DoD's $20.2M contract for IMPRESA system support awarded to Systems Implementers Inc. raises value questions

Contract Overview

Contract Amount: $20,230,490 ($20.2M)

Contractor: Systems Implementers Inc

Awarding Agency: Department of Defense

Start Date: 2012-06-13

End Date: 2019-07-09

Contract Duration: 2,582 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF MAINTENANCE, REPAIR, AND OVERHAUL FOR SOFTWARE IMPLEMENTATION&SUSTAINMENT SUPPORT FOR THE IMPRESA SYSTEM. THIS IS FOR SUSTAINING APPLICATION ENHANCEMENTS AND MANAGING SYSTEM INTERFACES WITH AF LEGACY SYSTEMS.

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to SYSTEMS IMPLEMENTERS INC for work described as: IGF::CT::IGF MAINTENANCE, REPAIR, AND OVERHAUL FOR SOFTWARE IMPLEMENTATION&SUSTAINMENT SUPPORT FOR THE IMPRESA SYSTEM. THIS IS FOR SUSTAINING APPLICATION ENHANCEMENTS AND MANAGING SYSTEM INTERFACES WITH AF LEGACY SYSTEMS. Key points: 1. The contract's value appears high relative to its duration and scope, suggesting potential overpayment. 2. Limited competition, despite being advertised as 'full and open,' may have inflated costs. 3. The firm-fixed-price structure offers some cost certainty but doesn't guarantee optimal value. 4. Performance context is unclear, making it difficult to assess if the delivered services met expectations. 5. The contract falls within the IT services sector, specifically computer systems design. 6. No small business set-aside was utilized, indicating a lack of specific focus on small business participation.

Value Assessment

Rating: questionable

The total award of $20.2 million over approximately 7 years for software sustainment and enhancements seems high, especially considering the contract was a definitive contract. Benchmarking against similar IT sustainment contracts is challenging without more detailed service descriptions, but the per-year cost is substantial. The firm-fixed-price nature provides some predictability, but the overall value proposition is questionable given the lack of clear performance metrics and competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which is an unusual designation suggesting that while the solicitation was public, specific sources may have been excluded or that the competition was limited in practice. With only 6 bidders, the level of competition was moderate, which can impact price discovery. The 'exclusion of sources' aspect warrants further investigation to understand its implications on the final price.

Taxpayer Impact: The moderate competition level, coupled with the 'exclusion of sources' clause, suggests that taxpayers may not have received the most competitive pricing possible, potentially leading to higher costs than a truly open and unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are the Department of the Air Force, receiving sustainment and enhancement for the IMPRESA system. Services delivered include application enhancements and management of system interfaces with legacy Air Force systems. The geographic impact is primarily within the Department of the Air Force's operational footprint. Workforce implications are likely for IT professionals involved in software sustainment and system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to limited competition and unclear value.
Ambiguity in 'full and open competition after exclusion of sources' raises concerns about true market access.
Lack of detailed performance metrics makes it hard to assess effectiveness.
Long contract duration without clear performance adjustments could lead to diminishing returns.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contractor has a defined role in sustaining a critical system.
The system is essential for managing interfaces with legacy Air Force systems.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The market for IT sustainment and software enhancement is vast and competitive, with numerous firms offering specialized services. The total federal spending on IT services is in the hundreds of billions annually. This contract represents a small fraction of that, but its value is significant for the specific system it supports. Comparable spending benchmarks would typically look at the cost per user, per system function, or per developer hour for similar sustainment efforts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized services from larger or more established IT firms capable of handling complex system sustainment. The lack of small business involvement means limited direct benefit to the small business ecosystem for this specific contract.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Air Force, implying standard procurement oversight. Oversight mechanisms would typically involve contract officers, program managers, and potentially the Inspector General if performance issues or fraud were suspected. Transparency is moderate, as contract awards are generally public, but the detailed performance and pricing justifications may not be readily accessible. The firm-fixed-price nature simplifies some aspects of financial oversight.

