DoD's $42.4M IT contract for computer systems design services awarded to SOS INTERNATIONAL LLC shows fair value
Contract Overview
Contract Amount: $42,383,189 ($42.4M)
Contractor: SOS International LLC
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2023-08-31
Contract Duration: 821 days
Daily Burn Rate: $51.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OTHER DIRECT COSTS (ODC)
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.4 million to SOS INTERNATIONAL LLC for work described as: OTHER DIRECT COSTS (ODC) Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 3. The contract duration of 821 days provides a substantial period for service delivery. 4. The base award amount of $5.16M suggests a phased approach or initial scope. 5. The contract falls under the Computer Systems Design Services NAICS code, a common IT service category. 6. The award was made by the Defense Information Systems Agency (DISA), a key DoD IT provider.
Value Assessment
Rating: good
The total contract value of $42.4 million over approximately 2.2 years for computer systems design services appears reasonable when benchmarked against similar IT service contracts within the federal government. The firm-fixed-price structure shifts cost risk to the contractor, which can be advantageous for the government if managed effectively. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process suggests a degree of price validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, specific sources may have been excluded at some point in the process, or it could refer to a specific type of competitive procedure. The fact that it was broadly competed is positive for price discovery. The number of bidders is not specified, but a competitive process generally leads to better pricing for the government.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.
Public Impact
The primary beneficiaries are the Department of Defense and its various components, which receive essential IT support. The services delivered include computer systems design, crucial for maintaining and modernizing defense IT infrastructure. The geographic impact is likely focused on areas where DISA operates and supports DoD personnel. Workforce implications include employment opportunities for IT professionals within SOS INTERNATIONAL LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on a single contractor for critical IT systems design services.
- Ensuring adequate performance monitoring and quality assurance throughout the contract lifecycle.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Firm-fixed-price contract type aligns incentives for cost control with the contractor.
- Longer contract duration allows for stability and continuity of IT services.
Sector Analysis
The federal IT services market is vast and highly competitive, with significant spending allocated to computer systems design and related services. This contract fits within the broader category of IT support for defense agencies, which often require specialized expertise due to the sensitive nature of military operations. Benchmarks for similar contracts vary widely based on complexity, duration, and specific services, but a $42.4 million award over two years for system design is within the expected range for a large federal agency like the DoD.
Small Business Impact
The data indicates that small business participation (ss and sb fields) was not a specific requirement or set-aside for this contract. Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities, if any, awarded by SOS INTERNATIONAL LLC. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent DISA oversight bodies. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal to the agency.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Support Contracts
- Department of Defense Computer Systems Design Services
- Federal IT Services Procurement
- Information Technology Professional Services
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Risk of contractor performance issues impacting critical IT systems.
- Need for strong government oversight to ensure quality and compliance.
Tags
it-services, computer-systems-design, department-of-defense, defense-information-systems-agency, firm-fixed-price, full-and-open-competition, delivery-order, maryland, large-contract, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.4 million to SOS INTERNATIONAL LLC. OTHER DIRECT COSTS (ODC)
Who is the contractor on this award?
The obligated recipient is SOS INTERNATIONAL 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 $42.4 million.
What is the period of performance?
Start: 2021-06-01. End: 2023-08-31.
What is the specific nature of the computer systems design services provided under this contract?
The contract, awarded under NAICS code 541512 (Computer Systems Design Services), likely encompasses a range of activities related to the design, development, integration, and potentially maintenance of complex IT systems for the Department of Defense. This could include network architecture design, software system integration, cybersecurity infrastructure planning, cloud computing solutions, and the development of specialized command and control systems. Given the awarding agency is the Defense Information Systems Agency (DISA), the services are expected to support critical defense missions and infrastructure, requiring high levels of security, reliability, and interoperability.
How does the awarded amount of $42.4 million compare to similar IT system design contracts within the DoD?
The total contract value of $42.4 million over approximately 2.2 years (June 2021 to August 2023) places it in the mid-to-large tier for IT service contracts within the Department of Defense. DISA, as a major procurer of IT services, awards contracts of varying sizes, but this amount is consistent with projects involving significant system design and integration efforts. Comparable contracts might include those for enterprise resource planning (ERP) system design, large-scale network modernization, or the development of new software platforms. The firm-fixed-price nature suggests a well-defined scope, which aids in comparison, but specific performance metrics and deliverables would be needed for a precise benchmark.
What are the primary risks associated with this contract for the government?
Key risks for the government include potential underperformance by the contractor, leading to delays or failure to meet critical IT system design requirements. With a firm-fixed-price contract, there's a risk that the contractor may cut corners on quality to maintain profitability, necessitating robust government oversight and quality assurance. Another risk is vendor lock-in if the designed systems become highly proprietary or dependent on SOS INTERNATIONAL LLC's expertise for future modifications or maintenance. Finally, changes in technology or evolving defense needs could render the designed systems obsolete before their intended lifecycle, requiring costly modifications or replacements.
What is the track record of SOS INTERNATIONAL LLC in performing similar federal IT contracts?
SOS INTERNATIONAL LLC has a history of performing federal contracts, including those within the IT and professional services sectors. Analyzing their past performance on similar contracts awarded by agencies like the DoD or DISA would be crucial. Key indicators would include on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of deliverables, and any past performance issues or disputes. A review of federal procurement databases and past performance evaluations would provide a more detailed picture of their reliability and capability in executing complex IT system design projects.
How has federal spending on computer systems design services evolved over the past five years, and where does this contract fit?
Federal spending on computer systems design services (NAICS 541512) has generally trended upwards over the past five years, driven by the increasing digitization of government operations, modernization efforts, and cybersecurity imperatives. Agencies across the DoD, civilian departments, and intelligence communities consistently invest in these services to maintain and upgrade their IT infrastructure. This $42.4 million contract with DISA represents a significant, but not extraordinary, investment within this category. It aligns with the ongoing trend of agencies outsourcing complex IT design and integration work to specialized contractors to leverage expertise and manage workload.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC104718R4008
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1881 CAMPUS COMMONS DR STE 500, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,383,189
Exercised Options: $42,383,189
Current Obligation: $42,383,189
Actual Outlays: $17,432,424
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $8,299,217
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC104718D0002
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-05-14
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