DoD's $51.4M contract for tactical communication systems awarded to IGOV TECHNOLOGIES, INC. shows fair value

Contract Overview

Contract Amount: $51,395,239 ($51.4M)

Contractor: Igov Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-01-28

End Date: 2020-04-30

Contract Duration: 1,554 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PLATFORM ENGINEERING&INTEGRATION FOR TACTICAL AND STRATEGIC SYSTEMS DELIVERY ORDER 0002, MOBILE COMMUNICATION SYSTEMS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.4 million to IGOV TECHNOLOGIES, INC. for work described as: PLATFORM ENGINEERING&INTEGRATION FOR TACTICAL AND STRATEGIC SYSTEMS DELIVERY ORDER 0002, MOBILE COMMUNICATION SYSTEMS Key points: 1. The contract's value appears reasonable when benchmarked against similar IT integration services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of over four years indicates a significant, long-term need. 4. Performance risk appears manageable given the contractor's experience in similar domains. 5. This contract aligns with the Air Force's broader strategy for modernizing communication infrastructure. 6. The fixed-fee structure provides some cost control while allowing for flexibility.

Value Assessment

Rating: good

The contract's total value of approximately $51.4 million over its period of performance appears to be within a reasonable range for complex platform engineering and integration services. Benchmarking against similar large-scale IT and communication system development contracts within the Department of Defense suggests that the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type, while carrying some risk, allows for flexibility in scope while the fixed fee component provides a degree of cost certainty for the government. The contractor's ability to deliver on this scale further supports the assessment of fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 10 bidders suggests a robust level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The fact that it was competed after exclusion of sources implies a specific justification for initial source selection, but the subsequent full and open competition ensures broad market engagement.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for critical tactical and strategic communication systems.

Public Impact

The Department of the Air Force benefits from enhanced tactical and strategic communication capabilities. This contract supports the delivery of mobile communication systems essential for military operations. The geographic impact is likely nationwide, supporting Air Force bases and deployed units. Workforce implications include specialized IT and engineering roles, potentially supporting high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely managed.
Scope creep could increase the final cost beyond initial projections.
Dependence on a single contractor for critical communication systems poses a long-term risk.
Ensuring continued technological relevance throughout the contract's multi-year duration.

Positive Signals

Awarded through full and open competition, indicating market validation.
Contractor has experience in similar platform engineering and integration projects.
Clear performance objectives are likely defined within the contract scope.
The fixed fee component provides a level of cost predictability.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on the manufacturing and integration of wireless communication equipment. The market for such specialized systems is driven by defense modernization efforts and the need for secure, reliable communication networks. Comparable spending benchmarks in this area often involve multi-million dollar contracts for system development, integration, and sustainment, reflecting the complexity and criticality of military communication infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale IT and integration project, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors. The focus on prime contract award to IGOV TECHNOLOGIES, INC. suggests that subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification for costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Data Links
Command and Control Systems
Mobile Communication Networks
Defense Information Systems Network (DISN)
Air Force Network Integration Center (AFNIC) programs

Risk Flags

Potential for cost overruns in CPFF contracts.
Long-term sustainment and upgrade costs not fully detailed.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to IGOV TECHNOLOGIES, INC.. PLATFORM ENGINEERING&INTEGRATION FOR TACTICAL AND STRATEGIC SYSTEMS DELIVERY ORDER 0002, MOBILE COMMUNICATION SYSTEMS

Who is the contractor on this award?

The obligated recipient is IGOV TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $51.4 million.

What is the period of performance?

Start: 2016-01-28. End: 2020-04-30.

What is the contractor's track record with the Department of Defense and specifically the Air Force for similar platform engineering and integration services?

IGOV TECHNOLOGIES, INC. has a history of performing IT services and integration projects for various government agencies, including the Department of Defense. While specific details on past performance for identical 'tactical and strategic systems' platform engineering are not provided in this summary, their experience in related areas such as network integration, software development, and communication systems suggests a foundational capability. A deeper dive into their contract history, past performance reviews, and any documented issues or successes on similar projects would provide a more comprehensive understanding of their suitability and reliability for this specific contract.

How does the total contract value of $51.4 million compare to other similar platform engineering and integration contracts awarded by the Air Force or DoD in the last five years?

The $51.4 million total contract value for platform engineering and integration of tactical and strategic mobile communication systems is substantial but falls within the typical range for large-scale defense IT projects. Similar contracts for developing, integrating, and deploying complex communication systems for the DoD can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and technological sophistication. For instance, contracts for enterprise network modernization or advanced battlefield communication suites often exceed this value. This contract's value appears proportionate to the described services, especially considering its multi-year duration and the critical nature of military communication infrastructure.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this project, and how are they being mitigated?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial estimates, the government bears the burden. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clearly defined contract scope to prevent scope creep, and strong program management to ensure efficient execution. The fixed fee provides an incentive for the contractor to control costs to some extent, as their profit is capped. Regular reviews and performance metrics are crucial for managing these risks effectively.

What specific performance metrics or key performance indicators (KPIs) are likely being used to evaluate the success of this platform engineering and integration contract?

While specific KPIs are not detailed here, typical performance metrics for such a contract would likely include system uptime and availability, data transmission speeds and reliability, successful integration of new components, adherence to security protocols, timely delivery of milestones, and overall system performance against defined requirements. For mobile communication systems, metrics related to signal strength, range, and interoperability across different platforms would also be critical. The government's program office would monitor these KPIs closely to ensure the contractor meets contractual obligations and delivers effective communication capabilities.

How has spending on similar tactical and strategic communication system integration contracts evolved within the Department of Defense over the past decade?

Spending on tactical and strategic communication system integration within the DoD has generally seen a consistent, and often increasing, trend over the past decade, driven by the need to modernize aging infrastructure, counter evolving threats, and enhance battlefield C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. There's been a significant push towards networked systems, software-defined radios, and resilient communication architectures. While specific figures fluctuate based on budget cycles and program priorities, the overall investment in advanced communication technologies remains a high priority, reflecting their foundational role in military operations.

What is the potential impact of this contract on the broader market for wireless communications equipment manufacturing and integration services?

A contract of this magnitude awarded to IGOV TECHNOLOGIES, INC. can significantly impact the market by validating their capabilities and potentially leading to further opportunities. It signals demand for sophisticated mobile communication systems and platform integration within the defense sector. This can spur innovation among competitors and potentially influence technology roadmaps. For IGOV TECHNOLOGIES, INC., it solidifies their position as a key provider in this niche, potentially attracting talent and investment. The competitive nature of the award also suggests that other firms in this space are capable, fostering a dynamic market environment.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12030 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $98,388,949

Exercised Options: $52,003,919

Current Obligation: $51,395,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873016D0007

IDV Type: IDC

Timeline