DoD's $36.3M contract for Army records management tech support awarded to Hexagon US Federal

Contract Overview

Contract Amount: $36,354,023 ($36.4M)

Contractor: Hexagon US Federal, Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2019-09-26

Contract Duration: 1,094 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF CONTRACT NUMBER W15QKN-16-F-0084 IS TO PROCURE ON-SITE TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY RECORDS MANAGEMENT AND DECLASSIFICATION AGENCY -RMDA-. THE REQUIREMENTS OF THIS EFFORT SUPPORT THE RMDA IN THE EXECUTION OF THE ARMY RECORDS INFORMATION MANAGEMENT SYSTEM -ARIMS-. THE OBJECTIVE OF THIS ACTION IS TO OBTAIN TECHNICAL, ANALYTICAL, SYSTEM/NETWORK/LOCAL AREA NETWORK -LAN- DATABASE ADMINISTRATION, APPLICATION PROGRAMMING, INFORMATION SECURITY, DOCUMENT ANALYSIS, DATA ENTRY, DIGITIZATION, AND INFRASTRUCTURE SUSTAINMENT SUPPORT FOR EXECUTION OF THE ARIMS. THIS INCLUDES THE PLANNING, CREATION, IMPLEMENTATION, AND MAINTENANCE OF ARIMS DATABASES AND REPORT GENERATION; THE SCOPE ALSO ENTAILS THE OPERATION AND MAINTENANCE OF ARIMS RECORDS MANAGEMENT AND INFORMATION TECHNOLOGY SYSTEMS.

Place of Performance

Location: MADISON, MADISON County, ALABAMA, 35758

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to HEXAGON US FEDERAL, INC for work described as: IGF::OT::IGF THE PURPOSE OF CONTRACT NUMBER W15QKN-16-F-0084 IS TO PROCURE ON-SITE TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY RECORDS MANAGEMENT AND DECLASSIFICATION AGENCY -RMDA-. THE REQUIREMENTS OF THIS EFFORT SUPPORT THE RMDA IN THE EXECUTION OF THE ARMY … Key points: 1. Contract provides critical on-site technical support for the Army Records Information Management Agency (ARIMS). 2. Services include database administration, application programming, information security, and digitization. 3. The contract aims to ensure the effective operation and maintenance of ARIMS databases and reporting. 4. Hexagon US Federal, Inc. is the contractor for this firm-fixed-price delivery order. 5. The contract duration spans over three years, from September 2016 to September 2019. 6. This award represents a significant investment in maintaining the integrity and accessibility of Army records.

Value Assessment

Rating: good

The contract's total value of $36.3 million over three years suggests a substantial investment in specialized IT support. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally indicates a predictable cost for the government, assuming the scope of work was well-defined. The duration and scope suggest a need for consistent, high-level technical expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The presence of two bids suggests a reasonable level of competition for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive pricing.

Public Impact

The primary beneficiaries are the United States Army, specifically the Records Management and Declassification Agency (RMDA). The contract delivers essential technical, analytical, and administrative support for the Army Records Information Management System (ARIMS). Services ensure the planning, creation, implementation, and maintenance of ARIMS databases and reporting functionalities. This support is crucial for maintaining the integrity, accessibility, and security of vital Army records. The contract supports the operational readiness and administrative efficiency of the Army's record-keeping processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Risk of scope creep if requirements are not precisely managed.
Dependence on contractor's personnel for critical IT functions.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Long-term support contract indicates a stable relationship for critical services.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a segment of the broader IT services industry. This sector is characterized by the development, modification, and support of custom software and IT systems. The market size for government IT services is substantial, with significant spending allocated to maintaining and upgrading complex systems like ARIMS. This contract fits within the government's ongoing need for specialized IT support to manage vast amounts of data and ensure system functionality.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was awarded to a large business, and the extent of small business involvement, if any, would likely be through subcontracting opportunities managed by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance would be monitored against the terms and conditions of the firm-fixed-price delivery order. While specific Inspector General (IG) involvement isn't detailed, the IG's office generally has jurisdiction over DoD contracts to investigate fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS, which record award details.

