DoD's $11M OSP Infrastructure Upgrade contract awarded to LGS Innovations LLC for custom computer programming

Contract Overview

Contract Amount: $10,951,854 ($11.0M)

Contractor: LGS Innovations LLC

Awarding Agency: Department of Defense

Start Date: 2007-04-03

End Date: 2009-12-15

Contract Duration: 987 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OSP INFRASTRUCTURE UPGRADE

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to LGS INNOVATIONS LLC for work described as: OSP INFRASTRUCTURE UPGRADE Key points: 1. Contract value of $10.95 million for IT infrastructure upgrades. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Duration of 987 days (approx. 2.7 years) suggests a substantial, long-term project. 5. The contract falls under Custom Computer Programming Services (NAICS 541511). 6. Awarded by the Department of the Army, a significant component of the DoD. 7. No small business set-aside was utilized, and the contractor is not a small business.

Value Assessment

Rating: good

The contract value of approximately $11 million for IT infrastructure upgrades appears reasonable given the duration and scope. Without specific benchmarks for OSP infrastructure upgrades within the DoD, direct comparison is challenging. However, the firm fixed-price nature suggests that the government aimed to control costs upfront. The number of bidders (6) also implies a degree of market validation for the pricing.

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 bids. Six bids were received, indicating a healthy level of interest and competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The full and open competition and multiple bids suggest that taxpayer dollars were likely used efficiently, as the government had the opportunity to select the most cost-effective solution from a range of qualified providers.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, through improved IT infrastructure. Services delivered include custom computer programming and likely the implementation of network and system upgrades. The contract was performed in Texas (TX), indicating a geographic focus for the project. The project likely involved a workforce of IT professionals, including programmers, network engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the implemented infrastructure is proprietary.
Risk of cost overruns if the scope definition was not precise, despite FFP.
Dependence on LGS Innovations LLC for ongoing support and maintenance post-delivery.

Positive Signals

Firm Fixed Price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive market and potentially better pricing.
Award to a single contractor streamlines management and accountability for this specific project.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services (NAICS 541511). This category includes establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. The market for such services within the defense sector is substantial, driven by the need for secure, reliable, and advanced IT systems to support military operations. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure upgrade contracts within federal agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, LGS Innovations LLC, is not identified as a small business. Therefore, there are no direct subcontracting implications or benefits for small businesses stemming from this specific award. The focus was on obtaining the required services from the most capable provider, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms would be key oversight functions. As a delivery order under a larger contract vehicle, oversight might also be tied to the parent contract's structure. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Department of Defense IT Modernization Programs
Army Network Modernization Efforts
Custom Software Development Contracts
IT Infrastructure Services

Risk Flags

Contract Duration
Contract Type
Competition Level
Contractor Size

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to LGS INNOVATIONS LLC. OSP INFRASTRUCTURE UPGRADE

Who is the contractor on this award?

The obligated recipient is LGS INNOVATIONS 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 $11.0 million.

What is the period of performance?

Start: 2007-04-03. End: 2009-12-15.

What was the specific nature of the 'OSP Infrastructure Upgrade' and what technologies were involved?

The provided data does not detail the specific technologies or the exact nature of the 'OSP Infrastructure Upgrade.' 'OSP' typically refers to Outside Plant, which in telecommunications and IT contexts relates to the cabling and infrastructure that runs between buildings or to end-users. Therefore, this upgrade likely involved enhancements to the physical network infrastructure, potentially including fiber optic cabling, network switches, routers, and associated hardware necessary for robust communication systems within the Department of the Army's facilities in Texas. The 'custom computer programming' aspect suggests that software configurations, network management systems, or specialized applications were developed or modified to support this upgraded hardware.

How does the $10.95 million contract value compare to similar IT infrastructure projects within the DoD?

Directly comparing the $10.95 million value without more specific project details is difficult. However, for large-scale IT infrastructure upgrades within the Department of Defense, this figure represents a mid-range investment. Major network overhauls or system modernizations can range from tens of millions to billions of dollars. This contract's value suggests a significant but not enterprise-wide undertaking. The firm fixed-price nature and the duration (987 days) indicate a substantial project scope that justifies this investment level. Benchmarking would require access to data on similar 'Outside Plant' or network infrastructure projects awarded by the Army or other DoD branches over the same period.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for IT infrastructure upgrades and custom programming services, KPIs would focus on aspects such as network uptime, data transfer speeds, system reliability, successful deployment of new functionalities, adherence to security protocols, and user satisfaction. For a firm fixed-price contract, meeting the defined scope and deliverables by the specified end date would be a primary measure of success. The Department of the Army would have established specific technical and performance requirements within the contract's statement of work.

What is the track record of LGS Innovations LLC in delivering similar IT infrastructure projects for the federal government?

LGS Innovations LLC has a history of securing and performing contracts with the federal government, particularly within the Department of Defense, often related to telecommunications, network engineering, and IT services. While this specific contract was for an 'OSP Infrastructure Upgrade,' LGS has experience in areas that would be relevant, such as network modernization, cybersecurity, and advanced communication solutions. Analyzing their past performance on similar-sized projects, contract completion rates, and any past performance reviews or disputes would provide a clearer picture of their track record. Their involvement in numerous DoD contracts suggests a familiarity with government requirements and operational environments.

Were there any identified risks or challenges during the performance of this contract, and how were they mitigated?

The provided data does not explicitly list risks or challenges encountered during the performance of this contract. However, common risks for such projects include technical difficulties during implementation, integration issues with existing systems, delays in material delivery, and scope creep. Mitigation strategies typically involve robust project management, clear communication channels, contingency planning, and proactive risk assessment. Given the firm fixed-price nature, the contractor, LGS Innovations LLC, would have been incentivized to manage these risks effectively to maintain profitability. The Department of the Army would have overseen the mitigation efforts through contract management.

How has spending on Custom Computer Programming Services (NAICS 541511) by the Department of the Army evolved over the years?

Spending on Custom Computer Programming Services (NAICS 541511) by the Department of the Army has generally trended upwards over the years, reflecting the increasing reliance on sophisticated software and IT solutions to support military operations, logistics, intelligence, and administrative functions. This specific contract, awarded in 2007, falls within a period where the Army was actively modernizing its IT infrastructure and developing specialized software. While this single contract provides a data point, a comprehensive analysis would require examining annual spending trends for this NAICS code across multiple fiscal years, identifying major programs driving demand, and considering shifts in technology and defense strategy.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ06R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alcatel Lucent (UEI: 275127975)

Address: 5440 MILLSTREAM RD STE E210, MC LEANSVILLE, NC, 27301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,052,037

Exercised Options: $10,951,854

Current Obligation: $10,951,854

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0026

IDV Type: IDC

Timeline