DoD's $30M Enterprise Network Support Contract Awarded to 22nd Century Technologies, Inc
Contract Overview
Contract Amount: $30,214,903 ($30.2M)
Contractor: 22ND Century Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-16
End Date: 2025-02-15
Contract Duration: 1,979 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE NETWORK SUPPORT SERVICES (ENSS)
Place of Performance
Location: FORT LEE, PETERSBURG CITY County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.2 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: ENTERPRISE NETWORK SUPPORT SERVICES (ENSS) Key points: 1. Contract value of $30.2 million over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract has a duration of approximately 66 months, suggesting a long-term need. 4. Services are categorized under Computer Systems Design Services. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.
Value Assessment
Rating: good
The contract value of $30.2 million over nearly two years appears reasonable for enterprise network support services for a major agency like the Department of Defense. Benchmarking against similar large-scale IT support contracts would provide a more precise value-for-money assessment. The Firm Fixed Price structure is generally favorable for the government in managing costs, provided the scope is well-defined.
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,' which suggests that while the initial solicitation might have had some restrictions, the final award was made after a broad competitive process. Seven bids were received, indicating a healthy level of interest and competition for this type of service.
Taxpayer Impact: A competitive process with multiple bidders generally leads to better pricing and value for taxpayers by encouraging contractors to offer their best terms.
Public Impact
Provides essential network support services to the Department of Defense. Ensures the operational continuity and security of critical defense networks. Supports military personnel and civilian employees reliant on these networks. The services are delivered within Virginia, impacting the local IT support ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term network support contracts.
- Dependence on a single contractor for critical infrastructure could pose risks if performance falters.
- Ensuring continued innovation and adaptation to evolving network technologies.
Positive Signals
- Firm Fixed Price contract type helps control costs.
- Awarded through full and open competition, suggesting competitive pricing.
- Long contract duration allows for stable service provision and potential for economies of scale.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies like the DoD being major consumers. This contract represents a significant portion of spending for enterprise network support, a critical component of national defense infrastructure. Comparable spending benchmarks would involve looking at other large-scale network support contracts awarded by federal agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, 22nd Century Technologies, Inc., is often considered a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Further review of the contract details would be needed to assess potential small business participation.
Oversight & Accountability
As a Department of Defense contract, it is subject to oversight from the DoD Inspector General and potentially other federal oversight bodies. The Firm Fixed Price nature of the contract provides a degree of financial oversight by fixing the cost. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract.
Related Government Programs
- DoD Enterprise IT Services
- Defense Information Technology Contracting
- Network Infrastructure Support
- Computer Systems Design Services Federal Contracts
Risk Flags
- Long-term contract duration may increase risk of technological obsolescence.
- Dependence on a single contractor for critical network infrastructure.
- Need for robust oversight to ensure performance and cost control under FFP.
Tags
dod, defense-information-systems-agency, enterprise-network-support, computer-systems-design-services, firm-fixed-price, full-and-open-competition, delivery-order, it-services, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.2 million to 22ND CENTURY TECHNOLOGIES, INC.. ENTERPRISE NETWORK SUPPORT SERVICES (ENSS)
Who is the contractor on this award?
The obligated recipient is 22ND CENTURY TECHNOLOGIES, 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 $30.2 million.
What is the period of performance?
Start: 2019-09-16. End: 2025-02-15.
What is the track record of 22nd Century Technologies, Inc. with the Department of Defense and similar network support contracts?
22nd Century Technologies, Inc. (22nd Century) has a history of securing federal contracts, particularly within the Department of Defense and other civilian agencies. They specialize in IT services, including network engineering, cybersecurity, and enterprise IT solutions. Analyzing their past performance on similar large-scale network support contracts would involve reviewing contract performance reports (CPARs), any past performance issues or awards, and their experience with the specific technologies and security requirements relevant to the Defense Information Systems Agency (DISA). A review of their contract history indicates they have been awarded numerous contracts across various agencies, suggesting a capacity to manage complex IT projects. However, a detailed assessment would require examining specific contract outcomes and client feedback.
