DoD awards $11M for Application Server Modules, highlighting a significant investment in IT infrastructure

Contract Overview

Contract Amount: $11,019,432 ($11.0M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-18

End Date: 2026-03-31

Contract Duration: 225 days

Daily Burn Rate: $49.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION SERVER MODULE - HEAVY SYSTEM

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to WORLD WIDE TECHNOLOGY LLC for work described as: APPLICATION SERVER MODULE - HEAVY SYSTEM Key points: 1. The contract value of $11.02 million suggests a substantial need for specialized IT services. 2. Full and open competition indicates a healthy market with multiple potential providers. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The duration of 225 days points to a focused, short-term project. 5. The award to World Wide Technology LLC suggests a reliance on established IT vendors. 6. The North American Industry Classification System (NAICS) code 541519 categorizes this as 'Other Computer Related Services', indicating a broad scope.

Value Assessment

Rating: good

The contract value of $11.02 million for application server modules appears reasonable given the scope of IT services. Benchmarking against similar contracts for complex system modules would provide a more precise value assessment. The firm fixed-price structure suggests an effort to manage costs effectively. However, without detailed service descriptions, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and innovation for the government. The level of competition is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The Department of the Navy benefits from enhanced IT infrastructure and application server capabilities. This contract supports the operational readiness and technological advancement of naval systems. The services delivered are crucial for the functioning of complex defense IT environments. The geographic impact is primarily within the Department of Defense's operational footprint, potentially supporting various naval bases and units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are required.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise for critical IT functions.

Positive Signals

Award to a known entity like World Wide Technology LLC suggests a degree of reliability.
Firm fixed-price contract provides cost certainty.
Full and open competition indicates a robust selection process.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer-related services. The IT services market is highly dynamic, with significant government spending allocated to maintaining and upgrading complex systems. This contract for application server modules is a component of the larger IT infrastructure supporting defense operations. Comparable spending benchmarks in this sub-sector would involve analyzing other contracts for system integration, software development, and IT support services within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). World Wide Technology LLC is a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. This suggests that opportunities for small businesses may be limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Naval Sea Systems Command (NAVSEA) IT procurements
Department of Defense Enterprise IT Services
Application Development and Modernization Contracts

Risk Flags

Potential for scope creep in complex IT projects.
Dependence on contractor for specialized technical expertise.
Need for clear performance metrics to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to WORLD WIDE TECHNOLOGY LLC. APPLICATION SERVER MODULE - HEAVY SYSTEM

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-03-31.

What is the specific nature of the 'Application Server Module' services being procured?

The provided data categorizes this contract under NAICS code 541519, 'Other Computer Related Services,' and describes it as 'APPLICATION SERVER MODULE - HEAVY SYSTEM.' This suggests the procurement is for services related to the development, implementation, maintenance, or support of critical software components that manage applications and their resources within a larger IT system. These modules are essential for enabling applications to run efficiently, securely, and reliably, often handling tasks like data processing, user interface management, and communication between different software parts. The 'heavy system' descriptor implies these modules are integral to a substantial and complex IT infrastructure, likely supporting mission-critical operations for the Department of the Navy.

How does the $11.02 million contract value compare to similar IT service contracts within the Department of Defense?

The $11.02 million contract value for application server modules is a significant but not extraordinary amount for IT services within the Department of Defense (DoD). The DoD procures a vast array of IT services, ranging from software development and system integration to cybersecurity and cloud computing, often in multi-million dollar increments. Contracts for specialized modules supporting 'heavy systems' can command higher prices due to the complexity, required expertise, and criticality. To provide a precise comparison, one would need to analyze recent awards for similar services (e.g., application hosting, middleware support, system integration for large platforms) within the Navy or other DoD branches, considering factors like contract duration, scope, and the specific technologies involved. However, this value is consistent with substantial IT investments necessary for maintaining and modernizing defense infrastructure.

What are the potential risks associated with a firm fixed-price contract for complex IT services?

While firm fixed-price (FFP) contracts are designed to provide cost certainty for the government, they can introduce risks, particularly for complex IT services. If the contractor underestimates the effort required, they may incur losses or be incentivized to cut corners on quality to maintain profitability. Conversely, if the government's requirements are not perfectly defined upfront, scope creep can lead to costly change orders, negating the FFP benefit. For 'heavy systems' and application server modules, unforeseen technical challenges or integration issues could arise, potentially leading to disputes or delays. Effective risk management requires meticulous SOW definition, robust contractor oversight, and clear communication channels to address issues proactively.

What is the track record of World Wide Technology LLC in performing similar IT services for the federal government?

World Wide Technology LLC (WWT) is a well-established IT solutions provider with a significant presence in the federal contracting space. They have a history of delivering a wide range of IT services, including infrastructure modernization, cloud solutions, cybersecurity, and application development, to various government agencies. WWT often partners with major technology manufacturers and is known for its advanced technology centers and integration capabilities. While specific performance details for this particular 'Application Server Module' contract are not yet available as it's a new award, WWT's general track record suggests they possess the technical expertise and capacity to handle complex IT projects. Government contract databases and past performance reviews would offer more granular insights into their specific successes and challenges on prior federal engagements.

How does the duration of 225 days impact the assessment of this contract's scope and potential outcomes?

A contract duration of 225 days (approximately 7.5 months) suggests a project with a defined, relatively short-term scope, likely focused on a specific phase of development, implementation, or support for the application server modules. This duration is suitable for tasks such as deploying new modules, performing upgrades, conducting targeted testing, or providing specialized maintenance. It implies that the core functionality or system is likely already established, and this contract addresses a specific enhancement or operational need. A shorter duration can also mean less risk of long-term technological obsolescence or shifting requirements compared to multi-year projects. However, it also necessitates efficient project management to ensure timely completion and delivery of all contracted services within the specified period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6785425Q0156

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

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

Financial Breakdown

Contract Ceiling: $11,019,432

Exercised Options: $11,019,432

Current Obligation: $11,019,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC55B

IDV Type: GWAC

Timeline