DoD's $11M IT Systems Operations Contract Awarded to Innovative Management Concepts, Inc

Contract Overview

Contract Amount: $11,057,224 ($11.1M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-16

End Date: 2026-06-08

Contract Duration: 1,484 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: IT SYS OPERATIONS SERVICES

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: IT SYS OPERATIONS SERVICES Key points: 1. Contract value of $11.06 million over its period of performance. 2. Awarded under full and open competition after exclusion of sources. 3. Fixed Price Level of Effort contract type suggests defined scope and deliverables. 4. Performance period spans from May 2022 to June 2026, indicating a long-term need. 5. The contract is for Computer Systems Design Services, a critical IT function. 6. The awardee, Innovative Management Concepts, Inc., has secured this significant contract. 7. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle. 8. The base contract has a duration of 1484 days.

Value Assessment

Rating: fair

Benchmarking the value of this $11.06 million contract requires more granular data on the specific IT systems operations services provided. Without detailed service descriptions and performance metrics, it's challenging to compare its value against similar contracts or market rates. The fixed-price nature suggests a defined scope, but the overall value proposition depends heavily on the efficiency and effectiveness of the services delivered by Innovative Management Concepts, Inc. Further analysis would involve examining the contractor's past performance and the specific deliverables outlined in the contract.

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 open, certain sources may have been excluded prior to the solicitation, which could limit the breadth of competition. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive process. The specific exclusion of sources warrants further investigation to understand its impact on price discovery and overall value.

Taxpayer Impact: The 'full and open competition after exclusion of sources' suggests a potentially competitive process, which is generally favorable for taxpayers. However, the exclusion of certain sources could mean that taxpayers did not benefit from the widest possible range of offers, potentially impacting cost savings.

Public Impact

The Department of the Air Force benefits from IT systems operations services, ensuring the smooth functioning of critical infrastructure. This contract supports the delivery of computer systems design and related services. The geographic impact is likely concentrated within the Department of Defense's operational areas, particularly where the Air Force has a presence. The contract has implications for the IT workforce, potentially creating or sustaining jobs for skilled professionals in systems design and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about the extent of true open competition and potential missed opportunities for cost savings.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and the overall value for money.
The specific nature of the IT systems operations services is not detailed, making it hard to benchmark against industry standards.
The contract type is Fixed Price Level of Effort, which can sometimes lead to inefficiencies if not closely monitored, as the contractor is paid for effort rather than outcome.

Positive Signals

Awarded through a competitive process, indicating potential for fair pricing.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The long performance period suggests a stable and ongoing requirement for these critical IT services.
The contract is for essential IT systems operations, crucial for the Air Force's mission.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and operations. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. Contracts like this are essential for agencies to manage their technological infrastructure, ensure cybersecurity, and support operational readiness. Comparable spending benchmarks would typically involve analyzing IT support and systems integration contracts across various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Innovative Management Concepts, Inc., is responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are inherent in the fixed-price level of effort contract type, which requires the contractor to meet defined effort levels. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Systems Operations
Computer Systems Design Services
Information Technology Support Services
Defense IT Services
Air Force IT Contracts

Risk Flags

Competition Type: 'Exclusion of sources' may limit competitive breadth.
Performance Metrics: Lack of detailed performance data hinders value assessment.
Scope Definition: 'Level of effort' requires careful monitoring to prevent inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. IT SYS OPERATIONS 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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2022-05-16. End: 2026-06-08.

What is the track record of Innovative Management Concepts, Inc. in delivering IT systems operations services to the federal government?

Assessing the track record of Innovative Management Concepts, Inc. requires a review of their past federal contract performance. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A strong track record typically includes consistent on-time delivery, adherence to budget, positive client feedback, and a history of successfully managing complex IT projects. Without specific data on their past performance on similar contracts, it is difficult to definitively assess their capability for this $11.06 million award.

How does the pricing of this contract compare to similar IT systems operations contracts awarded by the Department of Defense?

Directly comparing the pricing of this $11.06 million contract without detailed service breakdowns and performance metrics is challenging. The contract is a Fixed Price Level of Effort (FPLE), meaning the contractor is paid for a specified amount of effort. To benchmark effectively, one would need to compare the estimated labor hours, skill mix, and overhead rates against similar FPLE contracts for IT systems operations within the DoD. Additionally, comparing the total contract value against the duration (approx. 4 years) provides a rough annual cost, but the true value depends on the scope and complexity of the services rendered. Further analysis would involve looking at the number of bidders and the final negotiated price relative to the government's estimate.

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

Primary risks for this IT systems operations contract include potential scope creep if the 'level of effort' is not strictly managed, contractor underperformance leading to service disruptions, cybersecurity vulnerabilities within the systems being operated, and potential cost overruns if the initial estimates for effort are inaccurate. Mitigation strategies typically involve robust contract oversight by the government, clear definition and monitoring of the 'level of effort,' performance-based metrics, regular security audits, and strong communication channels with the contractor. The 'full and open competition after exclusion of sources' also presents a risk if it limited the pool of qualified bidders, potentially impacting price and innovation.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring optimal value for taxpayers in this IT contract?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring optimal value for taxpayers is nuanced. While 'full and open' implies a broad competitive field, the 'exclusion of sources' means that not all potential offerors were considered. This exclusion could be based on specific technical requirements, past performance, or other criteria. If the exclusions were justified and the remaining pool of bidders was still robust and competitive, it could lead to good value. However, if the exclusions were overly restrictive or arbitrary, it might have limited competition, potentially leading to higher prices or less innovative solutions than could have been achieved with wider participation. Taxpayer value is maximized when competition is broad and fair.

What is the historical spending trend for IT systems operations services by the Department of the Air Force?

Analyzing the historical spending trend for IT systems operations services by the Department of the Air Force would involve examining aggregated data over several fiscal years. This would reveal whether spending in this category is increasing, decreasing, or remaining stable. Factors influencing these trends include technological advancements, evolving mission requirements, budget allocations, and shifts towards cloud computing or managed services. Understanding this trend provides context for the current $11.06 million award, indicating whether it aligns with historical investment patterns or represents a significant shift in strategy or expenditure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 428 HONAKER RD, BLAIRSVILLE, GA, 30512

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,084,925

Exercised Options: $13,395,468

Current Obligation: $11,057,224

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,173,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0028

IDV Type: GWAC

Timeline