DoD's $32.8M Army Endpoint Management contract awarded to World Wide Technology, a sole-source procurement

Contract Overview

Contract Amount: $32,787,353 ($32.8M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2018-12-26

Contract Duration: 91 days

Daily Burn Rate: $360.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS IS THE BASE AWARD FOR ARMEY ENDPOINT MANAGEMENT SOLUTIONS AS A SERVICE.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to WORLD WIDE TECHNOLOGY LLC for work described as: IGF::OT::IGF THIS IS THE BASE AWARD FOR ARMEY ENDPOINT MANAGEMENT SOLUTIONS AS A SERVICE. Key points: 1. The contract's value of $32.8 million for endpoint management solutions indicates a significant investment in IT infrastructure. 2. Awarded on a sole-source basis, the lack of competition may have implications for price optimization. 3. The short duration of 91 days suggests this may be an initial or bridging award, with potential for follow-on actions. 4. The contract falls under the Software Publishers NAICS code, aligning with the procurement of software-based solutions. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed scope information. However, a $32.8 million award for endpoint management, even for a short period, represents a substantial investment. The sole-source nature means direct comparison to competitive bids is not possible, and the value for money is harder to ascertain. Without knowing the specific services and deliverables, it's difficult to definitively assess if the pricing is competitive or if it represents a fair market value compared to similar, competitively procured solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Army identified a specific contractor, World Wide Technology LLC, as the only viable source. This typically occurs when there is a unique capability, an urgent need, or when the existing system requires a specific vendor for support. The lack of a competitive bidding process means that multiple potential suppliers were not evaluated, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing that could have driven down costs. The government may have paid a premium due to the absence of market pressure from competing vendors.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will receive enhanced endpoint management services, improving cybersecurity and operational efficiency. The contract delivers essential IT services for managing and securing end-user devices within the Army's network. The geographic impact is likely worldwide, supporting Army operations globally. Workforce implications may include the need for specialized IT personnel within the Army to manage and integrate the new solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Short contract duration raises questions about long-term strategy and potential for follow-on contracts.
Lack of transparency in the sole-source justification requires careful review.
Absence of small business participation may limit opportunities for smaller firms in this sector.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a known entity like World Wide Technology may indicate a focus on established capabilities.
Focus on endpoint management addresses critical cybersecurity and IT infrastructure needs.

Sector Analysis

The IT services sector, particularly endpoint management, is a critical component of modern defense operations. The market is characterized by a mix of large system integrators and specialized software providers. Spending in this area is driven by the need for robust cybersecurity, efficient device management, and support for a distributed workforce. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded to defense agencies for similar capabilities, considering factors like user base size and service complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. This means the procurement was not specifically structured to encourage or mandate participation by small businesses. Consequently, World Wide Technology LLC, a large business, received the full award. There is no explicit information on subcontracting plans for small businesses within this award notice, which could mean limited opportunities for them on this specific contract, impacting the broader small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The specific Inspector General jurisdiction would be that of the Department of Defense Inspector General, who investigates waste, fraud, and abuse in DoD programs. Transparency is limited by the sole-source nature, but contract award details are publicly available through federal procurement databases.

Related Government Programs

Army IT Services
Endpoint Security Solutions
Software Licensing and Support
Department of Defense IT Modernization

Risk Flags

Sole-source award lacks competitive justification.
Short contract duration may indicate a temporary solution or gap filling.
High value for a short-term contract requires scrutiny of deliverables.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to WORLD WIDE TECHNOLOGY LLC. IGF::OT::IGF THIS IS THE BASE AWARD FOR ARMEY ENDPOINT MANAGEMENT SOLUTIONS AS A SERVICE.

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY 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 $32.8 million.

What is the period of performance?

Start: 2018-09-26. End: 2018-12-26.

What specific endpoint management capabilities are being procured under this contract?

The provided data indicates this is the base award for 'Army Endpoint Management Solutions as a Service.' While the specific functionalities are not detailed, endpoint management typically encompasses a suite of services designed to secure, monitor, and manage all devices (laptops, desktops, mobile phones, etc.) connected to an organization's network. This often includes software deployment, patch management, antivirus/anti-malware deployment, remote troubleshooting, device inventory, and security policy enforcement. The 'as a Service' model suggests a subscription-based or managed service approach rather than a one-time software purchase.

Why was this contract awarded on a sole-source basis to World Wide Technology LLC?

The data explicitly states the contract type as 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not provided in the abbreviated data. Typically, sole-source awards are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, there is a compelling urgency, or the acquisition is for a follow-on effort to a previously competed contract where only the original contractor can provide the necessary services. Without the official justification document, the precise reason remains unknown.

What is the typical duration and value range for similar Army endpoint management contracts?

The provided data shows this contract has a duration of 91 days (approximately 3 months) and a value of $32.8 million. This short duration is unusual for a comprehensive endpoint management solution and suggests it might be an interim or bridging contract, possibly to cover a gap until a larger, competitively awarded contract is in place. Typical large-scale endpoint management contracts for military branches often span multiple years (e.g., 3-5 years) with total values ranging from tens to hundreds of millions of dollars, depending on the scope, number of users, and services included. The high value for such a short period warrants further investigation into the specific services rendered.

What are the potential risks associated with a sole-source award for critical IT infrastructure like endpoint management?

Sole-source awards carry several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the contractor faces less pressure to offer the most cost-effective solution. It can also limit innovation, as the government doesn't benefit from the diverse approaches and technologies that multiple bidders might propose. Furthermore, it can create vendor lock-in, making it difficult and costly to switch providers in the future. For critical infrastructure, reliance on a single source can also pose a supply chain risk if that source encounters financial or operational difficulties.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides budget certainty and predictability for the procuring agency. For endpoint management services, an FFP structure incentivizes the contractor to manage their costs efficiently to maximize profit. However, it's crucial that the scope of work is clearly defined to prevent disputes or change orders that could increase the overall cost.

What is the significance of the NAICS code 511210 (Software Publishers) for this contract?

The North American Industry Classification System (NAICS) code 511210, 'Software Publishers,' indicates that the primary nature of this contract involves the procurement of software products. This could include licenses for endpoint management software, associated maintenance, and potentially some level of support or development services directly related to that software. It suggests that the core of the 'as a Service' offering is likely built upon proprietary software developed or published by World Wide Technology LLC or a partner they represent, rather than purely providing a managed service using off-the-shelf, non-proprietary tools.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15QKN18R0208

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: World Wide Technology Holding CO., Inc.

Address: 60 WELDON PKWY, MARYLAND HEIGHTS, MO, 63043

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,787,353

Exercised Options: $32,787,353

Current Obligation: $32,787,353

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline