DoD awards $14.6M for Human Capital Management System, with Integral Federal Inc. as prime

Contract Overview

Contract Amount: $14,629,614 ($14.6M)

Contractor: Integral Federal, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-23

End Date: 2026-08-22

Contract Duration: 1,825 days

Daily Burn Rate: $8.0K/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: HUMAN CAPITAL MANAGEMENT SYSTEM DEVELOPMENT AND SUSTAINMENT.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to INTEGRAL FEDERAL, INC. for work described as: HUMAN CAPITAL MANAGEMENT SYSTEM DEVELOPMENT AND SUSTAINMENT. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract has a duration of 1825 days, suggesting a long-term need for system development and sustainment. 3. The primary contractor, Integral Federal, Inc., is responsible for delivering this critical human capital management solution. 4. The North American Industry Classification System (NAICS) code 541519 points to a focus on computer-related services. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was made as a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $14.6 million contract requires more detailed cost breakdowns and comparisons to similar human capital management system development projects. Without specific performance metrics or a clear understanding of the system's scope, assessing value for money is challenging. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee optimal value. Further analysis of the contractor's past performance and the specific deliverables would be needed to provide a more definitive assessment.

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,' which suggests that while the competition was open, certain sources may have been excluded prior to the solicitation. The number of bidders is not explicitly stated, but the designation implies a competitive process was intended. The level of competition, even with exclusions, should theoretically drive price discovery and encourage competitive offers.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, maximizing the value of federal investments.

Public Impact

The Department of Defense is the primary beneficiary, receiving a system to manage its human capital. The services delivered include development and sustainment of a human capital management system. The geographic impact is likely centered around Department of Defense installations and personnel, primarily in Maryland where the award was registered. Workforce implications include potential job creation for Integral Federal, Inc. and its subcontractors, as well as the impact on DoD personnel who will use the new system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes value assessment difficult.
The 'exclusion of sources' clause requires further scrutiny to understand its impact on competition.
Performance metrics and system scope are not detailed, hindering effectiveness evaluation.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type shifts cost risk to the contractor.
Long contract duration (1825 days) indicates a sustained commitment to system improvement.

Sector Analysis

The IT services sector, particularly custom software development and sustainment, is a significant area of federal spending. This contract falls under computer-related services, a broad category encompassing system design, development, and maintenance. The federal government is a major consumer of such services, with agencies like the Department of Defense requiring robust IT infrastructure to support their complex operations. Comparable spending benchmarks would involve analyzing other large-scale IT system development contracts within the DoD and other federal agencies.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting plans. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, prime contractors like Integral Federal, Inc. often engage small businesses for specialized services, potentially creating subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the Department of Defense. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed cost breakdowns and performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Human Resources Activity (DHRA) systems
DoD Enterprise Resource Planning (ERP) systems
DoD Civilian Human Resources Agency (CHRA) IT initiatives
Defense Civilian Personnel Data System (DCPDS)

Risk Flags

Potential for scope creep during development and sustainment.
Risk of technological obsolescence over the contract's duration.
Dependence on a single contractor for critical system sustainment.
Need for robust data security and privacy measures for human capital data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to INTEGRAL FEDERAL, INC.. HUMAN CAPITAL MANAGEMENT SYSTEM DEVELOPMENT AND SUSTAINMENT.

Who is the contractor on this award?

The obligated recipient is INTEGRAL FEDERAL, 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 $14.6 million.

What is the period of performance?

Start: 2021-08-23. End: 2026-08-22.

What is the specific functionality and scope of the Human Capital Management System being developed and sustained?

The provided data does not detail the specific functionalities or scope of the Human Capital Management System. Typically, such systems encompass a wide range of human resources functions including personnel management, payroll, benefits administration, talent acquisition, performance management, training, and succession planning. The 'development and sustainment' aspect suggests both the initial creation of new modules or features and the ongoing maintenance, updates, and support for the existing system. A comprehensive understanding would require reviewing the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO).

How does the $14.6 million cost compare to similar DoD human capital management system projects?

Directly comparing the $14.6 million cost without detailed scope and functionality is challenging. However, large-scale human capital management systems for major federal agencies can range from tens to hundreds of millions of dollars over their lifecycle, depending on complexity, user base, and integration requirements. This $14.6 million award, covering development and sustainment over approximately five years, appears to be a moderate investment for a system within a large organization like the Department of Defense. Benchmarking would require access to cost data for comparable systems, considering factors like the number of users supported, modules included, and the level of customization.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a typical IT development and sustainment contract, KPIs would be defined in the Performance Work Statement (PWS) and could include metrics related to system uptime, response times, defect resolution rates, user satisfaction, on-time delivery of milestones, and adherence to budget. Contractor performance is usually assessed through regular reviews, performance reports, and potentially through a Contractor Performance Assessment Reporting System (CPARS) record.

What is Integral Federal, Inc.'s track record with similar large-scale IT system development contracts for the Department of Defense?

Assessing Integral Federal, Inc.'s track record requires accessing their past performance data, often available through systems like CPARS. Without direct access to this information, we can infer potential capabilities based on their prime contract awards. A $14.6 million contract for system development and sustainment indicates a level of trust and demonstrated capability by the Department of Defense. Further investigation into their portfolio of past DoD contracts, particularly those involving complex IT systems and human capital management, would provide a clearer picture of their expertise and reliability.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type signifies a competitive procurement process where the solicitation was made available to all responsible sources, but certain sources were excluded from consideration prior to the solicitation. This exclusion could be based on various factors, such as past performance issues, inability to meet specific technical requirements, or other pre-defined criteria. While it aims for competition, the exclusion means the pool of potential bidders was narrowed, which could potentially impact the breadth of competition and the resulting price discovery compared to a purely 'full and open' competition without exclusions.

What are the potential risks associated with the sustainment phase of this contract?

Potential risks during the sustainment phase include technological obsolescence, where the system's technology becomes outdated, requiring costly upgrades or replacements. Scope creep, where additional features or functionalities are requested beyond the original agreement, can lead to cost overruns and schedule delays. Security vulnerabilities are also a significant risk, requiring continuous monitoring and patching to protect sensitive human capital data. Furthermore, reliance on a single contractor for sustainment can create vendor lock-in, making it difficult to switch providers if performance issues arise or costs increase excessively.

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 › 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: HC102815R0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8444 WESTPARK DR STE 500, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $25,437,267

Exercised Options: $15,095,769

Current Obligation: $14,629,614

Actual Outlays: $5,978,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0032

IDV Type: IDC

Timeline