DoD's $14.7M Computer Systems Design Contract with Indus Corporation Raises Questions on Value and Competition
Contract Overview
Contract Amount: $14,673,446 ($14.7M)
Contractor: Indus Corporation
Awarding Agency: Department of Defense
Start Date: 2008-12-01
End Date: 2011-11-14
Contract Duration: 1,078 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: FUNDING
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to INDUS CORPORATION for work described as: FUNDING Key points: 1. The contract awarded to Indus Corporation for computer systems design services totals $14.7 million. 2. Competition was listed as 'Full and Open Competition After Exclusion of Sources', suggesting potential limitations. 3. The contract type is 'Time and Materials', which can pose risks for cost control. 4. The sector is IT, specifically computer systems design services, a critical area for defense operations.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, combined with a lack of clear benchmarks, makes assessing value difficult. Without detailed cost breakdowns or comparisons to similar services, it's hard to determine if $14.7 million represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' is unusual and implies that certain sources were excluded, potentially limiting price discovery and competition. This raises concerns about whether the best possible price was achieved.
Taxpayer Impact: The limited competition and Time and Materials pricing structure may lead to higher costs for taxpayers than a more open and fixed-price contract.
Public Impact
Taxpayers may be overpaying due to limited competition and a flexible pricing model. The effectiveness of the computer systems design services provided is not explicitly detailed, impacting public understanding of the investment. Lack of transparency in the procurement process could erode public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of clear value assessment
Positive Signals
- Contract awarded to a specific company for needed services
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is crucial for modern defense capabilities, but also prone to cost overruns if not managed carefully.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
The 'Exclusion of Sources' clause warrants further investigation to ensure proper justification and adherence to procurement regulations. Oversight should focus on the justification for excluding sources and the cost controls within the Time and Materials contract.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for inflated costs due to Time and Materials pricing.
- Limited competition raises concerns about fairness and best value.
- Lack of transparency regarding source exclusion.
- Insufficient data on performance and value for money.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to INDUS CORPORATION. FUNDING
Who is the contractor on this award?
The obligated recipient is INDUS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2008-12-01. End: 2011-11-14.
What was the specific justification for excluding certain sources from this 'Full and Open Competition'?
The justification for excluding sources in a 'Full and Open Competition After Exclusion of Sources' scenario typically requires a detailed rationale, such as specific technical requirements that only certain vendors can meet, or national security concerns. Without this documented justification, the exclusion raises concerns about fairness and potential favoritism in the procurement process.
How was the 'Time and Materials' pricing structured to ensure cost efficiency for the government?
Time and Materials contracts are inherently less predictable in cost than fixed-price contracts. To ensure efficiency, the government should have implemented strict labor hour tracking, defined ceiling prices, and potentially incorporated incentives for cost savings. Regular audits and performance reviews would be crucial to monitor expenditures and prevent cost creep.
What metrics were used to evaluate the effectiveness and success of the computer systems design services provided?
Effectiveness metrics for computer systems design services could include system uptime, performance improvements, successful integration of new technologies, user satisfaction, and adherence to project timelines and budgets. The absence of readily available data on these metrics makes it difficult to assess the return on the $14.7 million investment and the overall success of the contract.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation ID: DCA10003R4019
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 1951 KIDWELL DR STE 800, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,840,059
Exercised Options: $16,119,193
Current Obligation: $14,673,446
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA10003D4007
IDV Type: IDC
Timeline
Start Date: 2008-12-01
Current End Date: 2011-11-14
Potential End Date: 2011-11-14 00:00:00
Last Modified: 2025-04-07
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