Air Force IT portfolio support contract awarded to NetImpact Strategies Inc. for over $16 million

Contract Overview

Contract Amount: $16,176,756 ($16.2M)

Contractor: Netimpact Strategies Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-17

End Date: 2027-05-17

Contract Duration: 1,826 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFDW/PKS-WARREN-MCLAUGHLIN-THE SECRETARY OF THE AIR FORCE'S OFFICE OF CHIEF INFORMATION OFFICER REQUIRES A CONTRACT IN SUPPORT OF INFORMATION TECHNOLOGY INVESTMENT PORTFOLIO SYSTEM, SUPPORT SERVICES FOR A BASE AND 4 OPTION YEARS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to NETIMPACT STRATEGIES INC for work described as: AFDW/PKS-WARREN-MCLAUGHLIN-THE SECRETARY OF THE AIR FORCE'S OFFICE OF CHIEF INFORMATION OFFICER REQUIRES A CONTRACT IN SUPPORT OF INFORMATION TECHNOLOGY INVESTMENT PORTFOLIO SYSTEM, SUPPORT SERVICES FOR A BASE AND 4 OPTION YEARS. Key points: 1. Contract provides essential IT portfolio support services for the Air Force. 2. The contract duration spans five years, including base and option periods. 3. NetImpact Strategies Inc. secured this contract through full and open competition. 4. The contract type is Firm Fixed Price, indicating predictable costs for the government. 5. The service falls under 'Other Computer Related Services', a broad IT category. 6. This award represents a significant investment in the Air Force's IT infrastructure management.

Value Assessment

Rating: good

The contract's total value of approximately $16.18 million over five years suggests a moderate investment in IT support services. Benchmarking against similar contracts for IT portfolio management and support services is crucial for a precise value-for-money assessment. However, the firm fixed-price structure generally promotes cost control for the government. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the duration and scope indicate a substantial, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With five bidders participating, the competition level appears healthy, which typically drives more competitive pricing and better service offerings. The presence of multiple bidders suggests that the government received a range of proposals, allowing for selection of the most advantageous offer based on technical merit and price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government obtains the best value for its investment.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive critical support for its Information Technology Investment Portfolio System. Services delivered include support for managing and optimizing the Air Force's IT investments. The geographic impact is likely nationwide, supporting Air Force IT operations across various bases and locations. Workforce implications may include the need for specialized IT professionals within NetImpact Strategies Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new vendor is complex.
Reliance on a single contractor for critical IT portfolio support could pose risks if performance degrades.
The broad 'Other Computer Related Services' category might obscure specific cost drivers or service limitations.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
Long-term contract (5 years) allows for stable support and potential for deep institutional knowledge development by the contractor.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT investment portfolio management and support. The market for such services is substantial, with government agencies increasingly relying on specialized contractors to manage complex IT infrastructures and investments. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to federal agencies, particularly within the Department of Defense, to gauge the pricing and scope relative to industry standards.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless NetImpact Strategies Inc. voluntarily includes small businesses in its subcontracting efforts. Further analysis would be needed to determine if any small business participation is mandated or occurs organically.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Portfolio Management Services
Information Technology Support Services
Defense Information Technology Modernization
Cloud Computing Services Support
Cybersecurity Support Services

Risk Flags

Potential for vendor lock-in
Reliance on single source for critical IT support
Scope definition in 'Other Computer Related Services' could be broad

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to NETIMPACT STRATEGIES INC. AFDW/PKS-WARREN-MCLAUGHLIN-THE SECRETARY OF THE AIR FORCE'S OFFICE OF CHIEF INFORMATION OFFICER REQUIRES A CONTRACT IN SUPPORT OF INFORMATION TECHNOLOGY INVESTMENT PORTFOLIO SYSTEM, SUPPORT SERVICES FOR A BASE AND 4 OPTION YEARS.

Who is the contractor on this award?

The obligated recipient is NETIMPACT STRATEGIES INC.

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 $16.2 million.

What is the period of performance?

Start: 2022-05-17. End: 2027-05-17.

What is the historical spending pattern for IT portfolio support services within the Department of the Air Force?

Analyzing historical spending for IT portfolio support within the Department of the Air Force requires access to detailed historical contract data. Generally, federal agencies, including the Air Force, have seen a consistent and often increasing investment in IT services over the past decade, driven by modernization efforts, cybersecurity needs, and the expansion of digital services. Specific patterns for portfolio support would likely show fluctuations based on major system upgrades, strategic shifts in IT management, and the lifecycle of existing IT investments. Without direct access to historical Air Force IT spending data, it's difficult to provide precise figures, but the trend indicates a sustained requirement for such services.

How does the awarded price compare to similar IT portfolio support contracts in the federal market?

A direct comparison of the awarded price ($16.18 million over 5 years) to similar IT portfolio support contracts requires benchmarking against contracts with comparable scope, duration, and service requirements. The average annual value of this contract is approximately $3.24 million. Federal IT support contracts can vary widely in price based on the complexity of the systems supported, the level of expertise required, and the specific services offered (e.g., strategic planning, data analytics, system integration). To assess value, one would compare this contract's per-year cost and the breadth of services against other large-scale IT support awards within the Department of Defense or other federal agencies. A preliminary assessment suggests this is a moderate-sized contract for specialized IT support.

What are the key performance indicators (KPIs) expected under this contract, and how are they measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for IT portfolio support services often include metrics related to the accuracy and completeness of portfolio data, the timeliness of reporting, the effectiveness of IT investment recommendations, adherence to budget constraints for IT projects, and the successful implementation of portfolio management strategies. Performance measurement would likely involve regular progress reports, audits, and reviews conducted by the Air Force contracting officer's representative (COR) or designated program managers. Failure to meet agreed-upon KPIs could result in contractual remedies.

What is NetImpact Strategies Inc.'s track record with similar government contracts, particularly within the Department of Defense?

NetImpact Strategies Inc. has a history of performing government contracts, including work with the Department of Defense. Assessing their track record requires reviewing past performance evaluations, contract awards, and any reported issues or successes on similar projects. Information available through federal procurement databases often includes past performance ratings. A thorough review would examine their experience in IT portfolio management, system support, and other relevant IT services. Positive past performance is a strong indicator of their capability to successfully execute this new contract, while any negative performance history would raise concerns.

What are the potential risks associated with relying on a single contractor for this critical IT support function?

The primary risks associated with relying on a single contractor for critical IT support include potential disruptions if the contractor experiences financial instability, personnel turnover, or performance issues. There's also a risk of reduced innovation or complacency over time. Furthermore, if the contract is terminated or not renewed, the government faces the challenge and cost of transitioning to a new contractor, which can lead to temporary service gaps or inefficiencies. Mitigating these risks often involves robust contract oversight, clear performance expectations, and contingency planning by the agency.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA701421R0032

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Netimpact Strategies, Inc

Address: 950 HERNDON PKWY STE 350, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $37,184,243

Exercised Options: $20,249,164

Current Obligation: $16,176,756

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $939,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0206Y

IDV Type: FSS

Timeline