Army INSCOM contract for C2IO Support Services awarded to LYNXNET, LLC for over $24.4 million

Contract Overview

Contract Amount: $24,480,368 ($24.5M)

Contractor: Lynxnet, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-17

End Date: 2019-09-18

Contract Duration: 366 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF SAS-2017-0687 DEPT OF ARMY INSCOM C2IO SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.5 million to LYNXNET, LLC for work described as: IGF::OT::IGF SAS-2017-0687 DEPT OF ARMY INSCOM C2IO SUPPORT SERVICES Key points: 1. Contract value of over $24.4 million for a one-year period. 2. Services provided under Computer Systems Design. 3. Awarded through full and open competition. 4. Contract type is Time and Materials. 5. The contract was awarded to a single vendor, LYNXNET, LLC. 6. The contract duration is 366 days.

Value Assessment

Rating: fair

The contract value of over $24.4 million for a one-year period for IT support services appears to be within a reasonable range for complex systems design and support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for C2IO support would provide a clearer picture of whether the pricing is competitive. The Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The specific reasons for excluding other potential sources would be crucial to understanding the full competitive landscape.

Taxpayer Impact: The full and open competition, even with a limited number of bidders, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. However, the exclusion of certain sources could potentially limit the most cost-effective options available.

Public Impact

The primary beneficiaries are the Department of the Army's INSCOM, which receives critical C2IO support services. These services are essential for the operational effectiveness and intelligence gathering capabilities of the command. The contract supports the technological infrastructure required for national security operations. Workforce implications include the employment of personnel with specialized IT and systems design skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition with only 3 bidders could impact price discovery.
The 'Exclusion of Sources' clause warrants further investigation into its justification and impact on competition.

Positive Signals

Awarded through a full and open competition process, indicating an effort to maximize vendor participation.
The contract supports critical intelligence and command and control functions for the Department of the Army.
The vendor, LYNXNET, LLC, was selected, suggesting they met the technical and performance requirements.

Sector Analysis

The IT services sector, particularly within defense and intelligence, is characterized by high demand for specialized skills in systems design, integration, and support. Contracts like this are crucial for maintaining the technological edge of intelligence agencies. The market size for such specialized IT support within the federal government is substantial, with agencies constantly seeking to upgrade and maintain complex command, control, intelligence, and operations (C2IO) systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The focus on a single large contract awarded to LYNXNET, LLC, suggests that the primary execution will be by the prime contractor, with potential limited opportunities for small businesses unless specifically included in subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office may conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases, but detailed performance metrics and oversight reports are often not publicly available.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems Support
Command and Control Systems Modernization
Information Technology Infrastructure Services
Defense Intelligence Agency (DIA) IT Support Contracts
National Security Agency (NSA) Systems Engineering

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price discovery.
Justification for 'Exclusion of Sources' needs review.
Lack of small business subcontracting details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.5 million to LYNXNET, LLC. IGF::OT::IGF SAS-2017-0687 DEPT OF ARMY INSCOM C2IO SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LYNXNET, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2018-09-17. End: 2019-09-18.

What specific C2IO systems and capabilities does this contract support for INSCOM?

The contract, IGF::OT::IGF SAS-2017-0687, awarded to LYNXNET, LLC, for C2IO Support Services, likely supports the critical Command, Control, Intelligence, and Operations systems utilized by the U.S. Army's Intelligence and Security Command (INSCOM). While the specific systems are not detailed in the provided data, C2IO functions typically encompass the infrastructure and software enabling intelligence gathering, analysis, dissemination, and operational command. This could include secure communication networks, intelligence databases, analytical tools, situational awareness platforms, and mission planning software. The 'Computer Systems Design Services' NAICS code (541512) suggests a focus on designing, developing, integrating, and managing these complex IT systems to meet INSCOM's unique operational requirements and enhance its intelligence capabilities.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT support services?

Time and Materials (T&M) contracts, like the one awarded to LYNXNET, LLC, are often used when the scope of work is not clearly defined or is expected to change significantly. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries a higher risk of cost overruns for the government, as the final price is not predetermined. Cost-Plus contracts are another alternative where the government reimburses costs plus a fee, but T&M is generally considered less predictable than FFP. For IT support services where requirements can evolve rapidly, T&M can be suitable, but it necessitates robust government oversight to manage costs effectively and prevent scope creep.

What are the potential risks associated with 'Full and Open Competition After Exclusion of Sources'?

The 'Full and Open Competition After Exclusion of Sources' designation indicates that while the procurement was intended to be competitive, certain potential sources were deliberately excluded. The primary risk is that this exclusion might have limited the pool of qualified bidders, potentially leading to less competitive pricing or a narrower range of technical solutions than if all eligible sources had been considered. The justification for excluding specific sources is critical; if the exclusion was not well-founded or properly documented, it could raise concerns about fairness and optimal use of taxpayer funds. This clause requires careful scrutiny to ensure it was applied appropriately and did not inadvertently reduce the overall value or effectiveness of the competition.

What is the track record of LYNXNET, LLC in performing similar government contracts?

Information regarding LYNXNET, LLC's specific track record on similar government contracts is not detailed in the provided data snippet. However, the award of this over $24.4 million contract by the Department of the Army's INSCOM suggests that the company possesses the necessary qualifications, experience, and capacity to perform complex IT support services. To fully assess their track record, one would typically review past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and any publicly available information on their previous projects, focusing on their success in delivering similar C2IO support or computer systems design services within the defense or intelligence sectors.

How does the $24.4 million contract value compare to historical spending on C2IO support by INSCOM or similar agencies?

Without specific historical spending data for INSCOM's C2IO support or comparable agencies, it is difficult to benchmark the $24.4 million award directly. However, the U.S. Army's Intelligence and Security Command (INSCOM) operates within a high-demand, high-stakes environment where advanced C2IO capabilities are paramount. Annual spending on such critical IT infrastructure and support services can easily run into tens or hundreds of millions of dollars for major commands, depending on the scope of modernization efforts, system complexity, and threat landscape. This $24.4 million contract, covering a 366-day period, represents a significant investment, but its relative scale would need to be compared against INSCOM's overall IT budget and previous contract values for similar services to determine if it aligns with historical spending patterns or represents a notable increase or decrease.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 6950 HARBOUR VIEW BLVD STE C, SUFFOLK, VA, 23435

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

Financial Breakdown

Contract Ceiling: $69,909,302

Exercised Options: $25,910,249

Current Obligation: $24,480,368

Actual Outlays: $-1,094

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $42,395,270

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00Q17GWD2169

IDV Type: GWAC

Timeline