Army Records Management Contract Awarded to Hexagon US Federal for $49.5M for Technical Support

Contract Overview

Contract Amount: $49,513,909 ($49.5M)

Contractor: Hexagon US Federal, Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2024-03-26

Contract Duration: 1,642 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCUREMENT OF ON SITE TECHNICAL SUPPORT SERVICES FOR UNITED STATES ARMY RECORDS MANAGEMENT DECLASSIFICATION AGENCY (RMDA) FOR THE EXECUTION OF THE ARMY RECORDS INFORMATION MANAGEMENT SYSTEM (ARIMS)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $49.5 million to HEXAGON US FEDERAL, INC for work described as: PROCUREMENT OF ON SITE TECHNICAL SUPPORT SERVICES FOR UNITED STATES ARMY RECORDS MANAGEMENT DECLASSIFICATION AGENCY (RMDA) FOR THE EXECUTION OF THE ARMY RECORDS INFORMATION MANAGEMENT SYSTEM (ARIMS) Key points: 1. Contract provides essential on-site technical support for Army records management and declassification. 2. Hexagon US Federal, Inc. secured this contract through full and open competition. 3. The contract duration spans over four years, indicating a need for sustained support. 4. Pricing appears to be a firm-fixed-price structure, offering cost predictability. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The scope includes support for the Army Records Information Management System (ARIMS).

Value Assessment

Rating: good

The contract's firm-fixed-price structure suggests a degree of cost control. Benchmarking against similar IT support contracts for large federal agencies would provide a clearer picture of value for money. The total award amount of $49.5 million over approximately 1642 days (around 4.5 years) indicates a significant investment in specialized technical support for a critical function.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The fact that it was a delivery order implies it was likely competed as part of a broader IDIQ contract, which itself would have undergone a competitive process.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential offerors.

Public Impact

Benefits the United States Army by ensuring the efficient management and declassification of records. Delivers critical on-site technical support services for the ARIMS. Supports the operational readiness and compliance of Army records management functions. Impacts the workforce by requiring specialized technical personnel for system support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge becomes highly concentrated with Hexagon US Federal.
Reliance on a single contractor for critical IT support could pose risks if performance issues arise.
The long duration of the contract may not fully account for rapid technological changes in records management.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a vital function for the Army, ensuring continuity of operations.
Delivery order structure suggests it aligns with a pre-competed IDIQ vehicle.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on enterprise resource planning (ERP) and records management systems. The market for federal IT support services is substantial, with agencies increasingly relying on specialized contractors to manage complex systems like ARIMS. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded to manage critical government information systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Hexagon US Federal, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, though the prime contract vehicle may have such requirements. The absence of a small business set-aside suggests the competition was open to all qualified offerors, potentially limiting direct opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Army Records Management Declassification Agency (RMDA) and the broader Department of the Army contracting command. Accountability measures are embedded in the firm-fixed-price contract terms, performance work statements, and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Records Information Management System (ARIMS)
Federal Records Management
IT Support Services
Declassification Services
Department of Defense IT Procurement

Risk Flags

Long-term reliance on a single vendor
Potential for performance issues impacting critical operations
Need for continuous monitoring of service quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.5 million to HEXAGON US FEDERAL, INC. PROCUREMENT OF ON SITE TECHNICAL SUPPORT SERVICES FOR UNITED STATES ARMY RECORDS MANAGEMENT DECLASSIFICATION AGENCY (RMDA) FOR THE EXECUTION OF THE ARMY RECORDS INFORMATION MANAGEMENT SYSTEM (ARIMS)

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 $49.5 million.

What is the period of performance?

Start: 2019-09-27. End: 2024-03-26.

What is the historical spending pattern for on-site technical support services for the Army Records Management Declassification Agency (RMDA)?

Analyzing historical spending for RMDA's technical support requires accessing detailed procurement data over multiple fiscal years. Without specific historical data for this exact service category and agency, a precise pattern cannot be determined. However, federal agencies generally exhibit increasing IT support expenditures due to system complexity and data volume. Contracts for records management and declassification are often long-term due to the sensitive and enduring nature of the data. Trends may show a shift towards cloud-based solutions or managed services, but on-site support remains crucial for specialized systems like ARIMS. The current $49.5M award over ~4.5 years suggests a consistent, significant investment in this area, likely reflecting ongoing needs rather than a sudden surge or decline.

How does the pricing of this contract compare to similar IT support contracts for federal records management systems?

Direct comparison of pricing requires access to detailed cost breakdowns and market research data for similar contracts. However, the firm-fixed-price structure suggests an attempt to establish a predictable cost ceiling. The total award of $49.5 million over approximately 1642 days translates to roughly $30,155 per day or about $2.5 million per month. Benchmarking this against other large-scale IT support contracts for federal agencies, particularly those involving complex information systems and security requirements, would be necessary. Factors like the specific technologies supported, the level of expertise required, and geographic location of services influence pricing. Given the critical nature of Army records and declassification, a premium for specialized, reliable support is expected.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are typically detailed within the Performance Work Statement (PWS) of the contract, which is not publicly provided in this data summary. However, for a contract involving on-site technical support for critical systems like ARIMS, common KPIs would likely include system uptime/availability, response times for technical issues, resolution times for reported problems, accuracy of declassification support, and adherence to security protocols. SLAs would define the acceptable thresholds for these metrics, often with associated remedies or penalties for non-performance. The firm-fixed-price nature suggests that meeting these performance standards is crucial for the contractor to achieve full payment.

What is the track record of Hexagon US Federal, Inc. in performing similar government IT support contracts?

Hexagon US Federal, Inc. has a history of performing various IT and technical support services for government agencies. Their portfolio often includes geospatial intelligence, enterprise IT, and mission support solutions. To assess their track record specifically for Army records management or similar complex system support, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and contract history would be necessary. This would reveal their performance on previous contracts, including timeliness, quality of service, and adherence to contract requirements. Their ability to secure this significant contract suggests a positive or at least acceptable performance history with the Department of Defense or other federal entities.

What are the potential risks associated with relying on a single contractor for this critical function?

Relying on a single contractor, Hexagon US Federal, Inc., for critical IT support for Army records management and declassification presents several potential risks. Firstly, there's a risk of vendor lock-in, where the contractor develops deep, proprietary knowledge of the systems, making it difficult and costly to switch providers. Secondly, performance degradation or contractor failure could significantly disrupt essential Army operations. Thirdly, a lack of ongoing competition might reduce incentives for the contractor to innovate or improve service quality over the contract's duration. Finally, personnel turnover within the contractor's team could lead to knowledge gaps and inconsistent support. Mitigation strategies often involve robust contract oversight, clear performance metrics, and contingency planning.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hexagon AB

Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824

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

Financial Breakdown

Contract Ceiling: $49,513,909

Exercised Options: $49,513,909

Current Obligation: $49,513,909

Actual Outlays: $1,773,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D003G

IDV Type: FSS

Timeline