DoD's $24.6M IT contract to NetImpact Strategies Inc. shows fair value with a 12.8% price advantage over benchmarks

Contract Overview

Contract Amount: $24,593,552 ($24.6M)

Contractor: Netimpact Strategies Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-29

End Date: 2021-09-28

Contract Duration: 1,917 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF PMAT PROGRAM MANAGEMENT ACCOUNTABILITY TOOL

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to NETIMPACT STRATEGIES INC for work described as: IGF::OT::IGF PMAT PROGRAM MANAGEMENT ACCOUNTABILITY TOOL Key points: 1. Contract value of $24.6M over 3 years represents a significant investment in IT services. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract was awarded as a delivery order under a larger IDIQ, indicating a structured procurement process. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contractor, NetImpact Strategies Inc., has a track record with federal agencies. 6. Services provided fall under 'Other Computer Related Services,' a broad category with many potential providers.

Value Assessment

Rating: good

The contract's total value of $24.6M over approximately three years appears reasonable given the scope of IT services. Benchmarking against similar contracts reveals a potential price advantage of 12.8%, suggesting good value for money. The firm-fixed-price structure further supports cost control. While specific performance metrics are not detailed here, the pricing appears competitive within the market for these types of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the designation suggests a healthy competitive environment. This level of competition generally leads to better price discovery and a wider range of technical solutions being considered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best possible value for its investment.

Public Impact

The Department of Defense benefits from enhanced IT capabilities and services. Military personnel and administrative staff likely experience improved IT infrastructure and support. The contract supports IT modernization efforts within the Defense Health Agency. The geographic impact is primarily within the operational areas of the Department of Defense, with potential for remote support. The contract supports jobs within the IT services sector, specifically at NetImpact Strategies Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
Ensuring continued alignment with evolving technological needs throughout the contract duration.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Awarded under full and open competition, suggesting competitive pricing.
Contractor has prior federal contracting experience.
Delivery order structure allows for flexibility within a pre-competed framework.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on 'Other Computer Related Services.' This is a large and dynamic market segment crucial for government operations. The IT services market is characterized by rapid technological advancements and a wide array of specialized providers. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but the overall IT spending by the DoD is substantial, reflecting the critical role of technology in defense.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a result, large businesses like NetImpact Strategies Inc. were eligible to compete and win. There is no direct information on subcontracting plans for small businesses within this specific delivery order. However, the overall IT services market often involves a mix of prime contractors and subcontractors, and opportunities for small businesses may exist within the broader IDIQ contract or through other agency initiatives.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Health Agency. As a delivery order under a larger IDIQ, the underlying contract likely has established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Health Agency IT Support Services
Department of Defense IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
Information Technology Professional Services (ITPS) Contracts

Risk Flags

Potential for cost overruns if scope is not managed.
Contractor performance risk.
Technological obsolescence risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to NETIMPACT STRATEGIES INC. IGF::OT::IGF PMAT PROGRAM MANAGEMENT ACCOUNTABILITY TOOL

Who is the contractor on this award?

The obligated recipient is NETIMPACT STRATEGIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2016-06-29. End: 2021-09-28.

What is the track record of NetImpact Strategies Inc. in performing similar IT services for the federal government?

NetImpact Strategies Inc. has a history of federal contracting, including work with various agencies. While specific details on past performance for 'Other Computer Related Services' are not provided in this data snippet, their presence as a federal contractor suggests experience navigating government procurement and service delivery. Further investigation into their contract history, past performance evaluations (if publicly available), and client feedback would provide a more comprehensive understanding of their capabilities and reliability in delivering IT solutions. Their ability to secure this $24.6M contract indicates a level of trust and demonstrated competence by the awarding agency.

How does the pricing of this contract compare to other similar IT service contracts awarded by the Department of Defense?

The provided data indicates a potential price advantage of 12.8% compared to market benchmarks. This suggests that the pricing for this contract is favorable. To conduct a more thorough comparison, one would need to analyze the specific services rendered (e.g., network management, software development, cybersecurity support) and compare them against similar contracts awarded by the DoD or other federal agencies over a comparable timeframe. Factors such as contract duration, labor categories, and geographic location also influence pricing. A 12.8% advantage implies that NetImpact Strategies Inc. offered competitive rates, potentially due to efficient operations or a strategic bidding approach.

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

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or delays. Dependence on a single contractor for critical IT functions also poses a risk if performance issues arise. Ensuring the contractor stays abreast of rapidly evolving IT technologies is another concern. Management of these risks is likely addressed through clear contract terms, defined performance metrics, regular progress reviews by the Defense Health Agency, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The competitive nature of the award also provides some leverage.

How effective has NetImpact Strategies Inc. been in delivering IT services under this contract, based on available performance data?

The provided data does not include specific performance metrics or evaluations for this contract. Effectiveness would typically be assessed through metrics such as on-time delivery, adherence to technical specifications, user satisfaction, and achievement of program objectives. Without access to performance reports, contract modifications, or user feedback, it is difficult to definitively assess the contractor's effectiveness. However, the contract's duration (nearly 3.5 years) and the absence of immediate red flags in the provided data suggest a baseline level of acceptable performance.

What is the historical spending trend for 'Other Computer Related Services' within the Defense Health Agency?

Analyzing historical spending trends for 'Other Computer Related Services' within the Defense Health Agency (DHA) would require access to historical procurement data beyond this single contract. Generally, IT spending within large federal health organizations like the DHA is substantial and often increases over time due to the need for system modernization, data management, cybersecurity, and support for evolving healthcare technologies. This $24.6M contract represents a portion of that broader spending. Understanding the trend would involve examining annual DHA IT budgets and the specific categories of computer-related services procured over several fiscal years.

What is the significance of this contract being a delivery order under a larger IDIQ contract?

This contract being a delivery order (aw: DELIVERY ORDER) under an unspecified Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies a flexible procurement strategy. IDIQs allow agencies to order goods or services as needed over a set period, with pre-negotiated terms and pricing. A delivery order represents a specific task or order placed against that IDIQ. This approach provides the Defense Health Agency with agility to procure IT services efficiently without conducting a full, separate competition for each individual need. It streamlines the acquisition process while still benefiting from the initial competition of the IDIQ.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001516R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Netimpact Strategies, Inc

Address: 950 HERNDON PKWY STE 350, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $32,963,357

Exercised Options: $24,593,552

Current Obligation: $24,593,552

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,592,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0206Y

IDV Type: FSS

Timeline