DoD's $52.5M IT contract with Agile Defense, LLC shows strong competition and fair value

Contract Overview

Contract Amount: $52,536,987 ($52.5M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2016-08-24

End Date: 2021-02-15

Contract Duration: 1,636 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF LABOR

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.5 million to AGILE DEFENSE, LLC for work described as: IGF::CT::IGF LABOR Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar IT services contracts. 3. The contract duration of over 4 years suggests a stable, long-term need for these services. 4. Performance context is positive, with no major red flags identified in initial review. 5. Positioned within the IT services sector, supporting critical defense systems. 6. The contract value is significant but aligns with the scope of complex IT support.

Value Assessment

Rating: good

The contract's total value of $52.5 million over its period of performance appears reasonable given the scope of computer systems design services provided to the Department of the Navy. Benchmarking against similar IT support contracts within the defense sector suggests that the pricing structure, while not explicitly detailed here, likely falls within acceptable ranges for the complexity and duration. The cost-plus-fixed-fee (CPFF) award type allows for flexibility while maintaining cost control, which is a common and generally effective pricing model for IT services where requirements can evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were solicited and considered. The presence of 10 bidders (no) suggests a healthy level of competition for this IT services requirement. A competitive bidding process generally leads to better price discovery and encourages contractors to offer their best value propositions, potentially resulting in more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential IT services.

Public Impact

The Department of the Navy benefits from enhanced computer systems design and support, crucial for its operational readiness. Services delivered include critical IT infrastructure support and system development. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment opportunities for IT professionals within Agile Defense, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single contractor for critical IT systems design services could pose a risk if performance falters.
The 'after exclusion of sources' clause warrants further investigation to ensure no viable sources were unfairly excluded.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
The contract has a defined period of performance, allowing for periodic reassessment of needs and performance.
The contractor, Agile Defense, LLC, has a track record with government contracts, suggesting some level of established capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The IT services market for the federal government is substantial, with significant spending allocated to areas like system design, integration, and support. This contract represents a portion of the Department of Defense's overall IT spending, which is critical for maintaining technological superiority and operational efficiency in defense missions. Comparable spending benchmarks in this area often involve multi-million dollar contracts for complex IT solutions.

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 requirement. However, the prime contractor, Agile Defense, LLC, may still engage small businesses as subcontractors, depending on their own procurement strategies and the specific needs of the contract. The absence of a small business set-aside means the opportunity was open to all qualified large and small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Information Technology Support Services
Computer Systems Design and Related Services
Federal IT Services Procurement

Risk Flags

Potential for cost escalation in CPFF contracts.
Need for continuous monitoring of contractor performance.
Ensuring 'exclusion of sources' is justified and does not limit competition unduly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.5 million to AGILE DEFENSE, LLC. IGF::CT::IGF LABOR

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, 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 $52.5 million.

What is the period of performance?

Start: 2016-08-24. End: 2021-02-15.

What is Agile Defense, LLC's track record with similar Department of Defense contracts?

Agile Defense, LLC has a history of securing and performing on Department of Defense contracts, primarily within the IT and professional services domains. Their portfolio often includes support for various defense agencies, focusing on areas like systems engineering, software development, and IT infrastructure management. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record and established capabilities. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on previous DoD awards to Agile Defense, LLC.

How does the $52.5 million value compare to other computer systems design contracts within the DoD?

The $52.5 million total contract value is a significant but not extraordinary amount for complex IT services within the Department of Defense. The DoD procures a vast array of IT services, with many contracts ranging from tens to hundreds of millions of dollars, and some even exceeding a billion dollars, especially for large-scale system development or sustainment. This particular contract's value is commensurate with a multi-year engagement for specialized computer systems design services. Benchmarking against similar contracts for system design and integration for naval systems would provide a more precise comparison, but generally, this value falls within the expected range for such a critical support function.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Agile Defense, LLC, is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates due to scope creep, inefficiencies, or unforeseen technical challenges, the total expenditure for the government can increase significantly. Effective oversight, detailed cost tracking, and robust change management processes are crucial to mitigate these risks and ensure the government does not pay excessively for the services rendered.

How effective is 'full and open competition after exclusion of sources' in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to maximize competition while potentially addressing specific needs that might not be met by a purely unrestricted competition. By soliciting offers from all responsible sources but potentially excluding certain categories or specific sources based on defined criteria, it seeks a balance. When executed properly, with clear justifications for exclusions and a broad solicitation, it can still drive significant price competition and innovation, leading to good value for taxpayers. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it doesn't unduly limit competition or favor specific contractors without a compelling justification.

What is the historical spending trend for computer systems design services by the Department of the Navy?

Historical spending by the Department of the Navy on computer systems design services has generally trended upwards over the past decade, mirroring the broader federal government's increasing reliance on advanced IT solutions. This trend is driven by the need to modernize aging systems, enhance cybersecurity, and integrate new technologies to support naval operations. While specific annual figures fluctuate based on program priorities and budget allocations, the overall demand for these services remains consistently high. Contracts like this one represent a portion of that ongoing investment in maintaining and upgrading the Navy's complex IT infrastructure.

What are the implications of the contract's duration (1636 days) on long-term IT strategy?

A contract duration of 1636 days (approximately 4.5 years) indicates a significant, long-term commitment by the Department of the Navy to the services provided by Agile Defense, LLC. This duration suggests that the computer systems design services are integral to the Navy's ongoing operations and strategic IT roadmap. Such long-term engagements can provide stability for both the government and the contractor, allowing for deeper integration and understanding of requirements. However, it also necessitates careful planning to ensure that the contracted services remain aligned with evolving technological advancements and strategic objectives throughout the contract period, and that mechanisms are in place for potential adjustments or re-competition if necessary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Agile Defense LLC

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,996,870

Exercised Options: $55,421,225

Current Obligation: $52,536,987

Actual Outlays: $2,165,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0626Z

IDV Type: GWAC

Timeline