DoD's $18.7M Wargfighter Integration IT contract awarded to North Point Defense Inc

Contract Overview

Contract Amount: $18,693,985 ($18.7M)

Contractor: North Point Defense Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-05

End Date: 2028-05-04

Contract Duration: 1,521 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WARFIGHTER INTEGRATION PROGRAM INFORMATION TECHNOLOGY (WIPIT)

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to NORTH POINT DEFENSE INC for work described as: WARFIGHTER INTEGRATION PROGRAM INFORMATION TECHNOLOGY (WIPIT) Key points: 1. Contract focuses on R&D for physical, engineering, and life sciences, excluding nano/biotech. 2. Awarded via full and open competition after source exclusion, indicating a specific procurement process. 3. The contract duration of approximately 4 years suggests a significant, long-term project. 4. North Point Defense Inc. is the sole awardee for this specific delivery order. 5. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 6. The NAICS code 541715 points to a specialized research and development sector.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. The fixed fee component provides some cost certainty, but the cost-reimbursement nature requires robust oversight to ensure efficiency. Comparing it to similar R&D contracts in the defense sector would require access to proprietary cost data. However, the total award value of $18.7 million over roughly four years suggests a substantial investment in wargfighter integration IT.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the initial solicitation was open, certain sources were excluded, potentially due to specific technical requirements or prior performance. The exact number of bidders after exclusions is not specified, but the 'exclusion of sources' implies a narrower competitive pool than a purely full and open competition.

Taxpayer Impact: The exclusion of sources may limit the number of potential offerors, potentially impacting the most competitive pricing for taxpayers. However, if the exclusions were based on essential qualifications, it could ensure a higher quality outcome.

Public Impact

The primary beneficiaries are expected to be U.S. military personnel, enhancing wargfighter capabilities through integrated IT solutions. The services delivered will likely involve research, development, and potentially prototyping of advanced IT systems for military applications. The geographic impact is primarily within the Department of Defense's operational sphere, with potential applications across various military branches. Workforce implications may include specialized IT and R&D professionals employed by North Point Defense Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage cost overruns.
The 'exclusion of sources' in the competition raises questions about the breadth of market engagement.
Lack of specific performance metrics in the provided data makes assessing effectiveness difficult.
The R&D nature of the contract means outcomes are inherently uncertain and may not yield immediate deployable solutions.

Positive Signals

Awarded through a competitive process, even with source exclusions, suggests some level of market vetting.
The contract duration indicates a commitment to developing and integrating critical wargfighter technologies.
Focus on wargfighter integration IT addresses a key modernization need within the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on IT solutions for defense applications. The market for defense IT R&D is substantial, driven by continuous technological advancements and the need for military superiority. Comparable spending benchmarks would typically be found within the broader DoD R&D budget, particularly in areas related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. Therefore, the direct impact on small businesses through set-asides is minimal. However, North Point Defense Inc. may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases, though specific project details and cost breakdowns may be sensitive.

Related Government Programs

Wargfighter Information Technology Modernization Programs
Defense Research and Development Contracts
IT Systems Integration for Military Operations
Advanced Technology Development for Defense

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight.
Exclusion of sources may limit competition.
R&D projects have inherent technical and schedule risks.
Specific performance metrics not detailed in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to NORTH POINT DEFENSE INC. WARFIGHTER INTEGRATION PROGRAM INFORMATION TECHNOLOGY (WIPIT)

Who is the contractor on this award?

The obligated recipient is NORTH POINT DEFENSE 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 $18.7 million.

What is the period of performance?

Start: 2024-03-05. End: 2028-05-04.

What is the specific nature of the 'wargfighter integration' being addressed by this IT contract?

The term 'wargfighter integration' typically refers to the process of connecting and synchronizing various military systems, personnel, and information to enhance combat effectiveness. For this IT contract, it likely involves developing or improving technologies that allow different communication, intelligence, and operational platforms to work seamlessly together. This could include software development, network enhancements, data fusion capabilities, or user interface improvements designed to provide commanders and soldiers with a more unified operational picture and better decision-making tools. The specific focus within the physical, engineering, and life sciences R&D domain suggests the integration may involve advanced sensor data, simulation environments, or human-machine interface research.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type influence cost control and contractor incentives?

A Cost Plus Fixed Fee (CPFF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs plus a fixed amount of profit (the fee). This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee does not increase with costs. However, it also places a significant burden on the government to meticulously audit and approve all claimed costs to prevent overruns. For R&D projects like this, where the scope can be uncertain, CPFF is often used to allow flexibility while providing a defined profit. Effective government oversight is crucial to ensure that costs are reasonable and allocable to the contract objectives.

What are the potential risks associated with 'Research and Development in the Physical, Engineering, and Life Sciences' for defense IT?

Research and Development (R&D) inherently carries risks due to the exploratory nature of the work. For defense IT in the physical, engineering, and life sciences, risks include technical feasibility (will the technology work as envisioned?), schedule delays (R&D can be unpredictable), cost overruns (unforeseen challenges increase expenses), and obsolescence (technology may become outdated before deployment). There's also the risk that the developed technology may not meet the specific operational needs of the warfighter or may be difficult to integrate into existing military systems. Furthermore, intellectual property rights and security concerns related to sensitive defense research add layers of complexity and risk.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process?

This procurement method suggests a nuanced approach to competition. Initially, the solicitation was open to all responsible sources ('Full and Open Competition'). However, specific sources were subsequently excluded. This exclusion could be based on various factors, such as unique technical capabilities required, prior performance issues with certain contractors, national security concerns, or the need for specialized knowledge or facilities possessed by a limited number of entities. While it aims to ensure the best possible solution by potentially narrowing the field to highly qualified or specialized vendors, it also means that the competitive landscape might be less broad than a standard full and open competition, potentially impacting the range of pricing and innovation.

How might this contract contribute to the modernization of U.S. military IT infrastructure?

This contract directly addresses the modernization of U.S. military IT infrastructure by focusing on 'Wargfighter Integration Program Information Technology (WIPIT)'. Modern military operations rely heavily on seamless information flow, advanced data analytics, and robust communication networks. By investing in R&D for these areas, the Department of Defense aims to equip its personnel with superior technological capabilities. This could translate into improved situational awareness, faster decision-making cycles, enhanced command and control, and more effective coordination across different military branches and operational domains. The integration aspect is key, ensuring that disparate systems can communicate and share data effectively, which is a critical component of modernizing military IT.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 184 BROOKS RD, ROME, NY, 13441

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

Financial Breakdown

Contract Ceiling: $24,309,175

Exercised Options: $24,309,175

Current Obligation: $18,693,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA875021D1002

IDV Type: IDC

Timeline