DoD Awards $55.3M for Computer Systems Design, Full & Open Competition
Contract Overview
Contract Amount: $55,275,886 ($55.3M)
Contractor: LGS Innovations LLC
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2024-03-28
Contract Duration: 2,190 days
Daily Burn Rate: $25.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: YRP/LPP INC 3
Place of Performance
Location: HIGH POINT, GUILFORD County, NORTH CAROLINA, 27265
Plain-Language Summary
Department of Defense obligated $55.3 million to LGS INNOVATIONS LLC for work described as: YRP/LPP INC 3 Key points: 1. Significant contract value of $55.3 million awarded. 2. Full and open competition indicates a competitive marketplace. 3. Potential risk associated with cost-plus fixed fee contract type. 4. Services fall under the IT sector, a critical area for government operations.
Value Assessment
Rating: good
The contract value of $55.3 million for computer systems design services appears reasonable given the 6-year duration. Benchmarking against similar large-scale IT service contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust bidding process, likely leading to competitive pricing. This method allows all qualified vendors to participate, maximizing the opportunity for price discovery and value.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it aims to secure services at the best possible price through market forces.
Public Impact
Ensures the Department of the Army has access to essential computer systems design expertise. Supports technological advancements and operational efficiency within the military. The long-term nature of the contract provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-Plus Fixed Fee contract type can incentivize cost overruns if not managed tightly.
- Long contract duration (6 years) may not adapt quickly to evolving technology needs.
Positive Signals
- Full and open competition ensures a broad range of potential solutions and pricing.
- Award to a single entity (YRP/LPP INC 3) suggests specialized capabilities.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, supporting critical infrastructure and modernization efforts. Benchmarks for similar IT service contracts vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting the primary awardee is likely a large business. Opportunities for small business subcontracting may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The award was made via a delivery order under a larger contract vehicle, implying prior oversight and established terms. Continued oversight will be crucial to manage performance and costs effectively throughout the contract's lifecycle.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-Plus Fixed Fee contract type.
- Long contract duration (6 years).
- Lack of specific service details in the award notice.
- No explicit small business set-aside.
Tags
computer-systems-design-services, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.3 million to LGS INNOVATIONS LLC. YRP/LPP INC 3
Who is the contractor on this award?
The obligated recipient is LGS INNOVATIONS 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 $55.3 million.
What is the period of performance?
Start: 2018-03-30. End: 2024-03-28.
What specific computer systems design services are included in this contract, and how do they align with current and future Army technological requirements?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact scope isn't detailed here, it typically encompasses designing, developing, and integrating computer systems. For the Army, this could range from network infrastructure to specialized software solutions. Ensuring these services directly address evolving military needs, such as cybersecurity, AI integration, or battlefield communication systems, is crucial for maximizing value and effectiveness.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type, and what mitigation strategies are in place?
CPFF contracts carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior. Mitigation strategies typically involve robust government oversight, detailed cost tracking, clear performance metrics, and strict adherence to the contract's scope to prevent scope creep. Regular audits and performance reviews are essential to manage this risk effectively.
How does the pricing structure and competitive landscape for this contract ensure optimal value for taxpayer dollars over its six-year duration?
The contract utilizes a Cost Plus Fixed Fee structure, awarded through full and open competition. While competition helps drive initial pricing, the CPFF nature requires diligent oversight to ensure costs remain reasonable and the fixed fee is justified. The six-year duration necessitates ongoing monitoring to ensure the services remain relevant and cost-effective as technology and requirements evolve, preventing potential value erosion over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 4090 PREMIER DRIVE, HIGH POINT, NC, 27265
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,275,886
Exercised Options: $55,275,886
Current Obligation: $55,275,886
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0038
IDV Type: GWAC
Timeline
Start Date: 2018-03-30
Current End Date: 2024-03-28
Potential End Date: 2024-03-28 00:00:00
Last Modified: 2025-04-26
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