DoD's $11M IT contract for computer systems design services awarded to IMMIX TECHNOLOGY INC

Contract Overview

Contract Amount: $11,053,676 ($11.1M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Defense

Start Date: 2006-04-21

End Date: 2009-04-30

Contract Duration: 1,105 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: IT

Official Description: FUNDING FOR 0001AA ABOVE

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to IMMIXTECHNOLOGY INC for work described as: FUNDING FOR 0001AA ABOVE Key points: 1. Value for money appears fair given the fixed-price contract type and duration. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract potentially limiting cost overruns. 4. Performance context is within computer systems design services, a common IT requirement. 5. Sector positioning is within the Defense Information Systems Agency, a key IT provider for the DoD.

Value Assessment

Rating: fair

The contract value of $11.05 million over approximately three years for computer systems design services is within a reasonable range for similar IT support contracts. The fixed-price nature of the award suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the scope was well-defined. Benchmarking against similar contracts would provide a more precise assessment of value, but the initial data does not indicate significant overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces, ensuring that the government receives the best possible value for its investment.

Public Impact

The Department of Defense benefits from enhanced computer systems design and support. Services delivered include crucial IT infrastructure and design capabilities for defense operations. Geographic impact is likely concentrated within areas supporting the Defense Information Systems Agency's mission. Workforce implications may involve specialized IT professionals contributing to national security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT projects if not managed tightly.
Reliance on a single contractor for critical IT systems could pose a risk if performance falters.

Positive Signals

Fixed-price contract structure incentivizes cost control and predictable budgeting.
Full and open competition suggests a robust market offering and potential for competitive pricing.
Award to IMMIX TECHNOLOGY INC. indicates they met the technical and performance requirements of the solicitation.

Sector Analysis

The IT services sector is a significant component of federal spending, with computer systems design services being a core requirement for agencies like the Department of Defense. This contract falls within a broad category of IT support that enables the functioning of complex defense networks and systems. Comparable spending benchmarks in this area are vast, but this $11 million award represents a moderate-sized engagement for specialized IT design.

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 this particular award. The primary focus was on securing the necessary IT services through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) to ensure compliance with terms and conditions. Accountability measures are inherent in the fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract databases, though specific performance metrics are not detailed here.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Department of Defense Computer Systems Design Services
Federal IT Services Procurement
Fixed-Price IT Contracts

Risk Flags

Contract Duration
Fixed-Price Contract Risk
IT Service Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to IMMIXTECHNOLOGY INC. FUNDING FOR 0001AA ABOVE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2006-04-21. End: 2009-04-30.

What is the track record of IMMIX TECHNOLOGY INC. with the Department of Defense?

IMMIX TECHNOLOGY INC. has a history of receiving federal contracts, primarily with the Department of Defense. While this specific contract was awarded in 2006, their continued presence in the federal contracting space suggests a capacity to meet government requirements. A deeper analysis would involve reviewing their performance on other contracts, including any past performance evaluations, awards, or disputes. Their ability to secure this $11 million contract indicates they met the agency's criteria at the time of award, but their overall track record requires a broader examination of their contract history and client feedback.

How does the $11 million value compare to similar IT design contracts awarded by the DoD around 2006?

The $11.05 million value for computer systems design services awarded in 2006 is a moderate sum for a multi-year IT contract within the Department of Defense. During that period, the DoD was heavily investing in IT modernization and support. Larger, more complex system integration or development projects could easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused support tasks might be in the low millions. Without specific details on the scope of services, it's challenging to provide a precise benchmark, but this contract appears to be within the typical range for specialized IT design and support services for a period of approximately three years.

What are the primary risks associated with a fixed-price contract for computer systems design?

The primary risk with a fixed-price contract for computer systems design lies in the potential for scope creep and unforeseen technical challenges. If the requirements are not clearly defined upfront, the contractor may incur additional costs to meet evolving needs, potentially leading to disputes or a reduction in profit margin. Conversely, the government risks receiving a product or service that does not fully meet its needs if the initial scope was inadequate or if the contractor cuts corners to maintain profitability. Effective project management, clear communication, and a well-defined SOW are crucial to mitigating these risks for both parties.

How effective was the full and open competition in ensuring competitive pricing for this contract?

Full and open competition is generally considered the most effective method for ensuring competitive pricing, as it allows all eligible businesses to bid, fostering a robust marketplace. While the data confirms this contract was awarded under full and open competition, it does not specify the number of bids received. A higher number of bids typically correlates with more aggressive pricing. The fact that the contract was awarded suggests that IMMIX TECHNOLOGY INC. offered a price and technical solution deemed most advantageous by the Defense Information Systems Agency. To fully assess the effectiveness, one would need to know the number of bidders and compare the winning bid against the independent government cost estimate or other bids.

What is the historical spending trend for computer systems design services by the Defense Information Systems Agency?

The Defense Information Systems Agency (DISA) consistently spends significant amounts on IT services, including computer systems design. Historical data would show a trend of substantial and often increasing investment in these areas as technology evolves and defense needs change. DISA's role as a central IT provider for the DoD means it procures a wide range of services, from network infrastructure to cybersecurity and application development. Analyzing DISA's spending over several years would reveal patterns related to specific technologies, service providers, and overall IT modernization efforts, with contracts like this one representing a piece of that larger spending picture.

What are the potential performance implications of this contract for DISA's IT infrastructure?

This contract for computer systems design services likely contributed to the enhancement, maintenance, or development of DISA's IT infrastructure, which underpins critical defense communications and operations. The specific impact depends on the nature of the design services provided – whether it involved network architecture, software systems, or specialized IT solutions. Successful execution by IMMIX TECHNOLOGY INC. would mean a more robust, efficient, or secure IT environment for DISA. Conversely, any performance issues could lead to disruptions or vulnerabilities within the defense network, highlighting the importance of diligent oversight and contractor performance management.

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

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Immixgroup, Inc (UEI: 159803972)

Address: 8444 WESTPARK DR STE 120, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,389,594

Exercised Options: $11,053,676

Current Obligation: $11,053,676

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0330J

IDV Type: FSS

Timeline