DoD Awards $153.8M for Custom Computer Programming Services to AC Technologies, Inc

Contract Overview

Contract Amount: $15,379,463 ($15.4M)

Contractor: AC Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-21

End Date: 2010-06-20

Contract Duration: 1,095 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to AC TECHNOLOGIES, INC. for work described as: LABOR Key points: 1. Contract awarded to AC Technologies, Inc. for custom computer programming. 2. Significant award value of $153.8 million over 3 years. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Information Technology (IT) services. 5. Contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The award value of $153.8 million for custom computer programming services over three years appears within a reasonable range for large-scale IT projects. Benchmarking against similar contracts for complex software development and integration would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources,' indicating an initial attempt at broad competition that was later narrowed. This method can sometimes limit the pool of potential bidders, potentially impacting price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers benefit from competition, but the exclusion of sources may have limited the most competitive pricing.

Public Impact

Ensures continued development and maintenance of critical computer systems for the Department of the Army. Supports the IT infrastructure necessary for military operations and administrative functions. Provides employment opportunities within the IT sector through AC Technologies, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Firm Fixed Price contract may not fully account for unforeseen scope changes.
Contract duration of 3 years could lead to technology obsolescence if not managed.

Positive Signals

Awarded under Full and Open Competition, suggesting a competitive process.
Firm Fixed Price contract provides cost certainty for the government.
Contract supports essential Department of Defense IT needs.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government agencies, supporting everything from software development to system integration. Benchmarks for similar large-scale programming contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The contract data indicates that the awardee, AC TECHNOLOGIES, INC., is not a small business (sb: false). There is no specific information provided regarding subcontracting goals for small businesses on this particular award.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability for performance and adherence to contract terms rests with AC TECHNOLOGIES, INC. and the agency.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition
Lack of detail on specific services procured
No information on small business subcontracting
Firm Fixed Price may not cover all contingencies
Contract duration could lead to technology obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to AC TECHNOLOGIES, INC.. LABOR

Who is the contractor on this award?

The obligated recipient is AC TECHNOLOGIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2007-06-21. End: 2010-06-20.

What specific custom computer programming services were procured, and how do they align with the Army's strategic IT goals?

The contract specifies 'Custom Computer Programming Services' (NAICS 541511). While the exact nature of the services isn't detailed, they likely involve the design, development, implementation, and maintenance of specialized software solutions tailored to the Army's unique operational and administrative requirements. These services are crucial for maintaining and modernizing the Army's technological capabilities, supporting mission-critical functions and ensuring data integrity and system security.

What was the rationale for excluding certain sources prior to the full and open competition, and did this impact the final price?

The rationale for excluding sources prior to full and open competition is not provided in the data. This exclusion could stem from specific technical requirements, prior performance, or other justifications. Such exclusions can limit the number of potential bidders, potentially reducing the competitive pressure and possibly leading to a higher price than if all qualified sources were allowed to compete without restriction.

How effectively has AC TECHNOLOGIES, INC. performed on this contract, and what mechanisms are in place to ensure continued value for taxpayer dollars?

Performance data for AC TECHNOLOGIES, INC. on this specific contract is not available in the provided data. However, the Department of the Army's contracting officers and program managers are responsible for monitoring performance against contract requirements and milestones. Mechanisms for ensuring value include performance reviews, adherence to the Firm Fixed Price structure, and potential award fees or penalties based on achieved outcomes.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DASW0103R0040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 2751 PROSPERITY AVE STE 500, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,254,463

Exercised Options: $15,571,818

Current Obligation: $15,379,463

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H05D0009

IDV Type: IDC

Timeline