DoD's $36.2M DCAPES contract with ARRAY INFORMATION TECHNOLOGY INC faces scrutiny over cost and competition

Contract Overview

Contract Amount: $36,216,697 ($36.2M)

Contractor: Array Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2015-04-06

End Date: 2020-04-06

Contract Duration: 1,827 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF - DELIBERATE AND CRISIS ACTION PLANNING AND EXECUTION SEGMENTS (DCAPES) SUSTAINMENT AND DEVELOPMENT

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to ARRAY INFORMATION TECHNOLOGY INC for work described as: IGF::CL,CT::IGF - DELIBERATE AND CRISIS ACTION PLANNING AND EXECUTION SEGMENTS (DCAPES) SUSTAINMENT AND DEVELOPMENT Key points: 1. The contract awarded to ARRAY INFORMATION TECHNOLOGY INC for DCAPES sustainment and development represents a significant investment. 2. Full and open competition was utilized, but the exclusion of sources raises questions about the breadth of competition. 3. The cost-plus-fixed-fee pricing structure can lead to cost overruns if not managed tightly. 4. The IT sector, particularly custom computer programming, is prone to rapid technological change, impacting long-term value.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can be less cost-effective than fixed-price contracts. Without detailed cost breakdowns and benchmarks, it's difficult to definitively assess if $36.2M over 5 years is competitive for custom computer programming services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This limited competition may have impacted price discovery and potentially led to a higher price than if all potential bidders were included.

Taxpayer Impact: The exclusion of sources in the procurement process raises concerns about whether taxpayers received the best possible value, as a more competitive environment could have driven down costs.

Public Impact

Taxpayers may have overpaid due to limited competition and a flexible CPFF contract. The Department of Defense relies on DCAPES for critical planning and execution, making contract performance vital. Lack of transparency in source exclusion could set a precedent for future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation
Cost-plus-fixed-fee contract type risk
Lack of detailed cost justification
Potential for cost overruns

Positive Signals

Contract awarded to a specific company for a critical system
Defined period of performance

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending in this area can vary widely based on complexity and innovation. Benchmarks are difficult without specific service details, but $36.2M over five years for sustainment and development is substantial.

Small Business Impact

The contract data indicates the prime contractor is ARRAY INFORMATION TECHNOLOGY INC, and it does not specify any small business set-asides or participation. Further investigation is needed to determine if small businesses were subcontracted.

Oversight & Accountability

The contract's duration and value warrant robust oversight to ensure performance, cost control, and adherence to the terms of competition. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition
Cost-plus-fixed-fee pricing
Potential for cost overruns
Lack of transparency in source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to ARRAY INFORMATION TECHNOLOGY INC. IGF::CL,CT::IGF - DELIBERATE AND CRISIS ACTION PLANNING AND EXECUTION SEGMENTS (DCAPES) SUSTAINMENT AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is ARRAY INFORMATION TECHNOLOGY 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 $36.2 million.

What is the period of performance?

Start: 2015-04-06. End: 2020-04-06.

What specific criteria led to the exclusion of certain sources under the 'full and open competition after exclusion of sources' designation, and how did this impact the final contract price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are deemed essential and only a limited number of contractors meet these stringent requirements. This limitation can reduce the number of bidders, potentially leading to less competitive pricing. A thorough review of the solicitation documents and justification for exclusion is necessary to understand the precise impact on the final contract price.

How effectively was the Cost Plus Fixed Fee (CPFF) structure managed to control costs and prevent potential overruns for the DCAPES sustainment and development?

CPFF contracts require diligent oversight to manage costs effectively. The agency must closely monitor the contractor's expenses, ensure efficiency, and verify that the fixed fee remains appropriate. Without detailed cost reports and performance metrics, it's challenging to assess the effectiveness of cost control. Regular audits and performance reviews are essential to ensure the contractor is not incentivized to incur unnecessary costs.

What is the long-term strategic value of the DCAPES system developed and sustained under this contract, and does the investment align with current and future Department of Defense operational needs?

The strategic value of DCAPES hinges on its ability to support deliberate and crisis action planning and execution. Its effectiveness is measured by its contribution to mission readiness and operational success. Aligning this investment with future needs requires ongoing assessment of technological advancements and evolving military strategies. The system's continued relevance and adaptability are key indicators of its long-term value.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7474 GREENWAY CENTER DR STE 600, GREENBELT, MD, 20770

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

Financial Breakdown

Contract Ceiling: $36,216,697

Exercised Options: $36,216,697

Current Obligation: $36,216,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1011

IDV Type: IDC

Timeline