DoD's $47.7M contract for Afghan National Police NOC O&M support awarded to IAP Worldwide Services

Contract Overview

Contract Amount: $47,739,946 ($47.7M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-10-26

End Date: 2022-06-30

Contract Duration: 1,343 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS ACTION IS THE AWARD OF TASK ORDER REQUEST FOR PROPOSAL RS3-17-0016, TO PROVIDE AFGHAN NATIONAL POLICE NETWORK OPERATIONS CENTER (NOC) OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR THE AFGHANISTAN MINISTRY OF INTERIOR (MOI) FOR THE COMBINED SECURITY TRANSITION COMMAND - AFGHANISTAN (CSTC-A).

Plain-Language Summary

Department of Defense obligated $47.7 million to IAP WORLDWIDE SERVICES, INC. for work described as: THE PURPOSE OF THIS ACTION IS THE AWARD OF TASK ORDER REQUEST FOR PROPOSAL RS3-17-0016, TO PROVIDE AFGHAN NATIONAL POLICE NETWORK OPERATIONS CENTER (NOC) OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR THE AFGHANISTAN MINISTRY OF INTERIOR (MOI) FOR THE COMBINED SECURITY TRA… Key points: 1. Contract awarded via full and open competition, indicating a broad search for qualified vendors. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk of cost overruns. 3. Performance period spans over three years, suggesting a need for sustained support in a complex environment. 4. The North American Industry Classification System (NAICS) code 541712 points to Research and Development in Physical, Engineering, and Life Sciences, which may not fully align with 'Network Operations Center Operations and Maintenance'. 5. The contract was awarded to a single vendor, IAP Worldwide Services, Inc. 6. The contract value is substantial, reflecting the critical nature of the services provided.

Value Assessment

Rating: fair

The contract value of $47.7 million over approximately 3.5 years for Network Operations Center (NOC) Operations and Maintenance (O&M) support for the Afghan National Police (ANP) requires careful benchmarking. Given the operational context in Afghanistan, direct comparisons to domestic O&M contracts may be difficult. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed plus a fixed fee, which can lead to higher overall costs compared to fixed-price contracts if not managed tightly. The lack of detailed cost breakdowns makes a precise value-for-money assessment challenging without further information on labor rates, overhead, and profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' suggesting that the Department of Defense actively sought proposals from all responsible sources. The presence of 6 bids indicates a reasonable level of competition for this specialized service. However, the fact that it resulted in a single award to IAP Worldwide Services, Inc. means that while multiple parties were considered, the final selection was based on the perceived best value offered by this specific contractor. The competitive process is intended to drive down costs and improve service quality.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better service offerings. The presence of multiple bidders suggests that the government had options, potentially leading to a more favorable outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Afghan National Police (ANP), who receive essential support for their network operations. Services delivered include operations and maintenance for the ANP's Network Operations Center (NOC). The geographic impact is focused on Afghanistan, specifically supporting the Ministry of Interior. Workforce implications include the potential employment of both U.S. and local personnel by the contractor to fulfill the O&M requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code (541712 - R&D in Physical, Engineering, and Life Sciences) appears misaligned with the stated service of NOC Operations and Maintenance, raising questions about the procurement's classification and potential for better-suited competition.
Cost Plus Fixed Fee (CPFF) contracts can lead to higher costs if not rigorously managed, as the contractor is reimbursed for actual costs plus a fee.
The duration of the contract (over 3 years) in a complex operational environment like Afghanistan presents inherent risks related to security, political stability, and evolving requirements.
Lack of detailed performance metrics or outcomes in the provided data makes it difficult to assess the effectiveness of the O&M services.
The contract is for support services to a foreign national military/police force, which carries geopolitical and operational risks.

Positive Signals

Awarded under 'Full and Open Competition,' indicating an effort to maximize vendor participation and potentially secure competitive pricing.
The contract specifies a fixed fee component within the CPFF structure, which can provide some level of cost predictability for the government.
The contract is for essential operational support (NOC O&M), crucial for the functioning of the ANP's communication and network infrastructure.
The contract award to an established entity (IAP Worldwide Services, Inc.) suggests a level of confidence in their capability to perform in a challenging environment.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically related to IT infrastructure support and potentially security services in a foreign operational environment. The NAICS code 541712, typically associated with R&D, is unusual for O&M services, suggesting a potential misclassification or a unique aspect of the requirement. Comparable spending benchmarks for NOC O&M services can vary widely based on location, complexity, and security requirements. In conflict zones, such contracts often command a premium due to increased operational risks and logistical challenges.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB is false) and there is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors like IAP Worldwide Services, Inc. may engage small businesses for specific components or support services, though this is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Combined Security Transition Command - Afghanistan (CSTC-A) as the requiring activity. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is often limited for contracts in operational theaters due to security and sensitivity concerns. Inspector General jurisdiction would apply to investigations of fraud, waste, and abuse related to the contract.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
Department of Defense Security Cooperation Programs
Information Technology Support Services
Network Operations and Maintenance Contracts
Services Contracts in Contingency Operations

