Army IT Support Contract Awarded to Interactive Process Technology for $105.7M
Contract Overview
Contract Amount: $105,740,562 ($105.7M)
Contractor: Interactive Process Technology, LLC
Awarding Agency: Department of Defense
Start Date: 2022-10-26
End Date: 2026-09-30
Contract Duration: 1,435 days
Daily Burn Rate: $73.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 11
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICE FOR U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, AVIATION AND MISSILE CENTER, AVIATION AND MISSILE CENTER OFFICE OF THE CHIEF INFORMATION OFFICE, GENERAL SERVICE ADMINISTRATIONS,
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $105.7 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICE FOR U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, AVIATION AND MISSILE CENTER, AVIATION AND MISSILE CENTER OFFICE OF THE CHIEF INFORMATION OFFICE, GENERAL SERVICE ADMINISTRATIONS, Key points: 1. Contract awarded to Interactive Process Technology, LLC for enterprise IT support. 2. The contract has a total value of $105.7 million over its period of performance. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating potential limitations. 4. The sector is Information Technology, specifically Computer Systems Design Services. 5. The contract is a Delivery Order under a larger award.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $105.7M for a 4-year IT support service contract needs further benchmarking against similar DoD contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while open to all, specific sources may have been excluded, potentially limiting the competitive pool and impacting price discovery.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being utilized for essential IT services, and ensuring cost-effectiveness is crucial for responsible spending.
Public Impact
Ensures critical IT infrastructure and support for Army Aviation and Missile Center operations. Supports the technological capabilities of a key defense command. Potential for innovation in IT service delivery through the chosen contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method could impact cost savings.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Lack of small business participation noted.
Positive Signals
- Provides essential IT services to a critical military function.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, supporting various agency functions. Benchmarks for similar IT support contracts are essential for evaluating cost-effectiveness.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business set-aside opportunities were considered or if there were justifications for excluding them.
Oversight & Accountability
The contract is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight would involve monitoring the performance of Interactive Process Technology, LLC against the terms of the delivery order and the parent contract.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition method.
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Potential for cost overruns.
- Need for robust performance monitoring.
Tags
computer-systems-design-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.7 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. ENTERPRISE INFORMATION TECHNOLOGY SUPPORT SERVICE FOR U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND, AVIATION AND MISSILE CENTER, AVIATION AND MISSILE CENTER OFFICE OF THE CHIEF INFORMATION OFFICE, GENERAL SERVICE ADMINISTRATIONS,
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 $105.7 million.
What is the period of performance?
Start: 2022-10-26. End: 2026-09-30.
What is the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?
The justification for excluding sources under this procurement method is critical for understanding the competitive landscape. If specific, capable vendors were excluded without clear justification, it could suggest a less competitive environment, potentially leading to a higher price than if a truly open competition had been conducted. Detailed documentation of the exclusion rationale is necessary to assess this impact.
How does the Cost Plus Fixed Fee structure for this $105.7M contract ensure cost control and prevent potential overruns for essential IT services?
Cost Plus Fixed Fee (CPFF) contracts aim to provide a fixed profit margin for the contractor while allowing for reimbursement of actual costs. However, they carry inherent risks of cost overruns if the initial cost estimates are inaccurate or if the scope of work expands. Robust oversight, clear performance metrics, and stringent change control processes are essential to manage these risks and ensure taxpayer funds are used efficiently.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective IT support for the Army Aviation and Missile Center?
Effective IT support hinges on measurable KPIs. For this contract, KPIs might include system uptime percentages, response times for technical support requests, successful implementation of new IT solutions, and cybersecurity compliance rates. Regular performance reviews against these defined metrics will be crucial to ensure the contractor is meeting the Army's needs and delivering value for the investment.
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 › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 11
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: $404,037,321
Exercised Options: $105,740,562
Current Obligation: $105,740,562
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCH18D0031
IDV Type: GWAC
Timeline
Start Date: 2022-10-26
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-19
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