DoD's $19.5M Software Contract with Mythics, Inc. Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $19,525,359 ($19.5M)

Contractor: Mythics, LLC

Awarding Agency: Department of Defense

Start Date: 2006-05-31

End Date: 2011-05-30

Contract Duration: 1,825 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::17 1804::TAS 200608!000739!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F0153M !C!N! !N!N6553806F0190! !20060531!20070630!013358002!013358002!013358002!N!MYTHICS, INC !1439 N GREAT NECK RD STE 2!VIRGINIA BEACH !VA!23454!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000012245577!N!N!000000000000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !443120!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !1700!N65538!0001! !

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23454, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to MYTHICS, LLC for work described as: TAS::17 1804::TAS 200608!000739!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F0153M !C!N! !N!N6553806F0190! !20060531!20070630!013358002!013358002!013358002!N!MYTHICS, INC !1439 N GREAT NECK RD STE 2!VIRGINIA BEACH !VA!23454!82000!810!51!VIRGINI… Key points: 1. The contract awarded to Mythics, Inc. for ADP Software is for a significant amount, raising questions about its value. 2. Competition details are unclear, with 'FULL AND OPEN COMPETITION' listed, but the specific impact on pricing needs further investigation. 3. Potential risks include overpayment and lack of robust price discovery due to the contract's structure. 4. The IT sector, particularly software procurement, is prone to rapid obsolescence and price fluctuations, impacting long-term value.

Value Assessment

Rating: questionable

The contract's total value of $19.5M for ADP software over its duration needs a thorough benchmark against similar government and commercial contracts. Without specific deliverables or performance metrics, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While listed as 'full and open competition,' the specifics of how this competition was conducted and whether it truly drove the best possible price are not detailed. This lack of transparency can obscure potential price advantages missed.

Taxpayer Impact: The potential for overpaying on this contract represents a direct impact on taxpayer funds, especially if the software or services procured were not competitively priced.

Public Impact

Taxpayers may be overpaying for software and related services if the contract was not aggressively competed or if pricing is not regularly reviewed. The Department of Defense's reliance on specific vendors for critical software can create long-term dependencies and limit flexibility. Lack of clear performance metrics makes it difficult to assess if the procured software is meeting the Navy's operational needs effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics
Potential for inflated pricing
Limited transparency in competition details

Positive Signals

Contract awarded under 'full and open competition'
Firm Fixed Price contract type can provide cost certainty

Sector Analysis

This contract falls within the IT sector, specifically ADP software. Spending in this area is substantial across government agencies, but it's also characterized by rapid technological change and potential for vendor lock-in. Benchmarks for similar software licenses and support services are crucial for evaluating value.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract should focus on ensuring that the 'full and open competition' was robust and that the pricing remains competitive throughout the contract's life. Regular performance reviews and market comparisons are essential for accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed performance metrics
Unclear effectiveness of competition in driving price
Potential for overpayment given contract value and duration
Limited insight into specific software/services procured

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to MYTHICS, LLC. TAS::17 1804::TAS 200608!000739!1700!N65538!NAVAL SEA LOGISTICS CENTER !GS35F0153M !C!N! !N!N6553806F0190! !20060531!20070630!013358002!013358002!013358002!N!MYTHICS, INC !1439 N GREAT NECK RD STE 2!VIRGINIA BEACH !VA!23454!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000012245577!N!N!000000000000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !443120!E

Who is the contractor on this award?

The obligated recipient is MYTHICS, 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 $19.5 million.

What is the period of performance?

Start: 2006-05-31. End: 2011-05-30.

What specific ADP software or services were procured under this contract, and how do their functionalities align with the Naval Sea Logistics Center's stated needs?

The provided data identifies the product service code as 7030 (ADP SOFTWARE) and the North American Industry Classification System code as 511210 (Software Publishers). However, it does not specify the exact software titles, versions, or the detailed scope of services. Understanding these specifics is crucial for assessing if the procured items directly address the operational requirements of the Naval Sea Logistics Center and if they represent a necessary investment.

Given the 'full and open competition' designation, what evidence exists to demonstrate that this process resulted in the most advantageous pricing for the government?

The designation 'full and open competition' suggests multiple bidders were allowed. However, without access to the solicitation details, bid evaluation criteria, and the number of bids received, it's impossible to confirm if the competition was truly robust or if the resulting price was the most advantageous. Further investigation into the procurement process documentation is required to validate the effectiveness of the competition.

How is the performance of Mythics, Inc. under this contract being measured, and are there mechanisms in place to adjust pricing or terminate the contract if performance is unsatisfactory?

The contract is designated as 'FIRM FIXED PRICE,' which typically implies a defined scope of work and price. However, the data lacks information on specific performance metrics, Service Level Agreements (SLAs), or key performance indicators (KPIs) that would be used to evaluate Mythics, Inc.'s delivery. Without these, assessing effectiveness and ensuring accountability for performance is challenging, and the government's ability to renegotiate or terminate based on poor performance is unclear.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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: 1439 N GREAT NECK RD, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: GS35F0153M

IDV Type: FSS

Timeline