Army Futures Command awards $28.7M for Data Science Environment Support, leveraging RS3 IDIQ contract

Contract Overview

Contract Amount: $28,715,082 ($28.7M)

Contractor: Interactive Process Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-25

End Date: 2026-04-24

Contract Duration: 729 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS TASK ORDER IS ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RS3 MA IDIQ CONTRACT W15P7T19D0207 FOR THE ACQUISITION OF DATA SCIENCE ENVIRONMENT SUPPORT SERVICES FOR THE ARMY FUTURES COMMAND DATA PLATFORM DIVISION.

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: THIS TASK ORDER IS ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RS3 MA IDIQ CONTRACT W15P7T19D0207 FOR THE ACQUISITION OF DATA SCIENCE ENVIRONMENT SUPPORT SERVICES FOR THE ARMY FUTURES COMMAND DATA PLATFORM DIVISION. Key points: 1. Contract focuses on critical data science support for Army Futures Command's data platform. 2. Utilizes the RS3 IDIQ contract, suggesting a pre-vetted acquisition vehicle. 3. Awarded as a Delivery Order under a Multiple Award contract. 4. Pricing structure is Cost Plus Fixed Fee, which can introduce cost-overrun risks. 5. The contract duration is 729 days, indicating a medium-term support requirement. 6. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 7. The contractor, Interactive Process Technology, LLC, is a key player in this specialized domain.

Value Assessment

Rating: fair

The contract value of $28.7 million for approximately two years of data science environment support appears within a reasonable range for specialized R&D services. However, the Cost Plus Fixed Fee (CPFF) pricing structure warrants careful monitoring. CPFF contracts can incentivize contractors to increase costs to achieve a higher fixed fee, potentially leading to less cost efficiency compared to fixed-price contracts. Benchmarking against similar data science support contracts for defense agencies would provide a clearer picture of value for money, but specific comparable data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The RS3 (Research and Solutions Scientific Services) IDIQ contract vehicle itself is designed for broad competition. While the specific number of bidders for this particular delivery order is not provided, the 'full and open' designation suggests a competitive process was followed, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions by allowing a wide range of qualified contractors to bid.

Public Impact

The primary beneficiaries are the Army Futures Command's Data Platform Division, which will receive enhanced data science environment support. Services delivered will likely include data management, analysis, modeling, and potentially AI/ML development support. The geographic impact is primarily within the Army Futures Command's operational areas, likely supporting modernization efforts. Workforce implications may involve specialized data scientists, engineers, and analysts, potentially requiring skilled personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed diligently.
Lack of specific bidder count for this delivery order limits detailed competition assessment.
The specialized nature of data science support may limit the pool of highly qualified small businesses.
Reliance on a large IDIQ contract vehicle might consolidate opportunities away from smaller, niche providers.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Utilizes the RS3 IDIQ, a pre-competed vehicle designed for efficient acquisition.
Contract supports critical Army modernization initiatives through advanced data science capabilities.
The contractor, Interactive Process Technology, LLC, is likely experienced in this domain.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in the physical, engineering, and life sciences. This sector is characterized by innovation, specialized expertise, and often long development cycles. Spending in this area is crucial for maintaining technological superiority. Comparable spending benchmarks for data science support services within defense R&D are difficult to pinpoint without more specific service details, but the overall R&D budget for the Department of Defense is substantial, indicating significant investment in such capabilities.

Small Business Impact

The contract indicates that small business participation was not a specific set-aside (ss: false) nor was it a small business set-aside contract (sb: false). This suggests the primary competition was open to all responsible sources, including large businesses. While there's no explicit subcontracting requirement mentioned, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem depends on whether Interactive Process Technology, LLC actively seeks small business partners for this effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. As a delivery order under an IDIQ, the RS3 contract itself may have established oversight mechanisms. Transparency is facilitated by the contract being awarded under full and open competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable.

