DoD's $2.7M contract for test and evaluation services awarded to Agile Defense, LLC

Contract Overview

Contract Amount: $2,712,600 ($2.7M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: DEFENSE INTELLIGENCE AND SECURITY ENTERPRISE (DISE) TEST AND EVALUATION FOCUS TEAM (TEFT)

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to AGILE DEFENSE, LLC for work described as: DEFENSE INTELLIGENCE AND SECURITY ENTERPRISE (DISE) TEST AND EVALUATION FOCUS TEAM (TEFT) Key points: 1. Contract awarded for specialized testing and evaluation services, crucial for defense readiness. 2. Agile Defense, LLC, a new entrant to this specific contract vehicle, secured the award. 3. The contract duration of 729 days suggests a need for sustained support in test and evaluation. 4. Awarded as a delivery order under a larger contract, indicating a phased approach to service delivery. 5. The contract's focus on test and evaluation aligns with critical defense intelligence and security needs. 6. Geographic location in Arizona may indicate specific testing facilities or operational requirements.

Value Assessment

Rating: fair

The contract value of approximately $2.7 million for a two-year period appears reasonable for specialized test and evaluation services. Benchmarking against similar contracts for defense testing and evaluation is challenging without more detailed service descriptions. However, the cost-no-fee pricing structure suggests that the contractor's profit is built into the direct costs, which can sometimes lead to less transparent pricing. Further analysis would be needed to compare the labor rates and overhead applied to this contract against industry standards for similar defense support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored for ensuring fair pricing and access to a broad range of capabilities. The fact that it was a delivery order under a larger contract vehicle might imply that the initial competition occurred at the IDIQ level, with this order being placed based on pre-established terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider pool of contractors to offer their services, potentially leading to better value.

Public Impact

The Department of Defense benefits from enhanced test and evaluation capabilities, supporting the readiness and effectiveness of defense systems. Services delivered are critical for the Defense Intelligence and Security Enterprise (DISE) Test and Evaluation Focus Team (TEFT). The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized technical and analytical roles within the contractor's organization and potentially within the agency for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The cost-no-fee pricing structure can obscure the true cost of services and contractor profit margins.
Limited information on the specific deliverables and success criteria for this delivery order.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract supports a critical function within the Department of Defense, indicating strategic importance.
The duration of the contract suggests a commitment to sustained support for test and evaluation activities.

Sector Analysis

The defense testing and evaluation sector is a critical component of the national security apparatus, involving a wide range of services from system validation to operational readiness assessments. This contract falls within the broader professional, scientific, and technical services category, specifically focusing on testing laboratories and services. The market for these services is substantial, driven by continuous defense modernization and the need to ensure the efficacy and security of advanced military technologies. Comparable spending benchmarks are difficult to establish without more granular data on the specific testing methodologies and equipment involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is also no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus of this award was on securing the best value from the broader market, rather than specifically targeting small business participation. Consequently, the direct impact on the small business ecosystem for this particular contract may be limited, though the prime contractor could potentially engage small businesses as subcontractors if it aligns with their strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA), the contracting agency, and the relevant program office within the Department of Defense. Accountability measures are usually tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract values, parties involved, and competition levels. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Intelligence and Security Enterprise (DISE)
Test and Evaluation Services
Department of Defense IT Services
Defense Information Systems Agency Contracts

Risk Flags

Limited information on contractor's specific experience in test and evaluation.
Cost No Fee pricing structure requires careful government oversight for cost control.
Lack of detailed performance metrics makes outcome assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to AGILE DEFENSE, LLC. DEFENSE INTELLIGENCE AND SECURITY ENTERPRISE (DISE) TEST AND EVALUATION FOCUS TEAM (TEFT)

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, 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 $2.7 million.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is the specific nature of the 'test and evaluation' services being provided under this contract?

The provided data indicates the contract is for the 'DEFENSE INTELLIGENCE AND SECURITY ENTERPRISE (DISE) TEST AND EVALUATION FOCUS TEAM (TEFT)'. While the exact nature of the services is not detailed, it implies specialized testing and evaluation activities supporting the DISE's mission. This could encompass a range of activities such as performance testing, security testing, interoperability testing, and validation of intelligence systems and technologies. The focus team designation suggests a dedicated group within the DISE responsible for overseeing and executing these critical evaluation processes to ensure the effectiveness and security of defense intelligence assets.

How does the pricing structure (Cost No Fee) compare to other similar contracts in the defense testing sector?

The 'Cost No Fee' (CNF) pricing structure is less common for service contracts compared to fixed-price or cost-plus-incentive-fee arrangements. In a CNF contract, the government reimburses the contractor for allowable costs, but the contractor does not receive any additional fee or profit beyond the recovery of those costs. This structure is typically used when the contractor's primary motivation is not profit, such as in certain non-profit or intergovernmental support agreements, or when the government wants to ensure that the contractor is not incentivized by profit to inflate costs. For defense testing services, where specialized expertise and equipment are often required, CNF can make cost oversight more critical to ensure fair value. Benchmarking against other CNF contracts for similar services is difficult due to their rarity and specific use cases. More common structures like Cost Plus Fixed Fee (CPFF) or Firm Fixed Price (FFP) allow for clearer profit margins and performance incentives, making direct comparison challenging.

What is the track record of Agile Defense, LLC in performing similar test and evaluation services for the Department of Defense?

The provided data does not offer specific details on Agile Defense, LLC's past performance or track record, particularly concerning test and evaluation services. The award is listed as a 'Delivery Order,' which implies it is part of a larger contract vehicle. Without knowing the parent contract or having access to past performance evaluations, it is difficult to assess their specific experience in this domain. Further research into the contractor's history, including any previous awards for similar services, their performance ratings on those contracts, and their overall financial stability, would be necessary to fully evaluate their capabilities and reliability for this specific task.

What are the potential risks associated with awarding this contract to Agile Defense, LLC, given the limited information available?

Several potential risks exist. Firstly, the limited information on Agile Defense, LLC's specific experience in test and evaluation for the DISE raises concerns about their capability to meet the specialized requirements. Secondly, the 'Cost No Fee' pricing structure, while potentially beneficial in certain contexts, can sometimes lead to less stringent cost control if not adequately monitored by the government, as the contractor's primary incentive is cost recovery rather than profit maximization. Thirdly, the fact that this is a delivery order under a larger contract means that the initial competition might have occurred at a different level, and the specific terms for this order need careful scrutiny to ensure they align with the government's needs and offer good value. Finally, the lack of detailed performance metrics makes it challenging to proactively identify and mitigate performance risks.

How does this contract align with broader Department of Defense spending trends in test and evaluation?

This contract, valued at approximately $2.7 million, represents a relatively small portion of the overall Department of Defense (DoD) budget, which runs into hundreds of billions annually. However, spending on test and evaluation (T&E) is a critical and consistent component of defense acquisition and readiness. The DoD invests heavily in T&E to ensure that weapon systems, technologies, and platforms are effective, reliable, and secure before deployment. Trends in T&E spending often reflect shifts in strategic priorities, such as increased focus on cybersecurity, artificial intelligence, and advanced manufacturing. Contracts like this, even if modest in value, contribute to the ongoing effort to maintain technological superiority and operational readiness, aligning with the DoD's persistent need for rigorous evaluation of its assets.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $7,531,102

Exercised Options: $2,727,600

Current Obligation: $2,712,600

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $85,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102823D0002

IDV Type: IDC

Timeline