Innovative Management Concepts, Inc. awarded $68M for IT Professional Support Services by Department of Energy
Contract Overview
Contract Amount: $68,088,339 ($68.1M)
Contractor: Innovative Management Concepts, Inc
Awarding Agency: Department of Energy
Start Date: 2015-02-14
End Date: 2020-11-13
Contract Duration: 2,099 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF IT PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $68.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: IGF::OT::IGF IT PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract value of $68.1M over approximately 5 years suggests a significant investment in IT support. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of the contract (nearly 5 years) implies a need for sustained IT support services. 5. The award to Innovative Management Concepts, Inc. represents a substantial commitment to a single contractor for these services. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services, a critical area for government operations.
Value Assessment
Rating: fair
The total award amount of $68.1 million over nearly five years for IT professional support services appears substantial. Benchmarking against similar contracts for computer systems design services is challenging without more specific details on the scope of work and deliverables. However, the firm fixed-price nature of the contract suggests an attempt to manage costs effectively. The contract's duration implies a consistent need for these services, and the value reflects the ongoing operational requirements of the Department of Energy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was broad, there might have been specific criteria or prior exclusions that narrowed the field before the final award. The number of bidders is not explicitly stated, but the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better price discovery and value for the government.
Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome.
Public Impact
The Department of Energy benefits from sustained and specialized IT professional support, crucial for its operations. Services delivered likely include IT system design, integration, maintenance, and potentially cybersecurity support. The geographic impact is primarily within the Department of Energy's operational areas, likely concentrated in Colorado where the contractor is based. Workforce implications include the creation or maintenance of jobs within Innovative Management Concepts, Inc. and potentially its subcontractors, particularly in IT-related fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to the long-term nature of the contract.
- Risk of cost overruns if the scope of work expands beyond initial projections, despite the fixed-price structure.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Positive Signals
- Firm fixed-price contract type helps control government spending.
- Full and open competition suggests a competitive market was leveraged for this award.
- The contract duration indicates a stable and predictable IT support solution for the agency.
Sector Analysis
This contract falls within the IT professional services sector, specifically computer systems design. This sector is a significant component of federal IT spending, encompassing a wide range of services from software development to network infrastructure management. The Department of Energy, like many federal agencies, relies heavily on sophisticated IT systems to manage its complex operations, including research, energy grid management, and national security functions. Comparable spending benchmarks would typically be found within IT services categories for large federal agencies, often running into hundreds of millions or billions annually.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Innovative Management Concepts, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct benefit to the small business ecosystem from this particular award. However, large prime contracts often create downstream opportunities for specialized small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which ties payment to performance and delivery. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.
Related Government Programs
- IT Professional Services
- Computer Systems Design Services
- Department of Energy IT Contracts
- Federal IT Support Services
- Large Prime Contracts
Risk Flags
- Long-term contract duration may increase risk of scope creep or technological obsolescence.
- Dependence on a single contractor for critical IT services.
- Potential for cost overruns if contractor's cost management is poor, despite FFP structure.
Tags
it-services, computer-systems-design, department-of-energy, firm-fixed-price, full-and-open-competition, large-contract, professional-services, innovative-management-concepts-inc, colorado, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $68.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. IGF::OT::IGF IT PROFESSIONAL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is INNOVATIVE MANAGEMENT CONCEPTS, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $68.1 million.
What is the period of performance?
Start: 2015-02-14. End: 2020-11-13.
What specific IT professional support services were included in this $68 million contract?
The contract, identified by NAICS code 541512 (Computer Systems Design Services), likely encompassed a broad range of IT support. This could include the design, development, integration, and maintenance of computer systems and related hardware and software. Specific services might have involved IT infrastructure management, network administration, cybersecurity support, software engineering, database management, and IT consulting. The exact scope would be detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, deliverables, and performance standards expected from Innovative Management Concepts, Inc. over the contract's duration.
How does the $68.1 million award compare to typical IT support spending by the Department of Energy?
The $68.1 million award represents a significant, but not necessarily outlier, investment for a nearly five-year IT support contract within a large federal agency like the Department of Energy. Federal agencies often award multi-million dollar contracts for IT services due to the complexity and criticality of their systems. To provide a precise comparison, one would need to analyze the Department of Energy's historical IT spending patterns, specifically for computer systems design and related support services, across various fiscal years and contract vehicles. This would involve looking at the average award size, contract duration, and the number of similar contracts awarded to gauge if this specific award is within the expected range.
What are the key risks associated with a nearly five-year, firm fixed-price IT support contract of this magnitude?
A primary risk is scope creep, where the agency's needs evolve beyond the original SOW, potentially leading to disputes or the need for contract modifications, even under a fixed-price structure. Another risk is vendor performance; if Innovative Management Concepts, Inc. fails to deliver adequately, the Department of Energy could face disruptions in critical IT services. Given the long duration, there's also a risk of technological obsolescence if the contractor's solutions are not kept current. Finally, reliance on a single contractor for essential services can create dependency, making it difficult to switch providers if issues arise.
What does 'full and open competition after exclusion of sources' imply about the bidding process?
This procurement method suggests that the initial solicitation was broadly advertised to all responsible sources ('full and open competition'). However, 'after exclusion of sources' indicates that certain potential bidders or types of bids may have been excluded based on specific criteria defined in the solicitation, possibly related to past performance, technical capabilities, or specific requirements. This approach aims to ensure a competitive environment while also focusing the competition on vendors best suited to meet the agency's unique needs, potentially streamlining the evaluation process and ensuring a higher likelihood of award to a capable contractor.
How does the firm fixed-price (FFP) contract type benefit the government in this scenario?
The Firm Fixed-Price (FFP) contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. Innovative Management Concepts, Inc. is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This provides budget certainty for the Department of Energy and incentivizes the contractor to manage its costs efficiently and perform the work effectively to maximize its profit margin. It simplifies financial administration and reduces the need for extensive cost monitoring by the government compared to cost-reimbursement contracts.
What is the significance of the NAICS code 541512 (Computer Systems Design Services) for this contract?
The NAICS code 541512 signifies that the core services procured under this contract relate to the design, development, integration, and implementation of computer systems. This typically includes a wide array of activities such as IT consulting, systems integration, network design, software engineering, and IT project management. For the Department of Energy, this code indicates a focus on acquiring expertise to build, enhance, or maintain its complex IT infrastructure, which is essential for managing its diverse and critical missions, from scientific research to energy policy implementation.
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 Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0006785
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21400 RIDGETOP CIR STE 210, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $73,847,340
Exercised Options: $73,847,340
Current Obligation: $68,088,339
Actual Outlays: $14,951,149
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0529Z
IDV Type: GWAC
Timeline
Start Date: 2015-02-14
Current End Date: 2020-11-13
Potential End Date: 2020-11-13 00:00:00
Last Modified: 2021-04-26
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