DoD's $52M IT Services Contract Awarded to SBD Alliant, LLC for Computer Systems Design

Contract Overview

Contract Amount: $52,041,842 ($52.0M)

Contractor: SBD Alliant, LLC

Awarding Agency: Department of Defense

Start Date: 2014-08-29

End Date: 2020-07-22

Contract Duration: 2,154 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF DAU IT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to SBD ALLIANT, LLC for work described as: IGF::OT::IGF DAU IT SERVICES Key points: 1. Contract value of over $52 million indicates significant investment in IT infrastructure. 2. Award to a single contractor, SBD Alliant, LLC, warrants examination of competition dynamics. 3. The contract duration of over 2000 days suggests a long-term need for these services. 4. Fixed-price contract type may offer cost predictability but could limit flexibility. 5. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific procurement strategy. 6. Geographic location in Virginia may point to specific operational needs or facilities.

Value Assessment

Rating: fair

The contract value of $52 million for computer systems design services over approximately six years appears substantial. Benchmarking this against similar large-scale IT service contracts within the Department of Defense is crucial for a comprehensive value assessment. Without specific details on the scope of services and deliverables, it's challenging to definitively assess if the pricing represents excellent value for money. However, the fixed-price nature suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the competition was intended to be broad, specific criteria or exclusions were applied. The presence of 5 bidders indicates some level of competition, but the 'exclusion of sources' aspect requires further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: While competition was present, the exclusion of certain sources might have limited the most competitive bids, potentially impacting the final price paid by taxpayers.

Public Impact

The primary beneficiaries are likely Department of Defense operations requiring advanced computer systems design and support. Services delivered include the design, development, and potentially maintenance of complex IT systems. The geographic impact is centered around the Department of Defense's presence in Virginia. Workforce implications may include the need for specialized IT professionals within SBD Alliant, LLC and potentially government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method needs clarification to ensure maximum taxpayer value.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the IT services provided.
The long contract duration could lead to vendor lock-in or outdated technology if not managed proactively.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Awarding to SBD Alliant, LLC, a known entity, may suggest a level of confidence in their capabilities.
The presence of multiple bidders, even with exclusions, indicates some market engagement.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The federal IT services market is vast, with agencies consistently investing in modernizing and maintaining their technological infrastructure. This contract represents a significant portion of spending within this niche, likely supporting critical defense operations. Comparable spending benchmarks would involve analyzing other large-scale IT design and integration contracts awarded by federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless SBD Alliant, LLC voluntarily engages them in subcontracting roles.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially an Inspector General's office within the Department of Defense. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified services. Transparency is assessed through the availability of contract award data, though detailed performance reports may be less accessible to the public.

Related Government Programs

Defense Information Systems Agency (DISA) IT Contracts
Department of Defense Enterprise IT Services
Federal Civilian IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Competition may have been limited due to 'exclusion of sources'.
Performance metrics are not publicly detailed, making effectiveness assessment difficult.
Long contract duration poses a risk of technology obsolescence or vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to SBD ALLIANT, LLC. IGF::OT::IGF DAU IT SERVICES

Who is the contractor on this award?

The obligated recipient is SBD ALLIANT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $52.0 million.

What is the period of performance?

Start: 2014-08-29. End: 2020-07-22.

What specific computer systems design services were included under this contract?

The contract, NAICS code 541512, specifies 'Computer Systems Design Services.' This typically encompasses a wide range of activities including analyzing user needs, designing and developing custom software, integrating hardware and software, and providing IT consulting. For this specific $52 million contract awarded to SBD Alliant, LLC by Washington Headquarters Services, the exact scope would be detailed in the Statement of Work (SOW). Without access to the SOW, we can infer services related to the design and implementation of IT systems supporting Department of Defense operations, potentially including network architecture, system integration, and cybersecurity design elements. The duration of the contract (2154 days) suggests a comprehensive and ongoing need for these design services rather than a one-off project.

How does the $52 million contract value compare to similar IT services contracts within the DoD?

A contract value of $52 million for computer systems design services over approximately six years is substantial, reflecting a significant investment. To benchmark this effectively, we would need to compare it against other large-scale IT service contracts awarded by the Department of Defense for similar services (e.g., system design, integration, IT consulting) within the same timeframe. Federal procurement data often shows IT contracts ranging from a few million to hundreds of millions of dollars. This particular contract appears to be in the mid-to-upper range for a single delivery order of this nature, suggesting a critical or extensive requirement. A detailed comparison would involve analyzing the scope, duration, and specific services rendered in comparable contracts to ascertain if the pricing is competitive and reflects fair market value.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUAES) method is a specific procurement strategy. While it aims for full and open competition, the 'exclusion of sources' implies that certain potential offerors were intentionally excluded based on predefined criteria, possibly related to security, capability, or prior performance. The primary risk is that this exclusion might inadvertently limit the pool of highly competitive vendors, potentially leading to higher prices or less innovative solutions than might have been achieved with truly unrestricted competition. It's crucial to understand the justification for the exclusion to ensure it was necessary and did not unduly restrict competition, thereby potentially impacting the best value for taxpayers.

What is the significance of the 'FIRM FIXED PRICE' contract type for this IT services award?

A 'FIRM FIXED PRICE' (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For the government, this offers significant cost predictability and certainty, as the total expenditure is known upfront, assuming the scope of work is well-defined. This shifts the risk of cost overruns entirely to the contractor, SBD Alliant, LLC. The significance for this $52 million IT services contract is that the Department of Defense can budget precisely for these services. However, FFP contracts can sometimes disincentivize contractors from finding more efficient methods if it means reducing their profit margin, and they may build in higher contingency into their initial bid price to account for potential unforeseen issues.

How does the contractor, SBD Alliant, LLC, perform on other federal contracts?

SBD Alliant, LLC, as a prime contractor, has been awarded federal contracts, including this significant $52 million IT services contract. To assess their track record, one would need to examine their performance history on other awards, looking at factors such as on-time delivery, quality of work, adherence to budget (especially in fixed-price contracts), and any past performance issues or disputes. Publicly available data often includes CPARS (Contractor Performance Assessment Reporting System) ratings, which provide insights into how contractors have performed on previous government projects. A review of SBD Alliant's broader contract portfolio would be necessary to form a comprehensive view of their reliability and effectiveness as a federal contractor.

What is the historical spending pattern for computer systems design services at Washington Headquarters Services?

Analyzing historical spending patterns for computer systems design services at Washington Headquarters Services (WHS) would involve reviewing procurement data over several fiscal years. This contract, awarded in 2014 with an end date in 2020, represents a significant outlay for WHS during that period. Understanding historical spending would reveal whether this $52 million award is an anomaly, a consistent level of investment, or an increase/decrease compared to previous years. It would also help identify trends in the types of IT services procured, the contractors frequently used, and the prevailing contract types and values. Such analysis provides context for the current contract's scale and importance within WHS's IT strategy.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS ROAD STE 870, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,476,445

Exercised Options: $52,041,842

Current Obligation: $52,041,842

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0656Z

IDV Type: GWAC

Timeline