Related Government Programs

Army Records Information Management System (ARIMS)
Department of Defense IT Services
Custom Computer Programming Services
Records Management Solutions
Information Security Services

Risk Flags

Contract duration exceeds 3 years.
Firm Fixed Price contract type.
Full and Open Competition award.
Contract awarded to a single prime contractor.
Services are critical for Army records management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to HEXAGON US FEDERAL, INC. IGF::OT::IGF THE PURPOSE OF CONTRACT NUMBER W15QKN-16-F-0084 IS TO PROCURE ON-SITE TECHNICAL SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES ARMY RECORDS MANAGEMENT AND DECLASSIFICATION AGENCY -RMDA-. THE REQUIREMENTS OF THIS EFFORT SUPPORT THE RMDA IN THE EXECUTION OF THE ARMY RECORDS INFORMATION MANAGEMENT SYSTEM -ARIMS-. THE OBJECTIVE OF THIS ACTION IS TO OBTAIN TECHNICAL, ANALYTICAL, SYSTEM/NETWORK/LOCAL AREA NETWORK -LAN- DATABASE ADMINISTRATION, APPLICATION PROGRAMMING, INFORMATION SECUR

Who is the contractor on this award?

The obligated recipient is HEXAGON US FEDERAL, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2016-09-27. End: 2019-09-26.

What was the contractor's track record with similar IT support contracts for the Department of Defense prior to this award?

Assessing Hexagon US Federal, Inc.'s track record prior to this $36.3 million award would involve reviewing their past performance on similar Department of Defense (DoD) contracts. This would include examining their history with providing on-site technical support, database administration, application programming, and information security services. A thorough review would look at contract values, durations, and client agencies (e.g., Army, Navy, Air Force). Performance evaluations, if available through sources like the Contractor Performance Assessment Reporting System (CPARS), would be crucial to understand their reliability, quality of service, and adherence to schedules and budgets on previous engagements. A strong history with complex IT systems and records management would indicate a lower risk for this specific contract.

How does the per-unit cost or overall value of this contract compare to similar custom computer programming services contracts awarded by the DoD during the same period?

To benchmark the value of this $36.3 million contract for custom computer programming services (NAICS 541511), we would compare its total value and duration against similar contracts awarded by the Department of Defense (DoD) between 2016 and 2019. Key comparison points would include the scope of services (e.g., technical support, database administration, digitization), the number of personnel required, and the specific agency served. If data on per-direct-labor-hour rates or average annual costs for comparable support were available, that would provide a more granular comparison. A higher-than-average cost per year or per service hour, without a clear justification (like highly specialized skills or unique system requirements), could indicate potential value concerns. Conversely, costs aligning with or below market benchmarks would suggest good value for money.

What are the primary risks associated with relying on a single contractor for critical IT support functions like those required for ARIMS?

Relying on a single contractor, Hexagon US Federal, Inc. in this case, for critical IT support functions for the Army Records Information Management System (ARIMS) presents several risks. A primary concern is vendor lock-in, where the government becomes overly dependent on the contractor's proprietary knowledge or specific methodologies, making it difficult and costly to switch providers. There's also a risk of reduced service quality or responsiveness if competition is limited in future procurements, as the contractor may face less pressure to perform. Furthermore, a single point of failure exists; if the contractor experiences financial instability, personnel shortages, or operational issues, the continuity of essential ARIMS operations could be severely disrupted. Ensuring robust knowledge transfer and maintaining government oversight are crucial mitigation strategies.

How effective has the Army Records Information Management System (ARIMS) been in achieving its stated objectives, and how does this contract contribute to its success?

The effectiveness of the Army Records Information Management System (ARIMS) is directly tied to the quality and continuity of the technical support it receives. This $36.3 million contract is designed to provide essential on-site technical, analytical, and administrative support, including database administration, application programming, and digitization, all crucial for ARIMS's functionality. By ensuring the proper planning, creation, implementation, and maintenance of ARIMS databases and reporting, this contract directly contributes to the system's ability to manage and declassify Army records efficiently and securely. The success of ARIMS hinges on robust IT infrastructure and skilled personnel, which this contract aims to provide, thereby supporting the Army's overall record-keeping compliance and operational needs.

What have been the historical spending patterns for IT support services related to records management within the Department of the Army over the last decade?

Analyzing historical spending patterns for IT support services related to records management within the Department of the Army over the last decade would reveal trends in investment and contracting strategies. This would involve examining aggregate spending on NAICS codes similar to 541511 (Custom Computer Programming Services) and potentially others related to IT support, data management, and digitization, specifically for Army records management functions. Understanding whether spending has been consistent, increasing, or decreasing can indicate evolving priorities and technological adoption. It would also highlight the typical contract types (e.g., firm-fixed-price, cost-plus) and competition levels for such services. This context helps evaluate if the $36.3 million awarded to Hexagon US Federal, Inc. aligns with historical investment levels or represents a significant shift in resource allocation for ARIMS support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hexagon AB

Address: 301 COCHRAN RD, HUNTSVILLE, AL, 35824

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

Financial Breakdown

Contract Ceiling: $36,354,023

Exercised Options: $36,354,023

Current Obligation: $36,354,023

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0011K

IDV Type: FSS

Timeline