DoD's $19.7M DWAS Maintenance Contract Awarded to Digital Systems Group, Inc
Contract Overview
Contract Amount: $19,686,554 ($19.7M)
Contractor: Digital Systems Group, Inc
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2013-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DWAS MAINTENANCE
Place of Performance
Location: WARMINSTER, BUCKS County, PENNSYLVANIA, 18974
Plain-Language Summary
Department of Defense obligated $19.7 million to DIGITAL SYSTEMS GROUP, INC for work described as: DWAS MAINTENANCE Key points: 1. Contract value of $19.7M over 5 years. 2. Awarded under full and open competition. 3. No small business participation noted. 4. Services fall under custom computer programming.
Value Assessment
Rating: fair
The contract's total value is $19.7M over five years. Without specific per-unit cost data or benchmarks for custom programming services, a precise value assessment is difficult. However, the duration and scope suggest a moderate investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
Defense agencies rely on custom software for critical financial operations. The contract supports the Defense Finance and Accounting Service (DFAS). Long-term maintenance contracts can indicate stable, ongoing needs. Lack of small business involvement may limit opportunities for smaller firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation.
- Long contract duration (5 years).
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, supporting various agency functions. Benchmarks for similar custom programming contracts vary widely based on complexity and scope.
Small Business Impact
The data indicates that this contract did not involve small business participation. This could be due to the specific requirements of the DWAS maintenance or a lack of competitive bids from small businesses for this particular requirement.
Oversight & Accountability
Awarded under full and open competition, suggesting a transparent process. However, further review of the solicitation and evaluation criteria would be needed to fully assess oversight and accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for scope creep in custom programming.
- Reliance on a single vendor for critical system maintenance.
Tags
custom-computer-programming-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to DIGITAL SYSTEMS GROUP, INC. DWAS MAINTENANCE
Who is the contractor on this award?
The obligated recipient is DIGITAL SYSTEMS GROUP, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2008-10-01. End: 2013-09-30.
What specific functionalities does DWAS maintenance entail, and how do they align with the NAICS code 541511?
DWAS (Defense Workforce Assistance System) maintenance likely involves supporting and updating custom-built software critical for managing defense personnel data and HR functions. The NAICS code 541511, Custom Computer Programming Services, accurately reflects the nature of developing, modifying, and maintaining specialized software applications tailored to specific client needs, such as those within a large government agency like the DoD.
Given the 5-year duration and firm-fixed-price structure, what are the primary risks associated with cost overruns or scope creep?
The primary risk with a long-term, firm-fixed-price contract is that the contractor may face unforeseen cost increases in labor or technology, potentially leading to reduced profit margins or attempts to cut corners on quality. Scope creep is also a risk if the government's needs evolve significantly beyond the original contract's definition, requiring costly change orders or potentially leading to disputes if not managed carefully.
How effectively does this contract leverage competition to ensure optimal value for taxpayer dollars over its lifespan?
The contract's use of 'full and open competition' is a strong indicator of an effort to achieve optimal value. This process allows multiple qualified vendors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The firm-fixed-price structure further locks in costs, reducing the risk of unexpected increases for taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 HORSHAM RD STE 120, HORSHAM, PA, 19044
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,686,554
Exercised Options: $19,686,554
Current Obligation: $19,686,554
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0760J
IDV Type: FSS
Timeline
Start Date: 2008-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2025-04-23
More Contracts from Digital Systems Group, Inc
- Maintenance and Development Support the Defense Working Capital Accounting System — $19.7M (Department of Defense)
- Webifmis Idiq - Sustainment & Enhancement Task Order Option Period ONE (1) — $6.8M (Department of Homeland Security)
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)