Risk Flags

NAICS Code Mismatch
Cost Plus Fixed Fee Risk
Operational Environment Risk (Afghanistan)
Personnel Security Risk
Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.7 million to IAP WORLDWIDE SERVICES, INC.. THE PURPOSE OF THIS ACTION IS THE AWARD OF TASK ORDER REQUEST FOR PROPOSAL RS3-17-0016, TO PROVIDE AFGHAN NATIONAL POLICE NETWORK OPERATIONS CENTER (NOC) OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR THE AFGHANISTAN MINISTRY OF INTERIOR (MOI) FOR THE COMBINED SECURITY TRANSITION COMMAND - AFGHANISTAN (CSTC-A).

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 $47.7 million.

What is the period of performance?

Start: 2018-10-26. End: 2022-06-30.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541712) for a contract described as 'Afghan National Police Network

The classification of this contract under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' appears incongruous with the stated purpose of providing Network Operations Center (NOC) Operations and Maintenance (O&M) support. Typically, O&M services for IT infrastructure fall under categories like 541512 (Computer Systems Design Services) or 541519 (Other Computer Related Services). The R&D classification might suggest that the contract includes elements of developing or improving NOC capabilities, or perhaps it's a legacy classification from a previous phase of the program. Without further clarification from the contracting agency, it's difficult to definitively reconcile the NAICS code with the service description. This discrepancy could potentially impact the pool of eligible bidders and the perceived value of the contract if the classification does not accurately reflect the work performed.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the overall cost and risk for this $47.7 million award?

The Cost Plus Fixed Fee (CPFF) contract type means that the contractor, IAP Worldwide Services, Inc., is reimbursed for all allowable costs incurred in performing the work, plus a predetermined fixed fee representing profit. This structure can be advantageous when the scope of work is not precisely defined or is subject to change, as it allows flexibility. However, it shifts much of the cost risk to the government. If the contractor's costs exceed initial estimates, the government pays the actual costs. The fixed fee provides some incentive for the contractor to control costs, as their profit is capped. For this $47.7 million contract supporting Afghan National Police NOC O&M, the CPFF structure implies that the government is willing to accept potential cost fluctuations in exchange for ensuring the necessary services are delivered in a complex environment. Rigorous oversight and cost auditing by the Department of Defense are crucial to manage potential cost overruns and ensure fair pricing.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of IAP Worldwide Services, Inc. in providing NOC O&M support?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of IAP Worldwide Services, Inc. in providing Network Operations Center (NOC) Operations and Maintenance (O&M) support. Typically, for such contracts, KPIs would focus on network uptime, response times to incidents, resolution times for issues, system availability, security compliance, and user satisfaction. The effectiveness of the contractor's performance would be assessed against these predefined standards outlined in the contract's Performance Work Statement (PWS). Without access to the PWS or performance reports, a quantitative assessment of the contractor's success is not possible based solely on the award data. The Department of Defense's contracting officers and technical monitors are responsible for tracking and evaluating performance against contractual requirements.

What is the historical spending pattern for similar NOC O&M support services in Afghanistan or similar operational environments?

Historical spending on Network Operations Center (NOC) Operations and Maintenance (O&M) support services in Afghanistan or similar complex operational environments has been substantial, driven by the need to establish and maintain critical communication and information infrastructure for security forces. Contracts in these regions often carry premiums due to heightened security risks, logistical challenges, and the specialized nature of the work. While specific historical data for ANP NOC O&M is not detailed here, similar contracts supporting military or police networks in theaters like Iraq or Afghanistan have ranged from tens to hundreds of millions of dollars over several years. Factors influencing spending include the scale of the network, the technology employed, the level of support required (24/7 vs. standard hours), and the security posture. The $47.7 million awarded to IAP Worldwide Services, Inc. for this task order appears consistent with the high costs associated with providing such essential services in a challenging, non-permissive environment.

What are the potential risks associated with providing IT O&M services in Afghanistan, and how might they impact this contract?

Providing IT Operations and Maintenance (O&M) services in Afghanistan carries significant risks, including security threats to personnel and infrastructure, political instability affecting operational continuity, logistical challenges in delivering equipment and support, and potential for corruption. These risks can directly impact the cost and execution of the contract. For this $47.7 million award to IAP Worldwide Services, Inc., security risks could necessitate higher personnel costs (hazard pay, security details), increased insurance premiums, and potentially lead to contract delays or disruptions if incidents occur. Political instability could affect government cooperation or the long-term sustainability of the ANP's network infrastructure. Logistical hurdles might increase the time and expense required for maintenance and upgrades. The CPFF contract type offers some flexibility to absorb these increased costs, but effective risk mitigation strategies and robust government oversight are essential to manage these challenges and ensure mission success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 6

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: $60,546,069

Exercised Options: $47,739,946

Current Obligation: $47,739,946

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $12,903,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0146

IDV Type: IDC

Timeline