DoD's $120M Intel Systems Software Engineering Support Contract Awarded to KeyW Corp

Contract Overview

Contract Amount: $119,818,240 ($119.8M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2014-02-28

End Date: 2017-05-31

Contract Duration: 1,188 days

Daily Burn Rate: $100.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF THIS PERFORMANCE BASED TASK ORDER (TO) 0001 IS ISSUED FOR THE WORLDWIDE INTELLIGENCE (INTEL) SYSTEMS FIELD SOFTWARE ENGINEERING SUPPORT TO THE SOFTWARE ENGINEERING CENTER(SEC) FIELD SUPPORT DIRECTORATE(FSD) TO PROVIDE SUPPORT TO THE WARFIGHTER WORLDWIDE FOR GARRISON, EXERCISE, COMBAT OPERATIONS AND CONTINGENCIES TO THE USERS OF FIXED AND TACTICAL INTELLIGENCE SYSTEMS FOR SUSTAINMENT AS A COST TYPE CONTRACT WITH COST PLUS FIXED FEE-TERM (CPFF) AND COST REIMBURSEMENT LINE ITEMS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W15P7T-12-D-E003 AND SUBSEQUENT MODIFICATIONS THERETO. THIS TO ISSUED IN ACCORDANCE WITH SSESR- 2013 TASK.

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $119.8 million to THE KEYW CORPORATION for work described as: IGF::CL,CT::IGF THIS PERFORMANCE BASED TASK ORDER (TO) 0001 IS ISSUED FOR THE WORLDWIDE INTELLIGENCE (INTEL) SYSTEMS FIELD SOFTWARE ENGINEERING SUPPORT TO THE SOFTWARE ENGINEERING CENTER(SEC) FIELD SUPPORT DIRECTORATE(FSD) TO PROVIDE SUPPORT TO THE WARFIGHTER WORLDWIDE FOR GARRI… Key points: 1. Contract focuses on critical worldwide intelligence systems software engineering support for the warfighter. 2. Performance-based task order utilizes a cost-plus-fixed-fee and cost-reimbursement structure. 3. The contract duration spans over three years, indicating a significant, long-term need. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The primary service category is Custom Computer Programming Services, a key IT sector. 6. Geographic scope is worldwide, highlighting the global reach of intelligence operations. 7. The contract is a delivery order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 8. The contractor, KeyW Corporation, has a substantial contract value to manage.

Value Assessment

Rating: good

The contract value of approximately $120 million over roughly three years for worldwide intelligence systems software engineering support appears reasonable given the critical nature of the services. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this falls within expected ranges for complex, global operations. The cost-plus-fixed-fee (CPFF) and cost-reimbursement structure allows for flexibility in addressing evolving requirements, though it necessitates diligent oversight to manage costs effectively. The absence of specific performance metrics in the provided data makes a precise value-for-money assessment challenging without further detail.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued under full and open competition, indicating that multiple bidders had the opportunity to compete for this work. The presence of three bidders (no=3) suggests a competitive environment, which typically drives better pricing and service offerings. The specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided, but the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and potentially lower prices compared to sole-source or limited competition awards.

Public Impact

Warfighters worldwide benefit from enhanced intelligence systems software engineering support. Services ensure the sustainment and operational readiness of fixed and tactical intelligence systems. Support covers garrison, exercise, combat operations, and contingency environments. The contract impacts the defense intelligence IT sector, requiring specialized software engineering expertise. Geographic impact is global, supporting U.S. military operations across various theaters. Workforce implications include the need for skilled software engineers and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee and cost-reimbursement contracts require robust oversight to prevent cost overruns.
The complexity of worldwide intelligence systems may introduce inherent technical and operational risks.
Dependence on a single contractor for critical software engineering support can pose continuity risks.
Ensuring consistent performance across diverse global operational environments presents a challenge.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that can drive value.
Performance-based task order structure encourages contractor focus on achieving desired outcomes.
The contract addresses a critical need for intelligence systems support, vital for national security.
Long-term nature of the contract (over 3 years) allows for sustained support and knowledge retention.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services. This is a significant area of federal spending, particularly within the Department of Defense, which relies heavily on advanced software for intelligence, surveillance, reconnaissance, and command and control. The market for such services is competitive, with numerous large and small businesses offering specialized expertise. Federal spending in this category often involves complex, long-term engagements due to the evolving nature of technology and security requirements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific task order. While the prime contractor, KeyW Corporation, may engage small businesses as subcontractors, the contract itself was not set aside for small businesses. This suggests that the primary focus was on obtaining the most capable large business to fulfill the complex requirements, rather than specifically promoting small business prime contracting opportunities for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a cost-type contract with fixed-fee components, rigorous financial oversight is crucial to monitor expenditures and ensure compliance with the contract terms. The Defense Contract Audit Agency (DCAA) and potentially the Department of Defense Inspector General (IG) would have oversight jurisdiction to audit costs and investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract reporting mechanisms, though specific details on public access to performance reports are not provided.

