DoD's $32.6M Cyber Tech Platform Contract Awarded to IAP Worldwide Services, Inc

Contract Overview

Contract Amount: $32,577,615 ($32.6M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-02

End Date: 2019-09-12

Contract Duration: 1,136 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF AWARD OF RTEP 0667, ATTERBURY-MUSCATATUCK - CYBER TECHNOLOGY ENVIRONMENT PLATFORM

Place of Performance

Location: BUTLERVILLE, JENNINGS County, INDIANA, 47223

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to IAP WORLDWIDE SERVICES, INC. for work described as: IGF::OT::IGF AWARD OF RTEP 0667, ATTERBURY-MUSCATATUCK - CYBER TECHNOLOGY ENVIRONMENT PLATFORM Key points: 1. Contract value represents a significant investment in cyber technology infrastructure. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over three years indicates a substantial, long-term need. 4. Performance is in Indiana, potentially impacting the local economy and workforce. 5. The cost-plus-fixed-fee structure requires careful monitoring of expenses. 6. This contract falls under Engineering Services, a critical sector for national security.

Value Assessment

Rating: fair

The contract's total value of $32.6 million over approximately three years needs further benchmarking against similar cyber technology environment platform contracts. Without specific performance metrics or detailed cost breakdowns, assessing the value for money is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, can lead to cost overruns if not managed diligently. Comparing the per-unit cost or the overall price to industry benchmarks for similar services would provide a clearer picture of its reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access, the actual number of bids received can influence the competitiveness of the pricing. Further analysis would be needed to determine if the competition was robust enough to drive optimal pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition. However, the actual savings achieved depend on the number and quality of bids received and the government's negotiation effectiveness.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to a cyber technology environment platform. The contract supports the development and maintenance of advanced cyber capabilities. The geographic impact is concentrated in Indiana, where the work is performed. Workforce implications may include specialized roles in cybersecurity, engineering, and IT support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
Limited public information on specific performance metrics makes value assessment difficult.
The duration of the contract could lead to scope creep if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
The contract addresses a critical need for cyber technology infrastructure.
The contractor, IAP Worldwide Services, Inc., has a track record in government contracting.

Sector Analysis

The contract falls within the Engineering Services sector, specifically related to IT and cyber capabilities. This sector is crucial for national defense and technological advancement. The market for cyber technology platforms is highly specialized and competitive, with significant government investment driven by evolving threats. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure and cybersecurity development contracts awarded by defense agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, IAP Worldwide Services, Inc., will likely perform the majority of the work. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor actively engages small businesses for specialized support not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense may also conduct audits or investigations into contract performance and spending. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are often not publicly available.

Related Government Programs

Department of Defense IT Procurement
Cybersecurity Infrastructure Development
Engineering Services Contracts
Information Technology Services

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to prevent cost overruns.
Limited number of bidders may indicate potential issues with market reach or competition.
Performance details and specific deliverables are not fully detailed in the award notice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to IAP WORLDWIDE SERVICES, INC.. IGF::OT::IGF AWARD OF RTEP 0667, ATTERBURY-MUSCATATUCK - CYBER TECHNOLOGY ENVIRONMENT PLATFORM

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 $32.6 million.

What is the period of performance?

Start: 2016-08-02. End: 2019-09-12.

What is the track record of IAP Worldwide Services, Inc. with similar Department of Defense contracts?

IAP Worldwide Services, Inc. has a history of performing various services for the Department of Defense, including logistics, base operations support, and aviation services. While specific details on their cyber technology development contracts require deeper investigation, their extensive experience with DoD suggests familiarity with government procurement processes and operational requirements. Analyzing past performance reviews, any contract disputes, and the scale of previous similar awards would provide a more comprehensive understanding of their capabilities and reliability in this specific domain. Their ability to secure this $32.6 million contract indicates a level of trust and proven performance in the eyes of the awarding agency.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for cyber technology platforms?

The Cost Plus Fixed Fee (CPFF) structure is common for complex, research-intensive, or uncertain scope projects like cyber technology development, where precise costs are difficult to estimate upfront. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While standard, this structure carries inherent risks of cost escalation if not rigorously managed. Industry benchmarks for CPFF contracts in the IT and defense sectors vary widely based on project complexity, duration, and risk. A key aspect for value assessment is the ratio of the fixed fee to the total estimated cost, and the government's ability to control and audit the 'cost' portion effectively through stringent oversight and reporting requirements.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential cost overruns due to the CPFF structure, scope creep if requirements are not clearly defined and managed, and performance issues if the contractor lacks the necessary technical expertise or resources. Mitigation strategies typically involve robust government oversight, detailed performance work statements, regular progress reviews, and strict adherence to budget and schedule. The limited competition (3 bidders) could also pose a risk if it leads to suboptimal pricing or limits the pool of highly qualified contractors. The government's mitigation would involve thorough performance monitoring and potentially incentivizing efficient cost management.

What is the historical spending pattern for cyber technology environments within the Department of the Army?

Historical spending on cyber technology environments within the Department of the Army has generally trended upwards, reflecting the increasing importance of cybersecurity and advanced technological capabilities for national defense. Specific figures for cyber technology platforms can be found within broader IT and R&D spending categories. Analyzing past budgets and contract awards for similar systems (e.g., command and control systems, network security infrastructure, simulation environments) would reveal trends in investment. This $32.6 million award should be viewed in the context of the Army's overall strategic investments in modernizing its cyber warfare and defense capabilities.

How does the contract duration (1136 days) impact the overall value and risk?

A contract duration of 1136 days (approximately 3.1 years) suggests a substantial and ongoing requirement for the cyber technology environment platform. This extended period allows for development, implementation, and potentially initial operational phases. From a value perspective, it can provide stability and predictability for both the government and the contractor, potentially leading to better resource allocation and economies of scale. However, longer durations also increase the risk of technological obsolescence, changing requirements, and potential cost increases due to inflation or unforeseen challenges. Effective contract management, including regular reviews and potential for contract modifications, is crucial to manage these risks over the extended period.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC (UEI: 079492183)

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: $46,052,149

Exercised Options: $46,052,149

Current Obligation: $32,577,615

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,093,261

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DD416

IDV Type: IDC

Timeline