NEA awards $2.6M for application development, with InnoSoft Corporation selected via full and open competition

Contract Overview

Contract Amount: $2,642,949 ($2.6M)

Contractor: Innosoft Corporation

Awarding Agency: National Endowment for the Arts

Start Date: 2024-04-06

End Date: 2029-04-05

Contract Duration: 1,825 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION DEVELOPMENT SERVICES-PROVIDE ON/OFF-SITE PROGRAMMING, END USER APPLICATION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20506

State: District of Columbia Government Spending

Plain-Language Summary

National Endowment for the Arts obligated $2.6 million to INNOSOFT CORPORATION for work described as: APPLICATION DEVELOPMENT SERVICES-PROVIDE ON/OFF-SITE PROGRAMMING, END USER APPLICATION SUPPORT Key points: 1. Contract value appears reasonable for a 5-year application development and support engagement. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns but could impact scope flexibility. 4. The contract duration of 5 years allows for sustained support and development. 5. Focus on application development and support aligns with agency IT needs. 6. The award is a single delivery order, indicating a specific project need.

Value Assessment

Rating: good

The contract value of $2.64 million over five years for application development services is within a reasonable range for this type of IT support. Benchmarking against similar government contracts for custom application development and maintenance, this price point suggests a moderate level of investment. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the scope of work, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The agency's decision to use full and open competition is a positive indicator of seeking the best value.

Taxpayer Impact: A competitive bidding process, even with two bidders, helps ensure that taxpayer funds are used efficiently by encouraging competitive pricing and service offerings.

Public Impact

The National Endowment for the Arts (NEA) will benefit from enhanced and supported application systems. Services include on-site and off-site programming and end-user application support. The geographic impact is primarily within the District of Columbia, where the NEA is headquartered. The contract supports IT professionals and developers, potentially impacting the local tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under a fixed-price contract.
Dependence on a single contractor for critical application support over five years.
Limited visibility into the specific technical expertise of the winning bidder without further analysis.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Full and open competition suggests a fair and transparent procurement process.
Long-term contract allows for sustained development and support of NEA applications.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a segment of the broader IT services industry. This sector is characterized by companies providing expertise in designing, developing, and implementing computer systems and software solutions for clients. The market size for government IT services is substantial, with agencies continually seeking to modernize their systems and improve application functionality. This contract represents a typical investment by a federal agency for specialized IT support.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The contractor, InnoSoft Corporation, is not identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless InnoSoft engages small businesses as subcontractors without it being a formal requirement.

Oversight & Accountability

The contract is a firm fixed-price delivery order, which inherently provides a degree of cost control. Oversight will likely involve regular performance reviews, milestone tracking, and adherence to service level agreements. Accountability measures are built into the contract terms and conditions. Transparency is facilitated by the contract being awarded under full and open competition, with data publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Application Development
Computer Systems Design Services
Software Development and Support
Federal IT Modernization Programs
Agency-Specific Software Solutions

Risk Flags

Moderate competition level (2 bidders) may limit price discovery.
Fixed-price contract requires careful scope management to avoid issues.
Long-term reliance on a single vendor for critical applications.

Frequently Asked Questions

What is this federal contract paying for?

National Endowment for the Arts awarded $2.6 million to INNOSOFT CORPORATION. APPLICATION DEVELOPMENT SERVICES-PROVIDE ON/OFF-SITE PROGRAMMING, END USER APPLICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is INNOSOFT CORPORATION.

Which agency awarded this contract?

Awarding agency: National Endowment for the Arts (National Endowment for the Arts).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-04-06. End: 2029-04-05.

What is InnoSoft Corporation's track record with federal contracts, particularly in application development?

A review of federal procurement data would be necessary to fully assess InnoSoft Corporation's track record. Key metrics to examine would include the number and value of previous federal awards, performance ratings on past contracts, and any history of contract disputes or terminations. Understanding their experience with similar application development services, especially for agencies of the NEA's size and mission, would provide crucial context for evaluating their capability to successfully execute this current contract. Without specific past performance data, it's difficult to definitively gauge their reliability and expertise.

How does the $2.64 million contract value compare to similar application development contracts awarded by federal agencies?

The $2.64 million contract value over five years for application development and support is a moderate investment. To benchmark effectively, one would compare this to contracts of similar scope, duration, and complexity awarded by agencies of comparable size or with similar IT needs. For instance, comparing it to contracts for custom software development, system integration, or ongoing application maintenance for agencies like the National Archives and Records Administration or the Institute of Museum and Library Services could provide valuable context. Factors such as the specific technologies involved, the level of customization required, and the geographic location of service delivery can influence pricing, making direct comparisons essential but nuanced.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, which is a common challenge in fixed-price contracts. Another risk is vendor lock-in, where the NEA becomes heavily reliant on InnoSoft Corporation for critical application functions over the five-year period. Technical obsolescence is also a risk, as technology evolves rapidly, and the developed applications may need significant updates. Mitigation strategies likely include robust contract management, clearly defined scope and deliverables, regular performance reviews, and potentially incorporating clauses for technology refresh or phased modernization. The firm fixed-price nature itself mitigates financial risk for the government regarding cost overruns.

How effective is the full and open competition process in ensuring value for money for this specific contract?

The full and open competition process is generally considered the most effective method for ensuring value for money, as it theoretically allows the widest possible pool of vendors to compete, driving down prices and improving service quality. In this case, with two bids received, the level of competition was moderate. While this is positive, a higher number of bidders could have potentially led to even more competitive pricing. The effectiveness ultimately depends on the clarity of the solicitation, the evaluation criteria, and the agency's ability to accurately assess the technical merit and cost proposals of the bidders to select the best overall value, not just the lowest price.

What is the historical spending pattern of the National Endowment for the Arts on IT services, and how does this contract fit?

Analyzing the NEA's historical spending on IT services would reveal trends in their investment in technology infrastructure, software development, and support. This $2.64 million contract for application development represents a significant, but likely typical, investment for a five-year period, aimed at enhancing core operational capabilities. Understanding if this aligns with or deviates from past spending levels on similar services can indicate whether the NEA is increasing, decreasing, or maintaining its focus on IT modernization. It also helps contextualize the contract's importance within the agency's overall budget and strategic IT objectives.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 59310523S0016

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7127 AMBASSADOR RD STE 100, WINDSOR MILL, MD, 21244

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,103,949

Exercised Options: $2,642,949

Current Obligation: $2,642,949

Actual Outlays: $1,369,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00J4

IDV Type: FSS

Timeline