DoD's $12.7M AIE System Installation Contract Awarded to Infotec Systems Corp

Contract Overview

Contract Amount: $12,753,569 ($12.8M)

Contractor: Infotec Systems Corp

Awarding Agency: Department of Defense

Start Date: 2008-06-18

End Date: 2013-05-01

Contract Duration: 1,778 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIE SYSTEM INSTALL - LETTERKENNY

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to INFOTEC SYSTEMS CORP for work described as: AIE SYSTEM INSTALL - LETTERKENNY Key points: 1. Contract value of $12.7 million for security systems services. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract duration of 1778 days suggests a significant, long-term project. 4. Fixed-price contract type may offer cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 561621 points to specialized security systems services. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The contract was awarded in Pennsylvania, indicating a specific geographic focus.

Value Assessment

Rating: fair

The contract value of $12.7 million for security systems installation appears to be within a reasonable range for a multi-year project of this nature. However, without specific details on the scope of the 'AIE System Install' and comparable project costs, a definitive value-for-money assessment is challenging. The firm fixed-price structure suggests an attempt to control costs, but the ultimate value depends on the successful implementation and long-term effectiveness of the installed system. Benchmarking against similar large-scale security system installations within the Department of Defense or other federal agencies would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a competitive environment for this type of security systems service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that Infotec Systems Corp. was selected from six offers indicates that their proposal met the government's requirements and was deemed the most advantageous.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive marketplace, driving down prices and encouraging innovation among contractors. This ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are likely Department of Defense personnel and assets protected by the installed AIE system. The service delivered is the installation of a security system, enhancing physical security measures. The geographic impact is concentrated in Pennsylvania, where the installation took place. The contract supports the defense industrial base and potentially creates or sustains jobs within the security systems installation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all installation complexities.
Risk of system underperformance if the installed AIE system does not meet security requirements.
Dependence on a single contractor for a critical security system installation.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost predictability for the government.
The contract duration indicates a significant commitment to enhancing security infrastructure.

Sector Analysis

The security systems services sector is a critical component of the broader defense and government contracting landscape. This contract falls under NAICS code 561621, which covers security systems services, excluding locksmiths. The market for such services is driven by the need for physical security, surveillance, and access control across various government agencies and critical infrastructure. Spending in this sector can fluctuate based on threat assessments and modernization initiatives. Comparable spending benchmarks would involve looking at other large-scale security system installations for federal agencies, particularly within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, Infotec Systems Corp., may engage small businesses as subcontractors depending on their own supply chain and capabilities, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful completion of milestones. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Security System Modernization Programs
Army Physical Security Enhancements
Federal Law Enforcement Security Technology Contracts
Infrastructure Protection Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of performance issues if system integration is complex.
Long contract duration may require ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to INFOTEC SYSTEMS CORP. AIE SYSTEM INSTALL - LETTERKENNY

Who is the contractor on this award?

The obligated recipient is INFOTEC SYSTEMS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2008-06-18. End: 2013-05-01.

What specific type of 'AIE System' was installed, and what are its primary functions?

The provided data does not specify the exact nature of the 'AIE System.' AIE could potentially stand for various acronyms, such as 'Access, Intrusion, and Egress' or a proprietary system name. However, given the NAICS code 561621 (Security Systems Services except Locksmiths) and the awarding agency (Department of the Army), it is highly probable that the AIE system relates to physical security, encompassing elements like access control, intrusion detection, surveillance, and potentially emergency communication or alert systems. The primary functions would be to enhance the security posture of the facility or area where it was installed, protecting personnel, assets, and sensitive information from unauthorized access, threats, or disruptions.

How does the $12.7 million contract value compare to similar security system installations within the DoD?

Benchmarking the $12.7 million contract value requires detailed comparison with similar projects. Factors such as the scale of the installation (e.g., number of access points, square footage covered, types of sensors deployed), the specific technologies integrated, and the duration of the project are crucial. A multi-year installation of a comprehensive security system for a significant military facility could reasonably fall within this price range. However, without access to a database of comparable DoD security system contracts with detailed scope and pricing, it's difficult to definitively state whether this represents excellent, good, or fair value. A preliminary assessment suggests it is within a plausible range for a large-scale federal security project.

What were the key performance metrics or deliverables outlined in the contract for Infotec Systems Corp.?

The provided data does not detail the specific performance metrics or deliverables for Infotec Systems Corp. However, typical deliverables for a security system installation contract would include the successful design, procurement, installation, testing, and commissioning of the AIE system components. Key performance metrics would likely focus on system functionality (e.g., reliability of sensors, accuracy of alerts), adherence to installation timelines, compliance with security standards and regulations, and successful integration with existing infrastructure. The contract would also stipulate warranty periods and potentially post-installation support requirements.

What is the track record of Infotec Systems Corp. in performing similar federal contracts?

The provided data indicates that Infotec Systems Corp. was awarded this $12.7 million contract by the Department of the Army. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving security system installations or related services. This would involve reviewing contract databases for previous awards, their values, durations, and any reported performance ratings or past performance evaluations. A history of successful, on-time, and within-budget completions of similar projects would indicate a strong track record, while a pattern of issues or defaults would raise concerns.

What are the potential risks associated with this contract, and how might they be mitigated?

Potential risks include technical challenges during installation, integration issues with existing systems, scope creep leading to cost overruns (despite the fixed-price nature), and potential delays impacting operational readiness. Mitigation strategies would involve robust project management by the Army, clear communication channels with Infotec Systems Corp., thorough site assessments prior to installation, phased testing and validation, and contingency planning for unforeseen issues. The fixed-price contract itself acts as a risk mitigation tool for the government by capping the cost, provided the scope is well-defined.

How has federal spending in the 'Security Systems Services' category (NAICS 561621) trended over the past five years?

Analyzing the trend of federal spending for NAICS code 561621 requires access to historical federal procurement data. Generally, spending in security-related sectors tends to increase following heightened security concerns or significant infrastructure modernization efforts. For the Department of Defense, investments in physical security and surveillance technologies are often driven by evolving threat landscapes and the need to protect critical assets. A detailed analysis would involve querying databases like FPDS or USAspending to aggregate contract awards under this NAICS code across all federal agencies over the past five years to identify growth, decline, or stability in spending.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY04R0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 TRAVELERS BLVD STE 545, SUMMERVILLE, SC, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,753,569

Exercised Options: $12,753,569

Current Obligation: $12,753,569

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY05D0027

IDV Type: IDC

Timeline