DoD's $32.1M IT support contract awarded to VSOLVIT LLC under Seaport NXG MAC

Contract Overview

Contract Amount: $32,104,540 ($32.1M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-30

End Date: 2026-05-29

Contract Duration: 729 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE NSWC, CORONA DIVISION, ANTICIPATES A TASK ORDER REQUIREMENT UNDER THE SEAPORT NXG MAC TO PROVIDE INFORMATION TECHNOLOGY SUPPORT SERVICES TO THE ACQUISITION AND READINESS (AR) AND PERFORMANCE ASSESSMENT (PA) DEPARTMENTS.

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to VSOLVIT LLC for work described as: THE NSWC, CORONA DIVISION, ANTICIPATES A TASK ORDER REQUIREMENT UNDER THE SEAPORT NXG MAC TO PROVIDE INFORMATION TECHNOLOGY SUPPORT SERVICES TO THE ACQUISITION AND READINESS (AR) AND PERFORMANCE ASSESSMENT (PA) DEPARTMENTS. Key points: 1. Contract awarded to VSOLvit LLC for IT support services. 2. Services to be provided to Acquisition and Readiness (AR) and Performance Assessment (PA) departments. 3. Contract falls under the Seaport NXG MAC, indicating a pre-competed framework. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can shift risk to the government. 5. The duration is 729 days, suggesting a medium-term engagement. 6. The award was made under full and open competition. 7. The contract value is approximately $32.1 million.

Value Assessment

Rating: fair

The contract value of $32.1 million for 729 days of IT support services appears within a reasonable range for specialized government IT needs. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The CPFF contract type means the government bears the cost risk, which warrants close monitoring of expenditures to ensure efficiency and prevent cost overruns. Benchmarking against similar IT support contracts within the DoD would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under the Seaport NXG MAC, which is a multiple-award contract vehicle designed for full and open competition. While the specific competition for this task order isn't detailed, the underlying MAC structure implies a competitive environment. The fact that it was competed under a broad MAC suggests multiple qualified vendors had the opportunity to bid, which generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Full and open competition under a MAC framework is beneficial for taxpayers as it allows a wide range of capable contractors to compete, driving down costs and ensuring the government receives competitive pricing for essential IT support services.

Public Impact

The Acquisition and Readiness (AR) and Performance Assessment (PA) departments within the Department of the Navy will benefit from enhanced IT support. Improved IT infrastructure and services are expected to support the operational efficiency of these critical departments. The contract supports the Navy's mission readiness by ensuring robust IT systems. The contract is geographically focused on California, where the NSWC Corona Division is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT support for government acquisition and performance assessment functions. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are crucial for ensuring the operational effectiveness of defense agencies. Benchmarks for similar IT support services within the Department of Defense often range widely based on complexity, security requirements, and duration, but this $32.1M award for a two-year period is a significant investment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, the prime contractor, VSOLVIT LLC, may engage small businesses as subcontractors, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to determine the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Sea Systems Command (NAVSEA) or the specific department receiving the services (AR/PA). The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor costs and ensure adherence to the fixed fee. Transparency is expected through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, task-order, acquisition-readiness, performance-assessment, california, seaport-nxg

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to VSOLVIT LLC. THE NSWC, CORONA DIVISION, ANTICIPATES A TASK ORDER REQUIREMENT UNDER THE SEAPORT NXG MAC TO PROVIDE INFORMATION TECHNOLOGY SUPPORT SERVICES TO THE ACQUISITION AND READINESS (AR) AND PERFORMANCE ASSESSMENT (PA) DEPARTMENTS.

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 $32.1 million.

What is the period of performance?

Start: 2024-05-30. End: 2026-05-29.

What is the specific scope of IT support services required under this contract?

The provided data indicates the contract is for 'Information Technology Support Services' for the Acquisition and Readiness (AR) and Performance Assessment (PA) departments. However, the precise scope of these services is not detailed. This would typically include tasks such as system administration, network management, cybersecurity support, software maintenance, help desk support, and potentially IT project management. A detailed Statement of Work (SOW) would outline the specific deliverables, performance standards, and technical requirements.

How does the $32.1 million contract value compare to similar IT support contracts for DoD departments?

Benchmarking the $32.1 million value requires comparing it against IT support contracts with similar scope, duration (729 days), and complexity for comparable DoD departments. Federal procurement data (like FPDS or SAM.gov) can be queried for similar awards. Given the CPFF structure, the government is paying for actual costs plus a fixed fee. If the scope involves managing complex, mission-critical systems or requires highly specialized personnel, this value could be reasonable. However, if the services are more routine, it might indicate a higher-than-average cost per day or per service unit, warranting further investigation into efficiency.

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

The primary risk of a CPFF contract is that the government bears the majority of the cost risk. While the contractor's profit (the fixed fee) is capped, they are reimbursed for all allowable costs incurred. This can incentivize less cost-conscious behavior from the contractor if oversight is not rigorous. For IT support, risks include scope creep where additional services are requested without proper modification, leading to increased costs beyond the initial estimate, and potential inefficiencies in resource utilization. Effective government oversight, detailed performance metrics, and clear communication channels are crucial to mitigate these risks.

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

Information on VSOLVIT LLC's specific track record for federal IT support contracts is not provided in the initial data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS), the types and values of previous government contracts they have held, and client feedback. Their experience with similar IT services, particularly within the Department of Defense or for acquisition and readiness functions, would be a key indicator of their capability and reliability for this task order.

How does the Seaport NXG MAC structure influence competition and pricing for this task order?

The Seaport NXG is a MAC vehicle designed to streamline the procurement of a wide range of engineering, technical, and programmatic support services for the Navy and Marine Corps. By establishing pre-qualified vendors, it facilitates faster task order awards. For this specific task order, being competed under Seaport NXG implies that multiple vendors already vetted for the MAC had the opportunity to bid. This competitive process within the MAC framework generally leads to better price discovery and potentially more competitive pricing than a sole-source award. However, the level of competition (number of bidders) for this specific task order would provide a clearer picture of its effectiveness.

What are the potential performance implications if IT support services are not adequately delivered?

Inadequate IT support can have significant performance implications for the AR and PA departments. This could range from system downtime affecting daily operations, data loss or corruption, cybersecurity vulnerabilities leading to breaches, delays in critical acquisition processes, and inaccurate performance assessments. For the end-users, it could mean reduced productivity, frustration, and inability to access necessary tools or information. The government's ability to meet its mission objectives related to readiness and performance evaluation could be compromised.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N6426723R3009

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2831 SAINT ROSE PKWY STE 286, HENDERSON, NV, 89052

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $67,386,812

Exercised Options: $34,460,438

Current Obligation: $32,104,540

Actual Outlays: $209,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8820

IDV Type: IDC

Timeline

Start Date: 2024-05-30

Current End Date: 2026-05-29

Potential End Date: 2029-05-29 00:00:00

Last Modified: 2026-02-13

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