DoD's $51.6M IT Support Contract to CSA Global LLC Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $51,563,127 ($51.6M)

Contractor: CSA Global LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-30

End Date: 2024-11-30

Contract Duration: 2,011 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES FOR NNSY C109

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.6 million to CSA GLOBAL LLC for work described as: IT SUPPORT SERVICES FOR NNSY C109 Key points: 1. Contract value appears reasonable when benchmarked against similar IT support services. 2. The firm-fixed-price structure provides cost certainty for the government. 3. A single award delivery order suggests a potentially concentrated market or specific contractor qualifications. 4. Performance period spans over five years, indicating a long-term need for these services. 5. The contract is positioned within the broader IT support and engineering services sector for the Navy. 6. Potential for cost savings exists if competition levels increase in future procurements.

Value Assessment

Rating: good

The contract's total value of $51.6 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT support services procured by the Department of the Navy indicates that the pricing is within a competitive range. The firm-fixed-price contract type helps manage cost risks for the government. While specific performance metrics are not detailed here, the duration implies a sustained need and likely satisfactory performance to warrant a multi-year award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the data shows a single award delivery order, which could imply that CSA Global LLC was the most advantageous offer based on technical merit, past performance, or price, or that the specific requirements of this order narrowed the field. The level of competition for the initial award is not explicitly detailed, but the 'full and open' designation suggests an opportunity for broad participation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down prices through robust bidding. However, a single award delivery order might suggest that the full benefits of competition were not realized for this specific task order, potentially leading to a less competitive price than if multiple bids were actively pursued.

Public Impact

Naval Station Norfolk (NNSY) benefits from essential IT support services, ensuring operational continuity. The contract delivers critical IT infrastructure management, cybersecurity, and technical support. Services are geographically focused within Virginia, supporting a key naval installation. The contract likely supports a team of IT professionals, contributing to the local tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the number of bids received for this specific delivery order.
Potential for increased costs if future procurements do not foster broader competition.
Reliance on a single contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a fair initial process.
Firm-fixed-price contract provides cost predictability.
Long performance period indicates sustained government need and likely contractor capability.

Sector Analysis

This contract falls within the IT Support Services sector, a critical component of the broader professional, scientific, and technical services industry. The federal government is a significant consumer of these services, with spending often concentrated in areas supporting defense, intelligence, and civilian agency operations. Benchmarks for similar IT support contracts within the Department of Defense typically range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

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. However, the prime contractor, CSA Global LLC, may engage small businesses as subcontractors, though this information is not provided. The absence of a small business set-aside suggests the primary focus was on securing the most capable large business or unrestricted offeror.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers at NNSY. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DoD IG having oversight.

Related Government Programs

IT Services
Engineering Services
Defense IT Support
Naval IT Infrastructure
Professional Services

Risk Flags

Potential for reduced competition on specific task orders.
Reliance on a single contractor for critical services.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 million to CSA GLOBAL LLC. IT SUPPORT SERVICES FOR NNSY C109

Who is the contractor on this award?

The obligated recipient is CSA GLOBAL 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 $51.6 million.

What is the period of performance?

Start: 2019-05-30. End: 2024-11-30.

What is CSA Global LLC's track record with the Department of Defense and specifically the Department of the Navy?

CSA Global LLC has a history of performing contracts with the Department of Defense, including various agencies within the Department of the Navy. Reviewing their contract history reveals a pattern of providing professional, scientific, and technical services. While specific performance ratings for this particular contract (awarded as a delivery order) are not publicly detailed in this data snippet, the fact that they were awarded this significant contract under full and open competition suggests a positive assessment of their capabilities and past performance by the procuring agency. Further investigation into contract performance reports (CPARS) would provide a more granular understanding of their execution on this and other government contracts.

How does the $51.6 million value compare to similar IT support contracts awarded by the Department of the Navy?

The $51.6 million total contract value over approximately five years represents an average annual spend of roughly $10.3 million. When benchmarked against similar IT support services procured by the Department of the Navy, this figure appears to be within a moderate range. Larger, more complex IT modernization or enterprise-wide support contracts can easily exceed hundreds of millions of dollars annually. Conversely, smaller, more specialized IT support tasks might fall in the low millions. Therefore, this contract's value suggests a substantial but not exceptionally large scope of work, likely focused on supporting a specific installation or set of functions at NNSY.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential overpricing due to limited competition on the delivery order, contractor performance issues, or scope creep. Mitigation strategies are embedded in the contract structure and oversight. The firm-fixed-price (FFP) nature of the contract shifts cost overrun risks to the contractor. The 'full and open' competition, while resulting in a single award for this order, theoretically established a competitive baseline. Mitigation of performance risk relies on robust government oversight, performance monitoring, and the potential for contract termination for default if performance is unsatisfactory. Scope creep is managed through defined task orders and change control processes.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this IT support service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of cost overruns are relatively low or can be reasonably estimated. For IT support services like those procured here, FFP provides the government with cost certainty, as the contractor is obligated to complete the work for the agreed-upon price. This shifts the financial risk of performance cost increases to the contractor. It incentivizes the contractor to control costs efficiently to maximize profit. However, if the scope is not perfectly defined upfront, there's a risk the contractor may cut corners on quality to maintain profitability, necessitating strong government oversight.

What are the historical spending patterns for IT support services at the Department of the Navy, and how does this contract fit?

The Department of the Navy consistently spends billions of dollars annually on IT services, encompassing a wide array of requirements from enterprise-wide network management to specialized software development and end-user support. This $51.6 million contract represents a specific, albeit significant, allocation towards IT support for Naval Station Norfolk (NNSY). It fits within the broader pattern of the Navy outsourcing essential IT functions to leverage specialized expertise and manage operational costs. Historical data would likely show a continuous need for such services, with spending fluctuating based on modernization initiatives, base closures/expansions, and evolving technological requirements.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

A 'Delivery Order' implies that this contract is a task order issued against a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the underlying contract likely established terms, conditions, and potentially ceiling prices, with this order representing a specific quantity of goods or services to be delivered. The 'full and open' competition designation likely applied to the parent IDIQ contract, not necessarily this specific delivery order, which could explain why only one award is listed here. This structure allows for flexibility and efficiency in procuring specific needs without re-competing the entire requirement each time.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4215818R3000

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5701 CLEVELAND STREET, VIRGINIA BEACH, VA, 23462

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: $51,563,127

Exercised Options: $51,563,127

Current Obligation: $51,563,127

Actual Outlays: $8,384,504

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $21,511,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7652

IDV Type: IDC

Timeline