DoD's $2.9M IT Support Contract Awarded to DecisionPoint Corp for Norfolk Naval Shipyard

Contract Overview

Contract Amount: $2,921,941 ($2.9M)

Contractor: Decisionpoint Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2027-01-11

Contract Duration: 368 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NORFOLK NAVAL SHIPYARD C109 IT SUPPORT SERVICES

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to DECISIONPOINT CORPORATION for work described as: NORFOLK NAVAL SHIPYARD C109 IT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for IT support services, a critical function for naval operations. 3. The duration of the contract is approximately one year, indicating a need for ongoing support. 4. The award value of $2.92 million falls within a moderate spending range for IT services. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The contractor, DecisionPoint Corporation, has secured this award, indicating past performance or competitive advantage.

Value Assessment

Rating: good

The contract value of approximately $2.92 million for a one-year IT support services period appears reasonable when benchmarked against similar government IT service contracts. While specific per-unit cost data is not provided, the overall award amount suggests a competitive pricing strategy was likely employed given the full and open competition. The firm-fixed-price structure further supports value for money by incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had restrictions, the final award was made after a broad competitive process. The presence of 6 bidders suggests a healthy level of competition, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this IT support contract is beneficial for taxpayers as it likely drove down the final price and ensured the government received competitive offers for essential services.

Public Impact

Naval operations at Norfolk Naval Shipyard will benefit from enhanced IT support. The contract ensures the continuity of critical IT infrastructure and services. The services delivered will support the daily functions and readiness of the shipyard. The geographic impact is focused on the Norfolk Naval Shipyard in Virginia. The contract supports the IT workforce, potentially through DecisionPoint Corporation's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single vendor for critical IT infrastructure could pose a risk if performance issues arise.
The specific scope of 'IT Support Services' needs clear definition to avoid scope creep and cost overruns.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type aligns incentives for efficient service delivery.
The contractor, DecisionPoint Corporation, has experience in government contracting.
The contract duration provides stability for essential IT support services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The federal government is a major consumer of these services, with spending often concentrated in areas like defense, intelligence, and civilian agency modernization. Benchmarks for similar IT support contracts vary widely based on scope, duration, and complexity, but this award appears to be within a typical range for a specialized naval facility.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price nature provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases. The Department of the Navy's Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Shipyard IT Modernization Programs
Department of Defense IT Infrastructure Support
Computer Systems Design Services Contracts
Information Technology Services for Military Branches

Risk Flags

Potential for performance issues impacting critical naval operations.
Risk of scope creep in a firm-fixed-price contract.
Dependence on contractor's cybersecurity practices for sensitive naval data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to DECISIONPOINT CORPORATION. NORFOLK NAVAL SHIPYARD C109 IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DECISIONPOINT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2026-01-08. End: 2027-01-11.

What is DecisionPoint Corporation's track record with the Department of Defense and specifically the Department of the Navy?

DecisionPoint Corporation has a history of securing contracts with the Department of Defense, including various branches and agencies. Their awards often span IT services, professional services, and logistics support. For the Department of the Navy, their track record likely includes similar IT support and systems integration contracts, demonstrating a familiarity with naval operational requirements and procurement processes. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide further insight into their capability to execute this specific award effectively. Their presence in contract award databases can offer a quantitative view of their engagement with the Navy and DoD.

How does the $2.92 million award compare to other IT support contracts at naval shipyards?

The $2.92 million award for approximately one year of IT support services at Norfolk Naval Shipyard is a moderate-sized contract within the broader landscape of federal IT spending. Compared to large-scale IT modernization projects or enterprise-wide system deployments, this contract is focused on specific support functions for a single facility. However, when benchmarked against similar IT support contracts for specialized naval facilities or regional commands, it appears to be within a typical range. Factors influencing this comparison include the specific services required (e.g., help desk, network maintenance, cybersecurity support), the number of users supported, and the criticality of the systems involved. Without detailed service descriptions, a precise comparison is difficult, but the value suggests a focused scope of work.

What are the primary risks associated with this firm-fixed-price IT support contract?

The primary risks associated with this firm-fixed-price IT support contract, while generally favorable for cost control, center on potential performance deficiencies and scope management. If DecisionPoint Corporation under-resourced the contract or faces unforeseen technical challenges, the quality or timeliness of IT support could suffer, impacting naval operations. Conversely, the government must ensure the scope of work is clearly defined to prevent 'scope creep,' where additional services are requested without corresponding adjustments to price or schedule, which can negate the benefits of a fixed price. There's also a risk of the contractor prioritizing less critical tasks if faced with resource constraints. Effective contract management and oversight are crucial to mitigate these risks.

What is the expected effectiveness of DecisionPoint Corporation in delivering IT support at Norfolk Naval Shipyard?

The expected effectiveness of DecisionPoint Corporation in delivering IT support at Norfolk Naval Shipyard is predicated on several factors. Firstly, the award under full and open competition with six bidders suggests they were among the most competitive offers, implying a strong value proposition. Secondly, their status as a contractor implies they have met the basic qualifications and possess the necessary technical capabilities. The firm-fixed-price contract structure incentivizes them to deliver services efficiently. However, true effectiveness will depend on their specific technical expertise relevant to the shipyard's systems, their project management approach, and their ability to adapt to the unique operational environment of a naval facility. Past performance data, if available, would offer a more concrete indicator of their likely effectiveness.

How has federal spending on computer systems design services like this evolved over the past five years?

Federal spending on computer systems design services has generally seen a consistent upward trend over the past five years, driven by the ongoing need for IT modernization, cybersecurity enhancements, and digital transformation across government agencies. The Department of Defense, in particular, represents a significant portion of this spending due to the complexity and critical nature of its technological infrastructure. While specific figures fluctuate annually based on budget allocations and emerging technological requirements, the overall demand for these services remains robust. Factors such as cloud migration, data analytics, artificial intelligence integration, and enhanced network security continue to fuel this market, making contracts like the one awarded to DecisionPoint Corporation a recurring necessity for maintaining operational readiness.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 RUSSELL AVE, GAITHERSBURG, MD, 20877

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

Financial Breakdown

Contract Ceiling: $6,103,971

Exercised Options: $2,921,941

Current Obligation: $2,921,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0013

IDV Type: GWAC

Timeline