How does the $30.2 million contract value compare to similar enterprise network support contracts awarded by the DoD or other federal agencies?
The $30.2 million contract value for Enterprise Network Support Services (ENSS) awarded to 22nd Century Technologies, Inc. by the Defense Information Systems Agency (DISA) appears to be within a typical range for large-scale, multi-year IT support contracts within the federal government. For context, similar contracts for network modernization, cybersecurity, and comprehensive IT infrastructure management for agencies like the General Services Administration (GSA), the Department of Veterans Affairs (VA), or other branches of the DoD can range from tens to hundreds of millions of dollars over their performance periods. The duration of this contract (approximately 66 months) also aligns with standard practices for securing long-term, stable IT support. A precise benchmark would require comparing the scope of services, number of users supported, geographic coverage, and specific technical requirements against other awarded contracts in the same category.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks associated with this contract include potential vendor lock-in, performance degradation over the contract's lifespan, cybersecurity vulnerabilities within the supported network, and the risk of cost overruns if the Firm Fixed Price (FFP) structure is not managed effectively against scope changes. Mitigation strategies typically involve robust contract oversight by DISA, clear performance metrics and Service Level Agreements (SLAs), regular performance reviews, and adherence to strict cybersecurity protocols. The FFP structure itself is a risk mitigation tool for the government, placing the burden of cost control on the contractor. Additionally, maintaining a competitive landscape for future contract renewals can incentivize current performance. The contract's duration also presents a risk of technological obsolescence if not actively managed.
What is the expected effectiveness of these network support services in maintaining and enhancing DoD's IT infrastructure?
The expected effectiveness hinges on the contractor's ability to deliver reliable, secure, and responsive network support as outlined in the contract's Performance Work Statement (PWS). For the DoD, maintaining and enhancing IT infrastructure is critical for operational readiness and mission success. Effective support should translate to high network availability, minimal downtime, timely resolution of issues, and proactive maintenance to prevent failures. The contract's success will be measured against defined performance standards and user satisfaction. Given the competitive award and FFP structure, there is an expectation of competent service delivery, but ongoing monitoring and evaluation by DISA are crucial to ensure these services meet the demanding requirements of the defense sector.
How has federal spending on computer systems design services, like this contract, trended over the past five years?
Federal spending on computer systems design services has generally shown a consistent upward trend over the past five years, driven by the increasing digitization of government operations, modernization initiatives, and the growing demand for cybersecurity solutions. Agencies across the board, including the Department of Defense, are heavily reliant on sophisticated IT infrastructure. Contracts in this category encompass a wide range of services, from system design and integration to network management and IT consulting. While specific figures fluctuate annually based on agency budgets and priorities, the overall trajectory indicates a sustained and significant investment in IT services to support federal missions. Factors such as cloud migration, data analytics, and AI integration are also contributing to this growth.
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: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8251 GREENSBORO DR STE 900, MCLEAN, VA, 22102
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,214,903
Exercised Options: $30,214,903
Current Obligation: $30,214,903
Actual Outlays: $13,347,755
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q17GWD2000
IDV Type: GWAC
Timeline
Start Date: 2019-09-16
Current End Date: 2025-02-15
Potential End Date: 2025-02-15 00:00:00
Last Modified: 2025-07-02
More Contracts from 22ND Century Technologies, Inc.
- ,Ct::igf IT Engineering&enterprise Services — $73.8M (Department of Justice)
- Dodea Itss — $68.3M (Department of Defense)
- Defense Cyber Operations (DCO) Mission Services for 33 NWS, Lafb — $55.3M (Department of Defense)
- Technical, Professional, Information Management and Technology Support and Assistance to the Office of Science. Igf::ot::igf — $47.2M (Department of Energy)
- N16 CIO Support — $31.9M (Department of Defense)
View all 22ND Century Technologies, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)