DoD's $10.9M Riverbed Renewal Contract Awarded to EC America, Inc. for IT Services

Contract Overview

Contract Amount: $10,936,341 ($10.9M)

Contractor: EC America, Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-29

End Date: 2026-11-30

Contract Duration: 945 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RIVERBED RENEWAL

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to EC AMERICA, INC for work described as: RIVERBED RENEWAL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a BPA Call, indicating it's a task order under a larger agreement. 3. Fixed-price contract type aims to control costs for the government. 4. Performance period spans over two years, from April 2024 to November 2026. 5. The North American Industry Classification System (NAICS) code 443120 points to computer and software stores, which may require further clarification on the specific services rendered. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them. 7. The award was made to a single contractor, EC America, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'Riverbed Renewal' service. The total value of $10.9 million over 945 days (approximately 2.6 years) translates to roughly $4.2 million annually. This figure needs to be compared against the cost of similar IT renewal or software licensing services. The firm fixed-price structure is a positive indicator for cost control, but the actual value depends heavily on the scope and necessity of the 'Riverbed Renewal' and whether it represents a competitive market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The data shows one award, but it does not specify the number of bids received. A full and open competition generally fosters price discovery and encourages contractors to offer competitive pricing to win the award. However, without knowing the number of bidders, it's difficult to definitively assess the intensity of the competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price through competitive bidding.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA). The contract is expected to deliver IT services related to 'Riverbed Renewal,' though the exact nature of these services requires further definition. The contract is being performed in Maryland (ST: MD, SN: MARYLAND). The contract's impact on the workforce is not explicitly detailed but likely involves IT professionals supporting the delivered services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the specific 'Riverbed Renewal' services could lead to scope creep or misaligned expectations.
The NAICS code (443120 - Computer and Software Stores) seems broad and may not accurately reflect the specialized IT services potentially being procured.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the true competitive pressure on pricing.
No explicit small business subcontracting goals are mentioned, potentially limiting opportunities for smaller firms in the ecosystem.

Positive Signals

Awarded under a firm fixed-price contract type, which helps in budget predictability and cost control.
The use of a BPA Call suggests a streamlined procurement process for a pre-negotiated framework.
The contract duration of over two years provides stability for service delivery and planning.

Sector Analysis

The IT services sector is vast and highly competitive. This contract, falling under NAICS code 443120 (Computer and Software Stores), suggests a potential focus on software licensing, maintenance, or related hardware. However, the term 'Riverbed Renewal' could also imply network performance monitoring or optimization solutions, often provided by specialized IT firms. Comparable spending benchmarks would depend on the specific services procured; for instance, enterprise software licenses or network infrastructure support contracts can range significantly in price based on scale and vendor.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific small business subcontracting requirements. This means that opportunities for small businesses to participate in this contract are likely limited to subcontracting roles if the prime contractor chooses to engage them. The absence of set-asides or explicit subcontracting plans may reduce the direct impact on the small business IT ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). As a firm fixed-price contract, financial oversight would focus on ensuring deliverables meet contractual requirements within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. The specific Inspector General jurisdiction would be that of the Department of Defense, responsible for investigating fraud, waste, and abuse within its programs.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
IT Software Licensing and Maintenance
Network Performance Monitoring Solutions
General Services Administration (GSA) Schedules (if applicable to BPA)
IT Services for Department of Defense

Risk Flags

Ambiguity in service description ('Riverbed Renewal').
Potential mismatch between NAICS code and actual services.
Unclear number of bidders in a full and open competition.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to EC AMERICA, INC. RIVERBED RENEWAL

Who is the contractor on this award?

The obligated recipient is EC AMERICA, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2024-04-29. End: 2026-11-30.

What specific services does 'Riverbed Renewal' entail under this contract, and how does the NAICS code 443120 accurately reflect these services?

