DoD's $26.3M ITSS contract to PHACIL, LLC awarded under full and open competition

Contract Overview

Contract Amount: $26,321,198 ($26.3M)

Contractor: Phacil, LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-19

End Date: 2020-09-08

Contract Duration: 1,786 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF ITSS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to PHACIL, LLC for work described as: IGF::CT::IGF ITSS Key points: 1. Contract value represents a moderate investment in IT support services. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract duration of nearly 5 years indicates a long-term need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract falls within the broad category of IT support and systems design. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: good

The contract's total value of $26.3 million over approximately five years suggests a reasonable annual spend for IT support services. Benchmarking against similar IT support contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without detailed performance metrics or comparison to industry standards for specific services rendered, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some limitations, the final award was made after a broad competitive process. The presence of 5 bidders suggests a healthy level of interest and competition for this type of IT support service. This level of competition is generally expected to drive more competitive pricing and better service offerings.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overspending that could occur with less competitive solicitations.

Public Impact

The Department of Defense benefits from enhanced IT support and computer systems design services. Military operations and administrative functions are likely supported by these IT services. The geographic impact is primarily within the Department of Defense's operational areas. The contract supports jobs within the IT services sector, particularly in computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed.
Dependence on a single contractor for critical IT functions.
Risk of vendor lock-in if transition planning is inadequate.

Positive Signals

Firm fixed-price contract aligns cost expectations.
Full and open competition suggests a robust selection process.
Contract duration indicates a stable IT support environment.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with government spending often concentrated on areas like cybersecurity, cloud computing, and systems integration. Contracts for IT support and design are common across federal agencies, with annual spending in the billions. This particular contract's value is moderate within the context of large federal IT procurements.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate in this contract as the prime vendor were limited. However, the prime contractor, PHACIL, LLC, may still engage small businesses as subcontractors, depending on their own business practices and the specific needs of the IT support services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Performance reviews, regular reporting, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Support Services
Computer Systems Design
Department of Defense IT Procurement
Information Technology Professional Services

Risk Flags

Contract Duration
Contract Value
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to PHACIL, LLC. IGF::CT::IGF ITSS

Who is the contractor on this award?

The obligated recipient is PHACIL, 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 $26.3 million.

What is the period of performance?

Start: 2015-10-19. End: 2020-09-08.

What is the track record of PHACIL, LLC with federal contracts, particularly within the Department of Defense?

PHACIL, LLC has a history of receiving federal contracts, primarily within the IT and professional services categories. Data from contract databases indicates multiple awards, including those from the Department of Defense. Analyzing the value, duration, and performance history of their previous contracts, especially those with the Army or other DoD components, would provide insight into their reliability and capability. A review of past performance evaluations, if publicly available, would further illuminate their track record. It's important to note that while this contract is for a significant amount, it represents one piece of their overall federal contracting portfolio. Further investigation into contract close-outs and any disputes or terminations would offer a more comprehensive view of their performance.

How does the awarded price compare to market rates for similar IT support and systems design services?

Benchmarking the $26.3 million contract value against market rates for similar IT support and computer systems design services requires detailed analysis of the specific tasks and service levels. The provided data indicates a 5-year contract duration (approximately 1786 days), suggesting an average annual value of around $5.26 million. To assess value for money, this annual figure should be compared to industry benchmarks for IT support contracts of similar scope and complexity within the federal government or large enterprise environments. Factors such as the number of personnel, required skill sets, security clearances, and geographic locations of service delivery would influence market rates. Without a detailed breakdown of the services rendered and their associated labor categories and hours, a precise comparison is difficult, but the competitive award process suggests the price is likely within a reasonable range.

What are the primary risks associated with this IT support contract for the Department of the Army?

The primary risks for the Department of the Army in this IT support contract include potential performance issues, cost overruns (though mitigated by fixed-price), and contractor dependency. If PHACIL, LLC fails to deliver services meeting the required quality standards or timelines, it could disrupt critical military IT operations. While the firm fixed-price (FFP) contract shifts financial risk to the contractor, poorly defined scopes of work can still lead to disputes or the need for costly contract modifications. There's also a risk of vendor lock-in, where the agency becomes overly reliant on PHACIL, LLC's specific systems and expertise, making future transitions difficult or expensive. Ensuring robust contract management, clear performance metrics, and proactive risk mitigation strategies are crucial to address these potential issues.

How effective has PHACIL, LLC been in delivering IT support services under previous government contracts?

Assessing the effectiveness of PHACIL, LLC's past performance requires access to detailed contract performance reports and past performance questionnaires (PPQs) submitted by government agencies. The provided data indicates the contract was awarded in 2015 and completed in 2020, suggesting a period for performance evaluation. While the award itself implies a positive assessment at the time of selection, long-term effectiveness hinges on meeting or exceeding contract requirements throughout its duration. Without specific performance metrics, user feedback, or documented successes and failures from this or similar contracts, it's challenging to definitively state their effectiveness. Agencies typically use this information during source selection for future contracts.

What is the historical spending trend for similar IT support services within the Department of Defense?

Historical spending on IT support services within the Department of Defense (DoD) is substantial, often running into billions of dollars annually across various agencies and branches. The DoD consistently ranks as one of the largest federal buyers of IT goods and services. Spending trends are influenced by evolving technological needs, modernization efforts, cybersecurity imperatives, and geopolitical factors. Contracts for services like computer systems design, network management, software development, and help desk support are perennial requirements. The $26.3 million awarded to PHACIL, LLC is a single data point within this larger spending landscape. Analyzing broader DoD IT spending patterns, including shifts towards cloud computing, AI, and cybersecurity, would provide context for the significance and typical scale of such contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BY Light Professional IT Services LLC (UEI: 132027694)

Address: 800 N GLEBE RD STE 700, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $26,321,198

Exercised Options: $26,321,198

Current Obligation: $26,321,198

Actual Outlays: $458,437

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F1227Z

IDV Type: GWAC

Timeline