DoD's $21.8M IT Support Contract with Octo Consulting Group Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $21,806,517 ($21.8M)
Contractor: Octo Consulting Group LLC
Awarding Agency: Department of Defense
Start Date: 2017-09-30
End Date: 2022-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF DCOE IM/IT SUPPORT
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20901
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to OCTO CONSULTING GROUP LLC for work described as: IGF::OT::IGF DCOE IM/IT SUPPORT Key points: 1. The contract awarded to Octo Consulting Group LLC for IT support represents a significant investment by the Defense Health Agency. 2. Competition was initially full and open, but the specific award type (delivery order) warrants a closer look at price discovery. 3. Potential risks include ensuring continued value for money and assessing the impact of the contract's duration on market responsiveness. 4. The IT sector, particularly for defense agencies, is a high-demand area with complex service requirements.
Value Assessment
Rating: fair
The contract's total value of $21.8M over five years suggests a substantial investment. Benchmarking against similar Computer Systems Design Services contracts within the DoD is necessary to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, as a delivery order, the specific pricing for this task order needs to be evaluated against the established competitive ceiling.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but ongoing monitoring is crucial to confirm value.
Public Impact
Ensures critical IT infrastructure and support for the Defense Health Agency's operations. Supports a private sector company, contributing to the IT services market. The long duration of the contract (5 years) may limit opportunities for newer or more innovative solutions to enter the market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration may limit innovation
- Need to verify value for money on delivery order
Positive Signals
- Awarded under full and open competition
- Supports critical defense health IT infrastructure
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services, supporting a critical defense agency. Spending in this area is consistently high due to the essential nature of IT for modern operations and national security.
Small Business Impact
The data indicates this contract was not awarded to a small business. While large contracts often go to established prime contractors, agencies should ensure subcontracting opportunities are available for small businesses to participate.
Oversight & Accountability
The Defense Health Agency is responsible for overseeing this contract. Regular performance reviews and audits are essential to ensure compliance with terms, quality standards, and cost-effectiveness.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for cost overruns if not closely monitored
- Long contract duration may stifle innovation
- Need to verify value for money on specific delivery order
- Lack of small business participation as prime contractor
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to OCTO CONSULTING GROUP LLC. IGF::OT::IGF DCOE IM/IT SUPPORT
Who is the contractor on this award?
The obligated recipient is OCTO CONSULTING GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2017-09-30. End: 2022-09-29.
How does the per-unit cost of services under this delivery order compare to similar contracts awarded by the Defense Health Agency or other federal agencies for Computer Systems Design Services?
A detailed comparison of per-unit costs for specific services (e.g., system design, integration, technical support) is crucial. Benchmarking against recent, competitively awarded contracts for similar scope and complexity within the DoD or other agencies will reveal if this delivery order's pricing is aligned with market rates or if it represents a potential overpayment.
What specific mechanisms are in place to ensure ongoing value for money throughout the five-year contract period, especially given the delivery order structure?
Mechanisms should include regular performance reviews tied to key performance indicators (KPIs), potential for price adjustments based on market shifts, and clear termination clauses if performance or value diminishes. The agency should actively monitor service delivery and cost trends to proactively address any deviations from expected value.
To what extent did the full and open competition process effectively drive down costs and ensure the best possible solution for the Defense Health Agency's IT needs?
While full and open competition is a strong starting point, its effectiveness in driving down costs depends on the specific requirements, the number and capability of bidders, and the negotiation process. Analyzing the bid proposals, the final negotiated price against the initial solicitation, and the overall market landscape at the time of award can indicate the degree of cost savings achieved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,610,965
Exercised Options: $21,806,517
Current Obligation: $21,806,517
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS06F0608Z
IDV Type: GWAC
Timeline
Start Date: 2017-09-30
Current End Date: 2022-09-29
Potential End Date: 2022-09-29 00:00:00
Last Modified: 2025-01-17
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