DoD's $39M IT Services Contract Awarded to PHACIL, LLC Shows Strong Competition and Long Performance Period

Contract Overview

Contract Amount: $39,083,666 ($39.1M)

Contractor: Phacil, LLC

Awarding Agency: Department of Defense

Start Date: 2015-04-01

End Date: 2022-05-31

Contract Duration: 2,617 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ENTERPRISE INFORMATION TECHNOLOGY SERVICES AND SUPPORT

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to PHACIL, LLC for work described as: IGF::OT::IGF ENTERPRISE INFORMATION TECHNOLOGY SERVICES AND SUPPORT Key points: 1. The contract demonstrates a commitment to competitive sourcing, with 14 bidders vying for the opportunity. 2. A long performance period of 2617 days suggests a need for sustained IT support. 3. The firm-fixed-price contract type indicates predictable costs for the government. 4. While the contract was awarded under 'Full and Open Competition After Exclusion of Sources,' further clarification on the exclusion is warranted. 5. The services fall under Computer Systems Design, a critical area for modern defense operations. 6. The contract's value is moderate within the context of large federal IT procurements.

Value Assessment

Rating: good

The contract's value of approximately $39 million over nearly seven years appears reasonable for comprehensive IT enterprise services. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests that the pricing structure, given the firm-fixed-price nature, likely offers good value. The absence of specific cost breakdowns makes a precise per-unit analysis difficult, but the overall award amount is within expected ranges for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, certain sources were excluded. With 14 bidders, the competition level was robust, suggesting that PHACIL, LLC was selected from a strong pool of qualified vendors. The exclusion of specific sources, however, warrants further investigation to ensure it did not unduly limit competition or prevent potentially more competitive offers.

Taxpayer Impact: The high number of bidders indicates that taxpayers benefited from a competitive process, likely driving down prices and ensuring a fair market value for the IT services procured.

Public Impact

Military personnel and civilian staff within USTRANSCOM benefit from reliable and advanced IT systems. Essential services include computer systems design and support, crucial for operational efficiency. The primary geographic impact is within Illinois, where the contract is managed. The contract supports a workforce skilled in IT services, potentially including specialized roles within PHACIL, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause requires further scrutiny to ensure it was justified and did not limit competition unnecessarily.
Lack of detailed cost breakdowns makes granular value-for-money assessment challenging.
The long duration of the contract could lead to potential scope creep or evolving technology needs not fully addressed in the initial award.

Positive Signals

The high number of bidders (14) demonstrates a healthy competitive environment for this IT services contract.
The firm-fixed-price contract type provides cost certainty for the government.
The contract's duration suggests a stable, long-term need for these critical IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and support services. The federal IT market is vast and highly competitive, with agencies like USTRANSCOM relying heavily on contractors for specialized expertise. Comparable spending benchmarks for large-scale IT enterprise support contracts often run into tens or hundreds of millions of dollars over multiple years, placing this $39 million award in the mid-to-large tier for such services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to PHACIL, LLC, depending on the prime's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM's contracting and program management offices. The firm-fixed-price nature simplifies some aspects of oversight by focusing on deliverable completion rather than cost accumulation. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the nature of any potential issues or audits initiated by the DoD IG or agency-specific IG.

Related Government Programs

USTRANSCOM IT Enterprise Services
DoD IT Modernization Programs
Federal Civilian IT Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Risk of technological obsolescence over the long contract duration.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to PHACIL, LLC. IGF::OT::IGF ENTERPRISE INFORMATION TECHNOLOGY SERVICES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is PHACIL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $39.1 million.

What is the period of performance?

Start: 2015-04-01. End: 2022-05-31.

What is the specific nature of the 'Exclusion of Sources' in this 'Full and Open Competition After Exclusion of Sources' award, and what was the justification?

The designation 'Full and Open Competition After Exclusion of Sources' (CT: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES) indicates that the solicitation was publicly advertised, but certain potential sources were intentionally excluded from consideration. The justification for such exclusions typically involves reasons like national security, proprietary information, or specific technical requirements that only a limited number of entities could meet. Without further documentation specific to this solicitation (e.g., a Justification for Other Than Full and Open Competition or a synopsis detailing the exclusion rationale), it is impossible to determine the precise reasons or assess their validity. This exclusion could potentially limit the breadth of competition and may warrant a review to ensure it was indeed necessary and in the government's best interest.

How does the $39 million contract value compare to similar IT enterprise support contracts awarded by USTRANSCOM or the Department of Defense?

The $39 million contract value for IT enterprise services awarded to PHACIL, LLC over a period of approximately seven years (from April 2015 to May 2022) positions it as a significant, but not exceptionally large, IT procurement within the Department of Defense. USTRANSCOM, like other major DoD components, often awards multi-year IT contracts that can range from tens to hundreds of millions of dollars, depending on the scope and duration. For instance, broader enterprise IT support contracts supporting entire commands or major systems can easily exceed $100 million. This contract's value suggests a focused scope of services, possibly related to specific systems or a particular functional area within USTRANSCOM's IT infrastructure, rather than a comprehensive enterprise-wide overhaul.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was PHACIL, LLC's performance measured?

The provided data does not include specific details on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT services contracts, especially those involving system design and support, SLAs would cover aspects like system uptime, response times for technical support, incident resolution times, and project delivery timelines. Performance measurement would likely involve regular reporting by PHACIL, LLC, government acceptance of deliverables, and potentially periodic performance reviews conducted by USTRANSCOM. Without access to the contract's Performance Work Statement (PWS) or associated documentation, a detailed assessment of performance measurement is not possible.

What is the historical spending pattern for similar IT enterprise support services at USTRANSCOM or within the DoD?

Historical spending on IT enterprise support services at USTRANSCOM and across the DoD has been substantial and consistently high, reflecting the critical role of technology in modern military operations. Agencies like USTRANSCOM require robust IT infrastructure for logistics, command and control, and communication. Spending in this category often involves large, multi-year contracts for system design, integration, maintenance, cybersecurity, and user support. Trends have shown a continuous investment in modernizing IT systems, cloud migration, and enhancing network capabilities. The $39 million awarded to PHACIL, LLC is one component of this larger, ongoing investment in defense IT infrastructure, which collectively represents billions of dollars annually across the DoD.

What is the potential impact of the long contract duration (2617 days) on technological relevance and contractor adaptability?

A contract duration of 2617 days (approximately 7 years) for IT enterprise services presents both opportunities and challenges regarding technological relevance and contractor adaptability. On the positive side, it allows for long-term planning, deep integration of services, and the potential for significant improvements over time. It also provides stability for the contractor. However, the rapid pace of technological advancement in IT means that systems and services defined at the start of a 7-year contract could become outdated before its completion. This necessitates strong contract management, including mechanisms for incorporating new technologies, adapting to evolving requirements, and potentially exercising options or modifications to keep the services current. Without proactive management and flexibility, the contract could risk supporting legacy systems or less efficient solutions by its end.

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: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BY Light Professional IT Services LLC

Address: 800 N GLEBE RD STE 700, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,395,007

Exercised Options: $39,083,666

Current Obligation: $39,083,666

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F1227Z

IDV Type: GWAC

Timeline