DoD's $75.8M C4ISR Fielding and Training Services contract awarded to IAP Worldwide Services, Inc

Contract Overview

Contract Amount: $75,818,780 ($75.8M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-17

End Date: 2015-10-16

Contract Duration: 1,216 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ANP C4ISR FIELDING AND TRAINING SUPPORT SERVICES.

Plain-Language Summary

Department of Defense obligated $75.8 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF ANP C4ISR FIELDING AND TRAINING SUPPORT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (1216 days) indicates a significant, long-term support requirement. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of C4ISR systems. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar C4ISR support services. The Cost Plus Fixed Fee (CPFF) contract type inherently carries a risk of cost escalation, as the contractor is reimbursed for actual costs plus a fixed fee. While this structure can be appropriate for complex, evolving requirements, it necessitates robust oversight to ensure cost efficiency and prevent contractor profit from being driven by increased expenses. Without specific performance metrics or comparisons to industry benchmarks for similar services, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The open nature of the competition suggests the Army sought the best possible solution and price from the widest possible market.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a broad range of contractors to vie for the work, potentially driving down costs.

Public Impact

The primary beneficiaries are the U.S. Army personnel who receive enhanced Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) capabilities. Services delivered include fielding and training support, crucial for the effective operation and maintenance of complex military technology. The geographic impact is likely global, supporting Army operations wherever C4ISR systems are deployed. Workforce implications include the need for skilled technical personnel to support and train military users on C4ISR equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The duration of the contract suggests a long-term commitment, requiring sustained oversight.
The nature of C4ISR systems implies potential for rapid technological obsolescence, requiring adaptability.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Engineering services (NAICS 541330) are critical for maintaining advanced military technology.
The contract supports essential C4ISR capabilities for the Army.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for advanced C4ISR systems. The market for defense C4ISR is substantial, driven by continuous technological advancements and evolving geopolitical landscapes. Companies in this sector provide a wide range of services, from system design and integration to maintenance, training, and lifecycle support. Comparable spending benchmarks would involve analyzing other large-scale C4ISR support contracts awarded by the Department of Defense and its branches.

Small Business Impact

The contract details indicate that small business set-asides were not utilized for this award (ss: false, sb: false). This suggests that the primary contract was not specifically reserved for small businesses. While IAP Worldwide Services, Inc. may engage small businesses as subcontractors, there is no explicit mandate within this award's parameters to do so. The impact on the small business ecosystem would depend on the subcontracting practices of the prime contractor and the availability of relevant small business capabilities in the market for C4ISR support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor incurred costs and ensure the fixed fee is earned appropriately. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

C4ISR Fielding and Training Support
Defense Engineering Services
Army Information Technology Support
Military Communications Systems Support
Intelligence, Surveillance, and Reconnaissance (ISR) Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for scope creep in complex C4ISR systems.
Need for continuous adaptation to evolving C4ISR technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.8 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF ANP C4ISR FIELDING AND TRAINING SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $75.8 million.

What is the period of performance?

Start: 2012-06-17. End: 2015-10-16.

What is the track record of IAP Worldwide Services, Inc. in delivering C4ISR support services?

Assessing the specific track record of IAP Worldwide Services, Inc. for C4ISR fielding and training support requires a deep dive into their past performance evaluations, contract history, and any reported issues or commendations on similar projects. While this contract award itself signifies a level of trust and capability deemed sufficient by the Department of the Army at the time of award, a comprehensive review would involve examining their performance on this specific contract (if completed) and other relevant contracts. This includes looking at on-time delivery, adherence to technical specifications, cost control (especially relevant for CPFF contracts), and customer satisfaction. Without access to detailed past performance reports or contract close-out data, a definitive assessment of their track record is limited to the fact of this award and its duration.

How does the total contract value of $75.8 million compare to similar C4ISR support contracts?

The total contract value of approximately $75.8 million for C4ISR fielding and training support services over its duration (1216 days, roughly 3.3 years) places it as a significant, but not exceptionally large, award within the defense sector. To benchmark effectively, one would need to compare it against contracts for similar scope, complexity, and duration awarded to other prime contractors by the Department of Defense or other federal agencies. Factors such as the specific C4ISR systems involved, the geographic scope of deployment and training, and the level of technical expertise required heavily influence contract values. For instance, contracts involving the fielding of entirely new, cutting-edge C4ISR suites might command higher values than those focused on sustaining and training on existing systems. A detailed comparison would require identifying comparable contracts and analyzing their total obligated amounts, period of performance, and service descriptions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C4ISR services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C4ISR services revolve around cost control and potential for contractor inefficiency. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total expenditure, potentially leading to cost overruns. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, audits, and clear definitions of allowable costs. Furthermore, the complexity and rapid evolution of C4ISR technology introduce risks related to scope creep and the need for adaptability, which must be managed through strong contract administration and change management processes to prevent uncontrolled cost increases.

How effective is 'full and open competition' in ensuring value for money for complex engineering services like C4ISR support?

Full and open competition is generally considered the most effective method for ensuring value for money in complex engineering services like C4ISR support, as it maximizes the pool of potential bidders and fosters a competitive environment. This broad competition encourages offerors to submit their most competitive proposals regarding both technical approach and price. The process allows the procuring agency to evaluate a wider range of solutions and select the one that offers the best overall value, considering factors beyond just the lowest price. However, the effectiveness is contingent on the clarity of the solicitation requirements, the rigor of the evaluation process, and the agency's ability to adequately define the complex technical needs of C4ISR systems. Without clear requirements, even open competition can lead to suboptimal outcomes.

What are the historical spending patterns for C4ISR fielding and training support services within the Department of the Army?

Analyzing historical spending patterns for C4ISR fielding and training support services within the Department of the Army requires examining aggregated contract data over multiple fiscal years. This would involve identifying all contracts categorized under relevant NAICS codes (like 541330 for Engineering Services, or others related to IT, telecommunications, or specialized defense services) and PSC codes related to C4ISR equipment and support. Trends might reveal fluctuations based on modernization programs, deployment cycles, and evolving threats. For example, spending might increase during periods of major system upgrades or heightened operational tempo. Understanding these patterns helps in forecasting future needs, budgeting, and identifying potential areas for cost savings or efficiency improvements by comparing spending across different contract types, competitors, and service providers over time.

What are the implications of the contract being awarded as a 'delivery order'?

The fact that this contract was awarded as a 'delivery order' implies it is a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. IDIQs are commonly used by the government to streamline the procurement of services or supplies that are expected to be needed over a period of time but where the exact quantity, timing, and specific requirements may not be known at the outset. Awarding this as a delivery order means that the basic contract terms, conditions, and pricing structures were likely established previously, potentially through a competitive process for the IDIQ itself. This method allows the agency to quickly order specific quantities or services as needed, providing flexibility. The value of this specific delivery order ($75.8M) represents a portion of the overall potential value of the parent IDIQ contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $84,738,116

Exercised Options: $84,738,116

Current Obligation: $75,818,780

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DD416

IDV Type: IDC

Timeline