DoD's IGF Maintenance Contract: $19.7M for Defense Accounting System Support

Contract Overview

Contract Amount: $19,726,522 ($19.7M)

Contractor: Digital Systems Group, Inc

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2018-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF MAINTENANCE AND DEVELOPMENT SUPPORT THE DEFENSE WORKING CAPITAL ACCOUNTING SYSTEM

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44101

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to DIGITAL SYSTEMS GROUP, INC for work described as: IGF::CT::IGF MAINTENANCE AND DEVELOPMENT SUPPORT THE DEFENSE WORKING CAPITAL ACCOUNTING SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans 5 years, indicating a long-term need for these services. 4. The contractor, Digital Systems Group, Inc., has a track record with this specific system. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more data on the specific services rendered and the complexity of the Defense Working Capital Accounting System. The firm fixed price structure is generally favorable for the government, as it caps costs. However, the total value of $19.7 million over five years averages to approximately $3.94 million annually, which needs to be assessed against the system's criticality and the market rates for similar custom programming and maintenance services.

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 presence of multiple bidders, though not explicitly stated, is generally expected in such a scenario. This competitive environment should theoretically lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its various components that rely on the Defense Working Capital Accounting System for financial management. The services delivered include maintenance and development support, ensuring the continued functionality and potential enhancement of a critical financial system. The geographic impact is likely nationwide within DoD facilities that utilize the system. Workforce implications may include the need for specialized IT personnel within the contractor organization and potentially within the DoD for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if development support is not tightly managed.
Dependence on a single contractor for critical system maintenance could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
Long-term contract (5 years) provides stability for system support and development.
Awarded via full and open competition, suggesting a competitive pricing environment.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT maintenance. The market for such services supporting large government systems is substantial, with numerous companies offering specialized expertise. The Defense Working Capital Accounting System is a critical piece of financial infrastructure for the DoD, and contracts for its support are essential for maintaining operational readiness and financial integrity.

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 larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract 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, with performance expectations likely detailed in the contract's statement of work. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Defense Working Capital Fund
DoD Financial Management Systems
Custom Computer Programming Services Contracts
IT Maintenance and Support Contracts

Risk Flags

Potential for technical obsolescence of the underlying system.
Cybersecurity risks associated with a critical financial system.
Dependence on contractor expertise for system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to DIGITAL SYSTEMS GROUP, INC. IGF::CT::IGF MAINTENANCE AND DEVELOPMENT SUPPORT THE DEFENSE WORKING CAPITAL ACCOUNTING SYSTEM

Who is the contractor on this award?

The obligated recipient is DIGITAL SYSTEMS GROUP, 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 $19.7 million.

What is the period of performance?

Start: 2013-10-01. End: 2018-09-30.

What is the specific nature of the 'development support' provided under this contract, and how has it evolved over the contract's lifespan?

The provided data does not detail the specific nature of the 'development support.' This could range from minor enhancements and bug fixes to significant upgrades or new feature development for the Defense Working Capital Accounting System (DWAS). Understanding the scope of development is crucial for assessing value and contractor performance. If development has been extensive, it might indicate a need for more agile development methodologies or a re-evaluation of the system's architecture. Conversely, if it's primarily maintenance, the focus shifts to operational efficiency and system stability. Historical contract modifications and task orders would be necessary to trace the evolution of development activities and their associated costs.

How does the annual cost of this contract ($3.94M) compare to the overall budget or spending on the Defense Working Capital Accounting System?

The annual cost of approximately $3.94 million for IGF Maintenance and Development Support represents a significant investment in the Defense Working Capital Accounting System (DWAS). To benchmark this effectively, it needs to be compared against the total lifecycle cost of the DWAS, including its initial development, ongoing operational expenses, and other maintenance contracts. Information on the total DoD IT budget or specific financial system maintenance allocations would provide context. If DWAS is a foundational system for DoD finances, this spending might be considered reasonable. However, if the DoD is exploring modernizing or replacing DWAS, this ongoing investment could be questioned. Without broader financial context, it's difficult to definitively state if this spending is proportionate.

What were the key performance indicators (KPIs) used to evaluate Digital Systems Group, Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used for evaluating Digital Systems Group, Inc.'s performance. Typically, for IT maintenance and development support contracts, KPIs might include system uptime percentages, response times for critical issues, resolution times for reported bugs, successful deployment rates for new features or patches, and adherence to security protocols. The contract's statement of work (SOW) and any associated performance work statements (PWS) would outline these specific metrics. The absence of this information makes a direct assessment of contractor performance challenging, relying instead on the general assumption that the contract was successfully fulfilled given its completion.

What is the historical spending trend for maintenance and development support of the Defense Working Capital Accounting System prior to and during this contract period?

The provided data only covers the period from October 1, 2013, to September 30, 2018, for this specific contract. To analyze historical spending trends, data from previous contracts supporting the Defense Working Capital Accounting System (DWAS) would be required. This would involve examining contract awards for DWAS maintenance and development from earlier periods. Comparing spending patterns before, during, and potentially after this contract's term would reveal whether costs have increased, decreased, or remained stable. Such an analysis could highlight efficiency gains, inflationary pressures, or shifts in the system's support requirements over time, providing valuable context for the $19.7 million expenditure.

Are there any known risks associated with the Defense Working Capital Accounting System itself that could impact the effectiveness or cost of this support contract?

The provided data does not explicitly mention risks associated with the Defense Working Capital Accounting System (DWAS) itself. However, large, legacy government financial systems often carry inherent risks, such as technical obsolescence, cybersecurity vulnerabilities, integration challenges with newer systems, and difficulties in finding personnel with expertise in older technologies. If DWAS is based on outdated architecture, the maintenance and development support might become increasingly complex and costly over time. Furthermore, any significant security breaches or functional failures within DWAS could necessitate urgent, potentially expensive, corrective actions beyond the scope of routine support, impacting the contract's overall cost and effectiveness.

Industry Classification

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

Address: 400 HORSHAM RD STE 120, HORSHAM, PA, 19044

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,298,522

Exercised Options: $19,726,522

Current Obligation: $19,726,522

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0760J

IDV Type: FSS

Timeline