DoD's $38.4M application development contract awarded to Metrostar Systems, LLC, with 2059 days duration

Contract Overview

Contract Amount: $38,369,349 ($38.4M)

Contractor: Metrostar Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-06

End Date: 2026-03-27

Contract Duration: 2,059 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION DEVELOPMENT AND SUPPORT

Place of Performance

Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to METROSTAR SYSTEMS, LLC for work described as: APPLICATION DEVELOPMENT AND SUPPORT Key points: 1. Contract value appears reasonable given the extensive performance period and scope. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports critical application development and sustainment for the Defense Information Systems Agency. 5. The contractor, Metrostar Systems, LLC, has a track record with federal agencies. 6. The contract's duration indicates a long-term need for these services.

Value Assessment

Rating: good

The contract's total value of approximately $38.4 million over nearly six years suggests a moderate annual spend. Benchmarking against similar application development and support contracts is challenging without more specific service details. However, the firm-fixed-price nature indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. The award amount seems aligned with the scope of providing ongoing application development and support services.

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 bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of three bidders, as indicated by the 'no' field, suggests a reasonable level of competition for this requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more efficient allocation of resources and potentially lower prices due to market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on the applications developed and supported under this contract. Services delivered include application development, maintenance, and support, ensuring the functionality and modernization of critical DoD systems. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include the employment of skilled IT professionals for application development and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical application support could pose a risk if performance issues arise.
Ensuring continuous innovation and adaptation to evolving technological landscapes within the fixed-price structure.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Long-term contract duration allows for stability and deep understanding of system requirements.
Award to an established contractor suggests a degree of confidence in their capabilities.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on application development and support. The federal IT services market is substantial, with significant spending allocated to software development, maintenance, and modernization. This contract represents a portion of the Defense Information Systems Agency's (DISA) efforts to maintain and enhance its application portfolio, aligning with broader government initiatives for digital transformation and cybersecurity.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor's capabilities. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Metrostar Systems, LLC, voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Defense Information Systems Agency. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Services
Department of Defense Application Modernization Programs
Federal Civilian IT Development Contracts
IT Services for National Security Agencies

Risk Flags

Performance Risk: Long duration contracts carry inherent performance risks that need continuous monitoring.
Cybersecurity Risk: Ensuring secure development practices for DoD applications is critical.
Vendor Lock-in Potential: Dependence on a single vendor for critical application support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to METROSTAR SYSTEMS, LLC. APPLICATION DEVELOPMENT AND SUPPORT

Who is the contractor on this award?

The obligated recipient is METROSTAR SYSTEMS, 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 $38.4 million.

What is the period of performance?

Start: 2020-08-06. End: 2026-03-27.

What is the historical spending trend for application development and support services by the Defense Information Systems Agency?

Analyzing historical spending trends for application development and support by DISA requires access to comprehensive federal procurement data over multiple fiscal years. While this specific contract represents $38.4 million over its duration, DISA's overall IT budget and spending on similar services would provide a broader context. Historically, agencies like DISA have consistently invested heavily in maintaining and modernizing their application portfolios to support evolving mission requirements and technological advancements. Factors influencing these trends include changes in defense strategy, cybersecurity threats, and the adoption of new technologies like cloud computing and agile development methodologies. Without specific historical data for DISA's application development spending, it's difficult to definitively benchmark this contract's value against past expenditures, but it is indicative of ongoing, significant investment in this capability area.

How does the per-unit cost or hourly rate for this contract compare to industry benchmarks for similar IT services?

Determining a precise per-unit cost or hourly rate for this contract is challenging without detailed breakdowns of labor categories, hours, and specific deliverables. The contract is a Firm Fixed Price (FFP) award, which bundles all costs into a total price. Benchmarking FFP contracts against hourly rates can be complex, as the contractor assumes the risk of cost overruns. However, if one were to estimate an average annual value ($38.4M / ~5.7 years ≈ $6.7M/year), it suggests a substantial investment. Industry benchmarks for application development and support vary widely based on skill sets, location, and complexity. Generally, specialized IT services command higher rates. To perform a true benchmark, one would need to compare the estimated labor mix and complexity of tasks against publicly available data for similar government or commercial contracts, which is not directly provided here.

What is the track record of Metrostar Systems, LLC, in delivering similar application development and support services to federal agencies?

Metrostar Systems, LLC has a documented history of providing IT services to federal agencies, including application development and support. Reviewing their past performance on similar contracts, particularly with the Department of Defense or other defense agencies, would be crucial for assessing their capabilities and reliability. Federal procurement databases often contain past performance information, including contract awards, performance ratings (if available), and any past issues or successes. A positive track record with relevant agencies and a history of successful contract completion would indicate a lower performance risk for this current contract. Conversely, any significant past performance issues or contract disputes could raise concerns about their ability to meet the requirements effectively.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how are they monitored?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for application development and support contracts, typical KPIs often include metrics related to software quality (e.g., defect density, bug resolution time), system availability and uptime, performance against service level agreements (SLAs), adherence to project schedules, and user satisfaction. The Contracting Officer's Representative (COR) is usually responsible for monitoring these KPIs and ensuring the contractor meets the defined performance standards. Regular progress reports, system performance monitoring tools, and user feedback mechanisms are common methods for tracking performance and ensuring accountability throughout the contract's lifecycle.

What is the potential impact of this contract on the cybersecurity posture of the Department of Defense?

The cybersecurity posture of the Department of Defense (DoD) is directly impacted by the quality and security of the applications developed and supported under this contract. If the applications are developed with robust security practices (e.g., secure coding standards, regular vulnerability assessments, timely patching), they contribute positively to the DoD's overall cybersecurity. Conversely, if security is not prioritized, these applications could become entry points for cyber threats. Given the sensitive nature of DoD data, ensuring that Metrostar Systems, LLC adheres to stringent cybersecurity requirements, such as those outlined in DoD Instruction 8500.01 and NIST guidelines, is paramount. The contract's success hinges not only on functionality but also on the secure development and maintenance of these critical systems.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Computer Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1856 OLD RESTON AVE STE 100, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $42,095,448

Exercised Options: $39,290,295

Current Obligation: $38,369,349

Actual Outlays: $13,516,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0816P

IDV Type: FSS

Timeline