DoD's $8.1M IT Support Contract Awarded to Accelgov LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $8,095,210 ($8.1M)

Contractor: Accelgov LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-18

End Date: 2026-05-31

Contract Duration: 773 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DNA UNIFIED COMMUNNICATIONS IT SUPPORT

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to ACCELGOV LLC for work described as: DNA UNIFIED COMMUNNICATIONS IT SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 773 days indicates a medium-term engagement for IT support services. 4. The contract is for Engineering Services, aligning with NAICS code 541330. 5. The award was made by the Department of the Navy, a significant component of the DoD. 6. The contract value of $8.1 million is moderate for IT support services within the federal government.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract requires more detailed cost breakdowns. However, the award value of $8.1 million for approximately two years of IT support services appears within a reasonable range for federal contracts of this nature. Without specific performance metrics or detailed cost data, a definitive value-for-money assessment is challenging. Comparisons to similar IT support contracts within the Department of Defense would provide better context for pricing and overall value.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this IT support requirement. While multiple bidders are positive, the specific number does not necessarily guarantee the lowest possible price, but it does imply that the government sought competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome for this IT support service.

Public Impact

The Department of the Navy benefits from enhanced IT support services, crucial for its operational effectiveness. This contract ensures the continuity and quality of IT infrastructure and communication systems for naval operations. The services delivered are essential for maintaining secure and reliable communication networks within the DoD. The primary beneficiaries are the personnel and systems reliant on robust IT infrastructure managed by Accelgov LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring vigilant oversight.
The limited number of bidders (3) might indicate potential barriers to entry or a niche market for these specific engineering services.

Positive Signals

Awarded through full and open competition, suggesting a fair and accessible bidding process.
The contract is for essential IT support services, critical for the operational readiness of the Department of the Navy.
The fixed fee component of the contract provides some predictability in contractor profit margins.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on engineering services related to unified communications. The federal IT services market is substantial, with agencies continually investing in maintaining and upgrading their technological infrastructure. This contract represents a typical investment in specialized IT support to ensure the effective functioning of critical communication systems within a major defense agency.

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 for small businesses stemming from a set-aside provision. Accelgov LLC, as the prime contractor, may choose to subcontract portions of the work, but this is not mandated by a small business set-aside. The absence of a set-aside means larger businesses were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, focusing on performance deliverables and cost management. Transparency is generally facilitated through contract award databases, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services
Navy Communication Systems Support
Engineering Services Contracts
Cost Plus Fixed Fee IT Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited number of bidders may indicate potential lack of robust competition.
Need for detailed performance metrics to assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to ACCELGOV LLC. DNA UNIFIED COMMUNNICATIONS IT SUPPORT

Who is the contractor on this award?

The obligated recipient is ACCELGOV 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 $8.1 million.

What is the period of performance?

Start: 2024-04-18. End: 2026-05-31.

What is Accelgov LLC's track record with federal IT support contracts?

Information regarding Accelgov LLC's specific track record with federal IT support contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of contract modifications or disputes. Without this historical data, it's difficult to gauge their experience level and reliability for this specific $8.1 million Department of the Navy contract. Further research into federal procurement databases and agency performance records would be necessary to establish their performance history.

How does the $8.1 million value compare to similar IT support contracts within the Department of Defense?

The $8.1 million contract value for approximately two years of IT support services is considered moderate within the Department of Defense (DoD). The DoD procures a vast array of IT services, ranging from small, specialized support tasks to massive enterprise-wide system integrations. Contracts for similar unified communications IT support can vary significantly based on scope, duration, and complexity. While this value is not exceptionally large, it represents a significant investment. Benchmarking against contracts with similar service descriptions, durations, and agency components (like the Department of the Navy) would provide a more precise comparison to assess if the pricing is competitive and reflects fair market value for the services rendered.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Accelgov LLC, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. Inadequate monitoring can lead to the project exceeding its estimated cost ceiling without a commensurate increase in value or scope, ultimately costing taxpayers more than anticipated. Effective management and clear performance metrics are crucial to mitigate this risk.

How effective is full and open competition in ensuring value for money for IT services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT services procurement. By allowing all responsible sources to compete, it fosters a competitive environment where multiple vendors are incentivized to offer their best pricing, technical solutions, and innovative approaches. This broad competition increases the likelihood that the government will receive high-quality services at a fair and reasonable price. The presence of multiple bidders, as seen with the 3 bidders in this case, further supports price discovery and reduces the risk of awarding a contract at an inflated cost. While effective competition requires careful solicitation and evaluation, it remains the gold standard for maximizing taxpayer value.

What is the historical spending trend for Engineering Services (NAICS 541330) within the Department of the Navy?

Analyzing the historical spending trend for Engineering Services (NAICS 541330) within the Department of the Navy requires access to detailed historical procurement data. Generally, the Department of the Navy, as a major component of the DoD, consistently invests significant funds in engineering services to support its complex operations, research, development, and maintenance requirements. Spending in this category can fluctuate based on strategic priorities, modernization efforts, and specific project needs. Without access to specific historical spending figures for NAICS 541330 within the Navy, it's challenging to provide precise trends. However, it is reasonable to assume a sustained and substantial level of expenditure given the Navy's extensive infrastructure and technological demands.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042123R3018

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6701 DEMOCRACY BLVD STE 555, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $34,312,545

Exercised Options: $11,949,226

Current Obligation: $8,095,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D8883

IDV Type: IDC

Timeline