DoD's $45.7M PEO AVN contract awarded to AGILE DEFENSE, LLC for IT services

Contract Overview

Contract Amount: $45,729,275 ($45.7M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-29

End Date: 2026-01-31

Contract Duration: 1,524 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 34

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PEO AVN - LABOR BASE PERIOD & TRANSITION

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to AGILE DEFENSE, LLC for work described as: PEO AVN - LABOR BASE PERIOD & TRANSITION Key points: 1. The contract value of $45.7M over 4 years suggests a significant investment in IT services for aviation programs. 2. Awarded under full and open competition, indicating a broad market search and potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract duration of 1524 days (approx. 4 years) allows for sustained support and project continuity. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $45.7M over approximately four years averages to about $11.4M annually. Without specific service details or benchmarks for PEO AVN IT support, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure is generally favorable for the government in managing cost certainty. Comparisons to similar IT support contracts within the Department of Defense would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates 34 offers were received, suggesting a robust competitive environment. A high number of bidders typically fosters price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive bids for the required IT services.

Public Impact

The primary beneficiaries are the Department of the Army's Program Executive Office Aviation (PEO AVN), receiving critical IT support. Services delivered likely encompass a range of computer-related functions essential for aviation program management and operations. The contract's performance is geographically centered in Alabama (AL), indicating a focus on regional IT support. The contract supports the defense industrial base workforce, potentially creating or sustaining jobs in IT and related fields within Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the delivery order's requirements are not tightly defined within the broader IDIQ.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
The specific IT services required are not detailed, making it difficult to assess the contractor's specialized capabilities.

Positive Signals

Awarded under full and open competition with 34 offers, indicating strong market interest and contractor availability.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration allows for stable support and potential for contractor investment in service improvement.

Sector Analysis

The IT services sector within the defense industry is highly competitive and critical for modern military operations. Contracts like this, falling under NAICS code 541519 (Other Computer Related Services), support a wide array of functions from software development to network management. The total addressable market for IT services within the federal government is in the tens of billions annually, with the Department of Defense being a major consumer. This contract represents a portion of that spending, focused on specialized aviation program support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on larger, established prime contractors capable of meeting the extensive IT requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a potential IDIQ, oversight may also be influenced by the terms of the parent contract. Transparency is facilitated by public contract award data, but detailed performance metrics and specific oversight mechanisms are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Aviation Systems Support Contracts
IT Services for Program Executive Offices
Cloud Computing Services Contracts
Cybersecurity Support Contracts

Risk Flags

Potential for scope creep due to broad NAICS code.
Dependence on contractor performance for critical IT functions.
Cybersecurity risks inherent in IT service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to AGILE DEFENSE, LLC. PEO AVN - LABOR BASE PERIOD & TRANSITION

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 $45.7 million.

What is the period of performance?

Start: 2021-11-29. End: 2026-01-31.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The provided data classifies the contract under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT functions beyond standard software development or hardware maintenance. Examples could include IT consulting, systems integration, data processing, IT support services, and specialized IT project management. Without further details specific to PEO AVN's needs, it's difficult to pinpoint the exact services. However, given the 'PEO AVN' designation, these services are likely tailored to support aviation-specific programs, potentially involving complex data analysis, simulation support, or specialized software for aviation systems.

How does the $45.7M contract value compare to historical spending on similar IT services for Army Aviation?

To compare this $45.7M contract value to historical spending, one would need access to historical contract databases and search specifically for IT services procured by PEO AVN or similar Army Aviation entities. The average annual value of this contract is approximately $11.4M ($45.7M / 4 years). Benchmarking this against previous contracts of similar scope and duration would reveal if this represents an increase, decrease, or stable level of investment. Factors like inflation, technological advancements, and evolving program requirements would need to be considered for a meaningful comparison. Without specific historical data points for comparable contracts, a precise benchmark cannot be established from the provided information.

What are the key performance indicators (KPIs) used to measure the success of AGILE DEFENSE, LLC under this contract?

The provided contract data does not specify the Key Performance Indicators (KPIs) that will be used to measure the success of AGILE DEFENSE, LLC. Typically, for IT services contracts, KPIs might include system uptime, response times for support requests, project completion rates, adherence to security protocols, and user satisfaction. The firm-fixed-price nature of the contract suggests that meeting defined deliverables and service levels within the agreed-upon price is paramount. Specific KPIs would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the summary data.

What is the track record of AGILE DEFENSE, LLC in performing similar large-scale IT contracts for the Department of Defense?

Assessing the track record of AGILE DEFENSE, LLC requires examining their past performance on similar contracts, particularly those with the Department of Defense and for IT services. Publicly available contract databases (like FPDS or SAM.gov) can provide insights into previous awards, contract values, and agencies served. A review of their past performance ratings, if available, would be crucial. For a contract of this size ($45.7M), one would expect AGILE DEFENSE, LLC to have demonstrated experience in managing complex IT projects, meeting stringent security requirements, and delivering reliable services within budget and schedule. Without specific performance data or a detailed contract history review, it's difficult to definitively state their track record.

Are there any identified risks associated with AGILE DEFENSE, LLC's performance or the nature of the IT services required?

Potential risks associated with this contract include the inherent complexities of IT service delivery, such as cybersecurity threats, system integration challenges, and the need for continuous adaptation to evolving technologies. For AGILE DEFENSE, LLC, risks could involve resource management, maintaining key personnel, and ensuring consistent service quality over the contract's duration. The firm-fixed-price structure, while beneficial for cost control, can pose a risk to the contractor if unforeseen issues lead to cost overruns. The broad NAICS code (541519) suggests a wide scope, increasing the potential for undefined requirements or scope creep if not managed meticulously. The government's risk is primarily tied to contractor performance and the potential for service disruptions.

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: 34

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: $50,623,312

Exercised Options: $45,737,503

Current Obligation: $45,729,275

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,217,863

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