Air Force IT Operations Support Contract Exceeds $34M with Interactive Process Technology
Contract Overview
Contract Amount: $34,085,613 ($34.1M)
Contractor: Interactive Process Technology, LLC
Awarding Agency: General Services Administration
Start Date: 2018-07-13
End Date: 2024-01-12
Contract Duration: 2,009 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT
Place of Performance
Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150
State: Texas Government Spending
Plain-Language Summary
General Services Administration obligated $34.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT Key points: 1. Contract value of $34.09M for IT operations support. 2. Competition was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of limited competition due to source exclusion. 4. Sector is Information Technology, specifically custom computer programming.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, coupled with a duration of 2009 days (over 5 years), raises concerns about cost control compared to fixed-price contracts for similar IT operations support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' method suggests a potentially narrowed field of bidders, which can impact price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The extended duration and T&M pricing may result in higher taxpayer costs if not managed diligently to prevent scope creep and ensure efficient service delivery.
Public Impact
Ensures critical IT operations support for Air Force personnel. Supports custom computer programming services essential for agency functions. Long-term contract provides stability for service provider and agency needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Time and Materials pricing can lead to cost overruns.
- Long contract duration increases risk of price escalation.
Positive Signals
- Provides essential IT support for a major government agency.
- Contract has been active for over 5 years, indicating sustained need.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The contract data does not indicate any specific set-asides for small businesses, suggesting that larger, established firms were likely the primary participants in the competition.
Oversight & Accountability
The contract's long duration and T&M pricing necessitate robust oversight from the General Services Administration and the Air Force to ensure cost-effectiveness and prevent potential waste.
Related Government Programs
- Custom Computer Programming Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition may have inflated the contract price.
- Long contract duration increases risk of obsolescence and price escalation.
- Lack of small business participation.
Tags
custom-computer-programming-services, general-services-administration, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $34.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. AIR FORCE PERSONNEL OPERATIONS ACTIVITY AFPOA INFORMATION TECHNOLOGY OPERATIONS SUPPORT
Who is the contractor on this award?
The obligated recipient is INTERACTIVE PROCESS TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $34.1 million.
What is the period of performance?
Start: 2018-07-13. End: 2024-01-12.
What specific factors led to the exclusion of sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements necessitate a limited pool of qualified vendors. Without detailed documentation, it's difficult to ascertain the exact reasons for exclusion. This limitation can reduce competitive pressure, potentially leading to a higher price than if a broader range of vendors had been allowed to compete.
How effectively has the Time and Materials pricing model been managed to control costs over the contract's extended period, given the potential for cost overruns?
Effective management of T&M contracts requires stringent oversight, detailed tracking of labor hours and material costs, and clear performance metrics. Regular audits and reviews by the contracting officer are crucial to ensure that costs remain reasonable and allocable to the contract's scope. The agency's ability to control costs depends heavily on the diligence of its program management and contract administration.
What is the assessed value for money considering the $34M expenditure over more than five years for IT operations support, and are there comparable contracts that offer better value?
Assessing value for money requires comparing the delivered services against the cost, considering the contract's duration and pricing structure. Given the T&M nature and limited competition, it's plausible that alternative contract vehicles, such as fixed-price or performance-based contracts with broader competition, might offer better value. A detailed cost-benefit analysis against industry benchmarks would be needed for a definitive assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID07180006
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Interactive Process Technology LLC
Address: 1500 DISTRICT AVE, BURLINGTON, MA, 01803
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $41,529,603
Exercised Options: $34,546,163
Current Obligation: $34,085,613
Actual Outlays: $3,086,361
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $11,548,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877112D1007
IDV Type: IDC
Timeline
Start Date: 2018-07-13
Current End Date: 2024-01-12
Potential End Date: 2024-01-12 00:00:00
Last Modified: 2024-02-29
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