DoD's $18.4M MCTIMS contract awarded to INFORELIANCE LLC shows fair value with 4 bidders
Contract Overview
Contract Amount: $18,409,536 ($18.4M)
Contractor: Inforeliance LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-26
End Date: 2012-08-17
Contract Duration: 1,421 days
Daily Burn Rate: $13.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MCTIMS
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to INFORELIANCE LLC for work described as: MCTIMS Key points: 1. Contract value appears reasonable given the duration and scope of custom programming services. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of nearly four years indicates a significant, ongoing need for these services. 5. The contract falls within the standard range for custom computer programming services in the federal sector.
Value Assessment
Rating: good
The contract's total value of $18.4 million over approximately 1421 days suggests a daily rate of around $12,955. This rate, while substantial, is not inherently indicative of poor value without further benchmarking against similar custom computer programming services for the Department of Defense. The firm fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the final cost aligns with expectations. Benchmarking against other contracts for similar IT development and integration services would provide a clearer picture of whether this represents a competitive price point.
Cost Per Unit: $12,955 per day (estimated)
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 4 bidders suggests a competitive environment for this type of specialized IT service. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions. The fact that 4 entities vied for this contract implies that the market is sufficiently robust to support multiple providers for custom computer programming services within the defense sector.
Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This process helps ensure that the government is not overpaying for the required services.
Public Impact
The Department of the Navy benefits from custom computer programming services to support its mission-critical systems. This contract likely supports the development, maintenance, and enhancement of specific software applications or platforms. The geographic impact is primarily within the Department of Defense's operational footprint, potentially supporting personnel and operations nationwide or globally. Workforce implications may include the employment of skilled software developers, programmers, and IT specialists by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the custom solution is highly proprietary and difficult to transition.
- Reliance on a single contractor for critical IT services could pose a risk if performance degrades.
- The long performance period might not fully account for rapid technological advancements in IT.
Positive Signals
- Firm fixed-price contract structure limits the government's exposure to cost increases.
- Full and open competition suggests a competitive market, potentially leading to better pricing and innovation.
- The award to INFORELIANCE LLC indicates a successful bid based on established criteria.
Sector Analysis
This contract falls within the Information Technology sector, specifically under custom computer programming services. The federal IT market is vast, with significant spending allocated to software development, system integration, and maintenance. Contracts like this are crucial for agencies to modernize systems, enhance cybersecurity, and improve operational efficiency. Benchmarking against similar custom programming contracts within the defense sector would reveal if the $18.4 million award is within the expected range for the scope and duration.
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 benefits for the small business ecosystem stemming from a set-aside provision. The primary contractor, INFORELIANCE LLC, is likely a mid-to-large-sized business given the contract value. Opportunities for small businesses would typically arise if subcontracting plans were mandated or voluntarily pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract were to arise.
Related Government Programs
- Custom Computer Programming Services
- IT Services for Defense
- Software Development Contracts
- Department of Defense IT Spending
- Federal IT Infrastructure Support
Risk Flags
- Potential for scope creep in custom development projects.
- Reliance on contractor for specialized technical expertise.
- Long contract duration may not align with rapid technological evolution.
Tags
it, defense, department-of-defense, department-of-the-navy, custom-computer-programming-services, firm-fixed-price, full-and-open-competition, large-contract, information-technology, software-development, mctims
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to INFORELIANCE LLC. MCTIMS
Who is the contractor on this award?
The obligated recipient is INFORELIANCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2008-09-26. End: 2012-08-17.
What is the track record of INFORELIANCE LLC in performing federal IT contracts, particularly those of similar size and scope?
Assessing INFORELIANCE LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, their performance ratings (if publicly available), and any history of contract disputes or terminations. For a contract valued at $18.4 million involving custom computer programming for the Department of Defense, it is crucial to understand if the company has successfully delivered similar complex IT solutions within budget and schedule. A history of successful, on-time, and within-scope delivery on comparable projects would indicate a lower performance risk for this current contract. Conversely, past issues could signal potential challenges ahead.
How does the estimated daily rate of $12,955 compare to market rates for similar custom programming services in the federal sector?
The estimated daily rate of approximately $12,955 for custom computer programming services under this Department of Defense contract needs to be benchmarked against prevailing market rates. Factors influencing this rate include the complexity of the services, the required skill sets (e.g., specialized programming languages, security clearances), geographic location of the work, and the specific contract type (firm fixed-price). Comparing this rate to similar contracts awarded by DoD or other federal agencies for comparable services, considering the period of performance and the specific technical requirements, is essential. If this rate is significantly higher than comparable contracts, it could indicate potential overpricing or a higher level of complexity justifying the cost. Conversely, if it aligns with or is lower than market benchmarks, it suggests reasonable value.
What are the key performance indicators (KPIs) used to measure the success of this MCTIMS contract for the Department of the Navy?
The specific Key Performance Indicators (KPIs) for the MCTIMS contract are not detailed in the provided data but are typically defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For custom computer programming services, common KPIs often include software functionality meeting specified requirements, system uptime and availability, defect resolution times, adherence to development schedules, and successful integration with existing systems. The Department of the Navy would likely track metrics related to the system's ability to support its mission objectives, user satisfaction, and compliance with security protocols. Regular performance reviews between the government and INFORELIANCE LLC would assess progress against these KPIs.
What is the historical spending pattern for MCTIMS or similar IT systems within the Department of the Navy over the last five years?
Analyzing historical spending patterns for MCTIMS or comparable IT systems within the Department of the Navy over the past five years would provide context for the $18.4 million award. This involves examining prior contract actions for the same or similar systems, including their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate shifts in program priorities, technological upgrades, or changes in service requirements. Understanding this trend helps determine if the current contract represents a sustained investment, a new initiative, or a scaling up/down of previous efforts. It also aids in identifying potential cost efficiencies or areas where spending may have been excessive in the past.
What level of risk is associated with the firm fixed-price contract type for a custom programming project of this magnitude?
The firm fixed-price (FFP) contract type generally shifts the risk of cost overruns to the contractor, INFORELIANCE LLC, for this $18.4 million custom programming project. This is typically viewed as a positive for the government, as it provides cost certainty. However, for complex custom development, there's a risk that the initial price may not adequately account for unforeseen technical challenges or scope creep. If the contractor underestimated the effort or encountered significant hurdles, they might cut corners on quality or seek change orders, which can negate the cost certainty benefit. The government's risk lies in ensuring the SOW is precise and managing scope changes rigorously to prevent disputes and maintain the FFP advantage.
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4050 LEGATO RD STE 700, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $59,179,060
Exercised Options: $18,409,536
Current Obligation: $18,409,536
Parent Contract
Parent Award PIID: GS35F0273L
IDV Type: FSS
Timeline
Start Date: 2008-09-26
Current End Date: 2012-08-17
Potential End Date: 2012-09-17 00:00:00
Last Modified: 2015-09-30
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