Related Government Programs

Intelligence Systems Support
Software Engineering Services
Department of Defense IT Contracts
Custom Computer Programming
Warfighter Support Systems
Fixed and Tactical Systems Sustainment

Risk Flags

Cost-type contract requires diligent oversight to manage expenditures.
Complexity of worldwide intelligence systems introduces inherent technical and operational risks.
Performance metrics and specific outcomes not detailed in provided data.
Contractor's long-term performance history on this specific task order requires further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.8 million to THE KEYW CORPORATION. IGF::CL,CT::IGF THIS PERFORMANCE BASED TASK ORDER (TO) 0001 IS ISSUED FOR THE WORLDWIDE INTELLIGENCE (INTEL) SYSTEMS FIELD SOFTWARE ENGINEERING SUPPORT TO THE SOFTWARE ENGINEERING CENTER(SEC) FIELD SUPPORT DIRECTORATE(FSD) TO PROVIDE SUPPORT TO THE WARFIGHTER WORLDWIDE FOR GARRISON, EXERCISE, COMBAT OPERATIONS AND CONTINGENCIES TO THE USERS OF FIXED AND TACTICAL INTELLIGENCE SYSTEMS FOR SUSTAINMENT AS A COST TYPE CONTRACT WITH COST PLUS FIXED FEE-TERM (CPFF) AND COST REIMBURSEMENT LINE ITEMS IN

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $119.8 million.

What is the period of performance?

Start: 2014-02-28. End: 2017-05-31.

What is the track record of The KeyW Corporation in delivering similar intelligence systems software engineering support to the Department of Defense?

The KeyW Corporation, prior to its acquisition by Jacobs Engineering Group in 2019, had a significant history of providing intelligence, cybersecurity, and IT solutions to various U.S. government agencies, including the Department of Defense. Their expertise often involved supporting complex systems, data analytics, and mission-critical software development for intelligence community clients. While this specific task order was awarded in 2014, KeyW's broader portfolio demonstrates experience in areas relevant to intelligence systems engineering. Post-acquisition, the capabilities are integrated within Jacobs' broader defense and intelligence sector offerings. Assessing their specific performance on this task order would require reviewing performance reports and potentially IG findings, which are not detailed in the provided data.

How does the approximate $120 million contract value compare to other similar intelligence systems software engineering support contracts?

The $120 million value for approximately three years of worldwide intelligence systems software engineering support is substantial, reflecting the critical and complex nature of the services. Compared to other large-scale IT support contracts within the Department of Defense, particularly those involving global operations and specialized intelligence systems, this figure is within a reasonable range. For instance, similar multi-year contracts for enterprise IT services, cybersecurity, or advanced software development for defense agencies can often reach hundreds of millions or even billions of dollars. The value is influenced by factors such as the scope of support, geographic coverage, required technical expertise, and the duration of the contract. Without specific benchmarks for 'intelligence systems software engineering support,' a precise comparison is difficult, but the magnitude aligns with significant defense IT procurements.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include technical complexity, evolving threat landscapes requiring constant software updates, potential cost overruns due to the cost-plus nature, and contractor performance issues. Mitigation strategies typically involve robust government oversight, including technical monitoring, financial audits by agencies like DCAA, and clear performance standards within the contract. The use of a performance-based task order structure aims to align contractor incentives with mission success. Furthermore, the full and open competition process helps select a contractor with a proven ability to manage such complex projects. However, the inherent risks in supporting global intelligence systems remain significant and require continuous management.

How effective is the cost-plus-fixed-fee (CPFF) and cost-reimbursement structure for this type of intelligence support?

The CPFF and cost-reimbursement structure is often employed for complex, evolving requirements where the full scope of work cannot be precisely defined at the outset, which is common in intelligence systems support. This structure allows flexibility to adapt to changing technological needs and operational demands. For the government, the 'cost' portion covers allowable expenses, while the 'fixed fee' provides the contractor with a predetermined profit margin. While this offers flexibility, it necessitates stringent government oversight to control costs and ensure that only reasonable and allocable expenses are reimbursed. The effectiveness hinges on the government's ability to manage the contract, monitor expenditures closely, and ensure the contractor operates efficiently to achieve the required technical outcomes within budgetary constraints.

What are the historical spending patterns for intelligence systems software engineering support within the Department of the Army?

Historical spending patterns for intelligence systems software engineering support within the Department of the Army (and DoD broadly) show a consistent and significant investment in IT and software development. This spending has generally increased over time, driven by technological advancements, the growing importance of data analytics, cybersecurity needs, and the modernization of legacy systems. Contracts in this domain are often long-term, awarded through competitive processes (though sole-source awards occur for specialized needs), and utilize various contract types, including cost-plus and fixed-price. The Army, as a major component of the DoD, dedicates substantial resources to ensuring its intelligence capabilities are technologically superior and operationally effective, making software engineering support a perennial and critical expenditure.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $136,991,110

Exercised Options: $136,991,110

Current Obligation: $119,818,240

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T12DE003

IDV Type: IDC

Timeline