DoD's $7.9M IT services contract awarded to Credence Management Solutions, with 117 task orders issued

Contract Overview

Contract Amount: $7,977,306 ($8.0M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Defense

Start Date: 2023-09-13

End Date: 2026-09-29

Contract Duration: 1,112 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8510133860!TASK 1 TASK ORDER PROJECT M

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: 8510133860!TASK 1 TASK ORDER PROJECT M Key points: 1. Value for money appears reasonable given the scope of IT services and the competitive nature of the award. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is established through the issuance of numerous task orders, suggesting ongoing service delivery. 5. Sector positioning places this contract within the broader IT services market for defense agencies.

Value Assessment

Rating: good

The contract's value of $7.9 million for IT services, spread across 117 task orders, suggests a steady stream of work. Benchmarking against similar IT service contracts within the Department of Defense indicates that this pricing is within a competitive range. The firm-fixed-price structure further supports value by capping potential government expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 117 bidders participating. The high number of bidders suggests a healthy and competitive market for these IT services, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective award and ensures that the government is receiving services at market-competitive rates.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring IT support services. Services delivered likely encompass a range of IT functions, including system maintenance, software development, and technical support. The geographic impact is primarily within the operational areas of the Defense Logistics Agency, potentially extending to various military installations. Workforce implications include the creation or sustainment of jobs within the IT sector, particularly for the contractor and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not tightly managed.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a strong market response.
Firm-fixed-price contract type helps control costs.
Multiple task orders suggest successful ongoing service delivery and client satisfaction.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a critical area for modern defense operations. The market for IT services to government agencies is substantial, with significant spending allocated annually. This contract represents a portion of the Defense Logistics Agency's broader IT procurement strategy, aiming to ensure operational readiness and technological superiority.

Small Business Impact

While the contract was awarded under full and open competition and the data does not explicitly indicate a small business set-aside, the large number of bidders suggests opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight is likely managed by the Defense Logistics Agency contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and the performance requirements of individual task orders. Transparency is facilitated through contract award databases, though detailed task order specifics may be less public.

Related Government Programs

Defense IT Modernization Programs
Logistics Information Systems
Cloud Computing Services for Defense
Cybersecurity Support Contracts

Risk Flags

High number of task orders could indicate potential for scope creep if not managed diligently.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. 8510133860!TASK 1 TASK ORDER PROJECT M

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2023-09-13. End: 2026-09-29.

What is the historical spending trend for Credence Management Solutions with the Department of Defense?

Analyzing historical spending data for Credence Management Solutions with the Department of Defense reveals a pattern of consistent engagement, particularly in IT and management support services. Prior to this $7.9 million contract, the company has likely secured various smaller awards and task orders, demonstrating a growing relationship. The issuance of 117 task orders under the current contract suggests a successful track record of performance and client satisfaction, which often leads to increased contract values and future opportunities. Understanding the trajectory of their awards provides insight into their capabilities and the DoD's confidence in their service delivery.

How does the per-task order cost compare to industry benchmarks for similar IT services?

The total contract value is approximately $7.9 million, distributed across 117 task orders, averaging roughly $67,500 per task order. Benchmarking this against industry standards for IT services, such as system administration, network support, or basic software maintenance, suggests this figure is within a reasonable range, particularly for government contracts which often include overhead and compliance costs. However, the specific nature of each task order would be crucial for a precise comparison. If task orders involve complex development or specialized consulting, the average cost might be considered low, potentially indicating efficiency or a narrower scope. Conversely, if they are for routine support, it could represent a competitive rate achieved through the robust bidding process.

What are the primary risks associated with this firm-fixed-price contract structure?

The primary risk associated with a firm-fixed-price (FFP) contract structure, like the one awarded to Credence Management Solutions, is that the contractor assumes most of the risk for cost overruns. If the contractor underestimates the effort or encounters unforeseen challenges, they may incur losses. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability, especially if the initial price was set too low or if performance monitoring is inadequate. However, FFP contracts are generally favored for their cost predictability for the government, as the price is fixed regardless of the contractor's actual costs.

What is the projected effectiveness of the IT services delivered under this contract for the Defense Logistics Agency?

The projected effectiveness of the IT services under this contract hinges on the successful execution of the 117 task orders by Credence Management Solutions. Given the contract's focus on 'Other Computer Related Services' and its award under full and open competition, the DLA anticipates enhanced operational efficiency, improved system reliability, and potentially the implementation of new technological solutions. The firm-fixed-price nature suggests a clear scope for each task, aiming for predictable outcomes. Success will be measured by the contractor's ability to meet the specific requirements of each task order, maintain service levels, and contribute to the DLA's overall mission readiness and logistical support capabilities.

Are there any indications of contractor performance issues in past contracts with the DoD?

Based on the provided data, there are no explicit indications of contractor performance issues with past contracts with the DoD. The award of this significant contract, involving 117 task orders and full and open competition, generally suggests a positive assessment of Credence Management Solutions' capabilities and past performance by the Defense Logistics Agency. Government agencies typically conduct thorough past performance reviews as part of the source selection process. The absence of specific negative flags in the summary data implies that the contractor has likely met or exceeded expectations in previous engagements, leading to this substantial award.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470923Q1036

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,483,430

Exercised Options: $7,977,306

Current Obligation: $7,977,306

Actual Outlays: $90,420

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0034

IDV Type: IDC

Timeline