DoD's $24.5M Computer Systems Design Services Contract Awarded to Intellibridge, LLC
Contract Overview
Contract Amount: $24,474,451 ($24.5M)
Contractor: Intellibridge, LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-02
End Date: 2022-09-01
Contract Duration: 2,009 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $24.5 million to INTELLIBRIDGE, LLC for work described as: IGF::OT::IGF Key points: 1. Value for money appears fair given the 5-year duration and cost-plus-fixed-fee structure. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a cost-plus contract type potentially leading to cost overruns. 4. Performance context is within computer systems design, a broad but essential service area. 5. Sector positioning is within IT services for the Department of Defense. 6. The contract was awarded as a delivery order under a larger IDIQ, indicating a phased approach. 7. The contract's duration of over 5 years suggests a need for sustained support. 8. The total award value of $24.5M over the period indicates significant investment in IT services.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee (CPFF) structure allows for flexibility but carries inherent risks of cost escalation if not managed tightly. Benchmarking against similar CPFF contracts for computer systems design services would be necessary for a definitive value assessment. The total award of $24.5M over approximately five years suggests a substantial investment, and the value proposition hinges on the successful delivery of complex IT solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation was broad, specific exclusions were applied. The presence of 4 bidders suggests a reasonable level of competition. This level of competition is generally positive for price discovery, though the specific exclusions could limit the pool of potential offerors.
Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.
Public Impact
The Department of Defense benefits from enhanced computer systems design and support. Services delivered likely include system architecture, integration, and maintenance for critical defense IT infrastructure. Geographic impact is primarily within the operational areas of the Department of the Navy, potentially extending to various naval bases and facilities. Workforce implications include the creation or sustainment of jobs in the IT services sector, both within the contractor's organization and potentially in supporting industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to achieve a higher fee, requiring robust oversight.
- The 'exclusion of sources' in the competition, while potentially justified, warrants scrutiny to ensure it did not unduly limit competition.
- The long duration of the contract (over 5 years) increases the risk of scope creep or evolving technological needs not being fully addressed.
- Reliance on a single contractor for critical IT systems design can create vendor lock-in and reduce future flexibility.
Positive Signals
- Awarding to a single contractor for a significant duration can foster expertise and stability in critical IT support.
- The full and open competition, even with exclusions, suggests an effort to leverage market capabilities.
- The contract's focus on computer systems design addresses a fundamental need within the DoD's technological infrastructure.
- The existence of multiple bidders indicates a healthy market response to the government's requirements.
Sector Analysis
The IT services sector, particularly for government contracts, is highly competitive and dynamic. This contract falls within the 'Computer Systems Design Services' NAICS code (541512), a segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The market size for government IT services is substantial, with agencies like the DoD being major consumers. This contract represents a portion of the broader federal spending on IT modernization and support.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Intellibridge, LLC, may still engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are embedded in the contract's performance work statement and deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Services
- Naval Sea Systems Command (NAVSEA) IT Support
- Department of Defense Enterprise IT Services
- IT Services for Military Branches
- Computer Systems Design and Related Services Contracts
Risk Flags
- Cost-plus contract type risk
- Potential for limited competition due to source exclusions
- Long contract duration may not adapt to rapid tech changes
- Dependence on a single contractor for critical design services
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, delivery-order, california, large-contract, intelligence-community
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to INTELLIBRIDGE, LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is INTELLIBRIDGE, 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 $24.5 million.
What is the period of performance?
Start: 2017-03-02. End: 2022-09-01.
What is Intellibridge, LLC's track record with federal contracts, particularly within the Department of Defense?
Intellibridge, LLC has a history of securing federal contracts, primarily within the defense sector. Analysis of available data indicates multiple awards, including this significant contract with the Department of the Navy for computer systems design services. Their performance history on prior contracts, including on-time delivery, quality of service, and adherence to budget, would be crucial for assessing their reliability. A deeper dive into past performance reviews and any documented issues or commendations would provide a more comprehensive picture of their capabilities and track record with the DoD.
How does the $24.5 million award value compare to similar computer systems design contracts within the DoD?
The $24.5 million award value over approximately five years for computer systems design services places this contract in the mid-to-large tier for IT service procurements within the Department of Defense. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and complexity. Factors such as the specific technologies involved, the level of security clearance required, and the criticality of the systems being designed influence pricing. Without specific details on the deliverables, a precise comparison is difficult, but the value is consistent with substantial IT support requirements for a major military branch.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for computer systems design?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their profit (the fixed fee) is determined upfront. If costs increase, the government pays the actual costs plus the predetermined fee. This can lead to cost overruns if the contractor is not diligent in managing expenses or if the scope of work expands without adequate change control. For the government, effective oversight and robust cost accounting standards are critical to mitigate these risks and ensure fair pricing.
How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring optimal value for taxpayers?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad market access with specific requirements that might necessitate excluding certain types of vendors or technologies. When exclusions are well-justified and based on technical or security needs, this approach can still yield competitive pricing and innovative solutions from the remaining pool of qualified bidders. However, if exclusions are overly broad or not clearly justified, they can limit competition, potentially leading to higher prices and reduced innovation, thus diminishing value for taxpayers. The key is the transparency and necessity of the exclusions.
What are the potential long-term implications of this contract on the DoD's IT infrastructure modernization efforts?
This contract, focusing on computer systems design, is likely integral to the DoD's ongoing efforts to modernize its IT infrastructure. By engaging Intellibridge, LLC, the Navy aims to acquire expertise in designing and potentially implementing new systems or upgrading existing ones. The success of this contract could lead to improved operational efficiency, enhanced cybersecurity, and better data integration across naval platforms. Conversely, if the design services are not aligned with future technological roadmaps or if the implemented systems prove inflexible, it could create future modernization challenges or technical debt.
How does the $24.5M total award compare to historical spending on similar services by the Department of the Navy?
The $24.5 million total award represents a significant investment by the Department of the Navy in computer systems design services over a period of approximately five years. Historical spending patterns for the Navy in this category can vary widely based on specific modernization initiatives, technological shifts, and overall budget allocations. To provide a precise comparison, one would need to analyze annual spending data for NAICS code 541512 or similar service categories over several preceding fiscal years. However, this award suggests a sustained need for advanced IT design capabilities within the Navy.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6893616R0072
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1430 SPRING HILL RD STE 200, MC LEAN, VA, 22102
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,092,943
Exercised Options: $40,092,943
Current Obligation: $24,474,451
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0622Z
IDV Type: GWAC
Timeline
Start Date: 2017-03-02
Current End Date: 2022-09-01
Potential End Date: 2022-09-01 00:00:00
Last Modified: 2024-03-11
More Contracts from Intellibridge, LLC
- Technology, Engineering, and Development Support Services — $136.8M (Department of Health and Human Services)
- JOB Corp Data Center — $77.6M (Department of Labor)
- Technology and Engineering Development (TED) Support Services — $48.3M (Department of Defense)
- Award of a 12-Month Base Period With (3) 12-Month Optional Periods for Performance of the Defense Information Systems Agency Compartmented Enterprise Services Office (ceso) Information Technology Support Services (disa Ceso IT) IAW Performance Work S — $38.4M (Department of Health and Human Services)
- Task Order Award — $26.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)