DoD's $26.5M software contract for munitions accountability awarded to Metgreen Solutions Inc

Contract Overview

Contract Amount: $26,462,792 ($26.5M)

Contractor: Metgreen Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2023-12-13

End Date: 2026-12-12

Contract Duration: 1,095 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THREE SEPARATE THEATER INTEGRATED COMBAT MUNITIONS SYSTEM SOFTWARE LICENSES FOR AIR FORCE CLASS V MUNITIONS ACCOUNTABILITY AND FOR BOTH ADMINISTRATIVE AND OPERATIONAL CONTROL OF ASSETS

Place of Performance

Location: NORFOLK, MADISON County, NEBRASKA, 68701

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to METGREEN SOLUTIONS INC for work described as: THREE SEPARATE THEATER INTEGRATED COMBAT MUNITIONS SYSTEM SOFTWARE LICENSES FOR AIR FORCE CLASS V MUNITIONS ACCOUNTABILITY AND FOR BOTH ADMINISTRATIVE AND OPERATIONAL CONTROL OF ASSETS Key points: 1. Contract focuses on software licenses for managing Air Force Class V munitions. 2. Value-for-money assessment is pending further benchmarking against similar systems. 3. Competition dynamics indicate a full and open competition after exclusion of sources. 4. Risk indicators are moderate, primarily related to software implementation and adoption. 5. Performance context involves ensuring accurate administrative and operational control of assets. 6. Sector positioning is within defense IT services, specifically logistics and accountability software.

Value Assessment

Rating: fair

The contract value of $26.5 million over three years for software licenses appears within a typical range for specialized defense IT systems. However, a precise value-for-money assessment requires benchmarking against comparable munitions accountability software solutions and evaluating the specific features and functionalities provided by Metgreen Solutions Inc. The firm fixed-price nature of the contract shifts performance risk to the contractor, which can be beneficial for the government if the contractor can deliver within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. Further information on the exclusion criteria and the bidding process would be needed for a comprehensive analysis.

Taxpayer Impact: The limited competition, even if initially open, may have resulted in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers may not have received the absolute lowest possible price due to potential limitations on the pool of eligible bidders.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, who will gain improved capabilities for managing Class V munitions. Services delivered include software licenses essential for administrative and operational control of munitions assets. Geographic impact is nationwide, supporting Air Force operations across various bases and installations. Workforce implications include potential training needs for personnel who will operate the new software system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is highly proprietary and difficult to integrate with other systems.
Risk of cost overruns if implementation requires significant customization or unforeseen integration challenges.
Dependence on Metgreen Solutions Inc. for ongoing support, maintenance, and future upgrades.
Challenges in ensuring data integrity and security within the new accountability system.

Positive Signals

Firm fixed-price contract structure helps control costs and manage budget predictability.
Focus on a critical defense capability (munitions accountability) suggests high strategic importance.
Award to a single vendor for specialized software can lead to streamlined development and support.
The contract duration allows for phased implementation and user adoption.

Sector Analysis

This contract falls within the Defense IT sector, specifically focusing on logistics and asset management software. The market for defense logistics software is substantial, driven by the need for efficiency, accountability, and real-time data across complex global operations. Comparable spending benchmarks would involve analyzing other contracts for similar inventory management, supply chain, or asset tracking systems within the DoD and other federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is not applicable or was not a primary consideration for this contract. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified software and services. Transparency is generally facilitated through contract award databases, though detailed performance metrics and internal oversight processes are not publicly disclosed.

Related Government Programs

Defense Logistics Agency (DLA) IT Systems
Air Force Munitions Management Systems
DoD Asset Tracking and Inventory Software
Combat Systems Software Development
Federal IT Services Procurement

Risk Flags

Limited competition details
Unclear contractor past performance
Potential for high long-term costs
Integration complexity risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to METGREEN SOLUTIONS INC. THREE SEPARATE THEATER INTEGRATED COMBAT MUNITIONS SYSTEM SOFTWARE LICENSES FOR AIR FORCE CLASS V MUNITIONS ACCOUNTABILITY AND FOR BOTH ADMINISTRATIVE AND OPERATIONAL CONTROL OF ASSETS

Who is the contractor on this award?

The obligated recipient is METGREEN SOLUTIONS 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 $26.5 million.

What is the period of performance?

Start: 2023-12-13. End: 2026-12-12.

What is the track record of Metgreen Solutions Inc. in delivering similar defense software solutions?

Information regarding Metgreen Solutions Inc.'s specific track record in delivering defense software, particularly for munitions accountability, is not detailed in the provided data. A thorough assessment would require reviewing past performance on similar government contracts, including client satisfaction, adherence to schedule and budget, and technical execution. Without this information, it is difficult to gauge their experience and reliability for this critical system. Further research into contract databases and past performance reviews would be necessary to establish their credibility in this specialized area.

How does the $26.5 million contract value compare to similar munitions accountability software contracts?

Benchmarking the $26.5 million contract value requires comparing it to similar software solutions for defense asset and munitions accountability. Factors such as the scope of services, number of users, specific functionalities (e.g., real-time tracking, predictive maintenance integration, security features), and contract duration (3 years) are crucial for a fair comparison. Without access to data on comparable contracts, it's challenging to definitively state whether this represents excellent, fair, or questionable value. However, for specialized, mission-critical defense software, this figure is not inherently excessive, but detailed analysis against specific benchmarks is needed.

What are the primary risks associated with the implementation and long-term use of this software?

Key risks include potential challenges in integrating the new software with existing DoD systems, which can lead to delays and increased costs. There's also a risk of user adoption issues if the software is not intuitive or if adequate training is not provided. Long-term risks involve the contractor's continued viability and ability to provide necessary updates and support, as well as potential cybersecurity vulnerabilities inherent in any software system. Ensuring data accuracy and security for munitions accountability is paramount, making data integrity a critical risk area.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring competitive pricing for taxpayers?

This procurement approach aims to balance the need for broad competition with specific requirements that might exclude certain vendors. While 'full and open' suggests an intention to maximize bidders, the 'exclusion of sources' clause indicates that specific criteria were used to narrow the field. The effectiveness in ensuring competitive pricing depends heavily on the justification for excluding sources and the number of remaining bidders. If the exclusion significantly limits the pool of qualified vendors, it could reduce competitive pressure and potentially lead to higher prices for taxpayers compared to a truly unrestricted competition.

What are the potential long-term cost implications beyond the initial $26.5 million contract?

The initial $26.5 million covers software licenses and likely implementation support over three years. However, long-term costs could include annual maintenance and support fees, potential costs for future upgrades or new versions, and expenses related to integrating the system with evolving DoD infrastructure. If the software requires significant customization or if the contractor's pricing for ongoing services is high, these follow-on costs could substantially exceed the initial contract value. A thorough total cost of ownership analysis would be needed to fully understand the long-term financial commitment.

What is the strategic importance of this software for Air Force munitions management?

This software is strategically important as it directly supports the administrative and operational control of Air Force Class V munitions. Accurate accountability is critical for national security, ensuring that munitions are tracked, stored, and deployed effectively and safely. Improved control can enhance readiness, reduce the risk of loss or misuse, and provide better data for logistical planning and resource allocation. The system's effectiveness directly impacts the Air Force's ability to maintain and deploy its ordnance capabilities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA821324R0023

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3203 KOENIGSTEIN AVE, NORFOLK, NE, 68701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,462,792

Exercised Options: $26,462,792

Current Obligation: $26,462,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD37B

IDV Type: GWAC

Timeline