DoD Awards $18.4M for ADP Software to Amcomp Corp, Raising Questions on Competition and Value

Contract Overview

Contract Amount: $13,667,313 ($13.7M)

Contractor: Amcomp Corporation

Awarding Agency: Department of Defense

Start Date: 2001-04-25

End Date: 2006-04-06

Contract Duration: 1,807 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200111!000101!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7015 !20010425!20011231!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!+000001700000!N!N!000000000000!7030!ADP SOFTWARE !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !513310!*!*!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 $13.7 million to AMCOMP CORPORATION for work described as: 200111!000101!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7015 !20010425!20011231!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS A… Key points: 1. Contract awarded for ADP Software, a critical component for missile and space systems. 2. Significant award value of $18.4 million raises scrutiny regarding pricing and competition. 3. The contract's 'Full and Open Competition After Exclusion of Sources' raises concerns about true market competition. 4. Research and Development sector spending benchmark for this NAICS code needs further analysis for value assessment.

Value Assessment

Rating: questionable

The contract value of $18.4 million for ADP Software is substantial. Without specific per-unit cost data or benchmarks for similar R&D software contracts, it is difficult to definitively assess its pricing fairness against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition scenario. This method may restrict the pool of potential bidders and could impact price discovery, potentially leading to higher costs.

Taxpayer Impact: The limited competition and lack of clear value assessment raise concerns about taxpayer dollars being used efficiently, potentially resulting in overpayment for the services rendered.

Public Impact

Taxpayers may be overpaying due to limited competition in this significant $18.4 million contract. The use of 'exclusion of sources' in the competition method warrants further investigation into its necessity and impact on cost. The critical nature of ADP software for missile and space systems means any inefficiencies could have broader defense implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises cost concerns.
Lack of clear value assessment.
Potential for inefficient use of taxpayer funds.

Positive Signals

Awarded to a single vendor, potentially indicating specialized expertise.
Contract supports critical defense systems (missile and space).

Sector Analysis

This contract falls within the Research and Development sector, specifically for ADP Software supporting missile and space systems. Benchmarking spending in this specialized R&D area is challenging but crucial for ensuring fair pricing and value for taxpayer investment.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' clause suggests a specific justification was made, but the rationale and oversight of this decision are not detailed in the provided data. Enhanced oversight is needed to ensure competitive fairness.

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 have inflated costs.
Lack of transparency in the 'exclusion of sources' justification.
Potential for suboptimal value due to restricted bidding.
Need for detailed cost-benefit analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to AMCOMP CORPORATION. 200111!000101!5700!GZ04 !SMC/PKR CONTRACT MGMT OFFICE !GS35F0228J !C!N!*!N!F0470101F7015 !20010425!20011231!184046761!184046761!184046761!N!AMCOMP CORPORATION !23332 HAWTHORNE BLVD , SUI!TORRANCE !CA!90505!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!+000001700000!N!N!000000000000!7030!ADP SOFTWARE !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !513310!*!*!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 $13.7 million.

What is the period of performance?

Start: 2001-04-25. End: 2006-04-06.

What was the specific justification for excluding other potential sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?

The justification for excluding sources is critical for understanding the competitive landscape. If valid reasons existed, such as unique capabilities or proprietary technology, the price might be justified. However, if the exclusion was arbitrary or poorly documented, it could indicate a lack of due diligence, potentially leading to inflated costs and reduced value for the government.

How does the $18.4 million contract value compare to industry benchmarks for similar ADP software development and integration services for defense applications?

Comparing this contract's value to industry benchmarks is essential for assessing its cost-effectiveness. Without access to comparable contract data or detailed cost breakdowns, it's difficult to determine if $18.4 million represents a fair market price. A thorough analysis would involve examining the scope of work, technical requirements, and vendor overhead to identify potential overpricing or cost efficiencies.

What performance metrics and oversight mechanisms were in place to ensure the effective delivery of ADP software critical for missile and space systems under this contract?

Effective oversight is paramount for contracts supporting critical defense systems. Understanding the performance metrics, milestones, and quality assurance processes established for this $18.4 million award is crucial. Robust oversight ensures the software meets stringent requirements, is delivered on time, and functions as intended, thereby mitigating risks to national security and maximizing the return on taxpayer investment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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

Parent Contract

Parent Award PIID: GS35F0228J

IDV Type: FSS

Timeline