EOP Spends $35.7M on IT Operations Support Services with Digital Management LLC

Contract Overview

Contract Amount: $35,704,205 ($35.7M)

Contractor: Digital Management LLC

Awarding Agency: Executive Office of the President

Start Date: 2011-09-12

End Date: 2017-12-29

Contract Duration: 2,300 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: IT OPERATIONS&MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

Executive Office of the President obligated $35.7 million to DIGITAL MANAGEMENT LLC for work described as: IT OPERATIONS&MAINTENANCE SUPPORT SERVICES Key points: 1. Digital Management LLC secured a significant contract for IT operations support. 2. The contract was awarded under full and open competition after exclusion of sources. 3. This represents a substantial investment in IT infrastructure for the Executive Office of the President. 4. The fixed-price award fee structure suggests performance incentives. 5. The duration of the contract spans over six years.

Value Assessment

Rating: fair

The contract value of $35.7 million over six years averages approximately $5.95 million annually. Benchmarking against similar IT operations support contracts is difficult without more granular data on service scope and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method aims to ensure fair pricing and access to a broad range of qualified vendors.

Taxpayer Impact: The competitive award process likely resulted in a fair market price, minimizing unnecessary taxpayer expenditure for these IT services.

Public Impact

Ensures continuity of critical IT operations for the Executive Office of the President. Supports the technological infrastructure necessary for government functions. The long-term nature of the contract provides stability for IT service delivery. Potential for innovation and efficiency improvements through the award fee structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government operations, with benchmarks varying widely based on the complexity and scope of services required.

Small Business Impact

The contract was awarded to Digital Management LLC, a large business. There is no indication that small businesses were subcontracted or involved in this specific award, suggesting limited direct small business participation.

Oversight & Accountability

The award was made by the Executive Office of the President, indicating high-level oversight. Further details on specific oversight mechanisms and accountability measures would require access to contract performance reports.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, executive-office-of-the-president, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Executive Office of the President awarded $35.7 million to DIGITAL MANAGEMENT LLC. IT OPERATIONS&MAINTENANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DIGITAL MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Executive Office of the President (Executive Office of the President).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2011-09-12. End: 2017-12-29.

What specific IT operations and maintenance services were included in this contract, and how do they align with the EOP's core mission requirements?

The contract specifies 'Computer Systems Design Services' (NAICS 541512), which broadly covers IT operations and maintenance. However, the exact scope of services, such as network management, cybersecurity, help desk support, or system upgrades, is not detailed. Understanding these specifics is crucial to assess how effectively the $35.7 million investment directly supports the Executive Office of the President's critical functions and strategic objectives.

How was the 'award fee' component determined, and what metrics were used to assess Digital Management LLC's performance to justify additional payments?

The contract type is 'FIXED PRICE AWARD FEE,' implying that a base fee was fixed, with potential for additional 'award' fees based on performance. The data does not specify the criteria or metrics used for evaluating performance or the range of potential award fees. Without this information, it's difficult to assess if the fee structure effectively incentivized optimal service delivery or if it led to potentially inflated costs for taxpayers.

What was the competitive landscape for these IT operations support services, and did the 'exclusion of sources' clause limit potential competition or impact pricing?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was initially open, certain sources were excluded, possibly due to specific requirements or prior performance. The impact on competition and pricing is unclear; it could have narrowed the field, potentially increasing costs, or it might have been justified by specific technical needs. A deeper analysis would require understanding the rationale behind the source exclusion.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR FLR 7, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,204,205

Exercised Options: $35,704,205

Current Obligation: $35,704,205

Actual Outlays: $845,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0617Z

IDV Type: GWAC

Timeline

Start Date: 2011-09-12

Current End Date: 2017-12-29

Potential End Date: 2017-12-29 00:00:00

Last Modified: 2022-07-28

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