DoD's $13M flat application license for EPS program awarded to Advanced Computer Concepts, Inc

Contract Overview

Contract Amount: $13,052,138 ($13.1M)

Contractor: Advanced Computer Concepts, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-31

End Date: 2026-12-30

Contract Duration: 1,095 days

Daily Burn Rate: $11.9K/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: FLAT APPLICATION LICENSE - EPS PROGRAM

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to ADVANCED COMPUTER CONCEPTS, INC. for work described as: FLAT APPLICATION LICENSE - EPS PROGRAM Key points: 1. Value for money appears fair given the 3-year duration and fixed-price contract type. 2. Competition was full and open after exclusion of sources, suggesting some market engagement. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within the IT services sector, specifically computer related services. 5. Sector positioning is in IT services, a common area for federal technology spending.

Value Assessment

Rating: fair

The contract value of approximately $13 million over three years for a flat application license suggests a moderate annual spend. Benchmarking against similar IT licensing contracts is difficult without more specific details on the application's scope and criticality. However, the fixed-price nature of the contract provides some assurance against uncontrolled cost escalation. The value appears reasonable for a specialized software license supporting a federal program.

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.' While this indicates an initial intent for broad competition, the exclusion clause suggests specific circumstances led to limiting the pool of potential bidders. The number of bidders is not specified, but the 'full and open' designation implies more than one offer was considered, which is generally positive for price discovery.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. A broader competition typically leads to more competitive pricing, though the specifics of this exclusion warrant further scrutiny.

Public Impact

The Department of the Navy benefits from this license, ensuring continued access to the EPS program's application. Services delivered include the provision of a flat application license, crucial for program operations. Geographic impact is likely concentrated within the Department of the Navy's operational areas. Workforce implications are minimal, primarily affecting IT support staff managing the application.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the application is highly specialized and difficult to replace.
Lack of transparency on the specific 'exclusion of sources' could hide competitive limitations.

Positive Signals

Fixed-price contract type helps control costs.
Award to a single vendor for a specific license simplifies management.
Clear end date for the contract allows for future re-evaluation of needs.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing software licenses, hardware, and related support. This contract falls under 'Other Computer Related Services' (NAICS 541519), a broad category that includes a wide range of IT support and consulting. Federal spending on software licenses alone runs into billions annually, with agencies constantly seeking to modernize and maintain their technological infrastructure.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. The award to Advanced Computer Concepts, Inc., a single entity, does not immediately suggest a broad impact on the small business ecosystem unless they are a prime contractor with significant subcontracting requirements not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms and delivery schedules. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Procurement
Navy Software Licensing
Federal Application Support Contracts
Information Technology Services

Risk Flags

Potential lack of robust competition due to source exclusion.
Limited public information on application criticality and specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to ADVANCED COMPUTER CONCEPTS, INC.. FLAT APPLICATION LICENSE - EPS PROGRAM

Who is the contractor on this award?

The obligated recipient is ADVANCED COMPUTER CONCEPTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2023-12-31. End: 2026-12-30.

What is the specific function and criticality of the EPS program's flat application license?

The provided data does not specify the exact function or criticality of the EPS program's flat application license. The 'EPS Program' could refer to various initiatives within the Department of the Navy. Understanding the application's role in supporting essential operations, data management, or decision-making processes is crucial for a comprehensive value assessment. Without this context, it's challenging to determine if the $13 million expenditure over three years represents optimal value or if alternative solutions could achieve similar outcomes more cost-effectively. Further investigation into the program's objectives and the application's specific capabilities would be necessary.

How does the pricing of this license compare to commercial off-the-shelf (COTS) software for similar functionalities?

Direct comparison of this license's pricing to COTS software is difficult without knowing the specific application and its features. Federal contracts often include support, maintenance, and specific customization or integration services that can increase the overall cost compared to a standalone COTS license. The 'flat application license' terminology suggests a perpetual or long-term usage right. To benchmark effectively, one would need to identify comparable COTS applications, their licensing models (perpetual, subscription, per-user), and associated support costs, then factor in any unique government requirements or volume discounts that might apply to this specific contract.

What were the specific reasons for excluding other sources in the 'full and open competition after exclusion of sources' award process?

The exclusion of sources in a 'full and open competition' scenario typically arises when specific technical requirements, existing infrastructure compatibility, or unique vendor capabilities are deemed essential and only met by a limited number of providers. For instance, if the EPS program's application relies on proprietary technology or deep integration with existing Navy systems that only Advanced Computer Concepts, Inc. can provide or maintain, other vendors might be excluded. Documenting these justifications is key to ensuring fair competition and preventing artificial market limitations. Without the agency's specific rationale, it remains a point of potential concern regarding the breadth of competition achieved.

What is the track record of Advanced Computer Concepts, Inc. in delivering similar IT services to the federal government?

Assessing the track record of Advanced Computer Concepts, Inc. requires reviewing their past federal contract awards, performance evaluations (e.g., CPARS), and any history of contract modifications or disputes. A positive performance history with the government, particularly in delivering IT services and software licenses, would indicate a lower risk for this current contract. Conversely, a history of performance issues, cost overruns, or missed deadlines would raise concerns about their ability to meet the terms of this $13 million award. Publicly available contract databases can provide insights into their past engagements and contract values.

Are there any performance metrics or Service Level Agreements (SLAs) associated with this license that are publicly available?

Publicly available contract databases typically do not detail specific performance metrics or Service Level Agreements (SLAs) tied to software license contracts. These are usually defined in the contract's statement of work (SOW) or performance work statement (PWS) and are part of the internal oversight between the agency and the contractor. While the contract is firm fixed-price, ensuring the application functions as intended and meets the Navy's operational needs relies on these internal performance standards. Accessing the SOW or PWS would be necessary to understand the specific performance expectations and remedies for non-performance.

Industry Classification

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

Product/Service Code: 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: N0003924Q5000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7927 JONES BRANCH DR STE 600N, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,910,837

Exercised Options: $13,052,138

Current Obligation: $13,052,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD60B

IDV Type: GWAC

Timeline