DoD's $63.7M IT support contract with VSOLVIT LLC awarded under full and open competition

Contract Overview

Contract Amount: $63,734,396 ($63.7M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-28

End Date: 2025-02-28

Contract Duration: 2,072 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.7 million to VSOLVIT LLC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. The contract value of $63.7 million over its period of performance suggests a significant investment in IT support. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The Engineering Services NAICS code (541330) indicates a focus on technical and engineering aspects of IT support. 4. The contract's duration of approximately 2072 days (around 5.7 years) points to a long-term need for these services. 5. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee for profit, which can be suitable for R&D or uncertain scope projects. 6. The presence of 30760 in the 'br' field might indicate a benchmark or reference number for comparison, though its exact meaning is unclear without further context.

Value Assessment

Rating: fair

Benchmarking the value of this $63.7 million IT support contract is challenging without specific details on the services rendered and comparable contracts. The CPFF structure can sometimes lead to higher costs if not tightly managed, as it allows for cost reimbursement. However, if the scope was indeed uncertain or involved significant research and development, this pricing structure might be appropriate. Further analysis would require comparing the per-unit costs or labor rates against industry standards for similar IT support services within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The presence of 3 bidders (indicated by 'no': 3) is a moderate level of competition for a contract of this size and scope.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of Defense benefits from enhanced IT support services, crucial for operational effectiveness. This contract likely supports various IT infrastructure, cybersecurity, and technical assistance functions within the Navy. The geographic impact is primarily within California, where the contract is registered ('sn': 'CALIFORNIA'). The contract may have implications for the IT workforce, potentially creating or sustaining jobs in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not meticulously monitored, potentially impacting overall value.
The specific details of the 'Engineering Services' (NAICS 541330) are broad and require further clarification to fully assess the scope and potential risks.
The 'br': 30760 data point is ambiguous and could represent a risk if it signifies an unfavorable benchmark or reference.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract duration of over 5 years indicates a stable, long-term need for these critical IT services.
The contract is registered in California, potentially benefiting the local IT ecosystem and workforce.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on engineering services related to IT support. The IT services market is vast and highly competitive, with government contracts forming a significant portion. The Department of Defense is a major consumer of IT services, procuring solutions for everything from cybersecurity to data management and infrastructure. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by federal agencies, particularly within the defense sector, to assess cost-effectiveness and pricing structures.

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 mandated by a set-aside. However, the prime contractor, VSOLVIT LLC, may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all eligible businesses, potentially limiting direct opportunities for small businesses unless they are part of larger joint ventures or subcontracting chains.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, the specific agency awarding the contract. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits, especially given the Cost Plus Fixed Fee (CPFF) structure. Transparency is generally facilitated through contract databases like FPDS, which provide basic award details. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Support Services
Engineering Services
Department of Defense IT Procurement
Cost Plus Fixed Fee Contracts
Information Technology Services

Risk Flags

Ambiguous data field ('br')
Potential cost escalation risk with CPFF contract type
Lack of detailed service description for 'Engineering Services'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.7 million to VSOLVIT LLC. INFORMATION TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VSOLVIT 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 $63.7 million.

What is the period of performance?

Start: 2019-06-28. End: 2025-02-28.

What is the specific nature of the 'Engineering Services' provided under this contract?

The contract is categorized under NAICS code 541330, which is 'Engineering Services.' While the data indicates 'INFORMATION TECHNOLOGY SUPPORT SERVICES' as the description, the specific engineering services are not detailed. This could encompass a wide range of activities, such as systems engineering, network architecture design, cybersecurity engineering, software development lifecycle support, or technical consulting. Without a more granular description of the tasks and deliverables, it is difficult to ascertain the precise technical scope and the value proposition of these engineering services. Further investigation into the contract's statement of work (SOW) or task orders would be necessary to understand the specific engineering expertise being leveraged.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not clearly defined or involves research and development, where costs can be uncertain. In a CPFF contract, the government reimburses the contractor for allowable costs and pays a predetermined fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency. For IT support services, FFP is often preferred for well-defined requirements to ensure cost certainty. However, if the IT support involves innovative solutions, complex system integration, or evolving requirements, CPFF might be deemed more appropriate. The key risk with CPFF is potential cost growth if the contractor does not manage expenses diligently, as the government bears the cost risk.

What does the 'br': 30760 data point signify in the context of this contract?

The 'br': 30760 data point is not a standard field in federal procurement data and its meaning is unclear without additional context or a data dictionary specific to the source system. It could potentially represent a benchmark price, a reference number for a specific service category, a contract line item number, or an internal tracking code. If it is intended as a benchmark, its value relative to the total contract award ($63.7M) would need to be analyzed. Without clarification, this data point remains ambiguous and cannot be definitively used for value assessment or risk analysis. It is recommended to consult the originating agency or system documentation for an explanation of this field.

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

To assess VSOLVIT LLC's track record with federal IT support contracts, one would need to analyze their past performance data, including contract values, types, agencies served, and performance ratings. A review of federal procurement databases (like FPDS or SAM.gov) would reveal previous awards to VSOLVIT LLC. Key indicators to examine include the consistency of contract awards in the IT support domain, the size and complexity of previous contracts, any reported performance issues or disputes, and their history with different contract types (e.g., FFP, CPFF, T&M). A strong track record would show successful completion of similar contracts, positive past performance evaluations, and a history of meeting cost, schedule, and performance objectives.

How does the competition level (3 bidders) impact the value for money in this contract?

A competition with 3 bidders for a contract of this magnitude ($63.7M) represents a moderate level of competition. While more bidders generally lead to greater price pressure and potentially better value, three offers can still be sufficient to establish a competitive range. The quality of the bidders and the specific requirements of the solicitation also play a crucial role. If the three bidders were highly qualified and submitted competitive proposals, the government could achieve good value for money. However, if the market for these specialized IT engineering services is inherently limited, or if the solicitation had restrictive requirements, three bidders might indicate less robust competition than ideal, potentially leading to a higher-than-optimal price. A thorough analysis would compare the awarded price against independent government cost estimates and market research.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6426719R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4171 MARKET STREET SUITE 2, VENTURA, CA, 93003

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $66,368,734

Exercised Options: $66,368,734

Current Obligation: $63,734,396

Actual Outlays: $5,767,577

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017815D8491

IDV Type: IDC

Timeline