DoD's $20.5M contract for strategic engineering planning support awarded to Eagle Harbor Solutions LLC

Contract Overview

Contract Amount: $20,539,371 ($20.5M)

Contractor: Eagle Harbor Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-31

End Date: 2026-01-31

Contract Duration: 1,461 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STRATEGIC ENGINEERING ENTERPRISE PLANNING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to EAGLE HARBOR SOLUTIONS LLC for work described as: STRATEGIC ENGINEERING ENTERPRISE PLANNING SUPPORT Key points: 1. Contract awarded for strategic engineering enterprise planning support. 2. Eagle Harbor Solutions LLC is the sole awardee. 3. The contract has a duration of approximately four years. 4. The award type is a definitive contract. 5. The contract is firm-fixed-price. 6. The contract is not a small business set-aside. 7. The contract is not a small business concern.

Value Assessment

Rating: questionable

The contract value of $20.5 million over four years for 'strategic engineering enterprise planning support' is difficult to benchmark without more specific details on the services provided. Given the sole-source nature of the award, there is a higher risk of the pricing not reflecting competitive market rates. Further analysis would be needed to compare the per-hour rates or deliverables against similar contracts for enterprise planning support within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This limits the opportunity for price discovery through a competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to higher costs for the government compared to fully competed contracts.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price for these services, as competition is a key driver for cost savings.

Public Impact

The Department of Defense benefits from strategic engineering and enterprise planning support. This contract supports the Defense Information Systems Agency (DISA). The services are delivered in the District of Columbia. The contract impacts the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of detailed service description makes value-for-money assessment challenging.
Contract duration of four years may lock in potentially suboptimal pricing if market conditions change.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single entity may indicate specialized capabilities required for the support.
Contract supports critical strategic planning functions within the DoD.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). The federal IT services market is substantial, with agencies like the Department of Defense being major spenders. Contracts for enterprise planning and strategic engineering support are crucial for modernizing and optimizing complex government IT infrastructures. Benchmarking would ideally involve comparing rates and scope with other similar planning and engineering support contracts awarded to large businesses within the federal government.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, EAGLE HARBOR SOLUTIONS LLC, is not indicated as a small business. This means that opportunities for small business subcontracting are not mandated by the contract's set-aside status. The absence of small business participation goals in this specific award could limit the direct benefit to the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Defense Information Systems Agency (DISA). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the specific deliverables and performance metrics would be key to assessing accountability. The Inspector General of the Department of Defense may also have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

Defense Information Systems Agency IT Services
Department of Defense Enterprise Architecture Support
Federal Strategic Planning Contracts
IT Consulting Services for Government

Risk Flags

Sole-source award may lead to higher costs.
Lack of detailed service description hinders performance assessment.
Contractor's past performance data not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to EAGLE HARBOR SOLUTIONS LLC. STRATEGIC ENGINEERING ENTERPRISE PLANNING SUPPORT

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR SOLUTIONS 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 $20.5 million.

What is the period of performance?

Start: 2022-01-31. End: 2026-01-31.

What specific services are included under 'strategic engineering enterprise planning support'?

The provided data does not detail the specific services encompassed by 'strategic engineering enterprise planning support.' This broad description typically involves activities such as developing long-term IT strategies, designing enterprise architectures, planning for system integration, assessing technological needs, and advising on engineering best practices to align with organizational goals. Without a more granular breakdown of tasks, deliverables, and performance metrics, it is difficult to fully assess the scope and value of the work performed by Eagle Harbor Solutions LLC.

How does the $20.5 million contract value compare to similar enterprise planning support contracts?

Direct comparison of the $20.5 million contract value is challenging without knowing the specific scope, duration, and deliverables. However, for context, large federal agencies like the DoD often award multi-million dollar contracts for enterprise architecture, strategic planning, and IT engineering support. Contracts for similar services can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity and scale of the agency's needs. The four-year duration of this contract suggests a steady, ongoing requirement for these services.

What are the potential risks associated with a sole-source award for this type of service?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing offers, the government may not achieve the most cost-effective solution. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially hindering innovation or flexibility. Ensuring robust oversight and clear performance standards is crucial to mitigate these risks and ensure value is delivered.

What is the track record of Eagle Harbor Solutions LLC in performing similar government contracts?

The provided data does not include information on the track record of Eagle Harbor Solutions LLC. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Understanding their experience with similar strategic planning and engineering support services, particularly within the Department of Defense, would be essential for evaluating their capability and reliability.

What is the significance of the 'Other Computer Related Services' NAICS code (541519) in this context?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not classified elsewhere. This includes services like computer facilities management, IT consulting, disaster recovery services, and custom software development. For a contract described as 'strategic engineering enterprise planning support,' this code suggests the services likely involve high-level IT strategy, planning, and potentially advisory roles rather than direct software coding or hardware provision.

How does the firm-fixed-price contract type impact cost management and risk?

A firm-fixed-price (FFP) contract is generally preferred by the government when the scope of work is well-defined and risks can be reasonably estimated. Under an FFP contract, the contractor agrees to a total price for a specific set of goods or services, and assumes the risk of cost overruns. This provides cost certainty for the government. However, if the scope is not perfectly defined, or if unforeseen issues arise, the contractor may seek change orders, or the government might receive a less-than-optimal solution if the contractor cuts corners to maintain profitability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC104722R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,641,233

Exercised Options: $20,592,926

Current Obligation: $20,539,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline