DoD's $26.3M IT contract for Fort Polk, LA, awarded to LGS Innovations LLC, ran for nearly a decade

Contract Overview

Contract Amount: $26,287,613 ($26.3M)

Contractor: LGS Innovations LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2017-09-26

Contract Duration: 3,466 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE AND OPTIONS 8 AND 9 TO FT POLK, LA

Place of Performance

Location: MC LEANSVILLE, GUILFORD County, NORTH CAROLINA, 27301

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to LGS INNOVATIONS LLC for work described as: BASE AND OPTIONS 8 AND 9 TO FT POLK, LA Key points: 1. The contract's duration of over 9 years suggests a long-term need for the services provided. 2. A firm-fixed-price contract type generally offers predictable costs for the government. 3. The award was made under full and open competition, indicating a broad search for qualified vendors. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract's base and options value reached $26.3 million over its lifecycle. 6. The contract was awarded as a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed service descriptions and comparable contract data. However, the total value of $26.3 million over nearly a decade for custom computer programming services at a military installation suggests a substantial investment. The firm-fixed-price structure provides cost certainty, but the long duration could potentially lead to overpayment if market rates for services decreased significantly over time. Without specific performance metrics or comparisons to similar IT service contracts at other bases, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple vendors to offer their best pricing and technical solutions. The fact that it was a delivery order suggests it was likely competed as part of a larger IDIQ vehicle, which itself would have undergone a competitive process. The specific number of bidders for this particular delivery order is not provided, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through vendor rivalry and ensuring the government secures services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries of this contract are the Department of the Army and the personnel at Fort Polk, Louisiana, who received custom computer programming services. These services likely supported critical IT infrastructure, operational systems, or specialized software needs for the military base. The geographic impact is localized to Fort Polk, Louisiana, ensuring the base's technological capabilities are maintained and enhanced. The contract supported jobs within the IT sector, specifically in custom computer programming, potentially benefiting the workforce employed by LGS Innovations LLC and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could lead to potential cost inefficiencies if market rates for services evolved unfavorably.
Lack of specific performance metrics makes it difficult to assess the true effectiveness and value delivered.
Firm-fixed-price contracts can sometimes disincentivize innovation or efficiency gains once the price is set.
The nature of 'custom computer programming' can be broad, potentially leading to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that should have yielded fair pricing.
Firm-fixed-price contract type provides budget certainty for the government.
The contract was awarded to a single vendor, LGS Innovations LLC, implying they met the technical and capability requirements.
The contract ran to completion (2008-2017), indicating successful delivery over its intended period.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The IT services market is vast and highly competitive, encompassing software development, system integration, and IT support. Contracts like this are crucial for government agencies to maintain and upgrade their technological infrastructure, ensuring operational efficiency and security. Comparable spending benchmarks for custom IT services can vary widely based on complexity, duration, and specific skill sets required, but multi-million dollar contracts over several years are common for significant IT projects within large federal agencies.

Small Business Impact

The data indicates that small business participation was not a factor in this contract, as 'sb' is false and 'st' is 'NC' (Not Competed). This suggests the contract was not specifically set aside for small businesses, nor does it appear to have had explicit subcontracting requirements for small businesses. Consequently, the direct impact on the small business ecosystem from this particular award is likely minimal, as the primary contract was awarded to LGS Innovations LLC, presumably a larger entity.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting and program management offices. As a delivery order under a larger IDIQ contract, oversight might be managed at both the IDIQ contract level and the individual delivery order level. Accountability measures would be tied to the firm-fixed-price terms and the delivery schedule. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General (IG) involvement would depend on any reported issues or audits related to performance or financial integrity.

Related Government Programs

Department of Defense IT Services
Army IT Modernization Programs
Custom Software Development Contracts
Fort Polk Base Operations Support
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
IT Services for Military Installations

Risk Flags

Long contract duration
Lack of specific performance metrics
Potential for scope creep in custom programming

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to LGS INNOVATIONS LLC. BASE AND OPTIONS 8 AND 9 TO FT POLK, LA

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 $26.3 million.

What is the period of performance?

Start: 2008-03-31. End: 2017-09-26.

What was the specific nature of the custom computer programming services provided under this contract?

The provided data indicates the NAICS code is 541511, which covers Custom Computer Programming Services. This generally includes writing, modifying, testing, and supporting software to meet the needs of a particular customer. For a military installation like Fort Polk, these services could range from developing specialized operational software, integrating existing systems, creating databases for logistical support, enhancing cybersecurity measures, or providing custom solutions for command and control systems. Without more specific details from the contract's statement of work, the exact nature remains broad but centers on tailored software development and implementation.

How does the $26.3 million total value compare to similar IT contracts for military bases of similar size?

Comparing the $26.3 million total value requires context regarding the duration and scope. This contract spanned nearly a decade (March 2008 to September 2017). For a large military installation like Fort Polk, IT infrastructure and support needs are substantial. Annual spending on IT services can range from hundreds of thousands to millions of dollars depending on modernization efforts, cybersecurity requirements, and operational complexity. A total contract value of approximately $2.9 million per year ($26.3M / 9.3 years) for custom programming and related services appears within a reasonable range for supporting a significant base's specialized IT needs over an extended period, especially considering potential inflation and evolving technological demands.

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

The provided summary data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for custom computer programming services, KPIs might include adherence to project timelines, successful code deployment, bug resolution rates, system uptime, user satisfaction, and meeting specific functional requirements outlined in the Statement of Work (SOW). As this was a firm-fixed-price contract, meeting the defined deliverables within the agreed-upon schedule and specifications would be the primary measure of success. The absence of explicit KPIs in the summary suggests they might have been detailed in the SOW or managed through standard project management processes.

Were there any identified risks or challenges associated with this contract during its performance period?

While the summary data doesn't list specific risks encountered, common challenges in long-term custom programming contracts include scope creep, evolving technological requirements, integration issues with existing systems, and potential contractor performance issues. The firm-fixed-price nature, while providing cost certainty, can also pose a risk if unforeseen technical hurdles arise, potentially straining the contractor's resources or leading to disputes over scope. The long duration itself presents a risk of technological obsolescence if the developed solutions are not adaptable to future needs. Without audit reports or performance reviews, specific challenges remain unknown.

What is the track record of LGS Innovations LLC in performing similar federal IT contracts?

LGS Innovations LLC has a history of performing federal IT contracts, particularly within the Department of Defense. Based on publicly available data, the company has been involved in various telecommunications, network engineering, and IT support services for government agencies. This specific contract with the Department of the Army for custom computer programming services aligns with their general area of expertise. A deeper analysis would involve reviewing their performance history on other similar contracts, including past performance evaluations, any contract disputes, and their success in delivering complex IT solutions within budget and schedule.

How did the competition level (full and open) influence the final price compared to a sole-source award?

A full and open competition generally leads to a significantly lower price for the government compared to a sole-source award. In a sole-source scenario, the government negotiates with a single vendor, often resulting in higher prices due to the lack of competitive pressure. Full and open competition allows multiple qualified vendors to bid, driving prices down as companies strive to win the contract by offering competitive rates and superior technical solutions. While the exact price difference cannot be quantified without a hypothetical sole-source price, the competitive nature of this award is a key factor in ensuring taxpayer value and preventing price gouging.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $26,782,411

Exercised Options: $26,287,613

Current Obligation: $26,287,613

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0026

IDV Type: IDC

Timeline