DoD awards $44M for software maintenance, engineering, and sustainment to VSOLVIT LLC

Contract Overview

Contract Amount: $44,029,791 ($44.0M)

Contractor: Vsolvit LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-01

End Date: 2022-12-31

Contract Duration: 1,613 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO SUSTAIN, FIELD, AND PROVIDE SOFTWARE MAINTENANCE SUPPORT TO THE PMW 150 MFOM PROGRAM OFFICE. THIS SUPPORT INCLUDES SOFTWARE SYSTEMS ENGINEERING, PROJECT MANAGEMENT, STRATEGIC PLANNING AND SUSTAINMENT.

Place of Performance

Location: HENDERSON, CLARK County, NEVADA, 89052

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to VSOLVIT LLC for work described as: TO SUSTAIN, FIELD, AND PROVIDE SOFTWARE MAINTENANCE SUPPORT TO THE PMW 150 MFOM PROGRAM OFFICE. THIS SUPPORT INCLUDES SOFTWARE SYSTEMS ENGINEERING, PROJECT MANAGEMENT, STRATEGIC PLANNING AND SUSTAINMENT. Key points: 1. Contract focuses on critical software systems engineering, project management, and strategic planning. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1613 days indicates a long-term need for these services. 4. VSOLVIT LLC is the sole contractor for this specific set of services. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The geographic location of performance is Nevada.

Value Assessment

Rating: fair

The contract value of $44 million over approximately 4.4 years averages to about $10 million per year. Benchmarking this against similar IT sustainment and engineering contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government pays actual costs plus a fixed fee. This can be less cost-effective than fixed-price contracts if the contractor's costs are higher than anticipated.

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 a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. While competition is present, the specific number of bidders limits the ability to definitively assess if the pricing achieved represents the best possible value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down prices through market forces. However, the actual savings depend on the number and quality of bids received and the government's negotiation strategy.

Public Impact

The PMW 150 program office within the Department of Defense benefits from sustained software capabilities. Services include essential software systems engineering, project management, and strategic planning. The contract supports the operational readiness and modernization of defense systems. The workforce implications are likely within the IT and engineering sectors, potentially in Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Limited number of bidders (3) may not represent the full competitive landscape.
Software sustainment can be prone to scope creep if requirements are not clearly defined.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Long contract duration suggests a stable, ongoing need for critical services.
Focus on sustainment and engineering indicates a commitment to maintaining existing capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense IT systems. The market for defense IT sustainment and engineering is substantial, driven by the continuous need to maintain and upgrade complex military software and hardware. Comparable spending benchmarks would typically be found within broader IT services or defense contracting categories, where annual spending can reach billions.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. This suggests that the primary award was not specifically targeted towards small businesses, and their participation would depend on VSOLVIT LLC's subcontracting decisions. Without explicit clauses, the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) for contract administration. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Software Engineering Services
IT Sustainment Contracts
Program Management Support
Systems Engineering Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited number of bidders may reduce competitive pressure on pricing.
Need for robust oversight to manage contractor costs and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to VSOLVIT LLC. TO SUSTAIN, FIELD, AND PROVIDE SOFTWARE MAINTENANCE SUPPORT TO THE PMW 150 MFOM PROGRAM OFFICE. THIS SUPPORT INCLUDES SOFTWARE SYSTEMS ENGINEERING, PROJECT MANAGEMENT, STRATEGIC PLANNING AND SUSTAINMENT.

Who is the contractor on this award?

The obligated recipient is VSOLVIT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $44.0 million.

What is the period of performance?

Start: 2018-08-01. End: 2022-12-31.

What is VSOLVIT LLC's track record with similar DoD contracts?

VSOLVIT LLC has a history of performing various IT and engineering services for the Department of Defense. Analyzing their past performance on contracts with similar scope, such as software development, sustainment, and systems engineering, is crucial. A review of their contract history would reveal their ability to meet performance requirements, manage costs, and adhere to schedules on comparable projects. Past performance evaluations and any reported issues or successes on previous DoD engagements would provide significant insight into their reliability and capability for this specific contract.

How does the $44 million value compare to similar software sustainment contracts?

The $44 million value for a contract spanning over 1600 days (approximately 4.4 years) represents an average annual value of around $10 million. To benchmark this effectively, one would need to compare it against other Department of Defense contracts for software sustainment, maintenance, and engineering services of similar complexity and duration. Factors such as the criticality of the software, the number of users, the scope of maintenance (e.g., 24/7 support vs. standard business hours), and the specific technologies involved heavily influence pricing. Without these details, a direct comparison is difficult, but the annual spend is within a range typical for specialized IT support for government programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to VSOLVIT LLC, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's actual costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's fee remains constant. This can lead to the contract exceeding its ceiling value if not managed diligently. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are critical to mitigating these risks and ensuring value for the taxpayer.

How effective is the 'full and open competition' strategy in ensuring value for this type of IT service?

The 'full and open competition' strategy is designed to maximize the pool of potential bidders, thereby fostering a competitive environment that theoretically drives down prices and improves service quality. For IT services like software sustainment, this approach is generally effective, as many companies possess the requisite capabilities. However, the actual value realized depends on the number and caliber of bids received. With three bidders in this instance, the competition was present but not extensive. The government's ability to negotiate favorable terms and ensure the chosen contractor offers the best technical solution at a competitive price is paramount to realizing the full value proposition of open competition.

What is the historical spending trend for PMW 150 MFOM program software sustainment?

To assess historical spending trends for the PMW 150 MFOM program's software sustainment, one would need to examine contract awards related to this specific program over several fiscal years. This would involve querying federal procurement databases for all contracts associated with PMW 150 MFOM, filtering for software maintenance, engineering, and sustainment services. Analyzing the total obligated amounts, contract durations, and award types over time would reveal patterns in spending, identify any significant increases or decreases, and potentially highlight shifts in program requirements or contractor performance. This specific award of $44M over 4.4 years provides a data point, but a trend analysis requires a broader historical view.

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: N6523618R3015

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: $45,842,677

Exercised Options: $45,842,677

Current Obligation: $44,029,791

Actual Outlays: $2,948,545

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