DoD's $16.8M IT Support Contract Awarded to Agile Defense, LLC for 5 Years

Contract Overview

Contract Amount: $16,783,788 ($16.8M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT PROJECT SUPPORT AND SUSTAINMENT SERVICES

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to AGILE DEFENSE, LLC for work described as: IT PROJECT SUPPORT AND SUSTAINMENT SERVICES Key points: 1. Contract provides essential IT project support and sustainment services. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract's duration of five years indicates a long-term need for these services. 4. Cost Plus Fixed Fee pricing structure requires careful monitoring of costs. 5. The award was made to Agile Defense, LLC, a single contractor. 6. Services are concentrated in Maryland, impacting the local IT workforce.

Value Assessment

Rating: good

The contract's total value of approximately $16.8 million over five years averages to about $3.36 million annually. Benchmarking this against similar IT support and sustainment contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex IT projects, necessitates diligent oversight to ensure costs remain reasonable and do not escalate beyond the fixed fee. The number of bids received (9) suggests a healthy level of interest, which can contribute to fair pricing.

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. Nine bids were received, suggesting a robust competitive environment for this requirement. The presence of multiple bidders generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The specific evaluation criteria used would determine the extent to which price was a deciding factor.

Taxpayer Impact: The full and open competition process, with nine bidders, likely resulted in a more competitive price for taxpayers. This approach helps ensure that government funds are used efficiently by leveraging market forces to obtain the best value.

Public Impact

The Department of the Army benefits from continuous IT project support and sustainment. End-users within the Department of Defense will experience improved IT services. The contract supports IT infrastructure and operational capabilities. Workforce implications include employment opportunities for IT professionals in Maryland. The services ensure the ongoing functionality and modernization of critical IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed meticulously.
The concentration of services in Maryland may limit broader geographic distribution of benefits.
Long-term contracts can sometimes reduce flexibility to adapt to rapidly changing IT needs.

Positive Signals

Full and open competition with nine bidders suggests a competitive pricing environment.
The contract addresses essential IT support and sustainment, crucial for operational readiness.
A five-year duration indicates a stable, long-term commitment to critical IT functions.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT project support and sustainment services. The IT services market is highly dynamic, with significant government spending dedicated to maintaining and upgrading complex systems. Comparable spending benchmarks for similar IT support contracts can vary widely based on scope, complexity, and duration. The North American Industry Classification System (NAICS) code 541519 (Other Computer Related Services) indicates a broad category, suggesting the services could encompass a range of IT functions beyond standard software development or hardware maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Agile Defense, LLC, may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger businesses were eligible to compete and potentially win the entire contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Department of the Army. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure that costs incurred are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms and performance reviews. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG typically has oversight over all DoD contracts to investigate fraud, waste, and abuse.

Related Government Programs

IT Project Management Services
IT Sustainment and Maintenance
Computer Systems Design Services
Defense IT Modernization Programs
Army IT Infrastructure Support

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to prevent cost overruns.
Contract duration of five years may limit adaptability to rapidly changing IT needs.
Concentration of services in Maryland may not leverage broader geographic IT talent pools.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to AGILE DEFENSE, LLC. IT PROJECT SUPPORT AND SUSTAINMENT SERVICES

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, 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 $16.8 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is Agile Defense, LLC's track record with similar IT support and sustainment contracts for the Department of Defense?

Agile Defense, LLC has a history of performing IT services for the Department of Defense. While specific details on past performance for contracts of this exact scope and value are not provided in the summary data, their award on this $16.8 million contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous DoD contracts, would provide a more comprehensive understanding of their reliability and capability in delivering IT project support and sustainment.

How does the $16.8 million contract value compare to other IT support contracts awarded by the Department of the Army?

The $16.8 million contract value positions this as a mid-tier IT support and sustainment contract for the Department of the Army. The Army procures a vast array of IT services, ranging from small, specialized support tasks to multi-billion dollar enterprise-wide modernization programs. This contract's value is substantial enough to indicate a significant need for ongoing IT project support and sustainment over its five-year period, likely covering critical operational functions. However, without specific details on the scope of services, direct comparison to other contracts is difficult. It is not among the largest enterprise-level IT contracts but represents a considerable investment in maintaining and supporting specific IT projects or systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This structure requires robust government oversight to ensure that all costs submitted by the contractor are reasonable, allocable, and allowable. Inadequate oversight can lead to the government paying more than necessary for the services. Another risk is that the contractor might prioritize profit over the quality or timeliness of the work if not properly managed. Effective performance metrics and regular reviews are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for IT services contracts of this nature?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for IT services. By allowing all responsible sources to compete, the government can leverage market forces to drive down prices and encourage innovation. The fact that nine bids were received for this contract indicates a healthy level of competition, which typically leads to more competitive pricing. However, the ultimate value for money also depends on the clarity of the requirement, the effectiveness of the evaluation criteria, and the government's ability to manage the contract effectively throughout its lifecycle. A competitive process is a strong starting point, but not a guarantee of optimal value without proper execution.

What are the historical spending patterns for IT project support and sustainment services within the Department of Defense?

The Department of Defense (DoD) is one of the largest government consumers of IT services, with historical spending consistently in the tens of billions of dollars annually across various categories, including project support and sustainment. Spending patterns are influenced by evolving technological landscapes, national security priorities, and modernization initiatives. Historically, the DoD has allocated significant resources to maintaining legacy systems while also investing in new technologies and cybersecurity. Contracts for IT project support and sustainment are a recurring and substantial part of this spending, reflecting the continuous need to keep complex defense IT infrastructures operational and up-to-date. Fluctuations in spending can be attributed to major program shifts, budget cycles, and the introduction of new acquisition strategies.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX21R0017

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $27,539,863

Exercised Options: $27,539,863

Current Obligation: $16,783,788

Actual Outlays: $135,737

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $33,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA023

IDV Type: IDC

Timeline