DoD's $20.6M Logistics IT contract awarded to SevTech, LLC for Naval Systems Command support

Contract Overview

Contract Amount: $20,588,273 ($20.6M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-17

End Date: 2026-08-16

Contract Duration: 1,095 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER FOR LOGISTICS IT INTEGRATION AND SUPPORT (LIIS) PORTFOLIO INTEGRATION (PI) WILL PROVIDE PI AND SUPPORT SERVICES TO CAPABILITY GROUPS ACROSS ALL NAVAL SYSTEMS COMMANDS (SYSCOMS) AND NAVAL OPERATIONAL FORCES (NOF).

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to SEV1TECH, LLC for work described as: TASK ORDER FOR LOGISTICS IT INTEGRATION AND SUPPORT (LIIS) PORTFOLIO INTEGRATION (PI) WILL PROVIDE PI AND SUPPORT SERVICES TO CAPABILITY GROUPS ACROSS ALL NAVAL SYSTEMS COMMANDS (SYSCOMS) AND NAVAL OPERATIONAL FORCES (NOF). Key points: 1. Contract focuses on critical IT integration and support for naval logistics across multiple commands. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1095 days (3 years) indicates a medium-term commitment. 4. Performance-based contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost management. 5. The primary service area is Engineering Services, aligning with IT integration needs. 6. Virginia is the primary state for performance, indicating a concentrated geographic impact.

Value Assessment

Rating: good

The contract's value of approximately $20.6 million over three years for IT integration and support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, necessitates close monitoring of costs to ensure value for money. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

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 5 bids suggests a healthy level of interest and competition for this significant IT support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to obtain the best possible price and service for the required IT integration and support.

Public Impact

Naval Systems Commands (SYSCOMs) and Naval Operational Forces (NOF) will benefit from improved IT integration and support. Services delivered include portfolio integration and ongoing support for critical logistics IT systems. The primary geographic impact is concentrated in Virginia, where performance is expected. The contract supports the operational readiness and efficiency of naval logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
Reliance on a single task order for a significant IT portfolio could present a single point of failure if not properly managed.
The specific IT systems being integrated are not detailed, posing a potential risk if integration complexity is underestimated.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract is performance-based, aligning contractor incentives with government objectives.
The task order is part of a larger framework (likely IDIQ), suggesting established processes for oversight.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on IT integration and support for defense logistics. The market for defense IT services is substantial, driven by the need for advanced technological capabilities and secure systems. Comparable spending benchmarks for similar IT support and integration services within the Department of Defense often run into tens or hundreds of millions of dollars annually, depending on the complexity and scale of the systems involved. This contract represents a significant, but not unusually large, investment in maintaining and enhancing critical naval IT infrastructure.

Small Business Impact

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

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers, who are responsible for ensuring performance, cost control, and adherence to contract terms. As a task order under a larger contract vehicle, there may be established oversight mechanisms and reporting requirements. Transparency is typically maintained through contract databases and reporting, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Logistics IT Modernization Programs
Defense Information Systems Agency (DISA) Support Contracts
Department of Defense Enterprise IT Services
Naval Sea Systems Command (NAVSEA) IT Support
Operational Technology Integration Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of integration complexity being underestimated.
Dependency on contractor performance for critical naval functions.
Cybersecurity risks during IT portfolio integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to SEV1TECH, LLC. TASK ORDER FOR LOGISTICS IT INTEGRATION AND SUPPORT (LIIS) PORTFOLIO INTEGRATION (PI) WILL PROVIDE PI AND SUPPORT SERVICES TO CAPABILITY GROUPS ACROSS ALL NAVAL SYSTEMS COMMANDS (SYSCOMS) AND NAVAL OPERATIONAL FORCES (NOF).

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 $20.6 million.

What is the period of performance?

Start: 2023-08-17. End: 2026-08-16.

What is SevTech, LLC's track record with similar large-scale IT integration contracts within the Department of Defense?

SevTech, LLC's track record with large-scale IT integration contracts within the Department of Defense is a key factor in assessing this award. While specific details of their past performance on contracts of this magnitude are not provided in the summary data, their ability to win a competitive bid for this task order suggests they have demonstrated relevant capabilities and experience. A deeper dive into their contract history, past performance reviews, and any reported issues or successes on similar projects would provide a more comprehensive understanding of their reliability and expertise in handling complex IT integration and support for naval commands. Government contract databases and past performance information systems would be the primary sources for this analysis.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex projects where the scope may evolve or is not fully defined at the outset, such as IT integration. It allows the contractor to recover all allowable costs plus a predetermined fixed fee, providing flexibility. However, compared to Fixed Price contracts, CPFF inherently carries a higher risk of cost overruns for the government if not rigorously managed. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty but are less suitable for evolving scopes. Cost Plus Incentive Fee (CPIF) could offer better cost control by incentivizing efficiency. For this contract, effective oversight, detailed cost tracking, and clear performance metrics are crucial to ensure value for money under the CPFF arrangement.

What are the specific risks associated with integrating IT portfolios across multiple Naval Systems Commands and Operational Forces?

Integrating IT portfolios across multiple Naval Systems Commands (SYSCOMs) and Naval Operational Forces (NOF) presents several significant risks. These include technical complexity arising from disparate legacy systems, data compatibility issues, cybersecurity vulnerabilities introduced during integration, and potential resistance to change from different organizational units. Schedule delays are common due to unforeseen technical challenges or bureaucratic hurdles. Furthermore, ensuring seamless interoperability and maintaining operational effectiveness during the transition period requires meticulous planning and execution. The success of this contract hinges on the contractor's ability to navigate these complexities effectively and mitigate risks through robust project management and technical expertise.

What historical spending patterns exist for IT integration and support services within the Department of the Navy for similar operational requirements?

Historical spending patterns for IT integration and support services within the Department of the Navy for similar operational requirements indicate a substantial and consistent investment in maintaining and upgrading its complex IT infrastructure. While the specific amount for this task order is $20.6 million, the Navy, as part of the DoD, allocates billions annually to IT services, encompassing everything from network infrastructure and cybersecurity to software development and system integration. Spending often fluctuates based on modernization initiatives, emerging threats, and strategic priorities. Analyzing past contracts for portfolio integration, logistics IT support, and command system upgrades can reveal trends in contract values, durations, and the types of services most frequently procured, providing a benchmark for current spending.

How will the success of this IT integration task order impact the overall efficiency and readiness of naval logistics operations?

The successful integration and support of the logistics IT portfolio under this task order are critical for enhancing the overall efficiency and readiness of naval logistics operations. Improved IT integration can lead to better data visibility, streamlined workflows, reduced manual processes, and faster decision-making capabilities. This directly translates to more efficient supply chain management, optimized resource allocation, and quicker response times to operational needs. Enhanced readiness means the Navy can more effectively support its global missions, ensuring that personnel and equipment are where they need to be, when they need to be. Conversely, integration failures could lead to disruptions, data silos, and diminished operational effectiveness.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6852023R3001

Offers Received: 5

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,463,619

Exercised Options: $23,067,388

Current Obligation: $20,588,273

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $5,049,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7698

IDV Type: IDC

Timeline