DoD's $20.3M IT Help Desk Contract Awarded to Nationwide IT Services Inc. for Nationwide Support

Contract Overview

Contract Amount: $20,265,440 ($20.3M)

Contractor: Nationwide IT Services Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-30

End Date: 2026-01-31

Contract Duration: 1,523 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 24X7X365 TIER 0-3 SERVICE SUPPORT/HELP DESK SUPPORT SERVICES.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to NATIONWIDE IT SERVICES INC for work described as: 24X7X365 TIER 0-3 SERVICE SUPPORT/HELP DESK SUPPORT SERVICES. Key points: 1. Contract provides essential 24/7/365 Tier 0-3 service support and help desk services. 2. The contract duration of 1523 days indicates a long-term need for these services. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contractor, Nationwide IT Services Inc., has a track record in IT services. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. The value of the contract is significant, reflecting the critical nature of IT support for the Department of Defense.

Value Assessment

Rating: good

The contract value of approximately $20.3 million over its period of performance appears reasonable for nationwide IT help desk support. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the pricing is within expected ranges, especially considering the 24/7/365 requirement and the complexity of Tier 0-3 support. The Cost Plus Fixed Fee structure, while common, necessitates diligent oversight to ensure costs remain controlled and provide good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This competitive environment helps prevent inflated pricing and encourages innovation in service delivery.

Public Impact

The Department of Defense (DoD) benefits from continuous and reliable IT support, crucial for operational readiness. Service members and civilian personnel across the nation will receive help desk support for IT issues. The contract ensures the availability of critical IT infrastructure and services for military operations. Workforce implications include potential employment opportunities within Nationwide IT Services Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The nationwide scope presents logistical challenges for service delivery and quality assurance.
Reliance on a single contractor for critical IT support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
The contractor, Nationwide IT Services Inc., has experience in providing IT services.
The contract duration suggests a stable, long-term partnership for essential services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and help desk operations. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending dedicated to ensuring the operational continuity of the DoD's IT systems, aligning with broader government efforts to modernize and secure its digital backbone.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the potential for subcontracting opportunities exists. Large IT service contracts often involve a prime contractor working with smaller businesses to fulfill specialized needs or provide regional support. The extent of small business participation will depend on Nationwide IT Services Inc.'s subcontracting plan and the specific requirements of the support services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs are reasonable and allocable to the contract. Transparency will be maintained through regular reporting requirements from the contractor and potential audits by the Defense Contract Audit Agency (DCAA) or the DoD Inspector General.

Related Government Programs

DoD IT Support Services
Federal Help Desk Contracts
Nationwide IT Infrastructure Support
Defense Information Technology Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Nationwide service delivery presents logistical and quality assurance challenges.
Dependence on a single contractor for critical IT support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to NATIONWIDE IT SERVICES INC. 24X7X365 TIER 0-3 SERVICE SUPPORT/HELP DESK SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is NATIONWIDE IT SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2021-11-30. End: 2026-01-31.

What is the track record of Nationwide IT Services Inc. in performing similar large-scale IT support contracts for the federal government?

Nationwide IT Services Inc. has a history of performing IT services for the federal government. While specific details on past performance for contracts of this exact scale and scope (24/7/365 Tier 0-3 support nationwide) would require a deeper dive into contract databases and performance reviews, their ability to win this significant Department of Defense contract suggests they possess the necessary qualifications and experience. Agencies typically evaluate past performance extensively during the source selection process for such critical services. Further analysis would involve examining their performance ratings on previous federal contracts, particularly those involving help desk operations and IT infrastructure support, to gauge their reliability and effectiveness.

How does the per-unit cost or overall value of this contract compare to similar IT help desk contracts awarded by other federal agencies?

Benchmarking this $20.3 million contract against similar federal IT help desk contracts requires careful consideration of scope, duration, service levels, and geographic coverage. Contracts for nationwide, 24/7/365 Tier 0-3 support are inherently complex and costly. Preliminary comparisons suggest that the value is within a reasonable range for such comprehensive services. For instance, other large agencies like the General Services Administration (GSA) or the Department of Homeland Security (DHS) may have awarded contracts in the tens of millions for similar support. However, variations in specific service level agreements (SLAs), the number of users supported, and the complexity of the IT environment can significantly impact pricing. A detailed comparison would involve analyzing the cost per support ticket, cost per user, or cost per hour of support across multiple comparable contracts.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

The primary risks associated with this contract include potential performance issues from the contractor (Nationwide IT Services Inc.), cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, and the inherent risk of relying on a single entity for critical, nationwide IT support. Performance risks can be mitigated through robust Service Level Agreements (SLAs) with defined penalties for non-compliance, regular performance reviews, and strong government oversight. Cost overrun risks in CPFF contracts are managed through detailed cost tracking, auditing, and negotiation of the fixed fee. The risk of single-source reliance is partially addressed by the initial full and open competition, which selected a contractor deemed capable, and by the government's ability to potentially transition services if performance deteriorates significantly. Contingency planning and clear communication channels are also vital.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for ensuring value for money in IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used for complex services where the scope of work may evolve or is difficult to define precisely upfront, such as IT support. It aims to provide value for money by allowing the contractor to be reimbursed for actual costs incurred, plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. If oversight is weak, costs can escalate beyond initial expectations, potentially diminishing the value for money. When managed effectively with strong oversight, CPFF can balance flexibility with cost control.

What are the historical spending patterns for IT help desk and service support within the Department of the Navy or the broader Department of Defense?

Historical spending patterns within the Department of the Navy and the broader Department of Defense for IT help desk and service support services indicate a consistent and substantial investment in these areas. Agencies like the DoD are heavily reliant on robust IT infrastructure, necessitating continuous spending on support functions to maintain operational readiness and cybersecurity. Over the past decade, federal IT spending, including support services, has generally trended upwards, driven by modernization efforts, increasing cyber threats, and the expansion of digital services. Specific contract awards for help desk support often run into the tens or hundreds of millions of dollars annually across various branches and agencies, reflecting the scale of the requirement. This $20.3 million award is consistent with the ongoing need and significant budget allocation for such critical IT functions within the DoD.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523621R3023

Offers Received: 14

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4025 FAIR RIDGE DR STE 300, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,172,977

Exercised Options: $21,172,530

Current Obligation: $20,265,440

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,878,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8160

IDV Type: IDC

Timeline