SEV1TECH, LLC Awarded $24.2M for Marine Corps Enterprise IT Services Support

Contract Overview

Contract Amount: $24,206,059 ($24.2M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-15

End Date: 2022-12-14

Contract Duration: 1,825 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL::IGF THIS TASK ORDER ENCOMPASSES ALL TASKS ASSOCIATED WITH ENTERPRISE SYSTEMS&SERVICES (ES2) INTEGRATED PRODUCT TEAM (IPT) SUPPORTING UNITED STATES MARINE CORPS (USMC) PMM-110 AND TECHNOLOGY SERVICES ORGANIZATIONS (TSO). SPAWARSYSCEN ATLANTIC REQUIRES CONTRACTOR SUPPORT FOR PROGRAM MANAGEMENT, ENGINEERING, TECHNICAL, PRODUCTION, AND LOGISTICS IN SUPPORT OF MARINE CORPS ENTERPRISE INFORMATION TECHNOLOGY SERVICES (MCEITS), TOTAL FORCE INFORMATION SYSTEMS (TFITS), TSO AND MISCELLANEOUS PROJECT EFFORTS

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SEV1TECH, LLC for work described as: IGF::CL::IGF THIS TASK ORDER ENCOMPASSES ALL TASKS ASSOCIATED WITH ENTERPRISE SYSTEMS&SERVICES (ES2) INTEGRATED PRODUCT TEAM (IPT) SUPPORTING UNITED STATES MARINE CORPS (USMC) PMM-110 AND TECHNOLOGY SERVICES ORGANIZATIONS (TSO). SPAWARSYSCEN ATLANTIC REQUIRES CONTRACTOR SUPPORT F… Key points: 1. Contract focuses on critical enterprise systems and services for the USMC. 2. Support includes program management, engineering, technical, production, and logistics. 3. The contract spans five years, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. This award is part of a larger effort to modernize Marine Corps IT infrastructure.

Value Assessment

Rating: good

The contract value of $24.2 million over five years for comprehensive IT enterprise systems and services support for the USMC appears reasonable. Benchmarking against similar large-scale IT support contracts for military branches suggests this pricing is within expected ranges, especially considering the breadth of services required, including program management, engineering, and technical support. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, necessitates close oversight to ensure cost efficiency and prevent scope creep, which is a common risk factor in such agreements.

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 bids. The presence of six bidders suggests a healthy level of competition for this significant IT support requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically drives down costs and ensures the government receives the best value for its investment in critical IT services for the Marine Corps.

Public Impact

The United States Marine Corps (USMC) is the primary beneficiary, receiving essential IT support services. Services delivered include program management, engineering, technical, production, and logistics for enterprise IT systems. The contract supports the PMM-110 and Technology Services Organizations (TSO) within the USMC. Geographic impact is likely concentrated around USMC installations where these enterprise systems are critical. Workforce implications include the potential for skilled IT professionals to be employed by SEV1TECH, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
Long duration of 5 years may lead to potential for cost escalation or outdated technology if not managed proactively.
Reliance on a single contractor for critical enterprise systems support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Multiple bidders (6) suggest a competitive market for these services.
Contract supports modernization efforts for Marine Corps IT infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure and enterprise systems for a major defense agency. The market for defense IT support services is substantial, with significant government spending allocated annually to maintain and upgrade complex systems. This contract represents a portion of that spending, focusing on specialized support for the USMC's unique operational requirements. Comparable spending benchmarks in this sector often involve multi-year, high-value contracts for system integration, maintenance, and lifecycle support.

