Dod Awards $27.6M for Mainframe Support East to DDC IT Services LLC
Contract Overview
Contract Amount: $27,574,949 ($27.6M)
Contractor: DDC IT Services LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $25.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAINFRAME SUPPORT EAST
Place of Performance
Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050
Plain-Language Summary
Department of Defense obligated $27.6 million to DDC IT SERVICES LLC for work described as: MAINFRAME SUPPORT EAST Key points: 1. Contract value of $27.6M over 3 years. 2. Competition method: Full and Open Competition after Exclusion of Sources. 3. Risk: Potential for limited competition due to specialized nature of mainframe support. 4. Sector: Information Technology (Computer Systems Design Services).
Value Assessment
Rating: good
The contract value of $27.6M for 3 years suggests a reasonable annual spend of approximately $9.2M. Benchmarking against similar mainframe support contracts is difficult without more specific service details, but the pricing appears within a typical range for specialized IT services.
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.' This indicates an initial broad solicitation, but specific exclusions may have narrowed the field. The pricing discovery relies on the competitive bids received.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process, aiming to secure the best value for the government's investment in critical mainframe support services.
Public Impact
Ensures continued operation of essential mainframe systems for the Department of Defense. Supports critical defense information infrastructure. Potential impact on defense readiness if services are disrupted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized mainframe skills.
- Dependence on a single vendor for critical infrastructure support.
Positive Signals
- Awarded through a competitive process.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for maintaining legacy systems and supporting ongoing digital transformation efforts within government agencies. Benchmarks for mainframe support can vary widely based on system complexity and criticality.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting or prime contracting opportunities for this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award was made by the Defense Information Systems Agency (DISA), a key component of the DoD's IT infrastructure. Oversight will focus on contract performance, adherence to service level agreements, and ensuring continued operational effectiveness of the mainframe systems.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Specialized skill set required, potentially limiting future competition.
- Dependence on legacy systems.
- Potential for cost increases in subsequent contract periods.
- Vendor lock-in risk.
Tags
computer-systems-design-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to DDC IT SERVICES LLC. MAINFRAME SUPPORT EAST
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 $27.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the specific scope of 'MAINFRAME SUPPORT EAST' and how critical are these systems to DoD operations?
The specific scope of 'MAINFRAME SUPPORT EAST' likely encompasses the maintenance, operation, and potentially modernization of critical mainframe systems within the Eastern region of the Department of Defense. These systems are often the backbone for essential functions such as logistics, personnel management, intelligence data processing, and command and control. Their criticality is high, as disruptions could significantly impede military operations and national security.
Given the specialized nature of mainframe support, what are the long-term risks associated with this contract's competition strategy?
The long-term risks associated with specialized mainframe support contracts, even with 'Full and Open Competition after Exclusion of Sources,' include a shrinking pool of qualified vendors and potential price escalation over time. As fewer companies possess the necessary expertise, competition may naturally decrease, leading to higher costs. There's also a risk of vendor lock-in if the incumbent develops unique knowledge or proprietary solutions not easily transferable.
How does this contract contribute to the overall IT modernization goals of the Department of Defense?
This contract's contribution to IT modernization is likely focused on ensuring the stable operation of existing critical infrastructure while potentially enabling phased transitions. While mainframe systems are often considered legacy, their continued reliable operation is essential. Modernization efforts may involve integrating these mainframes with newer systems, migrating specific workloads, or ensuring their security posture is up-to-date, thus supporting a hybrid IT environment.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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, Corporate Entity Tax Exempt, 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: $53,444,625
Exercised Options: $27,574,949
Current Obligation: $27,574,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCB21D0439
IDV Type: GWAC
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-30
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