DoD awards $47M for Mission Command Support Center Network Operations, with 13 bidders indicating strong competition

Contract Overview

Contract Amount: $47,070,043 ($47.1M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-28

End Date: 2026-08-06

Contract Duration: 1,196 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER W15P7T-23-F-0088 IS ISSUED ON A FIRM FIXED PRICE, COST-PLUS-FIXED-FEE TERM, AND COST NO FEE UNDER THE RS3 IDIQ CONTRACT FOR PERFORMANCE WORK STATEMENT (PWS) TITLED B08-RS3-21-0027 MISSION COMMAND SUPPORT CENTER NETWORK OPERATIONS CENTER.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.1 million to AGILE DEFENSE, LLC for work described as: TASK ORDER W15P7T-23-F-0088 IS ISSUED ON A FIRM FIXED PRICE, COST-PLUS-FIXED-FEE TERM, AND COST NO FEE UNDER THE RS3 IDIQ CONTRACT FOR PERFORMANCE WORK STATEMENT (PWS) TITLED B08-RS3-21-0027 MISSION COMMAND SUPPORT CENTER NETWORK OPERATIONS CENTER. Key points: 1. Contract awarded on a firm-fixed-price, cost-plus-fixed-fee, and cost-no-fee basis, suggesting a mix of performance incentives and cost management. 2. The contract falls under the RS3 IDIQ, a broad vehicle for R&D and other services, indicating potential for future task orders. 3. With 13 bidders, the full and open competition likely fostered competitive pricing and a wide range of technical solutions. 4. The contract duration of nearly 4 years (1196 days) suggests a significant, ongoing requirement for network operations support. 5. The primary NAICS code (541715) points to research and development, though the PWS title suggests operational support. 6. Virginia is the performance location, potentially benefiting the local economy and workforce in that region.

Value Assessment

Rating: good

The contract value of $47.1M over approximately 4 years averages to about $11.8M annually. Benchmarking this against similar R&D or IT support contracts is challenging without more specific service details. However, the presence of 13 bidders suggests a competitive environment that should have driven reasonable pricing. The mix of contract types (FFP, CPFF, CNF) indicates a structured approach to managing costs and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under the RS3 IDIQ contract using full and open competition, with 13 bidders submitting proposals. This high number of bidders indicates a robust competitive landscape for this type of requirement, allowing the government to select from a diverse pool of qualified contractors and potentially achieve better pricing and innovative solutions.

Taxpayer Impact: The extensive competition among 13 bidders is beneficial for taxpayers, as it likely drove down costs through price discovery and encouraged contractors to offer their best value propositions to secure the award.

Public Impact

The Department of the Army benefits from enhanced Mission Command capabilities through improved network operations. The contract delivers critical support for the Mission Command Support Center Network Operations Center. Performance is located in Virginia, potentially creating or sustaining jobs in the IT and defense support sectors within the state. The contract supports the operational readiness and effectiveness of military command and control systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The mix of contract types (FFP, CPFF, CNF) requires careful monitoring to ensure cost controls are effective, especially for the CPFF portions.
The PWS title 'Mission Command Support Center Network Operations Center' may differ from the primary NAICS code 'Research and Development', requiring clarity on the exact nature of services performed.
The RS3 IDIQ is a broad contract vehicle; ensuring this task order aligns with the intended scope and objectives of the IDIQ is important.

Positive Signals

Full and open competition with 13 bidders suggests a healthy market and likely competitive pricing.
The contract is awarded to AGILE DEFENSE, LLC, whose performance history under this IDIQ would be a positive indicator.
The long duration indicates a stable, long-term need being met, suggesting a well-defined requirement.
The use of multiple contract types can allow for flexibility in managing different aspects of the work.

Sector Analysis

This contract falls within the broader Information Technology and Defense support sectors, specifically focusing on network operations and command support. The RS3 IDIQ contract vehicle itself is designed to procure a wide range of services, including R&D, engineering, and IT support for the Army. Spending in this area is critical for maintaining modern military command and control capabilities, with significant government investment annually in network infrastructure and operational support services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While AGILE DEFENSE, LLC's size is not specified, the absence of a small business set-aside suggests the primary award was not targeted towards small entities. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this task order would likely fall under the Department of the Army's contracting and program management offices. The RS3 IDIQ contract itself may have specific oversight mechanisms and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

RS3 IDIQ Contract
Mission Command Systems
Network Operations Support
Department of Defense IT Services
Army R&D Contracts

Risk Flags

Potential scope alignment issues between NAICS code and PWS title.
Cost control risks associated with CPFF and CNF contract types.
Need for detailed review of contractor past performance.
Ensuring effective government oversight of service delivery and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.1 million to AGILE DEFENSE, LLC. TASK ORDER W15P7T-23-F-0088 IS ISSUED ON A FIRM FIXED PRICE, COST-PLUS-FIXED-FEE TERM, AND COST NO FEE UNDER THE RS3 IDIQ CONTRACT FOR PERFORMANCE WORK STATEMENT (PWS) TITLED B08-RS3-21-0027 MISSION COMMAND SUPPORT CENTER NETWORK OPERATIONS CENTER.

