DoD's $23.2M IT services contract to Rite-Solutions, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $23,222,194 ($23.2M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-02

End Date: 2026-04-30

Contract Duration: 818 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES IN SUPPORT OF CODE 10 FOR SYSTEMS ENGINEERING, REMEDIATION ANALYSIS, SOFTWARE ENGINEERING, HELPDESK, CYBERSECURITY, NAVY MARINE CORP INTRANET (NMCI) CONTRACT SUPPORT, AND CYBERSECURITY WORKFORCE (CWF).

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to RITE-SOLUTIONS, INC. for work described as: INFORMATION TECHNOLOGY SERVICES IN SUPPORT OF CODE 10 FOR SYSTEMS ENGINEERING, REMEDIATION ANALYSIS, SOFTWARE ENGINEERING, HELPDESK, CYBERSECURITY, NAVY MARINE CORP INTRANET (NMCI) CONTRACT SUPPORT, AND CYBERSECURITY WORKFORCE (CWF). Key points: 1. Contract focuses on critical IT functions including cybersecurity and systems engineering for the Navy. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Duration of 818 days indicates a significant, medium-term engagement. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure cost efficiency. While specific benchmarks for this exact service mix are difficult to ascertain without more granular data, the total value of $23.2 million over approximately 2.2 years suggests a substantial investment. Benchmarking against similar large-scale IT support contracts within the DoD would be necessary for a more precise value-for-money assessment. The absence of detailed performance metrics in the provided data makes a definitive value judgment challenging.

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 3 bidders suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a broader range of technical solutions, but three bidders still provide a basis for price discovery and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives good value for its investment.

Public Impact

The Department of the Navy benefits from essential IT services supporting systems engineering, cybersecurity, and network operations. Personnel within the Navy Marine Corps Intranet (NMCI) environment will receive enhanced support and security. The contract supports the cybersecurity workforce, contributing to the overall digital defense posture of the Navy. Geographic impact is primarily within the Navy's operational areas, though IT services can have a broad reach. Workforce implications include potential support roles and specialized IT expertise provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to achieve a higher fee, requiring robust oversight.
The duration of the contract (818 days) necessitates ongoing performance monitoring to ensure continued value.
Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The contract addresses critical IT needs, including cybersecurity, which is a high-priority area for defense agencies.
The contractor, Rite-Solutions, Inc., is performing work under this contract, suggesting they meet initial requirements.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on engineering, cybersecurity, and support for defense networks. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and modernizing systems. This contract represents a portion of the Department of Defense's broader IT procurement strategy, aiming to ensure operational readiness and cybersecurity resilience. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded to prime contractors by agencies like the DoD.

Small Business Impact

This contract was not awarded as a small business set-aside, and the prime contractor, Rite-Solutions, Inc., is not listed as a small business. Therefore, there are no direct subcontracting implications or benefits specifically for small businesses arising from this prime award. The focus is on large-scale IT service delivery by an established contractor.

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 key oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Navy Marine Corps Intranet (NMCI)
Department of Defense IT Modernization Programs
Cybersecurity Support Services
Systems Engineering Support Contracts
IT Helpdesk Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure
Potential for cost overruns
Complexity of IT services including cybersecurity and systems engineering
Reliance on contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to RITE-SOLUTIONS, INC.. INFORMATION TECHNOLOGY SERVICES IN SUPPORT OF CODE 10 FOR SYSTEMS ENGINEERING, REMEDIATION ANALYSIS, SOFTWARE ENGINEERING, HELPDESK, CYBERSECURITY, NAVY MARINE CORP INTRANET (NMCI) CONTRACT SUPPORT, AND CYBERSECURITY WORKFORCE (CWF).

Who is the contractor on this award?

The obligated recipient is RITE-SOLUTIONS, 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 $23.2 million.

What is the period of performance?

Start: 2024-02-02. End: 2026-04-30.

What is the track record of Rite-Solutions, Inc. in performing similar IT services for the Department of Defense?

Rite-Solutions, Inc. has a history of performing IT services for the federal government, including contracts with the Department of Defense. Analyzing their past performance on similar contracts, particularly those involving cybersecurity, systems engineering, and network support, is crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to meet delivery schedules and technical requirements. A review of their contract history in FPDS reveals multiple awards for IT and engineering services, indicating experience in the sector. However, a deeper dive into the quality and outcomes of these past engagements would provide a more comprehensive understanding of their capabilities and reliability for this specific contract.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, allowing for flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts, as the contractor is reimbursed for actual costs plus a fixed fee. For IT services, fixed-price or cost-reimbursement contracts with cost ceilings might be preferred when requirements are well-defined to incentivize efficiency. The CPFF structure here suggests the Navy anticipated some level of undefined effort or evolving requirements in areas like cybersecurity and systems engineering. Benchmarking against similar CPFF contracts for IT support within the DoD can indicate if the fixed fee and estimated costs are reasonable relative to the scope and risk.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for IT services contracts involving systems engineering, remediation analysis, software engineering, helpdesk, and cybersecurity, KPIs would include metrics such as system uptime, response times for helpdesk tickets, cybersecurity incident resolution times, software defect rates, and successful completion of remediation tasks. The effectiveness of the COR and contract management team in defining, tracking, and enforcing these KPIs is critical for ensuring the contractor delivers value and meets the Navy's operational needs within the agreed-upon cost and schedule.

What is the historical spending trend for similar IT support services within the Department of the Navy?

Historical spending trends for similar IT support services within the Department of the Navy are substantial and generally increasing, driven by the need for advanced cybersecurity, network modernization, and efficient system operations. The Navy, like other branches of the DoD, relies heavily on external contractors for specialized IT expertise. Analyzing past years' spending on contracts for NMCI support, cybersecurity workforce augmentation, and systems engineering would reveal patterns of demand and investment. This specific $23.2 million contract is one component of a much larger IT services budget, reflecting the ongoing commitment to maintaining and enhancing its digital infrastructure and defense capabilities.

What is the potential risk associated with the 'Engineering Services' NAICS code (541330) in the context of this contract?

The NAICS code 541330, 'Engineering Services,' encompasses a broad range of activities. In the context of this IT services contract, the risk associated with this code relates to the complexity and criticality of the engineering tasks, particularly in systems engineering, remediation analysis, and cybersecurity. If the engineering services involve highly specialized or novel technical challenges, there's a risk of schedule delays, cost overruns, or technical failures if the contractor lacks the requisite expertise or if unforeseen technical hurdles arise. Robust technical oversight and clearly defined performance standards are essential to mitigate these risks and ensure the engineering services effectively support the Navy's mission.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660423R3016

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 185 S BROAD ST, PAWCATUCK, CT, 06379

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $60,713,132

Exercised Options: $24,709,627

Current Obligation: $23,222,194

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,598,321

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8424

IDV Type: IDC

Timeline