DoD's Missile Defense Agency awards $27.8M software development contract to Decibel Research, Inc

Contract Overview

Contract Amount: $27,803,213 ($27.8M)

Contractor: Decibel Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-14

End Date: 2025-01-31

Contract Duration: 1,113 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: CPIF - DEVELOP/SUSTAIN-SOFTWARE ENHANCE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to DECIBEL RESEARCH, INC. for work described as: CPIF - DEVELOP/SUSTAIN-SOFTWARE ENHANCE Key points: 1. Contract value of $27.8M for software enhancement and development. 2. Awarded to Decibel Research, Inc. under a full and open competition. 3. Contract type is Cost Plus Incentive Fee (CPIF), indicating shared risk. 4. Performance period spans from January 2022 to January 2025. 5. The North American Industry Classification System (NAICS) code is 541511 for Custom Computer Programming Services. 6. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 7. The base contract value is $24.98M, with potential for growth through incentive fees.

Value Assessment

Rating: good

The contract's value of $27.8M for custom computer programming services appears reasonable within the context of defense sector software development. Benchmarking against similar contracts for software enhancement and sustainment is crucial for a definitive value assessment. The CPIF contract type suggests a focus on performance incentives, which can drive efficiency but also requires careful monitoring of cost overruns. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.

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 a robust competitive process. While the specific details of 'exclusion of sources' are not provided, the 'full and open' designation suggests that multiple bidders were likely considered. A competitive award generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition suggests that taxpayers benefited from a process designed to solicit the best offers, potentially leading to cost savings and higher quality services compared to a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving enhanced software capabilities. The services delivered include software development and sustainment, crucial for maintaining and improving missile defense systems. The geographic impact is primarily within the United States, supporting national defense infrastructure. Workforce implications include employment for software developers, engineers, and related IT professionals at Decibel Research, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPIF contracts if not closely managed.
Dependence on a single contractor for critical software sustainment and enhancement.
The 'exclusion of sources' clause warrants further investigation to ensure no viable competitors were unduly excluded.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
CPIF contract structure incentivizes contractor performance and efficiency.
Long-term sustainment and enhancement of critical defense systems.

Sector Analysis

The defense sector, particularly within IT and software development, is characterized by high demand for specialized services. Contracts like this are essential for maintaining and advancing complex defense systems. The Missile Defense Agency operates in a niche but critical area, requiring sophisticated software solutions. Spending in this sub-sector often involves long development cycles and significant investment due to the advanced nature of the technology. Comparable spending benchmarks would typically be found within other large-scale defense IT and systems integration contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, Decibel Research, Inc. may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Missile Defense Agency would have its own internal oversight mechanisms. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Missile Defense Systems
Department of Defense Software Development
Custom Computer Programming Services
Cost Plus Incentive Fee Contracts
Defense Information Technology

Risk Flags

Potential for cost overruns in CPIF contracts.
Dependency on contractor performance for critical defense systems.
Complexity of custom software development and sustainment.
Ensuring adequate competition despite 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to DECIBEL RESEARCH, INC.. CPIF - DEVELOP/SUSTAIN-SOFTWARE ENHANCE

Who is the contractor on this award?

The obligated recipient is DECIBEL RESEARCH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2022-01-14. End: 2025-01-31.

What is the track record of Decibel Research, Inc. in performing similar defense contracts?

A thorough review of Decibel Research, Inc.'s past performance is essential. This would involve examining their history with the Department of Defense and other federal agencies, focusing on contracts of similar scope, complexity, and value. Key areas to investigate include on-time delivery, adherence to budget, quality of work, and any past performance issues or awards. Analyzing their success in previous CPIF contracts would be particularly relevant, as it indicates their ability to manage performance-based incentives. Information from contract databases and agency performance reports would be critical in assessing their reliability and capability for this specific software development and sustainment task.

How does the pricing structure of this CPIF contract compare to industry standards for custom computer programming services?

The Cost Plus Incentive Fee (CPIF) structure aims to align contractor and government interests by providing incentives for achieving specific performance targets while sharing cost savings or overruns. To assess the pricing, one would need to compare the target cost, fee structure, and incentive provisions against benchmarks for similar custom computer programming services within the defense sector. This involves analyzing the profit margins, the basis for incentive calculations (e.g., schedule, technical performance), and the government's share in cost variances. Without detailed pricing breakdowns, a direct comparison is difficult, but the competitive award suggests the initial pricing was deemed acceptable. Further analysis would require access to the contract's detailed cost and fee elements.

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

Key risks include potential cost overruns, given the CPIF structure, which requires careful monitoring of expenditures against target costs. Schedule delays in software development can also pose a significant risk, impacting the operational readiness of missile defense systems. Technical risks, such as unforeseen complexities in software enhancement or integration issues, are inherent in custom development. Mitigation strategies likely involve robust project management, regular performance reviews, clear definition of technical requirements and milestones, and active engagement between the government and the contractor to address issues proactively. The 'exclusion of sources' aspect also presents a potential risk if it limits the pool of qualified bidders.

How effective is the Missile Defense Agency in managing its software development and sustainment contracts?

Assessing the overall effectiveness of the Missile Defense Agency (MDA) in managing software contracts requires analyzing their historical performance data, including contract completion rates, budget adherence, and the success of deployed systems. The MDA operates in a highly complex and critical domain, often pushing technological boundaries. Their management effectiveness can be gauged by the reliability and performance of the missile defense systems they oversee, which are heavily reliant on sophisticated software. Examining the MDA's procurement processes, oversight mechanisms, and their ability to adapt to evolving threats and technologies provides insight into their management capabilities for contracts like this one.

What are the historical spending patterns for custom computer programming services within the Department of Defense?

Historical spending on custom computer programming services within the Department of Defense (DoD) has been substantial and consistently high, reflecting the critical role of IT and software in modern military operations. The DoD is one of the largest federal buyers of IT services, with significant portions allocated to software development, sustainment, and modernization across various branches and agencies. Spending trends often show an increasing reliance on specialized software for command and control, intelligence, surveillance, reconnaissance, and logistics. Analyzing aggregate spending data for NAICS code 541511 within the DoD can reveal overall market size, key contractors, and the evolution of technology requirements over time.

Industry Classification

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

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014718R0022

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 325 BOB HEATH DR, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $27,833,331

Exercised Options: $27,833,331

Current Obligation: $27,803,213

Actual Outlays: $16,982,742

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $8,707,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014719D0003

IDV Type: IDC

Timeline