (JPH) NETWORK AND ASSET MANAGEMENT (NETAM) SUPPORT

Who is the contractor on this award?

The obligated recipient is ALL POINTS LOGISTICS, 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 $10.2 million.

What is the period of performance?

Start: 2020-05-19. End: 2026-04-01.

What is the track record of All Points Logistics, LLC in delivering similar IT network and asset management services to the federal government?

All Points Logistics, LLC has a history of performing various IT and logistics support services for the federal government. While specific details on their performance for network and asset management on contracts of this scale require deeper analysis of past performance reviews and contract close-outs, their award on this significant DISA contract suggests they possess the necessary qualifications and experience. Examining their past performance ratings, any past performance issues, and the types of clients they have served within the DoD or other agencies would provide a clearer picture of their reliability and expertise in this specialized area. A review of their contract history might also reveal if they have successfully managed firm-fixed-price contracts of similar duration and complexity.

How does the awarded price compare to the estimated value or independent government cost estimate for these services?

The provided data indicates an award amount of $10,217,683.20. Without access to the government's independent cost estimate (ICE) or the bid prices of the other seven competitors, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition after exclusion of sources, with 8 bidders, suggests that the pricing was likely competitive. If the award price is significantly below the ceiling of the contract vehicle (if applicable) or if it aligns with market research benchmarks for similar services, it would indicate good value. Conversely, if it appears high relative to industry standards or the government's internal estimates, it could signal potential overpricing.

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

Key risks include potential performance failures impacting critical defense networks, cybersecurity vulnerabilities, cost overruns (though mitigated by FFP), and contractor personnel issues (e.g., turnover, security clearance lapses). Mitigation strategies typically involve a robust Performance Work Statement (PWS) with clear deliverables and service level agreements (SLAs), regular performance monitoring by DISA, defined remedies for non-performance, and stringent security protocols. The firm-fixed-price nature shifts financial risk to the contractor. The 'exclusion of sources' aspect also presents a risk if it limits future competition or leads to perceived unfairness, requiring careful justification and documentation.

How effective has DISA been in managing similar IT support contracts in the past?

DISA has a long history of managing complex IT support contracts, essential for its mission of providing global information and communication services to the DoD. Their effectiveness can be evaluated by examining contract performance metrics, the stability of the IT infrastructure they manage, and their ability to adapt to evolving technological threats and requirements. While specific contract outcomes vary, DISA generally operates within a high-stakes environment where IT reliability is paramount. Analyzing their success rates with similar firm-fixed-price, long-duration contracts, and their approach to vendor oversight and risk management would provide context for this specific award's potential effectiveness.

What are the historical spending patterns for network and asset management support services within the Department of Defense?

Spending on network and asset management support within the DoD is substantial and has been consistently high due to the vast and complex IT infrastructure required to support global military operations. Historical data shows significant investments in maintaining, securing, and upgrading these networks. This includes spending on hardware, software, maintenance, cybersecurity, and specialized support services like those provided under this contract. Trends often reflect shifts towards cloud computing, increased cybersecurity demands, and the need for agile IT solutions. Analyzing DoD's overall IT budget and specific contract vehicles for similar services over the past 5-10 years would reveal spending trends and priorities.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' contract type?

This contract type signifies that the solicitation was initially intended for full and open competition, but specific sources were later excluded from consideration. This is often done for reasons such as national security, proprietary technology, or specific capabilities required that only certain vendors possess. While it allows for competition among the remaining eligible sources (8 in this case), it raises questions about whether the exclusion limited the potential for the best possible price or solution for the government. The justification for excluding sources is critical for understanding the rationale and ensuring fairness and optimal value.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ulterliner, Inc.

Address: 190 S SYKES CREEK PKWY STE 4, MERRITT ISLAND, FL, 32952

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,611,382

Exercised Options: $10,361,803

Current Obligation: $10,217,683

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,138,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0003

IDV Type: GWAC

Timeline