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2023-04-28. End: 2026-08-06.

What is the specific nature of the 'Mission Command Support Center Network Operations Center' services being procured, and how does it align with the R&D NAICS code?

The provided data lists the NAICS code as 541715 (Research and Development in the Physical, Engineering, and Life Sciences) but the PWS title refers to 'Mission Command Support Center Network Operations Center'. This suggests a potential discrepancy or a broad interpretation of R&D to include the development and sustainment of operational systems. Typically, network operations centers focus on the day-to-day management, maintenance, and support of IT infrastructure, which might fall under IT services (e.g., 541512, 541519) rather than pure R&D. It's possible the contract includes R&D elements related to improving or developing new network capabilities for mission command, or that the R&D code is used broadly under the RS3 IDIQ. Clarification on the specific tasks, deliverables, and the rationale for the R&D NAICS code would be necessary for a precise understanding of the service scope.

How does the pricing structure (FFP, CPFF, CNF) for this task order compare to industry standards for similar network operations support?

The task order employs a mix of Firm Fixed Price (FFP), Cost-Plus-Fixed-Fee (CPFF), and Cost No Fee (CNF) contract types. FFP is generally preferred for well-defined requirements where risks are understood, providing cost certainty. CPFF is used when the scope is less defined or involves R&D, allowing for cost reimbursement plus a fixed fee, incentivizing contractor efficiency. CNF is typically used for research or preliminary studies where success is uncertain. For network operations, FFP is common for steady-state support. The inclusion of CPFF suggests there might be developmental or evolving aspects to the network operations. Without specific details on the PWS and the proportion of effort under each contract type, a direct comparison to industry standards is difficult. However, the mix indicates a deliberate strategy to balance cost control with flexibility for potentially evolving technical requirements.

What is the track record of AGILE DEFENSE, LLC in performing similar network operations or R&D contracts for the Department of Defense?

Information regarding AGILE DEFENSE, LLC's specific track record for similar network operations or R&D contracts with the Department of Defense is not provided in the initial data. To assess their performance, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any publicly available information on their previous projects. A strong history of successful, on-time, and within-budget performance on comparable contracts would be a positive indicator. Conversely, a history of issues could raise concerns. Given this is a task order under the RS3 IDIQ, AGILE DEFENSE, LLC likely had to demonstrate relevant capabilities and past performance to be awarded a position on the IDIQ vehicle itself, suggesting a baseline level of qualification.

What are the potential risks associated with the CPFF and CNF components of this contract, and what mitigation strategies are in place?

The Cost-Plus-Fixed-Fee (CPFF) and Cost No Fee (CNF) components carry inherent risks, primarily related to cost overruns and contractor performance. For CPFF, the risk is that costs could exceed initial estimates, although the fixed fee provides some contractor incentive for efficiency. CNF, often used for research, carries the risk that the effort may not yield the desired results, with no fee paid to the contractor. Mitigation strategies typically include robust government oversight, detailed cost monitoring, regular progress reviews, clear definition of milestones and deliverables, and strong negotiation of the fee structure. The government must ensure that all costs claimed are allowable, allocable, and reasonable. Effective communication and collaboration between the contractor and the government contracting officer's representative (COR) are crucial for managing these risks.

How does the $47M award compare to historical spending on Mission Command Support Center Network Operations or similar services within the Department of the Army?

Comparing the $47.1M award to historical spending requires access to broader historical contract data for the Department of the Army related to Mission Command Support Centers and network operations. Without that broader dataset, it's difficult to definitively state if this amount is high, low, or average. However, the duration of nearly four years suggests a significant, ongoing operational requirement. Annual spending would be approximately $11.8M. This figure should be benchmarked against similar contracts awarded in previous years or to different Army commands for comparable services. Factors like inflation, technological advancements, and evolving mission requirements can influence year-over-year spending trends in this domain.

What is the significance of this contract being issued under the RS3 IDIQ vehicle, and what does it imply about future contracting opportunities?

Issuing this task order under the RS3 (Rapid Solutions to Support) IDIQ (Indefinite Delivery/Indefinite Quantity) vehicle signifies that the Army is leveraging an existing, pre-competed contract to procure specialized services efficiently. The RS3 IDIQ is designed to provide rapid access to a wide range of technical and engineering support services. This implies that the Army has already vetted the pool of contractors on the RS3 vehicle, streamlining the process for awarding task orders like this one. For future contracting opportunities, it suggests that similar requirements related to R&D, engineering, IT, and other technical support services may continue to be awarded under the RS3 IDIQ, provided the scope aligns with the vehicle's capabilities. It also indicates a preference for agile procurement methods.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,068,321

Exercised Options: $47,070,043

Current Obligation: $47,070,043

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0203

IDV Type: IDC

Timeline