Navy awards $116M for IT services, with significant portion for ADP systems analysis

Contract Overview

Contract Amount: $23,874,228 ($23.9M)

Contractor: Apptis, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2009-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200601!000015!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F4460G !C!N! !Y!N6553806F0005! !20051001!20060930!116207978!116207978!116207978!N!APPTIS INC !14155 NEWBROOK DR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000004304405!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !A!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !1700!N65538!0001! !

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to APPTIS, INC. for work described as: 200601!000015!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F4460G !C!N! !Y!N6553806F0005! !20051001!20060930!116207978!116207978!116207978!N!APPTIS INC !14155 NEWBROOK DR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIR… Key points: 1. Contract value of $116.2M over 4 years for IT services, primarily ADP systems analysis. 2. Full and open competition indicates a competitive bidding process. 3. Contract awarded to APPTIS, INC., a small business. 4. Performance period spans from October 2005 to September 2009. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. Services fall under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: fair

The total contract value of $116.2 million over four years averages to approximately $29 million per year. This is a substantial award for IT services. Without specific benchmarks for ADP Systems Analysis Services during the 2005-2009 period, it's difficult to definitively assess value for money. However, the Time and Materials contract type suggests potential for cost overruns if not closely managed, which warrants careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders likely participated. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the designation implies a robust bidding environment.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive marketplace, ensuring the government receives services at a more favorable cost.

Public Impact

The Department of the Navy benefits from enhanced ADP systems analysis capabilities. Services provided likely support critical naval IT infrastructure and operations. The geographic impact is primarily within the contractor's operational area, with potential for broader naval command support. Workforce implications include employment for IT professionals and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to costs exceeding initial estimates if not managed diligently.
Lack of specific performance metrics in the provided data makes it hard to gauge service effectiveness.
The contract duration of four years requires ongoing monitoring to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contractor APPTIS, INC. is a small business, potentially supporting small business goals.
The contract addresses a critical need for ADP systems analysis within the Navy.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and computer systems design. The market for such services is vast and highly competitive, with numerous companies offering specialized solutions. The value of this contract, over $116 million, places it in the mid-to-large tier for IT service contracts within the federal government during the mid-2000s. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by defense agencies during that period.

Small Business Impact

APPTIS, INC. is identified as a small business. The award to a small business, especially under full and open competition, is a positive signal for the small business ecosystem. It demonstrates that small businesses can compete effectively for significant federal contracts. Further analysis would be needed to determine if there were specific small business set-aside goals or subcontracting requirements associated with this award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the contracting officer (CO) at the Naval Sea Logistics Center. Regular performance reviews, invoice audits, and adherence to contract terms would be standard accountability measures. Transparency would be facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Sea Logistics Center IT Support Contracts
Department of Defense ADP Systems Analysis Services
IT Services for Military Branches
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of detailed performance metrics in provided data.
Contract duration requires ongoing monitoring for sustained value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to APPTIS, INC.. 200601!000015!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F4460G !C!N! !Y!N6553806F0005! !20051001!20060930!116207978!116207978!116207978!N!APPTIS INC !14155 NEWBROOK DR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000004304405!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is APPTIS, 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 $23.9 million.

What is the period of performance?

Start: 2005-10-01. End: 2009-09-30.

What was the specific nature of the ADP Systems Analysis Services provided under this contract?

The provided data indicates the contract's purpose was 'ADP SYSTEMS ANALYSIS SERVICES' under NAICS code 541512 (Computer Systems Design Services). While the exact deliverables are not detailed, this typically involves analyzing, designing, and implementing computer systems to meet specific organizational needs. For the Navy, this could encompass areas like logistics management systems, operational planning software, data analysis tools for intelligence, or improvements to existing IT infrastructure. The 'APPTIS INC' contractor likely provided expertise in system architecture, software development lifecycle support, requirements gathering, and potentially system integration or modernization efforts to enhance the Navy's operational efficiency and data processing capabilities.

How does the $116.2 million contract value compare to similar IT services contracts awarded by the Navy around 2005-2009?

During the 2005-2009 period, the Department of Defense, including the Navy, was a significant spender on IT services. A $116.2 million contract for ADP systems analysis is a substantial award, indicating a significant need and scope of work. Many large-scale IT contracts for defense agencies at the time ranged from tens to hundreds of millions of dollars, often covering complex system development, integration, and sustainment. For instance, major enterprise resource planning (ERP) implementations or large cybersecurity initiatives could easily exceed this value. This contract appears to be a significant, but not exceptionally outlier, investment in specialized IT analysis services for the Navy during that era.

What are the potential risks associated with a Time and Materials (T&M) contract of this magnitude?

Time and Materials (T&M) contracts, like the one awarded to APPTIS, INC., carry inherent risks, primarily related to cost control. In a T&M arrangement, the government pays the contractor for the actual labor hours expended and the cost of materials used. The primary risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if the contractor's efficiency is low. For a contract of $116.2 million over four years, there's a significant potential for cost overruns if project management, oversight, and task definition are not rigorous. This necessitates close monitoring by the government to ensure that the hours billed and materials procured are reasonable, necessary, and directly related to the contract's objectives.

What does the 'full and open competition' designation imply for the contractor selection and pricing?

The 'full and open competition' designation signifies that the contract was solicited with the intent of allowing all responsible sources to submit a bid. This implies a robust and transparent procurement process where multiple companies had the opportunity to compete. For the contractor selection, it means APPTIS, INC. was chosen based on merit, likely offering the best value (considering price, technical capability, and other factors) among all eligible bidders. For pricing, full and open competition generally fosters a more competitive environment, which tends to drive down prices as contractors vie for the award. This process is designed to ensure the government obtains services at a fair and reasonable price.

How has spending on IT services like ADP systems analysis evolved within the Navy since this contract was awarded in 2005?

Since this contract was awarded in 2005, federal IT spending, particularly within the Department of Defense, has seen significant evolution. There has been a pronounced shift towards cloud computing, cybersecurity, data analytics, artificial intelligence, and agile development methodologies. While ADP systems analysis remains crucial, the tools, techniques, and platforms used have advanced considerably. The Navy, like other branches, has increasingly focused on modernizing legacy systems, enhancing network security, and leveraging data for decision-making. Spending patterns have likely shifted towards more specialized, cloud-native solutions and services that support advanced capabilities, potentially with different contract structures emphasizing performance-based outcomes rather than pure T&M.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Apptis Holdings Inc. (UEI: 165295606)

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 90

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

Financial Breakdown

Contract Ceiling: $23,874,228

Exercised Options: $21,820,462

Current Obligation: $23,874,228

Parent Contract

Parent Award PIID: GS35F4460G

IDV Type: FSS

Timeline