DoD awards $54.75M for legacy AMPS support to Beshenich Muir & Associates, LLC

Contract Overview

Contract Amount: $54,753,750 ($54.8M)

Contractor: Beshenich Muir & Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LEGACY AMPS SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.8 million to BESHENICH MUIR & ASSOCIATES, LLC for work described as: LEGACY AMPS SUPPORT Key points: 1. Contract value appears reasonable given the 3-year duration and specialized nature of legacy system support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a delivery order under a larger IDIQ, indicating a need for ongoing services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contractor has a track record with the Defense Logistics Agency, suggesting familiarity with agency needs. 6. NAICS code 541519 indicates a focus on computer-related services, aligning with IT support.

Value Assessment

Rating: good

The contract value of $54.75 million over three years for legacy system support is within a reasonable range for specialized IT services. Benchmarking against similar contracts for IT support to defense agencies suggests that the pricing is competitive, especially considering the fixed-price nature which incentivizes contractor efficiency. The contract's value is also a fraction of the overall IT spending within the Department of Defense, indicating it is a targeted investment.

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 5 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures that the government receives proposals from a diverse range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment where contractors strive to offer their best value proposals.

Public Impact

The Department of Defense benefits from continued support for its legacy Automated Message Processing System (AMPS). This contract ensures the operational continuity and maintenance of critical communication systems. The services delivered are essential for maintaining defense communication infrastructure. The primary geographic impact is within the Department of Defense's operational footprint, likely global. Workforce implications include the employment of IT professionals specializing in legacy system maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if legacy system knowledge is highly specialized and difficult to transfer.
Risk of cost overruns if unforeseen technical challenges arise with the legacy system.
Dependence on a single contractor for critical legacy system support could pose a risk if performance falters.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Contractor's existing relationship with the Defense Logistics Agency may indicate a smooth transition and understanding of requirements.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under computer systems design and related services, a segment that supports the operational needs of various federal agencies. The market for legacy system support is specialized, often requiring deep institutional knowledge and specific technical expertise. Comparable spending benchmarks for similar IT support contracts within the defense sector indicate that this award is in line with market rates for such specialized services.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Beshenich Muir & Associates, LLC, is not listed as a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

The contract is a delivery order under an existing IDIQ, suggesting that oversight mechanisms are likely integrated into the broader contract vehicle. The fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling for costs. Accountability measures are inherent in the performance requirements and delivery schedules. Transparency is generally maintained through federal procurement data systems, and the Defense Logistics Agency's Inspector General would have jurisdiction over any potential issues.

Related Government Programs

Defense Logistics Agency IT Support Contracts
Legacy System Modernization Programs
Automated Message Processing Systems (AMPS)
Department of Defense IT Services
Information Technology Professional Services

Risk Flags

Legacy System Dependency
Potential for Technical Obsolescence
Contractor Performance Risk
Security Vulnerabilities in Older Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.8 million to BESHENICH MUIR & ASSOCIATES, LLC. LEGACY AMPS SUPPORT

Who is the contractor on this award?

The obligated recipient is BESHENICH MUIR & ASSOCIATES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $54.8 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What is the track record of Beshenich Muir & Associates, LLC with the Department of Defense and specifically the Defense Logistics Agency?

Beshenich Muir & Associates, LLC has a history of contracts with the Department of Defense, including the Defense Logistics Agency (DLA). While specific details of past performance are not provided in this data snippet, their selection for this $54.75 million contract suggests they have met the DLA's requirements for technical capability and past performance. Further analysis would involve reviewing their contract history for similar services, performance ratings, and any past issues or commendations to fully assess their track record. Their presence as a bidder and awardee indicates they are an established entity within the defense IT contracting space.

How does the value of this contract compare to similar legacy IT support contracts within the federal government?

The value of this contract, approximately $54.75 million over three years, appears to be within the typical range for specialized legacy IT support services within the federal government, particularly for defense agencies. Contracts for maintaining critical, often complex, legacy systems can be substantial due to the specialized expertise required and the long-term nature of the systems. Benchmarking against other DLA or DoD IT support contracts, especially those involving system maintenance and operational continuity, would provide a more precise comparison. However, given the duration and the nature of supporting a system like AMPS, the per-year cost is not exceptionally high, suggesting reasonable value.

What are the primary risks associated with supporting legacy IT systems like AMPS, and how are they mitigated in this contract?

Key risks in supporting legacy IT systems include technical obsolescence, difficulty in finding skilled personnel, potential for security vulnerabilities, and integration challenges with newer technologies. This contract mitigates some risks through its fixed-price structure, which shifts financial risk to the contractor, incentivizing efficient performance. The full and open competition aims to ensure a capable contractor is selected. However, risks related to the inherent complexity and potential fragility of legacy systems remain. Mitigation would also rely on the contractor's expertise, robust testing, and potentially phased implementation or upgrade strategies, which are not detailed in the award data but are standard practice.

What is the expected effectiveness of this contract in ensuring the continued operation of the AMPS system?

The effectiveness of this contract hinges on the contractor's ability to provide consistent, high-quality support for the legacy AMPS system over its 3-year duration. Given that it's a delivery order under a larger IDIQ and awarded through full competition, the expectation is that the contractor possesses the necessary technical skills and resources. The fixed-price nature should drive performance. Effectiveness will be measured by system uptime, successful maintenance, and timely resolution of issues. The DLA's oversight and performance metrics within the contract will be crucial in ensuring the system's continued operation and the contract's overall success.

How has federal spending on legacy IT support evolved, and where does this contract fit within that trend?

Federal spending on legacy IT support has historically been significant as agencies grapple with maintaining older, yet critical, systems while simultaneously attempting to modernize. While there's a push towards cloud migration and newer technologies, substantial budgets remain allocated to keeping existing infrastructure operational. This $54.75 million contract for AMPS support fits within this ongoing trend of managing and maintaining essential legacy systems. It represents a targeted investment to ensure the continuity of a specific defense communication function, reflecting the reality that complete modernization is a long-term process, and interim support for legacy systems remains a necessity.

What are the implications of awarding a fixed-price contract for legacy system support?

Awarding a fixed-price contract for legacy system support, like this one, has significant implications for both the government and the contractor. For the government, it provides cost certainty and shifts the risk of cost overruns to the contractor. This means the total cost is known upfront, simplifying budgeting. For the contractor, it necessitates careful estimation of costs and resources. If the contractor underestimates the effort or encounters unforeseen technical challenges, their profit margins can be squeezed. Conversely, efficient management can lead to higher profits. This structure incentivizes the contractor to perform efficiently and manage resources effectively to meet the defined scope within the agreed-upon price.

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: SP470923Q1020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 121 CHEROKEE ST STE A, LEAVENWORTH, KS, 66048

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $62,686,428

Exercised Options: $54,753,750

Current Obligation: $54,753,750

Actual Outlays: $3,042,355

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0045

IDV Type: IDC

Timeline