Navy awards $29.4M contract for Seaport Operations and Maintenance to Octo Consulting Group

Contract Overview

Contract Amount: $29,382,471 ($29.4M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2025-05-31

Contract Duration: 2,070 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SEAPORT OPERATIONS AND MAINTENANCE

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to OCTO CONSULTING GROUP LLC for work described as: SEAPORT OPERATIONS AND MAINTENANCE Key points: 1. Contract value represents a significant investment in IT support services for naval operations. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The contract duration extends over multiple fiscal years, indicating a long-term need. 5. Octo Consulting Group is the sole awardee, highlighting their specific capabilities or competitive advantage. 6. The contract falls under computer systems design services, a critical area for modern defense operations.

Value Assessment

Rating: good

The contract value of $29.4 million for Seaport Operations and Maintenance appears reasonable given the scope and duration. As a firm-fixed-price contract, it provides cost certainty for the Navy. Benchmarking against similar IT support contracts for large-scale operations would offer further insight into value for money. The absence of detailed performance metrics in the provided data makes a precise value assessment challenging, but the competitive award process suggests a degree of market validation.

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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Navy's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages innovation among contractors.

Public Impact

The Department of the Navy benefits from enhanced IT support for its critical Seaport operations. Octo Consulting Group will deliver computer systems design and maintenance services. The contract's impact is primarily within the District of Columbia, where the services are likely performed or managed. The contract supports a workforce skilled in IT systems design and maintenance, contributing to the federal IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are implemented.
Reliance on a single contractor for critical operational IT systems could pose a risk if performance degrades.
Scope creep could lead to cost overruns if not managed tightly, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm-fixed-price contract type helps control costs and provides budget predictability.
Long contract duration suggests a stable, ongoing need and potential for contractor expertise development.
Focus on computer systems design and maintenance addresses core IT infrastructure requirements.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related maintenance. The market for IT support services to government agencies is substantial, with significant spending allocated annually. This contract represents a portion of the Department of Defense's broader IT modernization and operational support efforts. Comparable contracts often involve system integration, network management, and software development for large-scale government operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Octo Consulting Group, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Seaport-e (or successor)
IT Support Services Contracts
Department of Defense IT Modernization Programs
Naval Operations Support Contracts

Risk Flags

Potential for performance issues impacting critical operations.
Risk of cost overruns if scope is not well-managed, despite FFP.
Dependence on a single contractor for essential IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to OCTO CONSULTING GROUP LLC. SEAPORT OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP 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 $29.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-05-31.

What is Octo Consulting Group's track record with the Department of the Navy and similar IT contracts?

Octo Consulting Group has a history of performing IT services for various government agencies, including the Department of Defense. Their experience often spans areas like cloud computing, cybersecurity, data analytics, and IT modernization. For the Department of the Navy specifically, their past performance would be evaluated during the bidding process. A review of their contract history would reveal the types and values of previous awards, their performance ratings on those contracts, and any past issues or commendations. This information is crucial for assessing their capability to successfully execute the Seaport Operations and Maintenance contract, ensuring they have the necessary expertise and reliability for critical naval IT infrastructure.

How does the $29.4 million contract value compare to similar Seaport operations and maintenance contracts?

The $29.4 million contract value for Seaport Operations and Maintenance needs to be benchmarked against similar contracts awarded by the Department of the Navy or other branches of the DoD for comparable services. Factors such as the scope of services (e.g., network management, system design, cybersecurity, help desk support), the duration of the contract (2070 days, approximately 5.6 years), and the specific operational environment (e.g., number of users, complexity of systems) are critical for comparison. Without access to a database of comparable contracts, it's difficult to definitively state if this value is high or low. However, given the firm-fixed-price nature and full and open competition, it suggests the Navy sought competitive bids to ensure a fair market price for the required services over the contract period.

What are the primary risks associated with this contract for the Department of the Navy?

The primary risks associated with this contract include potential performance degradation by the contractor, Octo Consulting Group, which could impact critical Seaport operations. Given it's a firm-fixed-price contract, there's a risk of the contractor cutting corners to maintain profitability, potentially affecting service quality or security. Another risk is the potential for vendor lock-in if the implemented systems are proprietary or difficult to transition away from. Furthermore, the reliance on a single contractor for essential IT functions could create vulnerabilities if the contractor faces financial instability or operational disruptions. Effective oversight and clear performance metrics are essential to mitigate these risks.

How effective is the firm-fixed-price (FFP) contract type in ensuring program effectiveness for IT services?

The firm-fixed-price (FFP) contract type is generally considered effective for IT services when the scope of work is well-defined and unlikely to change significantly. It places the risk of cost overruns on the contractor, incentivizing them to manage resources efficiently and deliver the agreed-upon services within budget. This can lead to greater cost certainty for the government. For program effectiveness, FFP works best when coupled with clear performance standards and metrics. If the scope is poorly defined or subject to frequent changes, FFP can stifle innovation or lead to disputes. In this case, for 'Seaport Operations and Maintenance,' the FFP structure aims to ensure predictable spending and contractor accountability for delivering defined IT support services.

What are the historical spending patterns for Seaport Operations and Maintenance or similar IT services within the Department of the Navy?

Historical spending patterns for Seaport Operations and Maintenance, or similar IT services within the Department of the Navy, would reveal trends in contract values, durations, and types of services procured. Analyzing past awards for IT support, system design, and operational maintenance would provide context for the current $29.4 million contract. This analysis could show whether spending in this area has been increasing or decreasing, whether contracts are typically competed or sole-sourced, and the average contract values. Understanding these patterns helps assess if the current award is consistent with historical trends or represents a significant shift in procurement strategy or investment in naval IT infrastructure.

What is the significance of the contract being awarded in the District of Columbia (DC)?

The contract being awarded in the District of Columbia (DC) signifies that the primary place of performance or the administrative base for the contract is located within the DC metropolitan area. This often means that the contractor, Octo Consulting Group, has a physical presence or significant operations there, and the work performed will contribute to the local economy through employment and business activity. For the Department of the Navy, it may indicate that the services are related to headquarters functions, policy development, or specific operational units based in or managed from the DC area. It also influences the geographic scope of potential oversight and the workforce pool available to the contractor.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002419Q4315

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $29,803,965

Exercised Options: $29,572,221

Current Obligation: $29,382,471

Actual Outlays: $715,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0234W

IDV Type: FSS

Timeline