Small Business Impact

The data indicates 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, SEV1TECH, LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the specific program management offices within the USMC that the services support. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Marine Corps Enterprise Information Technology Services (MCEITS)
Total Force Information Systems (TFITS)
SPAWARSYSCEN Atlantic Contracts
Defense IT Modernization Programs
Enterprise Systems Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may pose risks related to technological obsolescence or performance stagnation.
Potential for scope creep in CPFF contracts if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SEV1TECH, LLC. IGF::CL::IGF THIS TASK ORDER ENCOMPASSES ALL TASKS ASSOCIATED WITH ENTERPRISE SYSTEMS&SERVICES (ES2) INTEGRATED PRODUCT TEAM (IPT) SUPPORTING UNITED STATES MARINE CORPS (USMC) PMM-110 AND TECHNOLOGY SERVICES ORGANIZATIONS (TSO). SPAWARSYSCEN ATLANTIC REQUIRES CONTRACTOR SUPPORT FOR PROGRAM MANAGEMENT, ENGINEERING, TECHNICAL, PRODUCTION, AND LOGISTICS IN SUPPORT OF MARINE CORPS ENTERPRISE INFORMATION TECHNOLOGY SERVICES (MCEITS), TOTAL FORCE INFORMATION SYSTEMS (TFITS), TSO AND MISCELLANEOUS PROJ

Who is the contractor on this award?

The obligated recipient is SEV1TECH, 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 $24.2 million.

What is the period of performance?

Start: 2017-12-15. End: 2022-12-14.

What is SEV1TECH, LLC's track record with similar large-scale IT support contracts for the Department of Defense?

Assessing SEV1TECH, LLC's track record requires a deeper dive into their contract history with the Department of Defense and other federal agencies. While this specific award is for $24.2 million, it's crucial to examine past performance on contracts of similar scope, complexity, and value. Key indicators include on-time delivery, adherence to budget, quality of service, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would be vital to gauge their reliability and expertise in providing enterprise IT services, program management, and engineering support within the defense sector. A history of successful contract completions would bolster confidence in their ability to meet the USMC's requirements.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for IT services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility for both the government and the contractor. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF carries higher risk for the government regarding cost control, as the contractor has less incentive to minimize expenses beyond what's necessary to achieve the fixed fee. Conversely, FFP contracts place cost risk on the contractor but offer less flexibility. The primary risk with CPFF is potential cost overruns if the contractor's costs exceed estimates, or if scope creep occurs without adequate government oversight and modification of the contract. Robust monitoring of expenditures and clear definition of deliverables are essential to mitigate these risks.

What are the potential risks associated with relying on a single contractor for critical Marine Corps enterprise IT services over a five-year period?

Relying on a single contractor, SEV1TECH, LLC, for critical Marine Corps enterprise IT services over five years presents several potential risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change. Secondly, a lack of ongoing competition could reduce the contractor's incentive to innovate or maintain optimal service levels. Thirdly, if the contractor experiences financial instability, key personnel departures, or significant operational issues, it could lead to disruptions in essential IT services, impacting Marine Corps readiness and operations. Finally, over a long period, the technology landscape can shift rapidly; a single vendor might struggle to keep pace with advancements unless contractually incentivized and managed effectively to do so.

How does this contract align with broader USMC IT modernization goals and spending patterns?

This contract for Enterprise Systems & Services (ES2) Integrated Product Team (IPT) support directly aligns with the USMC's ongoing efforts to modernize its IT infrastructure and enhance its digital capabilities. The focus on PMM-110 and Technology Services Organizations (TSO) indicates support for core IT functions essential for operational effectiveness and administrative efficiency. The $24.2 million award over five years suggests a significant, sustained investment in maintaining and improving these critical systems. This spending pattern is consistent with defense-wide trends prioritizing digital transformation, cybersecurity, and integrated information systems to support a modern fighting force. The contract's scope implies a move towards more unified and robust IT service delivery across the Marine Corps.

What is the significance of the NAICS code 541330 (Engineering Services) for this contract, and what does it imply about the services provided?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' signifies that the primary nature of the work involves the application of engineering principles and knowledge to provide services such as designing, developing, and implementing systems, processes, and infrastructure. For this contract, it implies that SEV1TECH, LLC is providing expert technical and engineering support for the Marine Corps' enterprise IT systems. This could encompass system design, integration, testing, cybersecurity engineering, network architecture, and lifecycle management. The classification underscores the highly technical and specialized nature of the support required, going beyond basic IT maintenance to include strategic planning and problem-solving rooted in engineering disciplines.

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: N6523617R3101

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,824,419

Exercised Options: $40,788,727

Current Obligation: $24,206,059

Actual Outlays: $4,370,051

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $112,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7693

IDV Type: IDC

Timeline