Commerce Awards $15.1M for ADP System Configuration to HII Mission Driven Innovative Government Solutions Inc

Contract Overview

Contract Amount: $15,132,827 ($15.1M)

Contractor: HII Mission Driven Innovative Government Solutions Inc.

Awarding Agency: Department of Commerce

Start Date: 2002-12-15

End Date: 2009-07-31

Contract Duration: 2,420 days

Daily Burn Rate: $6.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADP SYSTEM CONFIGURATION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $15.1 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC. for work described as: ADP SYSTEM CONFIGURATION Key points: 1. The contract value of $15.1M is moderate for IT system configuration services. 2. HII Mission Driven Innovative Government Solutions Inc. is a large, established contractor. 3. The long duration (2420 days) presents potential risks for technology obsolescence and cost overruns. 4. The 'Telephone Apparatus Manufacturing' NAICS code seems misaligned with ADP system configuration.

Value Assessment

Rating: fair

The contract value of $15.1M for a 2420-day duration suggests an average annual spend of approximately $2.3M. Without specific benchmarks for ADP system configuration, it's difficult to definitively assess pricing, but the duration raises concerns about potential overpricing due to extended service and evolving technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was awarded as a competitive delivery order. While competition is generally positive for price discovery, the long duration and potential for task order variations could obscure the true competitive pricing over the contract's life.

Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayer value, but the extended period and potential for scope creep warrant careful monitoring to ensure continued cost-effectiveness.

Public Impact

The U.S. Patent and Trademark Office relies on this ADP system for its operations. A long-term contract could impact the adoption of newer, more efficient technologies. The contractor, HII, is a significant player in government contracting, suggesting a stable provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Information Technology sector sees significant government spending. ADP system configuration is a core IT service. Benchmarks for similar long-term IT system contracts vary widely based on complexity and scope, but the duration here is notably long.

Small Business Impact

There is no indication that small businesses were involved in this contract award, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The long duration of this contract necessitates robust oversight to ensure the system remains relevant, efficient, and cost-effective throughout its term. Regular performance reviews and change management processes are crucial.

Related Government Programs

Risk Flags

Tags

telephone-apparatus-manufacturing, department-of-commerce, va, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $15.1 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC.. ADP SYSTEM CONFIGURATION

Who is the contractor on this award?

The obligated recipient is HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2002-12-15. End: 2009-07-31.

What specific ADP system configuration services are being procured, and how does the $15.1M value align with industry standards for such a long duration?

The data indicates 'ADP SYSTEM CONFIGURATION' as the service. The $15.1M value spread over 2420 days (approx. 6.7 years) averages around $2.25M annually. This figure needs to be benchmarked against similar long-term, complex IT system configuration contracts within the federal government and private sector to assess its reasonableness and ensure taxpayer value.

Given the 2420-day duration, what are the primary risks associated with technology obsolescence and potential cost escalations for this ADP system?

The primary risk is that the technology underlying the ADP system configuration could become outdated long before the contract's end date. This necessitates significant reinvestment or costly upgrades, potentially exceeding the initial contract value. Furthermore, extended contracts are susceptible to scope creep and unforeseen maintenance challenges, increasing overall costs for taxpayers.

How effectively does the 'Telephone Apparatus Manufacturing' NAICS code (334210) represent the 'ADP SYSTEM CONFIGURATION' service procured under this contract?

The NAICS code 334210, 'Telephone Apparatus Manufacturing,' is highly unlikely to accurately represent 'ADP SYSTEM CONFIGURATION.' This discrepancy suggests a potential misclassification, which could impact procurement data accuracy, small business set-aside opportunities, and the ability to conduct relevant market research and benchmarking for IT services.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingTelephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 12730 FAIR LAKES CIR, FAIRFAX, VA, 11

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

Financial Breakdown

Contract Ceiling: $15,339,342

Exercised Options: $15,132,827

Current Obligation: $15,132,827

Parent Contract

Parent Award PIID: GS35F0140L

IDV Type: FSS

Timeline

Start Date: 2002-12-15

Current End Date: 2009-07-31

Potential End Date: 2009-07-31 00:00:00

Last Modified: 2010-09-01

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