USASOC awards $11.17M for app development, with 13 bids indicating strong competition

Contract Overview

Contract Amount: $11,174,849 ($11.2M)

Contractor: Belcan Government Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-08-01

End Date: 2023-07-31

Contract Duration: 1,094 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: USASOC HQ APP DEV LABOR

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to BELCAN GOVERNMENT SOLUTIONS, INC. for work described as: USASOC HQ APP DEV LABOR Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics suggest potential for favorable pricing. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is application development for USASOC. 5. Sector positioning is within IT services for defense.

Value Assessment

Rating: good

The contract value of $11.17 million for application development services over three years appears to be within a reasonable range, especially considering the competitive nature of the award. Benchmarking against similar IT development contracts within the Department of Defense would provide a more precise value assessment. The cost-plus-fixed-fee (CPFF) pricing structure allows for flexibility but requires careful oversight to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 13 bids received. This high level of competition is a positive signal, suggesting that the government sought a broad range of potential offerors and that market conditions allowed for multiple capable companies to participate. The significant number of bidders likely contributed to price discovery and potentially drove down costs.

Taxpayer Impact: The robust competition ensures taxpayers are likely receiving a fair price for the application development services, as multiple companies vied for the contract, driving competitive offers.

Public Impact

Special Operations Forces personnel will benefit from improved application capabilities. The contract delivers essential application development and related IT services. The geographic impact is primarily within North Carolina, where USASOC is headquartered. The contract supports IT professionals and developers within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition with a significant number of bidders.
Contract duration of nearly three years allows for sustained development.
Cost Plus Fixed Fee structure, while requiring oversight, can manage scope creep.

Sector Analysis

The IT services sector, particularly within defense, is characterized by rapid innovation and specialized needs. This contract for application development fits within the broader category of IT services, which represents a significant portion of federal IT spending. Comparable spending benchmarks for similar application development projects within the DoD can range widely based on complexity and duration, but the competitive award here suggests a market-driven price.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the full and open competition and the nature of the services, it's possible that small businesses could have participated, but the prime contractor, Belcan Government Solutions, Inc., is likely a mid-to-large-sized firm. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the U.S. Special Operations Command contracting office, ensuring adherence to the contract terms and managing costs. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USASOC IT Modernization Programs
DoD Application Development Services
Special Operations Forces Technology Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to BELCAN GOVERNMENT SOLUTIONS, INC.. USASOC HQ APP DEV LABOR

Who is the contractor on this award?

The obligated recipient is BELCAN GOVERNMENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2020-08-01. End: 2023-07-31.

What is the track record of Belcan Government Solutions, Inc. with the Department of Defense?

Belcan Government Solutions, Inc. has a history of contracting with the Department of Defense, providing various technical and engineering services. Their past performance with DoD agencies, including other branches and commands, would be a key factor in their selection for this USASOC contract. A review of their contract history would reveal the types of services rendered, their performance ratings on previous contracts, and any significant issues or commendations. This information is crucial for assessing their capability to deliver on the current application development requirements.

How does the $11.17 million value compare to similar application development contracts?

The $11.17 million contract value for nearly three years of application development services for USASOC is a moderate figure within the defense IT landscape. Comparable contracts can vary significantly based on the complexity of the applications, the number of users, integration requirements, and the specific technologies employed. For instance, large-scale enterprise resource planning (ERP) system development could cost tens or hundreds of millions, while smaller, specialized tool development might be in the low millions. The competitive nature of this award, with 13 bids, suggests the price was market-tested and likely represents good value for the scope of work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for application development?

The primary risks associated with a CPFF contract for application development revolve around cost control and scope management. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government pays the contractor's allowable costs. If costs escalate beyond initial projections due to inefficiencies, poor estimation, or scope creep, the government bears the financial burden. For the contractor, the risk lies in underestimating the effort required to deliver the fixed-fee profit. Effective oversight, clear requirements, and robust change control processes are essential to mitigate these risks.

How effective is full and open competition in ensuring value for taxpayer money in IT services?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices, encourages innovation, and ensures that the government selects the best overall value, considering both technical merit and cost. The receipt of 13 bids for this USASOC contract strongly indicates that the market was robust and that competition likely led to a more favorable price than a sole-source or limited competition award.

What are the historical spending patterns for application development within USASOC?

Historical spending patterns for application development within USASOC would likely show a consistent need for specialized software solutions to support its unique operational requirements. Spending would fluctuate based on modernization initiatives, emerging threats, and technological advancements. Analyzing past contracts, including their values, durations, and the types of applications developed, would provide context for the current $11.17 million award. Trends might indicate an increasing reliance on agile development methodologies, cloud-based solutions, or specific functional areas like intelligence analysis or mission planning support.

What are the implications of the North American Industry Classification System (NAICS) code 541519 for this contract?

The NAICS code 541519, 'Other Computer Related Services,' indicates that this contract falls into a broad category of IT services that are not specifically classified under other computer-related codes like custom programming or network management. This suggests the scope of work may encompass a range of activities, potentially including IT consulting, systems integration, data processing, or specialized IT support beyond standard software development. For USASOC, this code allows flexibility in procuring a variety of computer services essential for their operations, without being overly restrictive in the service definition.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8300 GREENSBORO DR STE 600, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $21,617,229

Exercised Options: $11,955,388

Current Obligation: $11,174,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA133

IDV Type: IDC

Timeline