DoD Awards $21.6M Software Enhancement Contract to Decibel Research, Inc

Contract Overview

Contract Amount: $21,584,880 ($21.6M)

Contractor: Decibel Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-03-31

Contract Duration: 515 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: DEVELOP/SUSTAIN - SOFTWARE ENHANCEMENT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to DECIBEL RESEARCH, INC. for work described as: DEVELOP/SUSTAIN - SOFTWARE ENHANCEMENT Key points: 1. Contract awarded to Decibel Research, Inc. for software enhancement. 2. The contract is for Custom Computer Programming Services. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract duration is 515 days. 5. The total award amount is $21,584,880.20.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive Fee type, which can lead to cost overruns if not managed carefully. The award amount of $21.6M for a 515-day duration needs further benchmarking against similar custom programming services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources', indicating a competitive process was intended. However, the exclusion of sources warrants scrutiny to ensure maximum price discovery and value for taxpayers.

Taxpayer Impact: The $21.6M award represents a significant taxpayer investment. Ensuring competitive fairness and cost control is crucial for maximizing the value of this spending.

Public Impact

Missile Defense Agency receives critical software enhancements. Potential for improved defense capabilities through software development. Taxpayer funds allocated for advanced programming services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contract type can incentivize higher costs.
  • Exclusion of sources in competition needs justification.
  • Lack of specific performance metrics in provided data.

Positive Signals

  • Full and open competition was utilized.
  • Contract supports critical defense agency needs.
  • Clear award amount and duration provided.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The IT services sector is highly dynamic, with costs varying significantly based on complexity, technology stack, and vendor expertise. Benchmarking against similar custom programming contracts is essential.

Small Business Impact

The provided data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical for the Missile Defense Agency to manage the Cost Plus Incentive Fee structure effectively, ensuring performance targets are met and costs remain controlled. Regular reviews of contractor performance and expenditures are recommended.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Missile Defense Agency Programs

Risk Flags

  • Potential for cost overruns due to CPIF contract type.
  • Lack of transparency regarding source exclusion.
  • Need for detailed performance metrics.
  • Unclear impact on small businesses.

Tags

custom-computer-programming-services, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to DECIBEL RESEARCH, INC.. DEVELOP/SUSTAIN - SOFTWARE ENHANCEMENT

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 $21.6 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-03-31.

What specific software enhancements are being developed, and how do they align with the Missile Defense Agency's strategic objectives?

The provided data categorizes the work as 'DEVELOP/SUSTAIN - SOFTWARE ENHANCEMENT' under NAICS code 541511 (Custom Computer Programming Services). While the general purpose is software enhancement for the Department of Defense's Missile Defense Agency, specific details regarding the nature of the enhancements, the systems they will impact, and their direct contribution to strategic objectives are not included. Further documentation would be required to assess this alignment.

What is the rationale behind excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how was fair market price determined?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was open, specific vendors or types of vendors were intentionally excluded. The rationale for this exclusion is not provided in the data. Understanding this rationale is crucial for assessing whether the exclusion limited competition unfairly or was based on legitimate technical or security requirements. The method used to determine fair market price in such a scenario also requires further investigation.

How will the performance and cost-effectiveness of Decibel Research, Inc. be measured under this Cost Plus Incentive Fee contract?

The Cost Plus Incentive Fee (CPIF) contract structure implies that both the contractor's profit and the final contract price are subject to adjustments based on performance against predetermined targets. Specific performance metrics, incentive fee structures, and cost control mechanisms for this contract are not detailed in the provided data. Effective oversight would require clear definition and monitoring of these elements to ensure the government receives value and the contractor is incentivized appropriately.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: $21,585,683

Exercised Options: $21,585,683

Current Obligation: $21,584,880

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,392,204

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

Start Date: 2024-11-01

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2025-12-17

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