DoD awards $22.6M for enterprise sourcing, medical, and contingency hosting services to Credence Management Solutions
Contract Overview
Contract Amount: $22,683,120 ($22.7M)
Contractor: Credence Management Solutions Limited Liability Company
Awarding Agency: Department of Defense
Start Date: 2025-08-01
End Date: 2026-07-31
Contract Duration: 364 days
Daily Burn Rate: $62.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE SOURCING, MEDICAL, AND CONTINGENCY HOSTING SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.7 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: ENTERPRISE SOURCING, MEDICAL, AND CONTINGENCY HOSTING SERVICES Key points: 1. Contract value represents a significant investment in critical IT infrastructure and support services. 2. Full and open competition suggests a robust market for these specialized services. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Contract duration of one year with potential for extensions indicates ongoing need. 5. The award falls under Other Computer Related Services, a broad category with diverse applications. 6. Virginia is the primary state for contract performance, suggesting a concentration of relevant resources.
Value Assessment
Rating: good
The contract value of $22.6 million for a one-year term appears reasonable given the scope of enterprise sourcing, medical, and contingency hosting services. Benchmarking against similar large-scale IT service contracts for the Department of Defense suggests that pricing is competitive. The firm fixed-price structure provides cost certainty for the government, reducing the risk of cost overruns. The specific services required are critical for operational readiness and data management, justifying the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. The presence of 18 bids suggests a healthy level of competition for these specialized IT services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors strive to offer the most competitive proposals.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received a fair market value for the services rendered.
Public Impact
The Department of Defense benefits from enhanced enterprise sourcing, medical data management, and reliable contingency hosting. Military personnel and support staff will have access to critical IT systems and services. The contract supports operational readiness and data integrity across various defense functions. The geographic impact is primarily within Virginia, where the contractor is located and services may be performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services become highly integrated and difficult to transition.
- Reliance on a single contractor for critical hosting and data services could pose a risk if performance falters.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a competitive market and potentially better value.
- Award to an established entity like Credence Management Solutions may indicate a track record of performance.
Sector Analysis
The IT services sector, particularly within defense, is characterized by high demand for specialized solutions like enterprise sourcing, data hosting, and contingency planning. The market size for such services is substantial, with government contracts forming a significant portion. This contract fits within the broader category of IT support and cloud services, where agencies increasingly rely on external vendors for infrastructure management and specialized applications. Comparable spending benchmarks in this area often involve multi-million dollar awards for similar scopes of work.
Small Business Impact
This contract was not specifically set aside for small businesses, nor does it indicate any explicit subcontracting requirements for small businesses in the provided data. The award to Credence Management Solutions, a Limited Liability Company, does not inherently suggest it is a small business. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and relevant contracting officers within the Department of Defense. Accountability measures are embedded in the firm fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Services
- General Services Administration (GSA) IT Schedule Contracts
- Department of Veterans Affairs (VA) IT Modernization Efforts
- Contingency Operations Support Contracts
Risk Flags
- Potential for vendor lock-in
- Reliance on contractor performance for critical services
- Cybersecurity vulnerabilities in hosted data
Tags
it-services, department-of-defense, defense-logistics-agency, full-and-open-competition, firm-fixed-price, enterprise-sourcing, medical-it, contingency-hosting, virginia, other-computer-related-services, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.7 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. ENTERPRISE SOURCING, MEDICAL, AND CONTINGENCY HOSTING SERVICES
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 $22.7 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-07-31.
What is Credence Management Solutions' track record with the Department of Defense and similar federal agencies?
Credence Management Solutions LLC has a history of performing IT and management support services for various government agencies, including the Department of Defense. Their contract portfolio often includes areas such as enterprise resource planning, IT infrastructure support, and program management. While specific performance details for this exact contract are not yet available, their presence in the federal contracting space suggests experience in navigating government requirements. A deeper dive into past performance reviews and contract close-outs would provide a more comprehensive understanding of their reliability and quality of service delivery in similar engagements.
How does the awarded amount compare to similar enterprise sourcing and hosting contracts within the DoD?
The $22.6 million award for enterprise sourcing, medical, and contingency hosting services is within the typical range for large-scale IT support contracts within the Department of Defense. Contracts of this nature, especially those involving critical infrastructure and data management, often run into tens of millions of dollars annually. The one-year duration with potential for extensions is also standard for such services, allowing for flexibility and adaptation to evolving needs. Benchmarking against contracts with similar scopes, such as those managed by the Defense Information Systems Agency (DISA) or other major DoD components, indicates that this award represents a competitive market price for comprehensive IT solutions.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential performance deficiencies by the contractor, cybersecurity threats to sensitive data, and the possibility of cost increases if the firm fixed-price structure is not strictly adhered to or if scope creep occurs. Mitigation strategies are inherent in the contract's structure: the firm fixed-price nature incentivizes the contractor to manage costs effectively. The full and open competition process likely selected a vendor with a proven ability to meet performance standards. Cybersecurity risks are typically addressed through stringent security clauses, compliance requirements (e.g., NIST standards), and regular audits mandated within the contract terms. The Defense Logistics Agency's oversight also plays a crucial role in monitoring performance and addressing issues proactively.
How effective is the 'full and open competition' approach in ensuring value for money for this type of IT service?
The 'full and open competition' approach is generally highly effective in ensuring value for money for complex IT services like enterprise sourcing and hosting. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices as vendors vie for the contract. Furthermore, it encourages innovation and the submission of diverse technical solutions, allowing the government to select the best combination of technical merit and cost. The fact that 18 bids were received indicates strong market interest and a robust competitive landscape, which is a positive indicator for achieving optimal value.
What are the historical spending patterns for enterprise sourcing, medical, and contingency hosting services within the DoD?
Historical spending patterns for enterprise sourcing, medical, and contingency hosting services within the DoD show a consistent and significant investment in IT infrastructure and support. Agencies like the Defense Logistics Agency (DLA) and the Defense Information Systems Agency (DISA) regularly award multi-million dollar contracts for these types of services. Spending has generally trended upwards over the past decade, driven by the increasing digitization of military operations, the need for robust data management (especially for medical records), and the imperative for resilient contingency operations. This reflects a strategic prioritization of IT capabilities to maintain operational readiness and information superiority.
What is the potential impact of this contract on the IT services market, particularly for small businesses?
This contract, awarded under full and open competition, primarily benefits larger IT service providers capable of meeting the extensive requirements of the Department of Defense. While the direct award is to Credence Management Solutions, the potential impact on small businesses lies in subcontracting opportunities. If Credence Management Solutions engages small businesses for specialized support, it could provide them with valuable experience and revenue. However, without specific subcontracting clauses or set-asides, the direct benefit to the small business ecosystem may be limited, emphasizing the importance of monitoring subcontracting plans and performance.
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: SP470925Q2009
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1775 TYSONS BLVD, MCLEAN, VA, 22102
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small 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: $118,662,529
Exercised Options: $22,683,120
Current Obligation: $22,683,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470924D0075
IDV Type: IDC
Timeline
Start Date: 2025-08-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-11-19
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