Air Force IT Operations Support Contract Exceeds $34M with Interactive Process Technology

Contract Overview

Contract Amount: $34,085,613 ($34.1M)

Contractor: Interactive Process Technology, LLC

Awarding Agency: General Services Administration

Start Date: 2018-07-13

End Date: 2024-01-12

Contract Duration: 2,009 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $34.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT Key points: 1. Contract value of $34.09M for IT operations support. 2. Competition was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of limited competition due to source exclusion. 4. Sector is Information Technology, specifically custom computer programming.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, coupled with a duration of 2009 days (over 5 years), raises concerns about cost control compared to fixed-price contracts for similar IT operations support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'Full and Open Competition After Exclusion of Sources' method suggests a potentially narrowed field of bidders, which can impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The extended duration and T&M pricing may result in higher taxpayer costs if not managed diligently to prevent scope creep and ensure efficient service delivery.

Public Impact

Ensures critical IT operations support for Air Force personnel. Supports custom computer programming services essential for agency functions. Long-term contract provides stability for service provider and agency needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

The contract data does not indicate any specific set-asides for small businesses, suggesting that larger, established firms were likely the primary participants in the competition.

Oversight & Accountability

The contract's long duration and T&M pricing necessitate robust oversight from the General Services Administration and the Air Force to ensure cost-effectiveness and prevent potential waste.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, general-services-administration, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is INTERACTIVE PROCESS TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2018-07-13. End: 2024-01-12.

What specific factors led to the exclusion of sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements necessitate a limited pool of qualified vendors. Without detailed documentation, it's difficult to ascertain the exact reasons for exclusion. This limitation can reduce competitive pressure, potentially leading to a higher price than if a broader range of vendors had been allowed to compete.

How effectively has the Time and Materials pricing model been managed to control costs over the contract's extended period, given the potential for cost overruns?

Effective management of T&M contracts requires stringent oversight, detailed tracking of labor hours and material costs, and clear performance metrics. Regular audits and reviews by the contracting officer are crucial to ensure that costs remain reasonable and allocable to the contract's scope. The agency's ability to control costs depends heavily on the diligence of its program management and contract administration.

What is the assessed value for money considering the $34M expenditure over more than five years for IT operations support, and are there comparable contracts that offer better value?

Assessing value for money requires comparing the delivered services against the cost, considering the contract's duration and pricing structure. Given the T&M nature and limited competition, it's plausible that alternative contract vehicles, such as fixed-price or performance-based contracts with broader competition, might offer better value. A detailed cost-benefit analysis against industry benchmarks would be needed for a definitive assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID07180006

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interactive Process Technology LLC

Address: 1500 DISTRICT AVE, BURLINGTON, MA, 01803

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $41,529,603

Exercised Options: $34,546,163

Current Obligation: $34,085,613

Actual Outlays: $3,086,361

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $11,548,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1007

IDV Type: IDC

Timeline

Start Date: 2018-07-13

Current End Date: 2024-01-12

Potential End Date: 2024-01-12 00:00:00

Last Modified: 2024-02-29

More Contracts from Interactive Process Technology, LLC

View all Interactive Process Technology, LLC federal contracts →

Other General Services Administration Contracts

View all General Services Administration contracts →

Explore Related Government Spending