DoD's $22.7M EFIS&T contract awarded to LGS Innovations LLC shows fair value with 3 bidders

Contract Overview

Contract Amount: $22,702,867 ($22.7M)

Contractor: LGS Innovations LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2017-11-30

Contract Duration: 1,889 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EFIS&T EQUIPMENT/CAPABILITIES FROM EXISTING DCO TO NEW DCO

Place of Performance

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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to LGS INNOVATIONS LLC for work described as: EFIS&T EQUIPMENT/CAPABILITIES FROM EXISTING DCO TO NEW DCO Key points: 1. Contract awarded through full and open competition, indicating a competitive pricing environment. 2. The contract duration of 1889 days suggests a long-term need for the specified services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award was made to a single contractor, LGS Innovations LLC, for specialized capabilities. 5. The contract falls under the Custom Computer Programming Services NAICS code. 6. North Carolina is the state associated with this contract award.

Value Assessment

Rating: good

The contract's value of approximately $22.7 million over nearly five years for custom computer programming services appears reasonable given the scope of EFIS&T equipment and capabilities. Benchmarking against similar large-scale IT development contracts suggests that pricing within this range is typical for specialized, long-term projects. The firm fixed-price structure further supports value by locking in costs and incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple vendors were capable of meeting the government's requirements and that the pricing was likely driven by market forces. The presence of three bidders indicates a healthy competitive landscape for this type of specialized IT service.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. The three bids received suggest that the government secured a fair price through this process.

Public Impact

The Department of Defense benefits from enhanced EFIS&T equipment and capabilities. This contract supports the modernization and upgrade of existing Defense Communication Office (DCO) systems. The services delivered are critical for maintaining and improving defense communication infrastructure. The primary beneficiaries are military personnel and defense agencies relying on these communication systems. The contract's impact is primarily on the defense sector's operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized nature of EFIS&T capabilities.
Long contract duration could lead to technology obsolescence if not managed proactively.
Reliance on a single awardee for critical EFIS&T capabilities poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract type helps control costs and manage budget.
The contract duration aligns with the likely lifecycle of complex IT system upgrades.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a significant segment of the IT industry focused on developing and implementing specialized software and systems. The market for defense-related IT services is substantial, driven by the need for advanced communication and operational capabilities. This contract represents a specific investment in upgrading critical defense infrastructure, fitting within the broader trend of federal agencies modernizing their technological assets.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While LGS Innovations LLC is the prime contractor, there is no explicit information provided regarding subcontracting plans or their impact on small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or if subcontracting opportunities were prioritized.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet defined deliverables within the agreed-upon budget. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Defense Communication Systems Modernization
Custom Software Development for Government
IT Infrastructure Upgrades
Federal IT Services Contracts

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Reliance on a single awardee for specialized capabilities.
Need for ongoing government oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to LGS INNOVATIONS LLC. EFIS&T EQUIPMENT/CAPABILITIES FROM EXISTING DCO TO NEW DCO

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 $22.7 million.

What is the period of performance?

Start: 2012-09-28. End: 2017-11-30.

What is the track record of LGS Innovations LLC in delivering similar complex IT systems for the Department of Defense?

LGS Innovations LLC has a history of working with the Department of Defense on various IT and communication-related projects. While specific details on past performance for EFIS&T systems are not provided in this summary, their involvement in defense contracts suggests experience with government requirements and security protocols. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary to fully assess their track record for this specific type of work. Their ability to secure this contract through full and open competition indicates they met the initial qualifications set forth by the Army.

How does the $22.7 million contract value compare to similar EFIS&T or custom programming contracts awarded by the DoD?

The $22.7 million contract value for EFIS&T equipment and capabilities over approximately 1889 days (roughly 5 years) appears to be within a reasonable range for large-scale, specialized IT development projects within the Department of Defense. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) and defense communication system upgrades reveals that projects of this duration and complexity often fall within the multi-million dollar range. The firm fixed-price nature of this contract also suggests that the government sought to control costs, making the total value a key indicator of the expected scope and deliverables.

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

Key risks include potential vendor lock-in due to the specialized nature of EFIS&T capabilities, the possibility of technology obsolescence over the contract's long duration, and performance issues from the single awardee. Mitigation strategies are embedded in the contract structure: full and open competition aimed to secure the best value and a capable vendor; the firm fixed-price type incentivizes contractor performance and limits cost overruns; and the long duration, while a risk, also reflects the complexity and expected lifecycle of such system upgrades. Proactive government oversight and regular performance reviews are crucial to manage these risks effectively.

How effective has the Department of the Army been in managing contracts of this size and complexity in the past?

The Department of the Army manages a vast portfolio of contracts, many of which are of significant size and complexity, particularly in the IT and defense systems sectors. Historically, the Army has demonstrated capability in awarding and overseeing large contracts, though challenges can arise. Success often depends on robust program management, clear requirements definition, effective oversight, and strong contractor performance management. The use of full and open competition and firm fixed-price contracts are standard practices aimed at maximizing effectiveness and value for money, suggesting a structured approach to managing this particular contract.

What are the historical spending patterns for EFIS&T equipment and capabilities within the Department of Defense?

Historical spending patterns for EFIS&T (Electronic, Flight, Information, and Support Systems) equipment and capabilities within the Department of Defense are generally characterized by significant, ongoing investment. These systems are critical for military operations, requiring continuous upgrades and maintenance to keep pace with technological advancements and evolving threats. Spending in this area often fluctuates based on modernization priorities, budget allocations, and specific defense initiatives. Contracts like this one, valued at over $22 million, represent a substantial but not unusual investment for enhancing core defense communication and information systems.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5440 MILLSTREAM RD STE E210, MC LEANSVILLE, NC, 27301

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

Financial Breakdown

Contract Ceiling: $22,702,867

Exercised Options: $22,702,867

Current Obligation: $22,702,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0026

IDV Type: IDC

Timeline