DoD Awards $16.8M for Custom Computer Programming Services to Linchpin Labs Inc
Contract Overview
Contract Amount: $16,882,343 ($16.9M)
Contractor: Linchpin Labs Inc
Awarding Agency: Department of Defense
Start Date: 2024-02-28
End Date: 2026-02-28
Contract Duration: 731 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INNOVATIVE SOFTWARE DEVELOPMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
Department of Defense obligated $16.9 million to LINCHPIN LABS INC for work described as: INNOVATIVE SOFTWARE DEVELOPMENT Key points: 1. Contract awarded to Linchpin Labs Inc. for custom computer programming. 2. The contract is valued at $16.8 million over 731 days. 3. Awarded by the Department of the Navy, part of the Department of Defense. 4. Service is categorized under Custom Computer Programming Services (NAICS 541511).
Value Assessment
Rating: questionable
The contract value of $16.8 million for custom computer programming services over two years appears high without a competitive benchmark. Further analysis is needed to compare this pricing against similar government contracts for comparable services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely a limited competition or sole-source award. This lack of broad competition may have limited price discovery and potentially led to a higher cost.
Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible price for these custom programming services.
Public Impact
Citizens may question the justification for a non-competed contract of this value. The Department of Defense's reliance on specific vendors for critical software development can raise concerns about long-term costs and innovation. Transparency in the procurement process is crucial for public trust, especially when competition is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear justification for sole-source/limited award
- Potential for overpayment due to lack of price discovery
Positive Signals
- Definitive contract awarded
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
The IT services sector, particularly custom software development, is a significant area of government spending. Benchmarks for custom programming services vary widely based on complexity, but a $16.8M contract over two years warrants scrutiny for competitive pricing.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if opportunities were missed.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight is needed to ensure the justification for limited competition is sound and that the services delivered meet the stated requirements and value.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in procurement
- No small business participation identified
Tags
custom-computer-programming-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to LINCHPIN LABS INC. INNOVATIVE SOFTWARE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is LINCHPIN LABS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2024-02-28. End: 2026-02-28.
What specific factors justified the limited competition for this $16.8 million custom software development contract?
The justification for limited competition typically involves factors such as unique capabilities of the vendor, urgent need, or specific technical requirements that only one vendor can meet. Without access to the contract's Justification and Approval (J&A) document, it is difficult to ascertain the precise reasons. However, the absence of competition under SAP suggests a deliberate choice to limit the vendor pool, potentially impacting cost-effectiveness.
What are the potential risks associated with awarding a large custom software contract without full and open competition?
The primary risks include paying a premium price due to the lack of competitive pressure, receiving suboptimal solutions if the vendor is not incentivized to innovate, and potential vendor lock-in. Furthermore, limited competition can hinder the government's ability to leverage emerging technologies or alternative solutions that might be more cost-effective or efficient.
How can the effectiveness of this custom computer programming service be measured and ensured over the contract's duration?
Effectiveness can be measured through clearly defined performance metrics, milestones, and deliverables outlined in the contract. Regular progress reviews, user acceptance testing, and post-implementation evaluations are crucial. The Department of the Navy should establish a robust contract management plan to monitor performance, ensure adherence to specifications, and verify that the software meets the intended operational needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1201 PENNSYLVANIA AVE NW STE 1320, WASHINGTON, DC, 20004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,882,343
Exercised Options: $16,882,343
Current Obligation: $16,882,343
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-28
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-04-08
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