DoD's $44M IT support contract awarded to Agile Defense, LLC, with 21 bids indicating strong competition

Contract Overview

Contract Amount: $44,000,411 ($44.0M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-07-31

Contract Duration: 1,856 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PEO MISSILES AND SPACE INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to AGILE DEFENSE, LLC for work described as: PEO MISSILES AND SPACE INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. The contract's value of approximately $44 million over five years suggests a significant investment in IT support. 2. A high number of bidders (21) for this full and open competition contract points to a competitive market for these services. 3. The firm-fixed-price contract type generally offers good cost control for the government. 4. The contract duration of over 1800 days allows for sustained IT support but requires careful performance monitoring. 5. The award to Agile Defense, LLC, a company with a track record in government contracting, warrants a review of past performance. 6. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT support activities.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is favorable for cost predictability. Benchmarking the per-unit cost against similar IT support contracts would be necessary for a definitive value assessment. Given the competitive nature of the award, it is likely that the pricing reflects market rates, but a detailed cost analysis is recommended to ensure optimal value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting 21 bids. This high level of competition is a positive indicator, suggesting that multiple capable vendors vied for the opportunity. The extensive bidding process likely contributed to price discovery and potentially secured more favorable pricing for the government.

Taxpayer Impact: The robust competition ensures that taxpayer funds are likely being used efficiently, as vendors were incentivized to offer competitive pricing to win the contract.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential IT support services. The contract delivers a range of computer-related services, crucial for the operational effectiveness of military IT infrastructure. The geographic impact is concentrated in Alabama (AL), where the contract is managed and likely where services are primarily delivered. The contract supports a workforce skilled in IT services, contributing to the specialized labor market within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Computer Related Services' are not clearly defined and managed.
Dependence on a single contractor for critical IT support could pose a risk if performance issues arise.
Ensuring continued alignment with evolving IT needs and technological advancements throughout the contract's duration.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
High competition suggests a healthy market and likely competitive pricing.
The contract duration allows for stable, long-term IT support, fostering expertise and efficiency.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT support services. The market for such services is substantial, with numerous government agencies and private sector entities requiring ongoing technical assistance, maintenance, and integration. Comparable spending benchmarks would involve analyzing other IT support contracts awarded by the Department of Defense and other federal agencies for similar scope and duration.

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 requirement. However, the prime contractor, Agile Defense, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes performance within agreed-upon costs. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal to the agency.

Related Government Programs

IT Support Services
Information Technology Professional Services
Computer Systems Design Services
Defense IT Modernization Programs
Army IT Infrastructure Support

Risk Flags

Potential for vendor lock-in
Risk of technological obsolescence
Dependence on contractor performance for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to AGILE DEFENSE, LLC. PEO MISSILES AND SPACE INFORMATION TECHNOLOGY SUPPORT 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 $44.0 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-07-31.

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

Agile Defense, LLC has a history of performing IT support and related services for various government agencies, including the Department of Defense. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving IT support for military branches, would reveal their ability to meet performance requirements, manage costs, and adhere to delivery schedules. Specific contract awards, their values, and any reported performance issues or commendations would provide a clearer picture of their capabilities and reliability as a contractor for this significant IT support services contract.

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

A comprehensive comparison of the awarded price to market rates for similar IT support services requires access to detailed cost breakdowns and benchmarking data. While the firm-fixed-price structure and the high number of bidders (21) suggest competitive pricing, the specific value proposition can only be assessed against industry benchmarks for services like network management, system administration, help desk support, and cybersecurity within the defense sector. Analyzing the per-unit cost, if available, against industry standards and other government IT contracts of similar scope and duration would be crucial for determining if the government secured optimal value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep given the broad 'Other Computer Related Services' NAICS code, over-reliance on a single contractor for critical IT functions, and the challenge of ensuring the IT services remain current with rapidly evolving technology. Mitigation strategies likely involve robust contract management, clearly defined performance work statements, regular performance reviews, and potentially incorporating flexibility clauses for technological upgrades. The firm-fixed-price nature helps mitigate cost overrun risks, but performance risks require diligent oversight from the contracting officer's representative (COR).

How effective has Agile Defense, LLC been in delivering IT support services in previous contracts?

Assessing the effectiveness of Agile Defense, LLC requires a review of their past performance evaluations and contract completion records. Data on on-time delivery, adherence to technical specifications, customer satisfaction, and any incurred penalties or award fees would provide insights into their effectiveness. For this specific contract, monitoring key performance indicators (KPIs) related to system uptime, response times for support requests, and successful implementation of IT solutions will be critical to gauge ongoing effectiveness throughout the contract period.

What are the historical spending patterns for IT support services within the Department of the Army for similar requirements?

Analyzing historical spending patterns for IT support services within the Department of the Army for similar requirements provides context for the current $44 million award. This involves examining previous contract values, durations, and the number of bidders for comparable IT support services. Understanding trends in spending, such as increases or decreases in contract values, shifts in awarded contractors, or changes in the types of IT services procured, can help identify potential efficiencies, market dynamics, or emerging needs within the Army's IT infrastructure.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

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: $49,126,391

Exercised Options: $44,041,745

Current Obligation: $44,000,411

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $3,017,901

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