DoD awards $6.3M task order to Agile Decision Sciences for Army enterprise systems support

Contract Overview

Contract Amount: $6,343,166 ($6.3M)

Contractor: Agile Decision Sciences, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-12

End Date: 2025-09-11

Contract Duration: 364 days

Daily Burn Rate: $17.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CENTER WIDE SETA TASK ORDER CONSOLIDATED ARMY ENTERPRISE SYSTEMS INTEGRATION PROGRAM (AESIP) HUB, GENERAL FUND ENTERPRISE BUSINESS SYSTEM (GFEBS), LOGISTICS MODERNIZATION PROGRAM (LMP) SUPPORT TASK ORDER.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to AGILE DECISION SCIENCES, LLC for work described as: CENTER WIDE SETA TASK ORDER CONSOLIDATED ARMY ENTERPRISE SYSTEMS INTEGRATION PROGRAM (AESIP) HUB, GENERAL FUND ENTERPRISE BUSINESS SYSTEM (GFEBS), LOGISTICS MODERNIZATION PROGRAM (LMP) SUPPORT TASK ORDER. Key points: 1. Task order focuses on critical Army enterprise resource planning (ERP) systems. 2. Contractor has experience with similar large-scale federal IT programs. 3. Limited competition raises questions about optimal pricing and value. 4. Performance period is one year, indicating a focused scope of work. 5. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 6. Geographic focus is Alabama, aligning with Army installation presence.

Value Assessment

Rating: fair

The contract value of $6.3 million for a one-year support task order for complex Army ERP systems appears within a reasonable range for specialized IT services. However, without detailed breakdowns of labor categories, hours, and specific deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar task orders for ERP system support within the Department of Defense would provide a clearer picture of whether the pricing reflects competitive market rates for the expertise required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While sole-source awards can be justified for specific needs or when only one vendor possesses the required expertise or access, they limit the potential for price discovery through competition. The absence of a competitive process means taxpayers may not be receiving the lowest possible price for these services.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The primary beneficiaries are the U.S. Army's logistics and financial management operations, which rely on the supported enterprise systems. Services delivered include crucial support for the Enterprise Systems Integration Program (AESIP) Hub, General Fund Enterprise Business System (GFEBS), and Logistics Modernization Program (LMP). The geographic impact is concentrated in Alabama, likely supporting Army personnel and operations within that state. Workforce implications include the need for specialized IT professionals with expertise in ERP systems and potentially specific Army legacy systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Cost Plus Fixed Fee contract type can create incentives for cost overruns if not closely managed.
Lack of detailed performance metrics in the provided data makes assessing contractor performance difficult.
The specific systems supported (AESIP, GFEBS, LMP) are complex and critical, implying significant risk if support is inadequate.

Positive Signals

Contractor has experience supporting large federal IT programs, suggesting familiarity with government contracting processes.
The task order has a defined period of performance, allowing for focused management and evaluation.
The award is for essential enterprise resource planning systems, indicating a critical need being met.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and enterprise resource planning (ERP) system support. The federal IT services market is substantial, with significant spending directed towards maintaining and modernizing complex systems like those managed by the Army. Comparable spending benchmarks for ERP support within large federal agencies often run into the tens or hundreds of millions annually, making this $6.3 million task order a component of a much larger IT modernization and sustainment effort.

Small Business Impact

This contract was not awarded to a small business, nor does the provided data indicate any small business subcontracting requirements or set-asides. The focus on specialized enterprise systems support often requires large, established prime contractors with extensive resources and expertise. The absence of small business participation in this specific task order means potential opportunities for smaller firms in this particular procurement are limited.

Oversight & Accountability

Oversight for this task order would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement and reporting requirements. Transparency is enhanced through contract databases like FPDS, though detailed performance metrics and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Enterprise Systems Integration Program (AESIP)
General Fund Enterprise Business System (GFEBS)
Logistics Modernization Program (LMP)
Department of Defense IT Modernization Initiatives
Federal Enterprise Resource Planning (ERP) Support Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to AGILE DECISION SCIENCES, LLC. CENTER WIDE SETA TASK ORDER CONSOLIDATED ARMY ENTERPRISE SYSTEMS INTEGRATION PROGRAM (AESIP) HUB, GENERAL FUND ENTERPRISE BUSINESS SYSTEM (GFEBS), LOGISTICS MODERNIZATION PROGRAM (LMP) SUPPORT TASK ORDER.

Who is the contractor on this award?

The obligated recipient is AGILE DECISION SCIENCES, 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 $6.3 million.

What is the period of performance?

Start: 2024-09-12. End: 2025-09-11.

What is the track record of Agile Decision Sciences, LLC in supporting similar large-scale federal IT systems, particularly ERPs?

Agile Decision Sciences, LLC has a history of supporting federal IT initiatives. While specific details on their experience with the Army's AESIP, GFEBS, and LMP are not fully elaborated in the provided data, their general profile suggests experience in complex IT environments. Federal procurement databases often show awards to companies like Agile Decision Sciences for IT services, system integration, and program management support across various agencies. A deeper dive into their contract history would reveal the scale and complexity of past projects, including any direct experience with the specific ERP systems mentioned in this task order, and their performance on those contracts.

How does the $6.3 million cost compare to similar ERP support task orders within the Department of Defense?

Benchmarking the $6.3 million cost requires comparing it to similar task orders for ERP system support within the DoD. Factors such as the specific systems supported (AESIP, GFEBS, LMP), the duration of the task order (one year), the labor categories and hours required, and the level of expertise needed all influence pricing. Without access to a detailed cost breakdown and a broader dataset of comparable contracts, it's difficult to definitively state if this is high or low. However, for specialized, mission-critical ERP support, this figure appears to be within a plausible range, though a competitive award might have yielded a lower price.

What are the primary risks associated with a sole-source award for critical Army enterprise systems support?

The primary risks associated with a sole-source award for critical Army enterprise systems support include a lack of competitive pressure, which can lead to inflated prices and reduced value for taxpayer money. It also limits the government's ability to explore innovative solutions or alternative vendors that might offer better performance or cost-effectiveness. Furthermore, reliance on a single vendor can create dependency and potential vulnerabilities if that vendor experiences performance issues, financial instability, or decides to discontinue services. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

How effective is the Cost Plus Fixed Fee (CPFF) contract type in managing costs for complex IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While it can facilitate the initiation of complex projects where costs are difficult to estimate upfront, it carries inherent risks. The primary concern is that the contractor has less incentive to control costs, as they are reimbursed for all allowable expenses. This can potentially lead to cost overruns if not managed with stringent oversight, detailed cost tracking, and clear performance expectations.

What is the historical spending trend for supporting the AESIP, GFEBS, and LMP systems within the Army?

Historical spending on the Army's core enterprise resource planning (ERP) systems like AESIP, GFEBS, and LMP represents a significant and ongoing investment. These systems are critical for the Army's operational and financial functions, requiring continuous support, maintenance, upgrades, and integration. Annual spending on such systems typically runs into the millions, if not tens of millions, of dollars, encompassing software licenses, hardware infrastructure, cybersecurity, and professional services for sustainment and modernization. Tracking specific historical spending for each of these task orders would reveal trends in contractor support costs and the overall investment in maintaining these vital platforms.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 350 VOYAGER WAY, HUNTSVILLE, AL, 35806

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,142,726

Exercised Options: $10,142,726

Current Obligation: $6,343,166

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $441,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56JSR22D0005

IDV Type: IDC

Timeline