DoD awards $184M for ADP Software to AMCOMP Corporation, raising value concerns

Contract Overview

Contract Amount: $15,793,268 ($15.8M)

Contractor: Amcomp Corporation

Awarding Agency: Department of Defense

Start Date: 2001-04-20

End Date: 2006-05-28

Contract Duration: 1,864 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200111!000099!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7013 !20010420!20020331!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!+000001397178!N!N!000000000000!7030!ADP SOFTWARE !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!6! ! ! !*!*!*!B!*!*! ! !A ! ! ! !000! ! ! ! ! ! ! ! !A!Y! ! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to AMCOMP CORPORATION for work described as: 200111!000099!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7013 !20010420!20020331!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS A… Key points: 1. The contract value of $184,046,761 appears high for ADP software, warranting further scrutiny. 2. Competition was limited, with a 'full and open competition after exclusion of sources' method. 3. The risk of overpayment is present due to the limited competition and lack of clear pricing benchmarks. 4. The sector is Research and Development, specifically related to missile and space systems.

Value Assessment

Rating: questionable

The contract value of $184,046,761 for ADP Software is difficult to benchmark without more specific details on the services provided. However, given the limited competition and the nature of the services, the price may be on the higher side compared to similar, more competitively bid contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that not all potential bidders were considered. This limited competition may have impacted price discovery, potentially leading to a higher price than if a broader competition had been conducted.

Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment. The limited competition raises concerns about whether taxpayers received the best possible value for this expenditure.

Public Impact

Taxpayers may be overpaying for ADP software due to limited competition. The Department of Defense is investing heavily in missile and space systems R&D. The contract duration and value could indicate a long-term reliance on AMCOMP Corporation for critical services.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Limited competition
Potential overpricing
Lack of clear service details

Positive Signals

Contract awarded to a specific corporation
Supports missile and space systems R&D

Sector Analysis

This contract falls within the Research and Development sector, specifically for ADP software supporting missile and space systems. Spending in this area is often high due to the specialized nature of the work and the critical defense applications.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Oversight would involve monitoring performance, costs, and adherence to contract terms to ensure accountability and value for taxpayer money.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Limited competition may lead to higher prices.
Lack of detailed service description hinders value assessment.
Potential for overpayment due to non-robust price discovery.
Contract duration and value warrant close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to AMCOMP CORPORATION. 200111!000099!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7013 !20010420!20020331!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!+000001397178!N!N!000000000000!7030!ADP SOFTWARE !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!6! ! ! !*!*!*!B!*!*! !

Who is the contractor on this award?

The obligated recipient is AMCOMP CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2001-04-20. End: 2006-05-28.

What specific ADP software and services were procured under this contract, and how do they align with the stated R&D objectives for missile and space systems?

The provided data identifies the product service code as 7030 for ADP Software and the NAICS code as 541710 for Research and Development in Physical, Engineering, and Life Sciences. While the contract supports missile and space systems, the precise nature of the ADP software and its R&D application is not detailed. Further documentation would be required to understand the specific functionalities and research contributions.

What was the rationale for excluding other potential sources in the 'full and open competition after exclusion of sources' award method, and were these justifications adequately documented?

The data indicates a limited competition strategy. The rationale for excluding other sources is not provided but typically involves justifications such as unique capabilities, proprietary technology, or urgent needs. A thorough review of the contract file would be necessary to ascertain the validity and documentation of these justifications and ensure they were appropriate.

How does the per-unit cost or overall pricing of this ADP software contract compare to industry benchmarks for similar R&D-related software solutions, especially considering the limited competition?

Benchmarking this contract's pricing is challenging without detailed service descriptions and specific software functionalities. The limited competition suggests that a robust price comparison might not have been feasible. A comparative analysis against other government or commercial contracts for specialized R&D software, if available, would be needed to assess value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 23332 HAWTHORNE BLVD , SUI, TORRANCE, CA, 90505

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0228J

IDV Type: FSS

Timeline