Related Government Programs

Defense IT Modernization Programs
Air Force Software Development Contracts
Legacy System Sustainment
Computer Systems Design Services

Risk Flags

Limited competition despite 'full and open' designation.
High total contract value over duration.
Lack of detailed performance metrics for value assessment.
Potential for cost creep in 'enhancements' under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to SYSTEMS IMPLEMENTERS INC. IGF::CT::IGF MAINTENANCE, REPAIR, AND OVERHAUL FOR SOFTWARE IMPLEMENTATION&SUSTAINMENT SUPPORT FOR THE IMPRESA SYSTEM. THIS IS FOR SUSTAINING APPLICATION ENHANCEMENTS AND MANAGING SYSTEM INTERFACES WITH AF LEGACY SYSTEMS.

Who is the contractor on this award?

The obligated recipient is SYSTEMS IMPLEMENTERS 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 $20.2 million.

What is the period of performance?

Start: 2012-06-13. End: 2019-07-09.

What is the track record of Systems Implementers Inc. with similar government contracts?

Systems Implementers Inc. has a history of performing IT services for the government, including contracts related to software development, integration, and sustainment. While specific details on past performance for contracts of this exact scale and complexity are not provided in the summary data, their designation as a contractor suggests they have met basic eligibility and past performance requirements for previous awards. A deeper dive into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment of their reliability and capability in executing large-scale sustainment projects like the IMPRESA system.

How does the value of this contract compare to similar IT sustainment contracts?

Direct comparison of this $20.2 million contract for IMPRESA system sustainment is difficult without granular data on the scope of services, number of users supported, and specific system complexity. However, the average annual cost of approximately $2.9 million ($20.2M / 7 years) for sustaining an application, managing interfaces, and providing enhancements appears substantial. Benchmarking against industry standards for IT sustainment suggests that costs can vary widely, but contracts of this magnitude often involve extensive support, significant user bases, or highly complex, mission-critical systems. Without more context on the IMPRESA system's criticality and user base, it's challenging to definitively state if this represents excellent or questionable value for money.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns if the scope of 'sustaining application enhancements' proves more extensive than initially estimated, despite the firm-fixed-price structure. There's also a risk related to the 'exclusion of sources' clause, which could indicate that the competition was not as robust as a truly open solicitation, potentially leading to suboptimal pricing. Furthermore, the long duration of the contract (over 7 years) introduces risks related to technological obsolescence, changes in Air Force requirements, and the contractor's sustained ability to deliver high-quality services over an extended period. Finally, the lack of detailed performance metrics makes it difficult to proactively identify and mitigate performance degradation.

How effective has Systems Implementers Inc. been in delivering services under this contract?

The provided data does not include specific performance metrics or effectiveness ratings for Systems Implementers Inc. under this contract. Effectiveness would typically be measured through contractor performance evaluations (CPEs), user satisfaction surveys, system uptime, and the successful implementation of enhancements and bug fixes. Given that this was a definitive contract awarded in 2012 and ending in 2019, historical performance data should exist within the Department of the Air Force's contract management systems. Without access to these evaluations, assessing the contractor's effectiveness remains speculative.

What has been the historical spending trend for IMPRESA system support?

The provided data reflects a single definitive contract award of $20.2 million for IMPRESA system support spanning from June 2012 to July 2019. This suggests that this particular contract represents the primary, if not sole, significant federal expenditure for IMPRESA system sustainment during that period. To understand historical spending trends, one would need to examine contract awards prior to 2012 and potentially any subsequent contracts awarded after 2019 for the same or similar services related to the IMPRESA system. Without this broader context, it's impossible to establish a multi-year spending trend.

What is the significance of the 'Computer Systems Design Services' NAICS code?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' signifies that the primary business activity of the contractor under this contract involved providing expertise in designing, developing, and implementing computer systems. This typically includes activities such as systems integration, custom software development, IT consulting, and project management for IT solutions. For this specific contract, it indicates that Systems Implementers Inc. was engaged in tailoring and maintaining the IMPRESA system to meet the Air Force's specific needs, including ensuring compatibility with existing legacy systems and potentially developing new functionalities or enhancements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA822411R0037

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 S WILLIAMS BLVD STE 280, TUCSON, AZ, 85711

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

Financial Breakdown

Contract Ceiling: $20,230,490

Exercised Options: $20,230,490

Current Obligation: $20,230,490

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline