DoD's $27.8M IGF Business Activity Monitoring Contract Awarded to IMMIXTECHNOLOGY INC

Contract Overview

Contract Amount: $27,830,994 ($27.8M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Defense

Start Date: 2015-05-01

End Date: 2021-02-28

Contract Duration: 2,130 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF BUSINESS ACTIVITY MONITORING SERVICES INCLUDING IDENTIFICATION OF IMPROPER PAYMENTS AND RECONCILIATION OF FUNDS BALANCE WITH TREASURY ACCOUNTS.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46249

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to IMMIXTECHNOLOGY INC for work described as: IGF::CL::IGF BUSINESS ACTIVITY MONITORING SERVICES INCLUDING IDENTIFICATION OF IMPROPER PAYMENTS AND RECONCILIATION OF FUNDS BALANCE WITH TREASURY ACCOUNTS. Key points: 1. Contract focused on identifying improper payments and reconciling Treasury accounts. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Long duration of 2130 days indicates a significant, ongoing need for services. 5. The contract's value is substantial, requiring robust performance monitoring. 6. Services provided are critical for financial integrity within the Department of Defense.

Value Assessment

Rating: good

The contract value of $27.8 million over approximately 5.8 years represents a significant investment. Benchmarking against similar financial monitoring and reconciliation services is challenging without more specific service details. However, the firm fixed-price structure suggests an attempt to manage costs effectively. The award to IMMIXTECHNOLOGY INC. should be assessed against their past performance and pricing in similar federal contracts to determine if the value is competitive.

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 bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of potential contractors, which should theoretically lead to a more favorable price for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the best possible price through a robust bidding process.

Public Impact

The Department of Defense benefits from improved financial oversight and reduced improper payments. Services ensure the accurate reconciliation of funds balance with Treasury accounts. The contract supports the financial management and accountability of federal funds. Workforce implications are likely within IMMIXTECHNOLOGY INC. and potentially within DFAS for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration.
Reliance on a single contractor for critical financial monitoring functions.
Ensuring continued relevance of monitoring services with evolving financial systems.

Positive Signals

Firm Fixed Price contract helps control costs.
Full and open competition suggests a competitive award.
Long duration provides stability for service delivery.
Focus on identifying improper payments aligns with fiscal responsibility goals.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' The market for financial monitoring and business activity management software and services is substantial, driven by regulatory compliance and the need for efficient financial operations. Comparable spending benchmarks would depend on the specific functionalities and scale of the monitoring required by DFAS.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the impact on the small business ecosystem is likely minimal unless IMMIXTECHNOLOGY INC. voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight would typically be managed by the Defense Finance and Accounting Service (DFAS) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, with performance metrics likely defined in the contract. Transparency is facilitated by the contract award being publicly available, though detailed performance reports may be internal.

Related Government Programs

Defense Finance and Accounting Service (DFAS) Operations
Improper Payment Identification Programs
Treasury Reconciliation Services
Financial Management Systems Modernization

Risk Flags

Long contract duration may lead to technology obsolescence.
Performance metrics and oversight effectiveness are critical.
Potential for vendor lock-in over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to IMMIXTECHNOLOGY INC. IGF::CL::IGF BUSINESS ACTIVITY MONITORING SERVICES INCLUDING IDENTIFICATION OF IMPROPER PAYMENTS AND RECONCILIATION OF FUNDS BALANCE WITH TREASURY ACCOUNTS.

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2015-05-01. End: 2021-02-28.

What is the specific nature of the 'IGF BUSINESS ACTIVITY MONITORING' services provided under this contract?

The 'IGF BUSINESS ACTIVITY MONITORING' services, as indicated by the contract description, primarily involve the identification of improper payments and the reconciliation of funds balance with Treasury accounts. This suggests a focus on financial auditing, data analysis, and reporting to ensure the accuracy and integrity of financial transactions within the Department of Defense. The services likely entail monitoring financial systems, flagging discrepancies, and providing actionable insights to prevent financial losses due to errors or fraud. The scope could include analyzing transaction data, validating payment authorizations, and ensuring compliance with financial regulations.

How does the $27.8 million contract value compare to similar financial monitoring contracts within the DoD or other federal agencies?

Direct comparison of the $27.8 million contract value is difficult without knowing the precise scope, duration, and specific services rendered. However, for a contract spanning nearly six years (May 2015 - Feb 2021) with a firm fixed-price structure, this value appears within a reasonable range for comprehensive financial monitoring and reconciliation services for a large entity like the Department of Defense. Many federal agencies procure similar services, with costs varying significantly based on the complexity of financial systems, the volume of transactions, and the level of detail required for monitoring and reporting. Contracts for financial auditing, fraud detection, and payment integrity often run into millions of dollars annually.

What are the key performance indicators (KPIs) used to assess the performance of IMMIXTECHNOLOGY INC. on this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for a contract focused on identifying improper payments and financial reconciliation would likely include metrics such as the accuracy rate of identified improper payments, the value of funds reconciled, the timeliness of reporting, the reduction in payment errors over time, and adherence to audit standards. The effectiveness of the monitoring software or processes implemented by IMMIXTECHNOLOGY INC. would also be a key factor. DFAS would establish these KPIs within the contract's Performance Work Statement (PWS) to ensure the contractor meets the required standards for financial oversight.

What is IMMIXTECHNOLOGY INC.'s track record with federal contracts, particularly in financial services or IT solutions?

IMMIXTECHNOLOGY INC. has a history of receiving federal contracts, primarily within the IT and technology solutions domain. Their portfolio includes various IT services, hardware, and software solutions for different government agencies. While specific details on their financial services track record are not immediately apparent from this single contract's summary, their involvement in a contract focused on financial activity monitoring suggests they possess capabilities relevant to financial systems or data analysis. A deeper dive into their contract history would reveal the extent and success of their past performance in similar complex financial oversight roles.

What are the potential risks associated with a long-term (over 5 years) contract for financial monitoring services?

Long-term contracts for financial monitoring services carry several potential risks. Firstly, technological obsolescence is a significant concern; financial systems and monitoring tools can rapidly become outdated, requiring continuous updates or replacements. Secondly, the contractor's personnel and expertise might not keep pace with evolving financial regulations or DoD requirements, potentially leading to diminished service quality. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance degrades or better solutions emerge. Finally, the long duration might reduce the incentive for the contractor to innovate or offer cost efficiencies beyond the initial contract period, especially if competition was limited in subsequent phases.

How does this contract contribute to the overall financial integrity and accountability within the Department of Defense?

This contract is crucial for enhancing the financial integrity and accountability within the Department of Defense by directly addressing the identification and prevention of improper payments. By ensuring accurate reconciliation of funds with Treasury accounts, it bolsters the reliability of DoD's financial statements and reduces the risk of financial mismanagement or fraud. The monitoring services provide an essential layer of oversight, helping to safeguard taxpayer dollars and maintain public trust. Ultimately, this contract supports the DoD's efforts to achieve auditable financial statements and uphold stringent standards of fiscal responsibility.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc. (UEI: 049159957)

Address: 8444 WESTPARK DR STE 200, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $36,161,051

Exercised Options: $27,830,994

Current Obligation: $27,830,994

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $101,684,741

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0265X

IDV Type: FSS

Timeline