DoD's $23.5M IT contract with Information Management Group Inc. awarded via full and open competition

Contract Overview

Contract Amount: $23,548,102 ($23.5M)

Contractor: Information Management Group Incorporated

Awarding Agency: Department of Defense

Start Date: 2015-03-20

End Date: 2018-10-31

Contract Duration: 1,321 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NONCOMMERCIAL IT SERVICES - IGF::CL::IGF

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to INFORMATION MANAGEMENT GROUP INCORPORATED for work described as: NONCOMMERCIAL IT SERVICES - IGF::CL::IGF Key points: 1. Contract value represents a moderate investment in IT infrastructure management. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Performance period of over three years indicates a need for sustained IT support. 4. Fixed-price contract type aims to control costs and manage budget predictability. 5. The contract falls within the broader category of IT services for defense agencies.

Value Assessment

Rating: fair

The contract's total value of $23.5 million over approximately 3.6 years (1321 days) averages to about $6.5 million annually. Benchmarking this against similar IT services contracts for the Department of Defense is challenging without more specific service details. However, the firm fixed-price nature suggests an attempt to lock in costs. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government contracts for computer facilities management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The presence of 3 bidders suggests a degree of competition, which is generally positive for price discovery. However, the exact number of bidders (3) is on the lower side for truly robust competition, potentially limiting the downward pressure on pricing.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing. This helps ensure the government is not overpaying for the services rendered.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure management and support. Services delivered likely include maintenance, operation, and support of computer facilities. Geographic impact is primarily within the Department of Defense's operational areas. Workforce implications include support for IT professionals and potentially indirect employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) may indicate potential for higher pricing than a more competitive scenario.
The 'exclusion of sources' clause warrants further investigation into the rationale and its impact on competition.
Lack of specific performance metrics makes it difficult to assess the true value for money delivered.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a broad market solicitation.
Contract duration of over three years allows for stable IT support.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management Services (NAICS 541513). This is a critical segment for government operations, encompassing the management and support of IT infrastructure. The market for these services is large and competitive, with numerous large and small businesses offering solutions. The $23.5 million value is a moderate-sized contract within this sector, typical for supporting specific agency needs.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this contract itself was not set aside for small businesses, Information Management Group Incorporated may still engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting plans, if any, and the overall market dynamics for IT services in the defense sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Army IT Support Contracts
Federal Civilian IT Infrastructure Management
Cloud Computing Services for Government

Risk Flags

Limited number of bidders
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to INFORMATION MANAGEMENT GROUP INCORPORATED. NONCOMMERCIAL IT SERVICES - IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is INFORMATION MANAGEMENT GROUP INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2015-03-20. End: 2018-10-31.

What is the track record of Information Management Group Incorporated with the Department of Defense?

Information Management Group Incorporated (IMG) has a history of receiving federal contracts, primarily with the Department of Defense. Reviewing their contract history reveals multiple awards across various agencies and service types. For the Department of the Army specifically, IMG has secured contracts related to IT services, facilities management, and other support functions. The total value and duration of these past contracts would provide a clearer picture of their experience and performance. A deeper dive into contract performance reports and any past performance evaluations would be necessary to fully assess their track record. However, the award of this $23.5 million contract suggests a level of trust and capability recognized by the Army.

How does the pricing of this contract compare to similar IT services contracts?

Directly comparing the pricing of this $23.5 million contract to similar IT services contracts requires detailed knowledge of the specific services rendered, performance levels, and the competitive landscape at the time of award. The contract is for Computer Facilities Management Services (NAICS 541513) and was awarded on a Firm Fixed Price (FFP) basis. The average annual value is approximately $6.5 million. Without access to detailed service level agreements (SLAs), labor categories, and rates, a precise benchmark is difficult. However, the fact that it was competed under 'full and open competition' with 3 bidders suggests some market validation of the price. Further analysis would involve comparing the cost per facility managed, cost per user supported, or cost per server managed against industry benchmarks and other government contracts for comparable services.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by FFP), contractor performance issues leading to service disruptions, and the risk of vendor lock-in if the contractor becomes indispensable. Given the limited number of bidders (3), there's also a risk that the competition was not robust enough to secure the best possible pricing, potentially leading to a higher cost for taxpayers. The 'exclusion of sources' aspect of the competition also introduces a risk if it unduly limited the pool of qualified bidders. Finally, the reliance on a single contractor for critical IT facilities management could pose a risk if the contractor faces financial instability or operational failures.

How effective is the competition level in ensuring value for money?

The competition level for this contract, described as 'full and open competition after exclusion of sources' with 3 bidders, offers a moderate level of assurance for value for money. Full and open competition is the preferred method for maximizing competition and achieving competitive pricing. However, with only three bidders, the market may not have been fully explored, potentially leaving savings on the table compared to a scenario with five or more bids. The 'exclusion of sources' element also warrants scrutiny; if legitimate, it's a procedural step, but if it arbitrarily limited the field, it could have suppressed competition. The firm fixed-price nature of the contract helps lock in costs, but the ultimate value for money depends on whether the price achieved reflects true market rates under optimal competition.

What is the historical spending trend for similar IT services within the Department of the Army?

Historical spending trends for similar IT services within the Department of the Army are substantial and generally increasing, reflecting the growing reliance on technology for military operations and administration. The Army consistently awards billions of dollars annually for a wide array of IT services, including network management, cybersecurity, software development, and infrastructure support. Contracts for computer facilities management, like the one awarded to Information Management Group Incorporated, form a significant portion of this spending. Trends often show a shift towards cloud services, managed services, and cybersecurity solutions. Analyzing specific spending patterns for NAICS code 541513 over several fiscal years would reveal the Army's investment trajectory in this particular service area and highlight any fluctuations in contract values or award volumes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911W409R0037

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4050 LEGATO RD STE 200, FAIRFAX, VA, 22033

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,548,102

Exercised Options: $23,548,102

Current Obligation: $23,548,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W410D0016

IDV Type: IDC

Timeline