DoD awards $12.1M IT support contract to New Generation Solution LLC, highlighting competition and system design services
Contract Overview
Contract Amount: $12,099,942 ($12.1M)
Contractor: NEW Generation Solution LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-02
End Date: 2026-05-01
Contract Duration: 1,034 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to NEW GENERATION SOLUTION LLC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract value of $12.1 million for IT support services. 2. Competition dynamics indicate a full and open process after source exclusion. 3. Risk indicators are moderate given the contract type and duration. 4. Performance context involves computer systems design services. 5. Sector positioning is within Information Technology. 6. The contract is a delivery order under a larger award, suggesting a phased approach.
Value Assessment
Rating: good
The contract value of $12.1 million for IT support services appears reasonable for a multi-year engagement. Benchmarking against similar computer systems design services contracts would provide a clearer picture of value for money. The firm fixed-price structure suggests that cost risks are largely borne by the contractor, which can be favorable for the government if performance is met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 17 bidders suggests a healthy level of competition, which typically drives better pricing and service offerings.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by fostering a market-driven price for the services rendered.
Public Impact
The Department of Defense benefits from enhanced IT support services. Services delivered include computer systems design and related IT support. Geographic impact is centered in Kentucky (ST: KY, SN: KENTUCKY). Workforce implications may include specialized IT roles for the contractor's personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the system designed is highly proprietary.
- Ensuring continued competition for future phases or related services.
- Monitoring performance to ensure the delivered system meets evolving DoD requirements.
Positive Signals
- Full and open competition generally leads to better value.
- Firm fixed-price contract aligns incentives for cost control.
- Multiple bidders suggest a robust market for these services.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with significant government spending allocated to modernizing systems and ensuring operational efficiency. This contract represents a portion of the DoD's broader IT modernization efforts, aiming to procure specialized design and support capabilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, New Generation Solution LLC, is likely a mid-to-large-sized business given the contract value. Further analysis would be needed to determine if subcontracting opportunities exist within the prime contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Information Technology Support Services
- Computer Systems Design Services
- Department of Defense IT Procurement
- Federal IT Modernization Programs
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Dependency on contractor performance for critical IT functions.
- Cybersecurity risks associated with system design and implementation.
Tags
information-technology, department-of-defense, department-of-the-army, computer-systems-design-services, firm-fixed-price, full-and-open-competition, delivery-order, new-generation-solution-llc, kentucky, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to NEW GENERATION SOLUTION LLC. INFORMATION TECHNOLOGY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is NEW GENERATION SOLUTION 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 $12.1 million.
What is the period of performance?
Start: 2023-07-02. End: 2026-05-01.
What is the track record of New Generation Solution LLC in delivering similar IT support services to the federal government?
A review of federal procurement data would be necessary to fully assess New Generation Solution LLC's track record. Key metrics to examine include past performance on similar contracts, any history of contract modifications, past performance ratings, and any instances of disputes or terminations. Understanding their experience with the Department of Defense and specifically with computer systems design services would provide crucial context for evaluating their capability to successfully execute this $12.1 million contract. Without specific past performance data, it's difficult to definitively gauge their reliability and expertise.
How does the awarded price compare to market rates for similar computer systems design services?
To benchmark the value for money, a detailed comparison of the contract's pricing structure against market rates for comparable computer systems design services is required. This would involve analyzing the labor categories, hours, and rates proposed by New Generation Solution LLC against industry benchmarks and potentially against other bids received during the competition. Factors such as the complexity of the systems, the required security clearances, and the geographic location of service delivery can influence market rates. A firm fixed-price contract suggests the contractor has confidence in their pricing, but independent verification against market data is essential for a comprehensive value assessment.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks for this contract include potential performance issues, cost overruns (though mitigated by firm fixed-price), schedule delays, and cybersecurity vulnerabilities. The 'full and open competition after exclusion of sources' might introduce a risk if the exclusion criteria were overly restrictive, limiting the pool of qualified bidders. Mitigation strategies likely involve robust performance monitoring by the government, clear contract deliverables, defined service level agreements, and adherence to cybersecurity protocols. The contractor's own risk management plan would also be a critical factor. The duration of the contract (ending May 2026) also presents a risk of evolving technological needs not being fully met.
How effective is the 'full and open competition after exclusion of sources' approach in ensuring optimal value for taxpayer dollars in this IT services context?
The 'full and open competition after exclusion of sources' approach aims to balance broad competition with the need to potentially exclude specific vendors for valid reasons (e.g., past performance issues, conflicts of interest). In this case, with 17 bidders, the exclusion did not appear to significantly stifle competition. This method can be effective if the exclusion criteria are well-defined, justified, and narrowly applied, ensuring that a sufficient number of capable vendors can still participate. It can lead to optimal value by fostering a competitive environment while mitigating risks associated with specific contractors. However, the justification for exclusion should be transparent and auditable.
What is the historical spending trend for similar IT support services within the Department of the Army?
Analyzing historical spending trends for similar IT support services within the Department of the Army is crucial for context. This involves examining annual outlays for computer systems design, IT consulting, and related support services over the past several fiscal years. Trends might reveal increasing or decreasing reliance on external contractors, shifts in technology focus (e.g., cloud migration, cybersecurity), and average contract values. Understanding these patterns helps determine if the current $12.1 million award is consistent with historical investment levels, unusually high or low, and whether it aligns with broader strategic IT objectives of the Army.
What are the implications of this contract being a 'delivery order'?
This contract being a 'delivery order' implies it was issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract. This structure allows the government to procure services incrementally as needed, rather than awarding a single large contract upfront. For taxpayers, this can mean better flexibility and potentially cost savings by only ordering what is required. However, it also means the total spending could exceed the initial $12.1 million if subsequent delivery orders are issued. The underlying IDIQ contract would have undergone its own competitive process.
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 › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 17
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $21,152,470
Exercised Options: $12,099,942
Current Obligation: $12,099,942
Actual Outlays: $717,430
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCB22D0420
IDV Type: GWAC
Timeline
Start Date: 2023-07-02
Current End Date: 2026-05-01
Potential End Date: 2028-05-01 00:00:00
Last Modified: 2025-09-29
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