ARNG NCR IT Services Contract Exceeds $127M, Awarded to Innovative Management Concepts

Contract Overview

Contract Amount: $127,057,737 ($127.1M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: General Services Administration

Start Date: 2018-12-10

End Date: 2025-08-09

Contract Duration: 2,434 days

Daily Burn Rate: $52.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: OPERATIONS, MODERNIZATION, EXPANSION, AND FURTHER EVOLUTION OF THE IT SERVICES FOR THE ARNG NCR DOIM.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $127.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: OPERATIONS, MODERNIZATION, EXPANSION, AND FURTHER EVOLUTION OF THE IT SERVICES FOR THE ARNG NCR DOIM. Key points: 1. Contract focuses on IT services for ARNG NCR, encompassing operations, modernization, and expansion. 2. Innovative Management Concepts, Inc. holds the contract, awarded by the General Services Administration. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. Significant duration of 2434 days suggests a long-term, comprehensive IT support requirement.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can lead to higher costs if not managed tightly, as it incentivizes contractor performance which may not always align with the lowest possible price. Benchmarking against similar IT services contracts is crucial to assess if the award fees are justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a limited competition. This method may restrict the pool of potential bidders and could impact price discovery, potentially leading to higher costs than a truly open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value. The exclusion of sources suggests a specific justification was made, but the impact on cost-effectiveness needs careful monitoring.

Public Impact

Ensures continued IT operations and modernization for the Army National Guard in the National Capital Region. Supports critical infrastructure for a significant military and governmental entity. Potential for enhanced IT capabilities through modernization and expansion efforts. Long contract duration implies sustained reliance on contractor for essential IT functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce cost savings.
Cost Plus Award Fee structure requires diligent oversight.
Contractor is not a small business.

Positive Signals

Focus on modernization and evolution of IT services.
Awarded by a reputable agency (GSA).
Long-term contract provides stability for ARNG NCR IT.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this sector is substantial across the federal government, supporting a wide range of agency operations. Benchmarks for similar large-scale IT modernization and support contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The contract was not awarded to a small business. This indicates that the scope and complexity of the IT services required were likely beyond the capacity or specialization of most small businesses in this domain.

Oversight & Accountability

The General Services Administration (GSA) is responsible for awarding and overseeing this contract. The Cost Plus Award Fee structure necessitates robust oversight to ensure performance targets are met and award fees are justified, protecting taxpayer interests.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Limited competition may have resulted in a higher price.
Lack of small business participation.
Contract duration is substantial, requiring long-term oversight.
Clarity on specific performance metrics for award fees is needed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $127.1 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. OPERATIONS, MODERNIZATION, EXPANSION, AND FURTHER EVOLUTION OF THE IT SERVICES FOR THE ARNG NCR DOIM.

Who is the contractor on this award?

The obligated recipient is INNOVATIVE MANAGEMENT CONCEPTS, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $127.1 million.

What is the period of performance?

Start: 2018-12-10. End: 2025-08-09.

How effectively are the award fees structured to incentivize genuine performance improvements rather than just meeting minimum requirements?

The effectiveness of award fees hinges on clearly defined, measurable, and achievable performance metrics tied to strategic IT goals. Without transparency into these metrics and rigorous evaluation processes, award fees can become a mechanism for increased profit without proportional value enhancement. Regular audits and performance reviews are critical to ensure alignment with taxpayer interests.

What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and what was the impact on price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are deemed essential and only met by a limited number of vendors. While this can ensure specialized expertise, it inherently restricts competition, potentially leading to higher prices than a broader solicitation. The justification for exclusion and its pricing impact should be thoroughly documented and reviewed.

What is the projected return on investment for the modernization and expansion efforts outlined in the contract?

Quantifying the ROI for IT modernization and expansion requires detailed analysis of expected efficiency gains, cost reductions in legacy systems, improved cybersecurity posture, and enhanced operational capabilities. Without clear baseline metrics and defined future state objectives, measuring the true return on this significant investment is challenging. A post-award review of achieved benefits against initial projections is advisable.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 428 HONAKER RD, BLAIRSVILLE, GA, 30512

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

Financial Breakdown

Contract Ceiling: $146,948,702

Exercised Options: $127,057,737

Current Obligation: $127,057,737

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $55,375,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0028

IDV Type: GWAC

Timeline