DoD's $16.18M Computer Systems Design Services Contract Awarded to IPSECURE INC

Contract Overview

Contract Amount: $16,181,673 ($16.2M)

Contractor: Ipsecure Inc

Awarding Agency: Department of Defense

Start Date: 2020-05-19

End Date: 2023-11-18

Contract Duration: 1,278 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFCOTERS RANGE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to IPSECURE INC for work described as: AFCOTERS RANGE Key points: 1. Value for money appears fair given the contract duration and fixed-price nature. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Risk indicators are moderate, with a long performance period and fixed-price terms. 4. Performance context shows a multi-year delivery order for essential IT services. 5. Sector positioning is within IT services, a critical area for defense operations.

Value Assessment

Rating: fair

The contract's total value of $16.18 million over 1278 days suggests a moderate annual spend. Benchmarking against similar IT services contracts is challenging without more specific service details. However, the firm-fixed-price structure provides cost certainty for the government, which is a positive value indicator. The absence of detailed performance metrics makes a precise value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed, but this approach typically results in fewer bidders than full and open competition. The limited number of bidders could lead to less aggressive pricing.

Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers compared to a scenario with broader participation from qualified vendors.

Public Impact

The Department of Defense benefits from enhanced computer systems design services. Essential IT infrastructure support is delivered to the Air Force. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include skilled IT professionals employed by IPSECURE INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment.
Lack of detailed performance metrics hinders objective value assessment.
Long contract duration increases exposure to evolving technological needs.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract awarded to a single entity, potentially simplifying management.
Contract duration aligns with long-term IT infrastructure needs.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is vital for government operations, providing the backbone for data management, network infrastructure, and software development. The market for these services is large and competitive, with significant government spending allocated annually. This contract represents a portion of the broader IT spending by the Department of Defense.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the contract was likely awarded to a larger entity, and its direct impact on the small business ecosystem may be limited unless IPSECURE INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting
IT Services for Federal Agencies
Computer Systems Design and Related Services
Air Force IT Modernization Programs

Risk Flags

Limited competition may lead to higher prices.
Lack of detailed performance metrics hinders value assessment.
Long contract duration increases risk of technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to IPSECURE INC. AFCOTERS RANGE

Who is the contractor on this award?

The obligated recipient is IPSECURE 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: 2020-05-19. End: 2023-11-18.

What is the track record of IPSECURE INC. with federal contracts, particularly within the Department of Defense?

IPSECURE INC. has been awarded federal contracts, including this significant $16.18 million contract with the Department of Defense for Computer Systems Design Services. Further analysis of their contract history would reveal the types of services they have provided, their performance ratings on past contracts, and their overall experience with government clients. A review of contract databases like FPDS or SAM.gov would be necessary to ascertain the frequency and value of their awards, as well as any reported performance issues or commendations. Understanding their past performance is crucial for assessing their reliability and capability in fulfilling current and future government requirements.

How does the pricing of this contract compare to similar IT services contracts awarded by the DoD?

Benchmarking the pricing of this $16.18 million contract against similar IT services contracts requires detailed comparison of the scope of work, service levels, duration, and specific technologies involved. Given that this is a firm-fixed-price contract for computer systems design services, the price is set upfront. To assess value, one would ideally compare the per-unit costs or hourly rates (if applicable and derivable) to market rates or other government contracts for comparable services. Without granular data on the specific services rendered and the labor categories involved, a precise comparison is difficult. However, the limited competition aspect might suggest that the pricing could be less competitive than if it had undergone full and open competition.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by fixed-price), contractor performance issues, and technological obsolescence given the long duration (1278 days). The limited competition also presents a risk of suboptimal pricing. Management of these risks is likely through contract oversight by the Air Force, defined performance standards, and the firm-fixed-price structure which places cost risk on the contractor. However, the specific risk mitigation strategies employed by the agency are not detailed in the provided data.

How effective has this contract been in delivering the intended computer systems design services for the Air Force?

The effectiveness of this contract in delivering computer systems design services cannot be fully assessed without access to performance reports, user feedback, and objective metrics related to the services provided. The contract duration of over three years suggests a substantial project or ongoing support. While the award itself indicates a need and a chosen solution, the actual success hinges on the contractor's ability to meet technical requirements, adhere to schedules, and provide reliable systems. Publicly available data typically focuses on the award phase, not the ongoing performance outcomes, making effectiveness an area requiring deeper investigation.

What are the historical spending patterns for computer systems design services within the Department of Defense?

Historical spending on computer systems design services within the Department of Defense is substantial, reflecting the critical role of IT in modern military operations. The DoD consistently ranks as one of the largest federal spenders in this category. Annual expenditures can run into billions of dollars, covering a wide range of services from system design and integration to cybersecurity and software development. This specific $16.18 million contract represents a small fraction of the overall DoD IT budget. Trends in this spending are influenced by technological advancements, evolving security threats, and strategic modernization initiatives within the armed forces.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signifies a procurement process that initially aimed for broad competition but subsequently excluded certain potential bidders. This could occur for various reasons, such as specific technical requirements that only a subset of vendors can meet, national security concerns, or prior performance issues with certain contractors. While it is a form of competition, the exclusion of sources inherently limits the pool of offerors. This can impact the level of price competition achieved and potentially lead to higher costs for the government compared to a truly unrestricted full and open competition where all responsible sources are allowed to compete.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12001 NETWORK BLVD STE 200, SAN ANTONIO, TX, 78249

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,056,153

Exercised Options: $17,056,153

Current Obligation: $16,181,673

Actual Outlays: $4,357,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA255017D8000

IDV Type: IDC

Timeline