Related Government Programs

Army Futures Command Data Platform
RS3 IDIQ Contract
Research and Development Services
Data Science Support
Department of Defense IT Services

Risk Flags

Cost Plus Fixed Fee pricing requires diligent oversight to manage costs.
Potential for cost overruns inherent in CPFF structure.
Limited transparency on specific number of bidders for this delivery order.
Specialized nature of services may limit small business participation.
Dependence on IDIQ vehicle may consolidate opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. THIS TASK ORDER IS ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RS3 MA IDIQ CONTRACT W15P7T19D0207 FOR THE ACQUISITION OF DATA SCIENCE ENVIRONMENT SUPPORT SERVICES FOR THE ARMY FUTURES COMMAND DATA PLATFORM DIVISION.

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 $28.7 million.

What is the period of performance?

Start: 2024-04-25. End: 2026-04-24.

What is the track record of Interactive Process Technology, LLC with the Department of Defense, particularly in data science support?

Interactive Process Technology, LLC has a history of performing contracts with the Department of Defense. While specific details on their data science support performance for the Army Futures Command prior to this award are not explicitly detailed in the provided data, their selection for this significant delivery order suggests a positive assessment of their capabilities and past performance. Further investigation into their contract history, including past performance evaluations and any awards or commendations received, would be necessary for a comprehensive understanding of their track record. Their ability to secure this contract under full and open competition implies they met the technical and management requirements set forth by the Army.

How does the $28.7 million value compare to similar data science support contracts within the DoD?

The $28.7 million value for a two-year data science environment support contract is substantial, reflecting the specialized nature and critical importance of these services to the Army Futures Command. Without access to a comprehensive database of comparable DoD contracts for data science support, a precise benchmark is challenging. However, contracts for advanced analytics, AI/ML development, and large-scale data platform management within defense agencies can range from tens to hundreds of millions of dollars over their lifecycle. This award appears to be a significant investment, likely reflecting the complexity and scope of the data platform division's needs. The Cost Plus Fixed Fee structure also means the final cost could fluctuate.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for data science services?

The primary risk with a CPFF contract for data science services is the potential for cost overruns and reduced cost efficiency. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total project cost. For complex, evolving fields like data science, where requirements can shift and unforeseen technical challenges arise, it can be difficult to accurately estimate costs upfront. This necessitates robust government oversight to scrutinize costs and ensure they are reasonable, allocable, and necessary for contract performance.

How effective is the RS3 IDIQ contract vehicle in facilitating competitive acquisition for specialized R&D services?

The RS3 (Research and Solutions Scientific Services) IDIQ contract vehicle is designed to streamline the acquisition of a broad range of R&D and engineering support services for the U.S. Army. By pre-vetting a pool of contractors through an initial competitive process, RS3 aims to reduce lead times and administrative burden for subsequent task order awards. Its structure generally supports full and open competition for task orders, allowing for a competitive process among the IDIQ awardees. This approach can enhance efficiency and potentially lead to better value by leveraging established relationships and pre-negotiated terms, while still allowing for competition at the task order level.

What are the historical spending patterns for data science and R&D support within the Army Futures Command?

Historical spending patterns for data science and R&D support within the Army Futures Command (AFC) are indicative of a growing emphasis on modernization and technological advancement. The AFC's mission involves developing future warfighting capabilities, which inherently requires significant investment in research, data analytics, artificial intelligence, and advanced computing environments. While specific historical dollar amounts for data science support are not provided, the overall budget allocated to AFC's modernization efforts and R&D initiatives has been substantial in recent years. This contract represents a continuation of that trend, focusing resources on building robust data infrastructure and analytical capabilities to support these strategic goals.

What are the implications of awarding this contract under 'full and open competition' versus a set-aside?

Awarding this contract under 'full and open competition' means that all responsible businesses, regardless of size, were eligible to bid. This approach maximizes the potential pool of offerors, theoretically leading to the best possible technical solutions and pricing by leveraging the broadest market. It contrasts with set-aside contracts, which are specifically reserved for small businesses (e.g., small business, woman-owned, veteran-owned). For a contract of this technical complexity and potential value, full and open competition is often chosen to ensure access to the most capable contractors. The implication for taxpayers is that the government sought the most competitive offers from the entire market, aiming for optimal value.

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: 5

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: $80,387,987

Exercised Options: $30,707,051

Current Obligation: $28,715,082

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