Army HR Systems Integration Support contract awarded to Digital Management LLC for over $23.39M
Contract Overview
Contract Amount: $23,393,901 ($23.4M)
Contractor: Digital Management LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-14
End Date: 2026-05-11
Contract Duration: 1,032 days
Daily Burn Rate: $22.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS REQUIREMENT IS FOR SUSTAINMENT SYSTEMS INTEGRATION SUPPORT SERVICES ON BEHALF OF THE PRODUCT DIRECTOR, ARMY HUMAN RESOURCE SYSTEMS.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to DIGITAL MANAGEMENT LLC for work described as: THIS REQUIREMENT IS FOR SUSTAINMENT SYSTEMS INTEGRATION SUPPORT SERVICES ON BEHALF OF THE PRODUCT DIRECTOR, ARMY HUMAN RESOURCE SYSTEMS. Key points: 1. Contract focuses on sustainment and integration for Army Human Resource Systems. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs for the government. 4. Long duration of over 1000 days indicates a significant, ongoing need. 5. The contract is a delivery order under a larger contract vehicle. 6. Virginia is the performance location, potentially impacting local IT workforce.
Value Assessment
Rating: good
The contract's total value of over $23.39 million for a duration of approximately 3 years appears reasonable for complex IT sustainment and integration services. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges, especially considering the critical nature of HR systems. The firm fixed-price structure provides cost certainty, mitigating risk for the government. However, a detailed cost breakdown and comparison to specific, comparable contracts would be needed for a more precise value assessment.
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 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best value solutions. The number of bidders is a positive sign for ensuring the government receives competitive pricing and a wide range of technical approaches.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the best service at the most competitive price.
Public Impact
Service members and Army personnel will benefit from improved and sustained HR systems. Ensures the continued operation and integration of critical human resource management functions. The primary geographic impact is within Virginia, where the contractor will perform services. Potential implications for the IT workforce, both within the government and the contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if integration becomes overly complex.
- Reliance on a single contractor for critical HR system sustainment carries inherent risk.
- Ensuring adequate knowledge transfer and documentation throughout the contract lifecycle is crucial.
Positive Signals
- Firm Fixed Price contract type helps manage cost overruns.
- Full and open competition suggests a robust selection process.
- The contractor, Digital Management LLC, has experience in government IT services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on systems integration and sustainment for a large government client. The market for IT support services to federal agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Department of Defense's broader IT modernization and sustainment efforts. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts for agencies like the Army, focusing on system integration, maintenance, and sustainment services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting if Digital Management LLC chooses to engage them. The absence of a small business set-aside suggests that the competition was focused on finding the best overall solution rather than specifically promoting small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Army Human Resource Systems
- Defense Human Resources Activity (DHRA)
- General Services Administration (GSA) IT Schedule Contracts
- Department of Defense Enterprise Resource Planning (ERP) Systems
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Cybersecurity risks associated with sensitive HR data.
- Dependency on contractor performance for critical system operations.
Tags
it-services, department-of-defense, department-of-the-army, sustainment, systems-integration, firm-fixed-price, full-and-open-competition, delivery-order, virginia, large-business, it-support, human-resources
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to DIGITAL MANAGEMENT LLC. THIS REQUIREMENT IS FOR SUSTAINMENT SYSTEMS INTEGRATION SUPPORT SERVICES ON BEHALF OF THE PRODUCT DIRECTOR, ARMY HUMAN RESOURCE SYSTEMS.
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT 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 $23.4 million.
What is the period of performance?
Start: 2023-07-14. End: 2026-05-11.
What is the track record of Digital Management LLC in supporting large-scale federal IT sustainment contracts?
Digital Management LLC has a history of securing and performing on federal IT contracts, including those involving system integration, sustainment, and modernization. Their portfolio often includes work with defense agencies and other government entities requiring complex IT solutions. While specific details on past performance for Army HR systems would require deeper investigation, their presence in the federal contracting space suggests familiarity with government requirements and processes. Analyzing past performance reviews, contract modifications, and any past performance issues on similar contracts would provide a more comprehensive understanding of their capabilities and reliability in this domain.
How does the pricing of this contract compare to similar IT sustainment services for other branches of the military?
Benchmarking the pricing of this $23.39 million contract against similar IT sustainment services for other military branches requires access to detailed cost data and comparable contract scopes. However, given the firm fixed-price nature and the duration (over 1000 days), the overall value appears aligned with the complexity and criticality of maintaining Army HR systems. Factors such as labor rates, overhead, and specific technical requirements can cause variations. A detailed comparison would involve analyzing per-labor-hour rates, indirect cost allocations, and the specific deliverables against contracts for similar functions within, for example, the Navy or Air Force, adjusting for any significant differences in system complexity or scale.
What are the primary risks associated with the sustainment and integration of Army HR systems under this contract?
Key risks include potential system obsolescence requiring continuous modernization, cybersecurity threats targeting sensitive HR data, integration challenges with other defense systems, and the risk of vendor lock-in if knowledge transfer is inadequate. Furthermore, reliance on a single contractor for critical HR functions poses an operational risk if performance falters. Ensuring data integrity, system availability, and seamless user experience for potentially millions of personnel are paramount. Mitigating these risks involves robust cybersecurity protocols, proactive system updates, clear integration roadmaps, and strong contract management with performance metrics.
How effective are firm fixed-price contracts in managing costs for long-term IT sustainment services like this one?
Firm Fixed Price (FFP) contracts are generally effective in managing costs for IT sustainment services by shifting the cost risk to the contractor. The contractor is obligated to complete the work for the agreed-upon price, incentivizing them to manage their own costs efficiently. This provides budget certainty for the government. However, for complex, long-term projects with evolving technical requirements, FFP can sometimes lead to contractors being less flexible in accommodating changes or potentially cutting corners if not carefully managed. Robust scope definition and change control processes are crucial to maximize the benefits of FFP in such scenarios.
What is the historical spending trend for Army Human Resource Systems support services?
Analyzing historical spending trends for Army Human Resource Systems support services would require accessing historical contract data over several fiscal years. Typically, spending in this area remains relatively consistent, reflecting the ongoing need for maintenance, upgrades, and integration of these critical systems. Fluctuations might occur due to major system overhauls, new technology implementations, or shifts in strategic priorities. A trend analysis would likely show sustained investment in HR IT infrastructure, potentially increasing if modernization efforts are underway or decreasing if systems are being consolidated or retired. Without specific historical data, it's presumed to be a significant and ongoing budget item.
What are the implications of this contract being a delivery order under a larger contract vehicle?
This contract being a delivery order (DO) under a larger contract vehicle means that the underlying contract (e.g., an IDIQ or GWAC) was already competed and awarded. This specific DO represents a task order placed against that pre-competed vehicle. The implications include faster procurement timelines for this specific requirement, as much of the initial competition and due diligence occurred at the vehicle level. It also means that the terms and conditions, including pricing structures and labor categories, were largely established when the parent contract was awarded. The number of bidders (6) refers to the competition for this specific delivery order, not necessarily the original vehicle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 INTERNATIONAL DR STE 500, MC LEAN, VA, 22102
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,393,901
Exercised Options: $23,393,901
Current Obligation: $23,393,901
Actual Outlays: $677,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA088
IDV Type: IDC
Timeline
Start Date: 2023-07-14
Current End Date: 2026-05-11
Potential End Date: 2026-05-11 12:05:00
Last Modified: 2025-08-14
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