DoD's $30M custom programming contract with LGS Innovations awarded in 2010, ending 2013

Contract Overview

Contract Amount: $30,033,192 ($30.0M)

Contractor: LGS Innovations LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-20

End Date: 2013-09-30

Contract Duration: 1,290 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE AWARD

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to LGS INNOVATIONS LLC for work described as: BASE AWARD Key points: 1. Contract value appears moderate for custom programming services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type may limit cost overruns. 4. Contract duration of over 3 years indicates a significant project. 5. Awarded to LGS Innovations, a known entity in government contracting. 6. Services provided under NAICS 541511 (Custom Computer Programming Services).

Value Assessment

Rating: fair

The $30 million award for custom computer programming services over approximately three years is a substantial investment. Benchmarking this against similar contracts is challenging without more specific details on the scope of work. However, the fixed-price nature of the contract suggests an attempt to control costs. The number of bids received (6) indicates some level of market interest, but without knowing the specific requirements, it's difficult to definitively assess value for money.

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 a bid. Six offers were received, indicating a reasonable level of interest from the market. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

The Department of the Army is the primary beneficiary of these custom programming services. Services likely supported specific military or administrative functions requiring tailored software solutions. The geographic impact is primarily tied to the Army's operational locations, potentially nationwide or global. Workforce implications would include IT professionals and developers employed by LGS Innovations and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess effectiveness.
Scope creep could be a risk in custom programming contracts if not managed tightly.
Reliance on a single awardee for custom solutions can create vendor lock-in.

Positive Signals

Fixed-price contract can provide cost certainty.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to an established contractor may indicate a track record of successful delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market for the federal government is vast, with significant spending allocated to software development, system integration, and IT support. This contract represents a portion of that spending, focused on bespoke solutions rather than off-the-shelf products. Comparable spending benchmarks would depend heavily on the specific nature of the custom programming required.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless LGS Innovations actively engaged small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially contracting officer representatives (CORs) to monitor performance and ensure compliance. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Custom Software Development Contracts
Army IT Procurement
Information Technology Professional Services

Risk Flags

Contract duration exceeds 3 years.
NAICS code indicates custom development, requiring careful scope management.
No small business subcontracting data available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to LGS INNOVATIONS LLC. BASE AWARD

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 $30.0 million.

What is the period of performance?

Start: 2010-03-20. End: 2013-09-30.

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

The provided data indicates the contract falls under NAICS code 541511, Custom Computer Programming Services. However, it does not specify the exact nature of the programming. This could range from developing new software applications, modifying existing ones, or integrating different systems. Without further details on the statement of work (SOW), it's impossible to determine the precise services rendered. These services could have been for operational support, intelligence analysis tools, logistical systems, or administrative functions within the Department of the Army.

How does the $30 million award compare to typical spending for similar custom programming contracts within the DoD?

Comparing the $30 million award to typical spending for similar custom programming contracts within the DoD requires access to broader contract databases and analysis tools that can filter by service type, agency, and contract duration. Generally, custom programming contracts can vary significantly in value, from a few hundred thousand dollars for smaller projects to hundreds of millions for large-scale system developments. A $30 million contract over three years suggests a moderately sized, significant project. However, without specific details on the complexity, deliverables, and technological requirements, a precise benchmark is difficult. The number of bidders (6) suggests it was a competitive bid for a project of notable scope.

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

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. In custom programming contracts, KPIs often relate to software functionality, performance benchmarks (e.g., speed, reliability), adherence to deadlines, bug resolution rates, and user satisfaction. Effective oversight would involve tracking these metrics against the contract's Statement of Work (SOW) and performance standards. The absence of this information in the summary data limits the ability to assess the contractor's performance objectively.

What is the track record of LGS Innovations LLC with the Department of Defense and similar contracts?

LGS Innovations LLC has a history of contracting with the U.S. government, including the Department of Defense. While this specific contract was awarded in 2010, the company has been involved in various IT and telecommunications projects for federal agencies. A deeper dive into their contract history would reveal the types and values of other awards, their performance ratings (if available), and any significant issues or successes. Their presence in the market suggests they possess the capabilities required for government IT work, but a comprehensive assessment of their track record requires more detailed historical data.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided summary data does not indicate any significant challenges, disputes, or contract modifications for this specific award. Typically, contract databases might flag modifications, protests, or termination notices. The absence of such flags in this summary suggests the contract may have proceeded without major disruptions, or that such details are not captured in this abbreviated format. Further investigation into contract modification logs or agency-specific records would be necessary to confirm the absence of significant issues.

How did the fixed-price contract type influence the final cost and risk allocation?

A Firm Fixed Price (FFP) contract type, as indicated for this award, generally places the risk of cost overruns on the contractor (LGS Innovations LLC). This means the contractor agreed to perform the specified work for a set price, regardless of their actual costs. This structure provides cost certainty for the government buyer (Department of the Army). If the contractor can perform the work efficiently and below the agreed-upon price, they realize a higher profit. Conversely, if costs exceed the fixed price, their profit margin shrinks, or they may incur a loss. This type of contract incentivizes the contractor to manage costs effectively.

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, 09

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

Financial Breakdown

Contract Ceiling: $30,207,701

Exercised Options: $30,033,192

Current Obligation: $30,033,192

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0026

IDV Type: IDC

Timeline