DOJ's $9.8M contract for computer systems design services awarded to Interimage, Inc. for 4 years

Contract Overview

Contract Amount: $9,867,967 ($9.9M)

Contractor: Interimage, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-02-12

End Date: 2011-08-03

Contract Duration: 1,633 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE DEVELOPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $9.9 million to INTERIMAGE, INC. for work described as: SOFTWARE DEVELOPMENT Key points: 1. Value for money appears fair given the 4-year duration and the nature of IT services. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a time and materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is for computer systems design services, a critical function for agency operations. 5. Sector positioning is within IT services, a broad and essential category for federal agencies.

Value Assessment

Rating: fair

The contract's total value of approximately $9.8 million over four years averages to about $2.45 million annually. Benchmarking this against similar IT services contracts is challenging without more specific service details. However, the time and materials pricing structure, while common, carries inherent risks of cost escalation if not meticulously managed and monitored by the agency. The final award amount relative to initial estimates would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of six bidders suggests a reasonably competitive environment. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government, though the specific nature of the services and the contractor's qualifications also play a significant role.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives competitive bids.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) benefits from enhanced computer systems design capabilities. Services delivered likely include system analysis, design, development, and integration to support ATF's mission. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications may involve specialized IT professionals contributing to the agency's technological infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not closely monitored.
The duration of the contract (1633 days) is substantial, requiring sustained oversight.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
Limited information on the specific IT systems being designed or maintained.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Multiple bidders (6) participated, indicating market interest and potential for competitive pricing.
Contract awarded to a single entity, potentially allowing for focused expertise and streamlined communication.

Sector Analysis

This contract falls within the broader IT services sector, specifically computer systems design. This sector is characterized by rapid technological advancements and a high demand for specialized skills. Federal spending in IT services is substantial, with agencies relying on contractors for everything from software development to network infrastructure management. Comparable spending benchmarks would depend on the specific nature of the systems designed, but agencies often spend millions on such services annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this procurement. There is no explicit information regarding subcontracting plans for small businesses. This means the prime contractor, Interimage, Inc., has the discretion to subcontract, and the extent to which small businesses participate will depend on their business decisions and the availability of qualified small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated by contract award databases, but detailed operational oversight and inspector general jurisdiction would depend on the specific nature of the services and any potential issues that arise.

Related Government Programs

Department of Justice IT Services
Bureau of Alcohol, Tobacco, Firearms and Explosives IT Modernization
Computer Systems Design Services Federal Contracts
Time and Materials IT Contracts
Full and Open Competition IT Procurements

Risk Flags

Time and Materials Contract Type Risk
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.9 million to INTERIMAGE, INC.. SOFTWARE DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is INTERIMAGE, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2007-02-12. End: 2011-08-03.

What was the specific nature of the computer systems design services provided under this contract?

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS 541512) awarded to Interimage, Inc. by the Department of Justice's ATF. While the specific nature of the services is not detailed, this category typically encompasses a range of activities including analyzing user needs, designing and developing custom software, integrating hardware and software, and providing IT consulting. Given the agency (ATF), it's plausible these services supported law enforcement databases, investigative tools, or internal operational systems. Further details would require examining the contract's Statement of Work (SOW).

How does the awarded amount of $9.8 million compare to similar IT services contracts for federal agencies of similar size and scope?

Direct comparison of the $9.8 million award for computer systems design services is difficult without knowing the precise scope and complexity of the work performed by Interimage, Inc. for the ATF. However, federal IT services contracts can range widely in value. For a 4-year contract supporting a significant agency like ATF, $9.8 million (averaging $2.45 million annually) is within a common range for specialized IT design and development services. Contracts for enterprise-wide system overhauls or large-scale software development can reach tens or hundreds of millions, while smaller, more focused projects might be in the low millions. The 'fair' value assessment hinges on the deliverables achieved and the efficiency of the contractor's performance.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type used for this procurement?

The primary risk of a Time and Materials (T&M) contract, like the one awarded to Interimage, Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project scope expands, if labor hours are not efficiently managed, or if the contractor's hourly rates are high, the total cost can exceed initial estimates. Effective oversight, detailed tracking of labor hours, and clear definition of work are crucial for mitigating these risks and ensuring value for the government.

Given the 6 bidders in the 'full and open competition', what does this suggest about the market for computer systems design services for the ATF?

The fact that six bidders participated in the full and open competition for this computer systems design services contract suggests a healthy and competitive market for such services relevant to the ATF's needs. A pool of six bidders indicates that multiple companies possess the capability and interest to pursue government contracts in this specialized IT domain. This level of competition generally benefits the government by providing a wider range of technical solutions and driving prices down through competitive bidding, increasing the likelihood of securing a cost-effective solution.

What is the historical spending pattern for computer systems design services by the Department of Justice or the ATF?

The provided data only details this specific contract awarded in 2007. To understand historical spending patterns for computer systems design services by the Department of Justice or the ATF, one would need to analyze broader federal procurement databases (like USASpending.gov) over multiple fiscal years. This would involve filtering for the DOJ and ATF as the contracting agency, and NAICS code 541512 (Computer Systems Design Services) or similar IT service codes. Such an analysis would reveal trends in contract values, types of services procured, and key contractors over time, providing context for the $9.8 million award.

What is the track record of Interimage, Inc. in performing federal IT services contracts, particularly those of similar value and scope?

Information on Interimage, Inc.'s specific track record for this $9.8 million contract is limited to the award details provided. To assess their performance, one would need to consult contract performance databases (e.g., CPARS - Contractor Performance Assessment Reporting System) if available, which document past performance on federal contracts. Examining other contracts awarded to Interimage, Inc. by the DOJ or other agencies, particularly for computer systems design or related IT services, would provide insights into their reliability, quality of work, and ability to manage costs and schedules effectively.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4301 FAIRFAX DR STE 205, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $9,867,967

Exercised Options: $9,867,967

Current Obligation: $9,867,967

Timeline