The term 'Riverbed Renewal' is ambiguous and could refer to a variety of IT services. Riverbed Technology is a company known for its network performance monitoring and application acceleration solutions. If this contract is for renewal of licenses or support for Riverbed's software and hardware, then the NAICS code 443120 (Computer and Software Stores) might be a partial fit, as it covers the sale of computer software. However, it typically doesn't encompass the full scope of IT services, consulting, or complex solutions that might be involved. A more precise NAICS code, such as 541511 (Custom Computer Programming Services) or 541519 (Other Computer Related Services), might be more appropriate if the contract involves significant integration, support, or consulting beyond simple software resale. Clarification is needed to understand if the government is purchasing software licenses, maintenance, support, or a broader managed service.

How many bids were received for this 'full and open competition' award, and what does this imply about the competitiveness of the pricing?

The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION,' which theoretically allows any responsible source to submit an offer. However, the data only specifies that one award was made to EC America, Inc. It does not explicitly state the number of bids received. If only one bid was submitted in a full and open competition, it could suggest a lack of market interest, potential barriers to entry for other firms, or that the solicitation was highly specialized. This scenario might raise questions about whether the government received the most competitive pricing possible. Ideally, a robust competition would involve multiple bids, driving down costs through price pressure. Without the number of bidders, it's difficult to definitively assess the price discovery achieved.

What is the track record of EC America, Inc. in performing similar IT services contracts for the Department of Defense or other federal agencies?

Assessing the track record of EC America, Inc. requires a review of their past performance on federal contracts. Information regarding their history with the Department of Defense (DoD) and other agencies, including contract values, types of services rendered, and past performance ratings, would be crucial. A contractor with a strong history of successful, on-time, and within-budget performance on similar IT services contracts would generally be viewed as a lower risk. Conversely, a history of performance issues, contract disputes, or cost overruns could indicate potential risks for this current 'Riverbed Renewal' contract. Publicly available contract databases and performance assessment tools would be the primary sources for this analysis.

How does the annual cost of this contract compare to industry benchmarks for similar IT renewal or software support services?

The annual cost of this contract is approximately $4.2 million ($10.9 million / 2.6 years). To benchmark this value, one would need to compare it against the prevailing market rates for the specific 'Riverbed Renewal' services being procured. If 'Riverbed Renewal' refers to software licenses and maintenance for network performance tools, industry benchmarks would involve researching average costs for similar enterprise-level software agreements from vendors like Riverbed or its competitors. Factors such as the number of users, features included, and the level of support (e.g., 24/7 vs. business hours) significantly influence pricing. Without a precise definition of the services and the scope, a direct comparison is difficult, but the $4.2 million annual figure provides a starting point for value assessment against market data.

What are the potential risks associated with the firm fixed-price contract type for these specific IT services?

Firm fixed-price (FFP) contracts are generally preferred by the government for cost control, as the price is set and not subject to adjustment based on the contractor's cost experience. However, for complex or evolving IT services, an FFP contract can introduce risks. If the scope of 'Riverbed Renewal' is not perfectly defined, the contractor may face unexpected costs, potentially leading to reduced quality, delays, or requests for change orders if they are to maintain profitability. Conversely, if the scope is underestimated by the government, they might overpay for services that are less complex than anticipated. The risk lies in ensuring the SOW is comprehensive and that the fixed price accurately reflects the effort required.

What is the historical spending pattern for 'Riverbed Renewal' or similar IT services by the Defense Information Systems Agency (DISA)?

Analyzing historical spending patterns by DISA for 'Riverbed Renewal' or comparable IT services is essential for context. This involves examining past contract awards, their values, durations, and the contractors involved. If DISA has consistently spent significant amounts on similar services over several years, it suggests a sustained need and potentially a mature market. Comparing the current $10.9 million award to previous expenditures can reveal trends in pricing, vendor consolidation, or shifts in technology adoption. A significant increase or decrease in spending compared to historical data might warrant further investigation into the reasons behind the change, such as evolving requirements, new technology, or changes in procurement strategy.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc.

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $13,502,078

Exercised Options: $10,936,341

Current Obligation: $10,936,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119A0119

IDV Type: BPA

Timeline