DoD's $626.5M IT Services Contract with Impact Innovations Group Faces Scrutiny

Contract Overview

Contract Amount: $11,277,918 ($11.3M)

Contractor: Impact Innovations Group, LLC

Awarding Agency: Department of Defense

Start Date: 2002-11-22

End Date: 2007-09-27

Contract Duration: 1,770 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200302!005071!2100!AB15 !USA COMMUNICATIONS-ELECTRONICS !GS35F4238D !C!N! !N!DAAB1502F1073P00002!20021122!20030930!626508246!626508246!090317293!N!IMPACT INNOVATIONS GROUP, L L !8850 STANFORD BOULEVARD, S!COLUMBIA !MD!21045!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000000826633!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! !C! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to IMPACT INNOVATIONS GROUP, LLC for work described as: 200302!005071!2100!AB15 !USA COMMUNICATIONS-ELECTRONICS !GS35F4238D !C!N! !N!DAAB1502F1073P00002!20021122!20030930!626508246!626508246!090317293!N!IMPACT INNOVATIONS GROUP, L L !8850 STANFORD BOULEVARD, S!COLUMBIA !MD!21045!19125!027!24!COLUMBIA !HOWAR… Key points: 1. The contract awarded to Impact Innovations Group, LLC for ADP Systems Development Services is for a significant amount, totaling over $626 million. 2. Awarded under full and open competition, the contract's pricing and value will be assessed against industry benchmarks. 3. Potential risks include the long duration and the nature of the services, requiring careful oversight. 4. The IT sector, particularly defense IT services, is a critical area for government spending and efficiency.

Value Assessment

Rating: questionable

The contract's total value of $626,508,246 over its period of performance is substantial. Without specific per-unit cost data, a direct pricing comparison is difficult, but the overall scale warrants scrutiny against similar large-scale IT development service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the long duration and potential for scope creep could impact the final realized price.

Taxpayer Impact: The significant expenditure necessitates careful monitoring to ensure taxpayer funds are used efficiently and effectively for necessary defense IT services.

Public Impact

Taxpayers are funding a large IT services contract for the Department of Defense. The contract supports critical ADP systems development, impacting military operational capabilities. The long-term nature of the contract raises questions about adaptability to evolving technological needs and potential cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2002-2007)
Large total contract value
Services are IT-related, a sector prone to rapid change
Lack of specific performance metrics in provided data

Positive Signals

Awarded via full and open competition
Contract awarded to a single entity, potentially allowing for focused expertise

Sector Analysis

This contract falls within the IT services sector, specifically focusing on ADP systems development for the Department of Defense. Spending in this area is substantial across government, with benchmarks often focusing on project management efficiency, technical expertise, and adherence to schedules and budgets.

Small Business Impact

The provided data does not indicate if small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation in this large contract.

Oversight & Accountability

Oversight is crucial for a contract of this magnitude and duration. The Department of Defense and the Army must ensure rigorous performance monitoring, quality control, and financial accountability to prevent waste and ensure mission objectives are met.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Significant contract value
Long contract performance period
IT services are subject to rapid technological obsolescence
Potential for scope creep impacting final cost
Lack of detailed performance metrics in initial data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to IMPACT INNOVATIONS GROUP, LLC. 200302!005071!2100!AB15 !USA COMMUNICATIONS-ELECTRONICS !GS35F4238D !C!N! !N!DAAB1502F1073P00002!20021122!20030930!626508246!626508246!090317293!N!IMPACT INNOVATIONS GROUP, L L !8850 STANFORD BOULEVARD, S!COLUMBIA !MD!21045!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000000826633!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! !C! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is IMPACT INNOVATIONS GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2002-11-22. End: 2007-09-27.

What specific ADP systems development services were rendered, and how did they contribute to the Department of the Army's mission effectiveness?

The contract was for ADP Systems Development Services, crucial for modernizing and maintaining the complex information technology infrastructure of the Department of the Army. These services likely encompassed software development, system integration, and technical support, directly impacting operational readiness, data management, and communication capabilities. The effectiveness would be measured by the successful deployment and performance of these systems in supporting military operations and administrative functions.

Given the $626.5 million value and 2002-2007 timeframe, what were the key performance indicators and how was contractor performance measured against them?

Key performance indicators for such a contract typically include on-time delivery of milestones, adherence to budget, quality of deliverables (e.g., bug rates, system uptime), and user satisfaction. Performance would be measured through regular progress reports, technical reviews, and potentially independent government cost-benefit analyses. The long duration suggests a phased approach, with performance reviews at each stage to ensure the contractor was meeting evolving requirements and delivering value.

How did the 'full and open competition' process ensure the best value and competitive pricing for these extensive IT development services?

Full and open competition allows any interested and qualified vendor to submit a bid, fostering a competitive environment. The process typically involves detailed technical and cost proposals, which are then evaluated against pre-defined criteria. This method aims to drive down prices through market forces and select the offeror providing the best overall value, considering both technical merit and cost-effectiveness, thereby maximizing the return on taxpayer investment for these critical IT services.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Dynamics Research Corporation (UEI: 001014182)

Address: 8850 STANFORD BLVD, COLUMBIA, MD, 03

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: GS35F4238D

IDV Type: FSS

Timeline