DoD's $78.8M IT contract for custom programming services awarded to Integrated Information Technology Corporation

Contract Overview

Contract Amount: $31,362,110 ($31.4M)

Contractor: Integrated Information Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2002-05-30

End Date: 2007-08-31

Contract Duration: 1,919 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200208!000153!5700!QA27 !AMC/CONF/LGC !GS35F0726J !C!N! !Y!FA445202F0082 !20020530!20030630!788371920!788371920!788371920!N!INTEGRATED INFORMATION TECHNOL!4725 S MONACO ST , SUITE !DENVER !CO!80237!20000!031!08!DENVER !DENVER !COLORADO !+000003686735!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! !D! !* ! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to INTEGRATED INFORMATION TECHNOLOGY CORPORATION for work described as: 200208!000153!5700!QA27 !AMC/CONF/LGC !GS35F0726J !C!N! !Y!FA445202F0082 !20020530!20030630!788371920!788371920!788371920!N!INTEGRATED INFORMATION TECHNOL!4725 S MONACO ST , SUITE !DENVER !CO!80237!20000!031!08!DENVER !DENVER !COLORADO !+000003686735!N!N!000000000000!D399!OTHER A… Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized software development. 2. The contract was competed under full and open competition, suggesting a robust market for these services. 3. The duration of the contract (over 5 years) suggests a long-term need for the services provided. 4. The contract was awarded to a single vendor, Integrated Information Technology Corporation. 5. The contract's value of approximately $78.8 million over its life cycle represents a significant investment in IT services. 6. The primary service category is 'Custom Computer Programming Services', a critical area for defense modernization.

Value Assessment

Rating: fair

The contract's total value of $78.8 million over approximately 5 years averages to about $15.76 million annually. Benchmarking this against similar large-scale IT service contracts within the Department of Defense is challenging without more granular data on the specific services rendered. However, the duration and scope suggest a substantial investment. The contract was awarded on a labor hours basis, which can sometimes lead to cost overruns if not managed tightly, but also offers flexibility. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is difficult, but the competitive nature of the award provides some assurance.

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 a bid. The data does not specify the number of bidders, but the designation implies a competitive process. A full and open competition generally leads to better price discovery and potentially more innovative solutions as multiple vendors vie for the contract. This approach is favored for ensuring fair market value and avoiding potential price inflation associated with less competitive solicitations.

Taxpayer Impact: For taxpayers, a full and open competition means that the government is likely to receive competitive pricing, maximizing the value of taxpayer dollars spent on these critical IT services. It reduces the risk of overpayment and promotes a more efficient allocation of resources.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Air Force, which receives custom computer programming services to support its operations. The services delivered are likely related to software development, system integration, or IT infrastructure support crucial for military readiness and operations. The geographic impact is primarily within the Department of Defense's operational footprint, though the contractor is based in Denver, Colorado. Workforce implications include the employment of IT professionals and programmers by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hours contract type if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the services.
The contract's long duration could lead to technological obsolescence if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Integrated Information Technology Corporation, has secured a significant contract, indicating a level of trust and capability.
The contract addresses a core IT need within the Department of Defense.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Contracts like this are essential for maintaining and modernizing the technological infrastructure of defense agencies. Comparable spending benchmarks would typically involve analyzing other large-scale custom software development contracts awarded by DoD or other federal agencies for similar types of services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Integrated Information Technology Corporation, is likely a large business. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's own subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Air Force. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract's award under full and open competition and its subsequent reporting in federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Custom Software Development Services
Air Force Information Technology Procurement
Federal IT Services Contracts
Defense Agency Software Engineering

Risk Flags

Labor Hours Contract Type Risk
Long Contract Duration
Lack of Specific Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to INTEGRATED INFORMATION TECHNOLOGY CORPORATION. 200208!000153!5700!QA27 !AMC/CONF/LGC !GS35F0726J !C!N! !Y!FA445202F0082 !20020530!20030630!788371920!788371920!788371920!N!INTEGRATED INFORMATION TECHNOL!4725 S MONACO ST , SUITE !DENVER !CO!80237!20000!031!08!DENVER !DENVER !COLORADO !+000003686735!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!A!N!N! ! ! ! !D! !* ! ! ! ! ! ! ! ! ! !0001!

Who is the contractor on this award?

The obligated recipient is INTEGRATED INFORMATION TECHNOLOGY CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2002-05-30. End: 2007-08-31.

What is the specific nature of the 'Custom Computer Programming Services' provided under this contract?

The provided data categorizes the contract under NAICS code 541511, 'Custom Computer Programming Services'. This typically encompasses services such as designing, developing, and testing custom software, as well as integrating software with existing hardware and systems. For the Department of Defense, these services could range from developing specialized command and control systems, logistics software, intelligence analysis tools, to cybersecurity solutions. Without more detailed contract line item descriptions or statements of work, the precise applications remain general, but they are critical for supporting the Air Force's operational and administrative functions.

How does the awarded price of $78.8 million compare to similar custom programming contracts within the DoD?

Direct comparison of the $78.8 million total contract value to similar custom programming contracts within the DoD is challenging without access to a comprehensive database of comparable contracts, including their scope, duration, and specific services. However, for a contract spanning over five years (from May 2002 to August 2007) awarded under full and open competition, this value suggests a significant and complex undertaking. Large-scale IT development and integration projects for defense agencies often run into tens or hundreds of millions of dollars. The labor hours pricing structure also means the final cost is dependent on the effort expended, making direct price comparisons difficult without understanding the hours billed and the rates applied.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for custom computer programming services, KPIs might include adherence to project timelines, software defect rates, system performance benchmarks (e.g., response times, uptime), user satisfaction, and successful integration with other systems. The contract's labor hours basis suggests that performance might be measured by the efficient and effective application of labor towards defined project milestones and deliverables, as outlined in the contract's Statement of Work (SOW).

What is the track record of Integrated Information Technology Corporation with federal contracts, particularly within the DoD?

Integrated Information Technology Corporation (IITC) was awarded this significant contract, suggesting they possess the capabilities and experience required by the Department of Defense. While this specific data point highlights a large contract, a comprehensive assessment of their track record would involve reviewing their entire federal contracting history, including past performance on similar projects, any past performance issues or awards, and their financial stability. Without access to broader contract databases or past performance reviews, it's difficult to provide a detailed analysis of their overall track record beyond this single award.

What is the potential risk associated with a labor hours contract type for custom programming services?

Labor hours contracts, like the one awarded here, carry inherent risks, primarily the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, the total cost is not predetermined and depends on the actual hours worked by contractor personnel. This necessitates robust government oversight to ensure that hours are reasonable, necessary, and directly related to contract requirements. Risks include inefficient work practices, scope creep not adequately controlled, and potentially inflated billing. However, labor hours contracts also offer flexibility for evolving requirements, which can be beneficial in complex IT development where the exact scope may not be fully defined at the outset.

How does this contract fit into the broader IT spending landscape of the Department of the Air Force?

This contract for custom computer programming services represents a component of the Department of the Air Force's overall IT spending, which is substantial and multifaceted. Such contracts are crucial for developing and maintaining the specialized software and systems that underpin military operations, intelligence gathering, logistics, and communication. The $78.8 million value over five years indicates a significant investment in a specific area of IT capability. It likely supports modernization efforts, addresses unique operational requirements, or provides essential software solutions that cannot be met by off-the-shelf products, fitting into the larger strategy for maintaining technological superiority.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 4725 S MONACO ST STE 300, DENVER, CO, 80237

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0726J

IDV Type: FSS

Timeline