DoD's $225M IT Systems Support Contract Awarded to Agile Defense, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $225,175,186 ($225.2M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2015-02-13

End Date: 2021-09-14

Contract Duration: 2,405 days

Daily Burn Rate: $93.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CT::IGF DARPA MISSION SYSTEMS OFFICE INFORMATION TECHNOLOGY DIRECTORATE IT SYSTEMS SERVICES AND SUPPORT TASK ORDER.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $225.2 million to AGILE DEFENSE, LLC for work described as: IGF::CT::IGF DARPA MISSION SYSTEMS OFFICE INFORMATION TECHNOLOGY DIRECTORATE IT SYSTEMS SERVICES AND SUPPORT TASK ORDER. Key points: 1. Contract awarded for IT Systems Services and Support, a critical function for defense operations. 2. Agile Defense, LLC, a single awardee, will provide services over a significant period. 3. The contract utilized full and open competition, suggesting a robust price discovery process. 4. The sector is IT services, a large and dynamic area within federal spending.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure allows for performance-based incentives. While specific pricing benchmarks are not provided, the award fee mechanism aims to ensure value for money by rewarding high performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated but sources were excluded. This method can impact price discovery if the exclusion was not fully justified.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Ensures continued IT infrastructure and support for critical Department of Defense missions. Supports technological advancement and operational readiness within the defense sector. Provides a stable contract vehicle for essential IT services over several years.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns with Cost Plus Award Fee (CPAF) structure if not managed tightly.
The 'Exclusion of Sources' in the competition method warrants further scrutiny to ensure fairness and optimal pricing.
Long contract duration (approx. 6.5 years) may limit agility in adopting newer technologies if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Performance-based incentives (CPAF) are designed to drive high-quality service delivery.
Contract supports critical IT infrastructure for national defense.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal IT spending is substantial, and this contract represents a portion of the Department of Defense's investment in maintaining and upgrading its technological capabilities.

Small Business Impact

The data indicates this was a single award contract and does not specify any set-aside for small businesses. Therefore, the direct impact on small business participation is not evident from this information alone.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance and performance. The award fee structure also provides a mechanism for oversight of service quality.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost creep due to CPAF structure.
Lack of transparency regarding source exclusion in the competitive process.
Long contract duration may not align with rapid technological advancements.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $225.2 million to AGILE DEFENSE, LLC. IGF::CT::IGF DARPA MISSION SYSTEMS OFFICE INFORMATION TECHNOLOGY DIRECTORATE IT SYSTEMS SERVICES AND SUPPORT TASK ORDER.

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $225.2 million.

What is the period of performance?

Start: 2015-02-13. End: 2021-09-14.

What was the specific justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' award method, and how did this impact the final price?

The justification for excluding sources is crucial for understanding the competitive landscape and its effect on pricing. If sources were excluded without a strong rationale, it could limit competition and potentially lead to a higher price than a truly open competition might yield. Further analysis would require reviewing the specific solicitation documents and award decision rationale.

How effectively has the Cost Plus Award Fee (CPAF) structure incentivized performance and controlled costs for this IT systems support contract over its duration?

The effectiveness of the CPAF structure hinges on clearly defined performance metrics and objective evaluation criteria. While CPAF aims to reward superior performance, it also carries a risk of cost growth if award fee targets are too easily met or if the base fee is substantial. Analyzing contractor performance reports and actual costs versus target costs would reveal the true value achieved.

What is the projected long-term impact of this contract on the Department of Defense's IT modernization efforts and overall technological readiness?

This contract's impact depends on how well Agile Defense, LLC's services align with the DoD's evolving IT strategy. If the services provided enable seamless integration of new technologies and enhance cybersecurity, it will positively contribute to modernization and readiness. Conversely, if the contract focuses solely on maintaining legacy systems without fostering innovation, its long-term impact could be limited.

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: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $331,425,592

Exercised Options: $231,184,823

Current Obligation: $225,175,186

Actual Outlays: $9,548,840

Subaward Activity

Number of Subawards: 255

Total Subaward Amount: $60,081,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0626Z

IDV Type: GWAC

Timeline