DoD's $149M Enterprise Engineering Contract Awarded to VALIDATEK-CITI, LLC for Computer Systems Design

Contract Overview

Contract Amount: $149,011,166 ($149.0M)

Contractor: Validatek-Citi, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-11

End Date: 2026-06-17

Contract Duration: 2,105 days

Daily Burn Rate: $70.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENGINEERING AND DEVELOPMENT FOR THE ENTERPRISE (ED-E)

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $149.0 million to VALIDATEK-CITI, LLC for work described as: ENGINEERING AND DEVELOPMENT FOR THE ENTERPRISE (ED-E) Key points: 1. Contract value of $149 million over its period of performance. 2. Awarded to VALIDATEK-CITI, LLC, a single contractor. 3. Competition type: Full and Open Competition after Exclusion of Sources. 4. Contract type: Firm Fixed Price. 5. Performance period: September 11, 2020, to June 17, 2026. 6. Service category: Computer Systems Design Services. 7. Base contract value is $70.79 million, with significant task order potential. 8. The contract is a Delivery Order under a larger IDIQ or similar vehicle.

Value Assessment

Rating: fair

The total contract value of $149 million represents a significant investment in enterprise engineering and development. Benchmarking this against similar large-scale IT service contracts within the Department of Defense is challenging without more granular data on the specific services provided. The firm-fixed-price structure suggests a defined scope, but the potential for multiple delivery orders means the final value could fluctuate. The base contract value of $70.79 million provides a clearer initial benchmark, but the subsequent orders will determine the ultimate value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not explicitly stated, but the 'full and open' nature suggests a competitive process. This type of competition aims to ensure fair pricing and access to a broad range of capabilities.

Taxpayer Impact: This approach to competition is intended to leverage market forces to achieve reasonable prices for taxpayers, although the specific exclusion of sources warrants further scrutiny to ensure no potentially valuable offerors were unfairly barred.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Information Systems Agency (DISA), which will receive enhanced enterprise engineering and development services. The contract supports the modernization and sustainment of critical IT systems within the DoD. Geographic impact is likely concentrated around DISA facilities and operational areas, primarily in Maryland. Workforce implications include the potential for employment opportunities for IT professionals and engineers, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition could limit the breadth of innovation and potentially lead to higher costs if key competitors were barred.
Lack of specific details on the 'enterprise engineering and development' services makes it difficult to assess the true value and necessity of the contract.
The significant duration and potential for multiple delivery orders introduce a risk of scope creep or cost overruns if not managed effectively.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
Awarding to a single contractor for a large enterprise-wide effort can streamline management and ensure a cohesive approach to system development.
The 'full and open' competition, even with exclusions, suggests an effort to engage the broader market for IT services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the IT industry supporting government and commercial entities. The market for these services is vast, with significant government spending allocated to IT modernization and support. Comparable spending benchmarks would involve analyzing other large-scale IT development and integration contracts awarded by federal agencies, particularly within the defense sector, which often involves complex system requirements and substantial budgets.

Small Business Impact

The 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, VALIDATEK-CITI, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader federal subcontracting goals, though this is not mandated by the contract's structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Defense Information Systems Agency. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases, but detailed performance metrics and spending breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Modernization Programs
DoD Enterprise IT Services Contracts
Computer Systems Design and Related Services
Federal IT Services Acquisition

Risk Flags

Potential for limited competition due to source exclusion.
Risk of scope creep in long-duration, high-value contracts.
Uncertainty regarding contractor's past performance on similar scale projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $149.0 million to VALIDATEK-CITI, LLC. ENGINEERING AND DEVELOPMENT FOR THE ENTERPRISE (ED-E)

Who is the contractor on this award?

The obligated recipient is VALIDATEK-CITI, 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 $149.0 million.

What is the period of performance?

Start: 2020-09-11. End: 2026-06-17.

What is the specific nature of the 'enterprise engineering and development' services being provided under this contract?

The contract, identified as 'ENGINEERING AND DEVELOPMENT FOR THE ENTERPRISE (ED-E)', falls under the NAICS code 541512 for Computer Systems Design Services. While the specific deliverables are not detailed in the provided data, such services typically encompass the design, development, integration, and maintenance of complex computer systems and networks. This could include software development, system architecture, cybersecurity integration, cloud migration, and IT infrastructure support tailored to the unique operational requirements of the Department of Defense. The 'enterprise' scope suggests a broad application across multiple DoD components or functions, aiming to enhance overall IT capabilities and interoperability.

How does the awarded price of $149 million compare to similar large-scale IT development contracts within the DoD?

Direct comparison of the $149 million total contract value to similar DoD IT development contracts requires access to a comprehensive database of recent awards with comparable scopes and durations. However, for a contract spanning approximately six years (September 2020 to June 2026) with a firm-fixed-price structure, this value suggests a substantial, long-term engagement. Large enterprise IT modernization and system development contracts within the DoD frequently range from tens to hundreds of millions of dollars, depending on the complexity, number of users, and criticality of the systems involved. The base value of $70.79 million provides a more immediate benchmark for the initial phase, with the remaining potential value allocated to subsequent delivery orders.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A primary risk with firm-fixed-price (FFP) contracts of this scale and duration is the potential for the contractor to underbid or for the government to underestimate the true scope of work. If the contractor encounters unforeseen technical challenges or if requirements evolve significantly beyond the initial scope, they may incur losses, potentially impacting their ability or willingness to deliver fully. Conversely, if the scope is not tightly managed, the government might end up paying a premium for services that become less critical or are delivered inefficiently. The long duration also increases the risk of technological obsolescence or changes in strategic priorities that could render parts of the developed system less relevant, necessitating costly modifications or replacements.

What is the track record of VALIDATEK-CITI, LLC in performing similar large-scale federal IT contracts?

Information regarding the specific track record of VALIDATEK-CITI, LLC in performing large-scale federal IT contracts is not provided in the data. A thorough assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Federal procurement systems often contain past performance information that can be accessed by authorized personnel. Without this data, it is difficult to definitively assess their capability and reliability for a contract valued at $149 million, particularly one involving complex enterprise engineering and development for a critical agency like DISA.

How does the 'Full and Open Competition after Exclusion of Sources' mechanism impact price discovery and taxpayer value?

The 'Full and Open Competition after Exclusion of Sources' mechanism aims to balance broad market access with specific requirements. While 'full and open' suggests an intent to solicit from all responsible sources, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately removed from consideration. This exclusion could be based on national security concerns, specific technical capabilities, or other pre-defined criteria. If the excluded sources were capable of offering competitive pricing or innovative solutions, their removal could limit price discovery and potentially lead to a higher overall cost for taxpayers. Conversely, if the exclusions were justified and the remaining pool of bidders was still robust, it could ensure that the selected contractor possesses highly specialized skills necessary for the mission, thereby optimizing 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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DRIVE, STE 400, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,740,768

Exercised Options: $162,197,134

Current Obligation: $149,011,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200187W

IDV Type: GWAC

Timeline