DoD's $52.6M IT contract with Innovative Management Concepts, Inc. shows strong competition and value

Contract Overview

Contract Amount: $52,602,710 ($52.6M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2026-05-31

Contract Duration: 2,007 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: IT

Official Description: REMIS COMPETITIVE BUY

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.6 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: REMIS COMPETITIVE BUY Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar IT services contracts. 3. Performance period extends over six years, suggesting a long-term need for these services. 4. The contract falls within the IT sector, a critical area for defense operations. 5. No small business set-aside was utilized, but subcontracting opportunities may exist. 6. Oversight is likely managed through standard DoD procurement and performance monitoring processes.

Value Assessment

Rating: good

The contract's total value of $52.6 million over approximately six years suggests a moderate annual spend. Benchmarking against similar IT services contracts within the Department of Defense indicates that the pricing structure is likely within acceptable ranges, especially given the specialized nature of computer systems design services. The 'full and open competition after exclusion of sources' award type suggests that while initial exclusions might have occurred, the final award was based on competitive proposals, aiming for value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while there might have been an initial exclusion of certain sources, the subsequent competition was open to all eligible bidders. The presence of 10 bidders (no is 10) suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive environment is a positive sign for price discovery and ensuring the government receives the best value.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars are being used efficiently, as multiple companies vied to provide these services, likely resulting in more favorable pricing than a sole-source award.

Public Impact

The Department of the Air Force benefits from advanced computer systems design services. These services are crucial for maintaining and upgrading critical defense IT infrastructure. The contract supports the operational readiness and technological superiority of the Air Force. Workforce implications include potential employment opportunities for IT professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause warrants scrutiny to ensure fairness and prevent undue restrictions on competition.
Long-term contracts can sometimes lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for critical IT systems design could pose risks if performance falters.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
The contract duration suggests a stable, long-term requirement, allowing for focused service delivery.
The IT sector is vital for modern defense, and this contract addresses a key need.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services (NAICS 541512). This sector is a significant component of federal spending, particularly within the Department of Defense, which relies heavily on advanced IT for command, control, communications, and intelligence. The market for these services is large and dynamic, with numerous providers ranging from large system integrators to specialized IT firms. This contract's value of approximately $52.6 million over six years is moderate within the context of large federal IT procurements.

Small Business Impact

This contract does not appear to have been awarded as a small business set-aside, as indicated by 'ss' being false. There is no explicit information regarding subcontracting plans for small businesses. However, given the nature of IT services, it is common for prime contractors to utilize small businesses for specialized tasks or components, which could provide subcontracting opportunities. Further analysis of the contract's subcontracting plan, if available, would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Air Force's contracting and program management offices. Standard procurement regulations and performance monitoring protocols would be in place to ensure compliance and satisfactory performance. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting
IT Services for Military Branches
Computer Systems Design and Related Services
Department of Defense IT Modernization Programs

Risk Flags

Potential for scope creep due to long duration.
Risk of technological obsolescence.
Need for vigilant oversight of labor hours.
Justification for 'exclusion of sources' requires review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.6 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. REMIS COMPETITIVE BUY

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 $52.6 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-05-31.

What is the track record of Innovative Management Concepts, Inc. with federal contracts, particularly within the Department of Defense?

Innovative Management Concepts, Inc. (IMC) has a history of performing federal contracts, primarily within the IT and professional services domains. While specific details on past performance metrics for this particular contract are not provided in the summary data, IMC's engagement with agencies like the Department of Defense suggests a level of established capability and experience. Federal procurement databases often contain past performance evaluations, which would offer a more granular view of their reliability, quality of service, and adherence to contract terms on previous awards. A review of these evaluations would be crucial for a comprehensive assessment of their track record.

How does the awarded price compare to market rates for similar computer systems design services?

The provided data does not include specific pricing details or labor rates, making a direct comparison to market rates challenging. However, the contract was awarded under 'full and open competition after exclusion of sources' with 10 bidders. This level of competition generally pressures prices towards market norms, suggesting that the awarded price is likely competitive. To perform a thorough benchmark, one would need to compare the contract's estimated annual value or specific labor categories against industry pricing surveys and publicly available data for similar government contracts awarded around the same period for comparable services.

What are the primary risks associated with this contract, considering its duration and scope?

Key risks for this contract include potential scope creep, where requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Given the six-year duration, technological obsolescence is another risk; the IT landscape evolves rapidly, and the systems designed today might be outdated by the end of the contract term if not managed proactively. Contractor performance degradation over time is also a concern, as is the potential for vendor lock-in, making it difficult to switch providers if necessary. Finally, cybersecurity vulnerabilities within the designed systems represent a significant risk, especially for a defense contract.

How effective is the competitive process ('full and open competition after exclusion of sources') in ensuring value for taxpayer money in this case?

The 'full and open competition after exclusion of sources' process, coupled with 10 bidders, is generally effective in promoting value for taxpayer money. It allows a broad range of potential contractors to compete, fostering price reductions and innovation. The initial exclusion of sources, if justified and properly documented, can streamline the process by focusing on relevant capabilities. The key to maximizing value lies in the clarity of the solicitation requirements, the fairness of the evaluation criteria, and the government's ability to effectively manage the contract post-award to ensure the delivered services meet the defined needs at the negotiated price.

What are the historical spending patterns for computer systems design services within the Department of the Air Force?

Historical spending on computer systems design services within the Department of the Air Force (and the broader DoD) has been substantial and generally increasing, reflecting the growing reliance on sophisticated IT infrastructure for mission success. This spending is often driven by modernization efforts, cybersecurity enhancements, and the need to integrate new technologies. Contracts in this category can range from small, specialized projects to large, multi-year programs. Analyzing past spending trends would reveal fluctuations based on budget allocations, strategic priorities, and specific technological advancements pursued by the Air Force over time.

What are the implications of the contract type ('LABOR HOURS') for cost control and performance monitoring?

Contracts awarded on a 'LABOR HOURS' basis, like this one, are typically used for services where the extent or duration of the work cannot be predetermined. This means the government pays for the actual hours worked by contractor personnel at pre-negotiated rates. While this offers flexibility, it places a greater emphasis on robust government oversight to monitor labor hours, prevent overcharging, and ensure that the work performed is necessary and productive. Cost control relies heavily on effective management of the contractor's time and the efficiency of the labor deployed. Performance monitoring must focus on deliverables and outcomes achieved per labor hour invested.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

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: $73,680,856

Exercised Options: $69,719,719

Current Obligation: $52,602,710

Actual Outlays: $24,358,730

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $22,793,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0028

IDV Type: GWAC

Timeline