DoD awards $9.1M for MLOB-WEST support, with DDC IT Services LLC securing the contract

Contract Overview

Contract Amount: $9,145,610 ($9.1M)

Contractor: DDC IT Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MLOB-WEST SUPPORT SERVICES

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to DDC IT SERVICES LLC for work described as: MLOB-WEST SUPPORT SERVICES Key points: 1. The contract value of $9.1 million for a 2-year period suggests a moderate investment in IT support services. 2. Competition dynamics for this contract are noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a potentially robust but specific bidding process. 3. The fixed-price contract type aims to control costs, but performance monitoring will be key to ensuring value. 4. This award falls within the Computer Systems Design Services NAICS code, a common category for IT support. 5. The contract duration of 729 days (2 years) is standard for this type of service. 6. The award was made as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: good

The contract value of $9.1 million over two years averages to approximately $4.55 million annually. Benchmarking against similar IT support contracts requires detailed analysis of scope and service levels. However, the firm-fixed-price structure suggests an expectation of predictable costs. Without specific performance metrics or comparison data, a definitive value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was open, certain sources may have been excluded based on specific criteria, potentially limiting the overall pool of bidders. The presence of 2 bids suggests some level of competition, but the exclusion clause warrants further investigation into its justification and impact on price discovery.

Taxpayer Impact: The limited competition, even if open to a defined set, may result in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers benefit from the competitive process, but the exclusion of certain sources could mean a missed opportunity for potentially lower bids.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, receiving essential IT support services. Services delivered include computer systems design and related support, crucial for maintaining operational readiness. The contract is geographically focused on Utah (UT), indicating a specific regional operational need. Workforce implications include potential employment opportunities for IT professionals in the Utah region, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' clause in the competition type requires scrutiny to ensure it was justified and did not unduly restrict competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance and potential risks.
The firm-fixed-price contract type, while good for cost control, can incentivize cutting corners on quality if not properly monitored.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors had the opportunity to bid.
The firm-fixed-price contract type provides cost certainty for the government.
The award is for essential IT support services, critical for the operational effectiveness of the Department of Defense.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex defense systems. This contract likely supports a specific Defense Information Systems Agency (DISA) initiative or operational requirement within the MLOB-WEST framework. Comparable spending benchmarks would involve analyzing other DISA contracts for similar support services, considering factors like duration, scope, and geographic location.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. Therefore, there are no direct small business set-aside implications. However, the prime contractor, DDC IT SERVICES LLC, may engage small businesses as subcontractors to fulfill parts of the contract, which would be a positive development for the small business ecosystem. Further investigation into subcontracting plans would be necessary to confirm this.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Defense Information Systems Agency (DISA), and potentially the Department of Defense's Inspector General. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is facilitated through contract award databases like FPDS. The firm-fixed-price nature implies that oversight will focus on adherence to scope and delivery timelines rather than cost variations.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense Computer Systems Design Services
MLOB-WEST Program Support
Federal IT Services Acquisition

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of quality degradation in FFP contract if not adequately monitored.
Need for detailed understanding of 'MLOB-WEST' scope to fully assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to DDC IT SERVICES LLC. MLOB-WEST SUPPORT SERVICES

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 $9.1 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the specific nature of the 'MLOB-WEST SUPPORT SERVICES' and how does it align with the Defense Information Systems Agency's mission?

MLOB-WEST SUPPORT SERVICES likely refers to operational and technical support for a specific Military Logistics Operations Base (MLOB) or a related command and control system within the western region of operations. The Defense Information Systems Agency (DISA) is responsible for providing, operating, and defending U.S. Department of Defense information networks. Therefore, this contract would directly support DISA's mission by ensuring the availability, integrity, and security of critical IT infrastructure and services necessary for military logistics and command operations in that region. The exact services could range from network management, system administration, cybersecurity support, to help desk functions for personnel operating within the MLOB-WEST area.

Can the value of this contract be considered competitive given the limited number of bidders?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 2 bids received. While two bids indicate some level of competition, it is not as robust as a fully open competition with numerous bidders. The 'exclusion of sources' clause is critical here; if legitimate justifications exist for excluding certain vendors (e.g., specific technical capabilities, security clearances, or prior performance issues), then two bids might represent the best achievable competition. However, if the exclusion was arbitrary, it could have artificially limited competition and potentially led to a higher price than if more vendors had participated. Without knowing the specifics of the exclusion, it's difficult to definitively label the value as 'competitive' beyond the fact that a bid was received and evaluated.

What are the primary risks associated with a firm-fixed-price contract for IT support services?

The primary risk with a firm-fixed-price (FFP) contract for IT support services is the potential for the contractor to cut corners on quality or service levels to maximize profit, especially if the scope is not precisely defined or if unforeseen technical challenges arise. The government bears the risk of scope creep if requirements change significantly, as modifications to an FFP contract can be complex. Conversely, the contractor bears the risk of cost overruns if their initial cost estimates were inaccurate or if unexpected issues increase their expenses. Effective oversight is crucial to ensure the contractor meets all performance standards and deliverables without compromising service quality.

How does this contract's spending compare to historical trends for similar IT support services within the DoD?

To compare this contract's spending to historical trends, one would need to analyze DISA's or the DoD's spending on similar Computer Systems Design Services (NAICS 541512) over the past several fiscal years. Key comparison points would include contract duration, scope of services (e.g., network operations, cybersecurity, help desk), geographic location, and the number of bidders. The $9.1 million award over two years ($4.55 million annually) is a moderate amount for specialized IT support. If historical data shows similar contracts for comparable services in the same region typically range from $3-6 million annually, then this award appears to be within a reasonable range. However, a significant deviation would warrant further investigation into the specific requirements and market conditions.

What is the track record of DDC IT SERVICES LLC in performing similar government contracts?

Assessing the track record of DDC IT SERVICES LLC requires accessing contract databases (like FPDS or SAM.gov) to review their past performance on federal contracts. Key indicators include the number of contracts awarded, their value, the agencies they've served, contract types (FFP, T&M, etc.), and any reported performance issues, awards, or terminations. For this specific contract (MLOB-WEST SUPPORT SERVICES), understanding their experience with DISA or similar defense IT support requirements would be particularly relevant. A history of successful, on-time, and within-budget performance on similar FFP contracts would be a positive signal, while a pattern of issues or disputes would raise concerns.

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: 2

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: $46,953,149

Exercised Options: $9,145,610

Current Obligation: $9,145,610

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