DoD's $38.5M R&D contract for modernization application support awarded to Interactive Process Technology, LLC

Contract Overview

Contract Amount: $38,493,479 ($38.5M)

Contractor: Interactive Process Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-20

End Date: 2024-05-26

Contract Duration: 1,406 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT SERVICES FOR THE MODERNIZATION APPLICATION AND DATA ENVIRONMENT (MADE).

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: TO PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT SERVICES FOR THE MODERNIZATION APPLICATION AND DATA ENVIRONMENT (MADE). Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for innovation. 4. The contract duration of 1406 days indicates a significant, long-term need for these services. 5. The award was a delivery order under a larger contract vehicle. 6. The contract value of $38.5M represents a substantial investment in application and data environment modernization.

Value Assessment

Rating: fair

The contract value of $38.5M for R&D support services appears to be within a reasonable range for a multi-year effort of this scope. However, without specific benchmarks for 'modernization application and data environment' support, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs if not managed diligently compared to fixed-price contracts. Further analysis of the contractor's performance and cost reporting would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 10 bidders (as suggested by 'no': 10) signifies a healthy level of interest and competition for this requirement. This broad competition is generally expected to drive more competitive pricing and encourage contractors to offer their best value propositions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for the services rendered, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the Department of Defense and the Army, receiving critical support for their modernization application and data environment. Services delivered include essential support for modernizing applications and data environments, crucial for operational efficiency and technological advancement. The geographic impact is likely concentrated within the Department of Defense's operational areas, though the modernization efforts could have broader implications. Workforce implications may include the need for specialized IT and R&D personnel, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize fee.
Long contract duration (1406 days) increases the risk of scope creep and cost overruns if not managed effectively.
Reliance on a single delivery order under a larger contract vehicle may limit visibility into the specific performance and cost drivers of this particular effort.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract supports modernization efforts, which are critical for improving government efficiency and technological capabilities.
The contractor, Interactive Process Technology, LLC, is tasked with providing essential R&D support services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is vital for national security and technological advancement. Spending in this area often involves complex projects requiring specialized expertise. Comparable spending benchmarks would typically be found within other large-scale R&D contracts awarded by defense agencies for similar modernization or technological development initiatives.

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 for small businesses stemming from a set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Army IT Modernization Programs
Application Development Services
Data Environment Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Long contract duration
Complexity of R&D modernization projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. TO PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT SERVICES FOR THE MODERNIZATION APPLICATION AND DATA ENVIRONMENT (MADE).

Who is the contractor on this award?

The obligated recipient is INTERACTIVE PROCESS TECHNOLOGY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2020-07-20. End: 2024-05-26.

What is the track record of Interactive Process Technology, LLC with government contracts, particularly in R&D and IT modernization?

A review of Interactive Process Technology, LLC's contract history would be necessary to assess their track record. Key areas to examine would include past performance on similar R&D and IT modernization contracts, any history of contract disputes or performance issues, and their success in delivering projects on time and within budget. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts specifically would also be valuable, as this contract type requires careful management of costs and fees. Without access to detailed performance data and past contract outcomes, it is difficult to definitively assess their capabilities and reliability for this specific $38.5 million award.

How does the $38.5 million value compare to similar R&D contracts for application and data environment modernization?

Benchmarking the $38.5 million value requires comparing it against similar contracts for R&D in application and data environment modernization within the Department of Defense or other federal agencies. Factors such as contract duration (1406 days), scope of services (personnel, equipment, supplies, etc.), and the specific technologies involved are crucial for a meaningful comparison. If similar multi-year R&D efforts for complex IT modernization have been awarded in the range of $30-50 million, this contract may be considered within a typical range. However, if comparable projects are significantly lower or higher, it could indicate potential overpricing or underestimation of the required resources.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. For R&D, where project scope and outcomes can be uncertain, it can be challenging to accurately estimate costs upfront. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are critical to mitigate these risks and ensure value for the government.

How effective are the competition dynamics (full and open, 10 bidders) in ensuring value for money for this contract?

A 'full and open' competition with 10 bidders is generally a strong indicator of healthy market interest and a competitive environment. This level of competition typically drives down prices and encourages contractors to offer innovative solutions and demonstrate superior value to win the award. For taxpayers, this means a higher likelihood that the $38.5 million awarded represents a fair market price for the required R&D services. The government's ability to select from multiple qualified proposals enhances the probability of obtaining high-quality services at a reasonable cost, thereby maximizing the value derived from taxpayer funds.

What are the potential performance challenges given the contract's focus on modernization application and data environment support?

Modernizing application and data environments is inherently complex and carries several potential performance challenges. These can include technical hurdles in integrating new systems with legacy infrastructure, data migration complexities, cybersecurity risks during transition, and the need for highly specialized technical expertise. Ensuring the contractor can adapt to evolving technological landscapes and unforeseen issues during the 1406-day period is crucial. Effective project management, clear communication channels, and agile development methodologies will be essential to navigate these challenges and achieve the modernization goals successfully.

What is the historical spending trend for R&D in physical, engineering, and life sciences (NAICS 541715) by the Department of the Army?

Analyzing historical spending trends for NAICS code 541715 by the Department of the Army would provide context for this $38.5 million contract. This involves examining annual spending data over several fiscal years to identify patterns, growth, or fluctuations in R&D investments within this specific scientific domain. Understanding whether this contract represents a typical award size, an increase in investment, or a decrease compared to historical averages would offer insights into the Army's strategic priorities and budget allocation for R&D. Such analysis helps in assessing if the current spending aligns with long-term trends or represents a significant shift.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interactive Process Technology LLC

Address: 1500 DISTRICT AVE STE 1037, BURLINGTON, MA, 01803

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $60,906,841

Exercised Options: $60,906,841

Current Obligation: $38,493,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0207

IDV Type: IDC

Timeline