DoD's $56M Computer Systems Design Services Contract with Agile Defense Faces Scrutiny Over Competition

Contract Overview

Contract Amount: $55,952,093 ($56.0M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2017-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CORPORATE SERVICES SUPPORT: SERVICE SUPPORT (CSS: SS)

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $56.0 million to AGILE DEFENSE, LLC for work described as: CORPORATE SERVICES SUPPORT: SERVICE SUPPORT (CSS: SS) Key points: 1. The contract awarded to Agile Defense, LLC for Computer Systems Design Services represents a significant investment by the Department of Defense. 2. Competition was initially full and open after exclusion of sources, but the specific impact on price discovery needs further examination. 3. The contract's duration and fixed-price nature suggest potential for cost savings, but the lack of small business participation is a concern. 4. The IT sector, where this contract resides, often sees complex service requirements and evolving technological landscapes.

Value Assessment

Rating: fair

The contract's total award value of $55.9M over its period of performance needs to be benchmarked against similar computer systems design services contracts within the DoD. Without specific per-unit cost data, a precise value assessment is challenging.

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 an initial competitive process. However, the 'exclusion of sources' clause warrants investigation to ensure it did not unduly limit competition and impact price discovery.

Taxpayer Impact: The $55.9M expenditure represents taxpayer funds. While competition aims for best value, the effectiveness of the chosen method in securing optimal pricing for these services is a key consideration for taxpayer impact.

Public Impact

Taxpayers funded a significant contract for IT support services within the Department of Defense. The contract's focus on computer systems design impacts the operational efficiency and technological capabilities of USTRANSCOM. The exclusion of certain sources during the bidding process raises questions about the breadth of competition and potential cost implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential impact of 'exclusion of sources' on competition

Positive Signals

Firm Fixed Price contract type
Initial full and open competition

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, driven by the need for modernizing and maintaining complex digital infrastructures.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This is a notable absence, as government contracts often aim to include small businesses to foster economic growth and competition. Further analysis is needed to understand why small businesses were not involved.

Oversight & Accountability

The contract's oversight would typically involve program managers within USTRANSCOM ensuring deliverables meet requirements and that the contractor adheres to the terms. The 'delivery order' nature suggests multiple task orders under a larger contract, requiring consistent monitoring.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Lack of small business participation
Potential for limited competition due to 'exclusion of sources'
Need for detailed justification of source exclusion
Risk of scope creep or undefined requirements in IT services under FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.0 million to AGILE DEFENSE, LLC. CORPORATE SERVICES SUPPORT: SERVICE SUPPORT (CSS: SS)

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $56.0 million.

What is the period of performance?

Start: 2011-10-01. End: 2017-03-31.

What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and how did this impact the final pricing?

The exclusion of sources typically occurs when specific capabilities, security clearances, or proprietary technologies are required, limiting the pool of eligible bidders. Understanding these criteria is crucial to assess if the exclusion was justified and if it led to a less competitive environment, potentially inflating costs. Without detailed documentation on the exclusion rationale, it's difficult to definitively state the pricing impact.

Given the $55.9M award and the lack of small business participation, what are the primary risks to the government in terms of cost-effectiveness and innovation?

The primary risks include potential overpayment if the limited competition resulted in higher prices than a broader field would have yielded. Lack of small business involvement can also stifle innovation, as these firms often bring agile solutions. Furthermore, over-reliance on a single large contractor could lead to vendor lock-in and reduced negotiating leverage for future contracts.

How effectively does the 'FIRM FIXED PRICE' contract type mitigate risks associated with the evolving nature of computer systems design services over the contract's lifespan?

A Firm Fixed Price (FFP) contract shifts most risk to the contractor, providing cost certainty for the government. However, in rapidly evolving fields like IT, FFP can be challenging if the scope is not precisely defined upfront. If requirements change significantly, change orders may be necessary, potentially increasing costs. The success of FFP here depends on the initial scope's clarity and the contractor's ability to manage evolving technical demands within the agreed price.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR SUITE 320, 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: $61,458,165

Exercised Options: $55,952,093

Current Obligation: $55,952,093

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0626Z

IDV Type: GWAC

Timeline