DoD Spends $17.3M on Software Development with BGI LLC, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $17,347,692 ($17.3M)
Contractor: BGI LLC
Awarding Agency: Department of Defense
Start Date: 2008-01-31
End Date: 2014-05-30
Contract Duration: 2,311 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE DEVELOPMENT
Place of Performance
Location: AKRON, SUMMIT County, OHIO, 44311, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $17.3 million to BGI LLC for work described as: SOFTWARE DEVELOPMENT Key points: 1. Total contract value of $17.3 million over 6 years. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the firm fixed-price contract type. 4. Sector is IT, specifically software publishing.
Value Assessment
Rating: fair
The contract value of $17.3 million over 2311 days averages to approximately $7,500 per day. Benchmarking against similar software development contracts is difficult without more specific service details, but this daily rate appears within a reasonable range for complex development projects.
Cost Per Unit: $7,507 per day (approximate)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price through a competitive process.
Public Impact
Taxpayers funded a significant software development effort for the Department of Defense. The contract supported a specific software publisher, contributing to the IT sector. The duration of the contract suggests a long-term need for the software services.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of specific performance metrics makes it hard to assess value for money.
- Contract duration is long, potentially leading to scope creep or outdated technology.
Positive Signals
- Full and open competition suggests a competitive award process.
- Firm fixed-price contract type helps control costs.
Sector Analysis
This contract falls within the Information Technology sector, specifically software publishing. The $17.3 million expenditure is a notable investment in software development for defense purposes. Benchmarks for similar large-scale defense software development contracts vary widely based on complexity and duration.
Small Business Impact
The data does not indicate whether 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
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the provided data lacks details on specific oversight activities or performance reviews.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (6 years) increases risk of obsolescence.
- Lack of specific details on software functionality and performance metrics.
- No clear indication of small business participation.
- Potential for scope creep despite fixed-price contract.
Tags
software-publishers, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to BGI LLC. SOFTWARE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is BGI LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2008-01-31. End: 2014-05-30.
What specific software or services were developed under this contract, and how did they contribute to the DoD's mission?
The provided data identifies the NAICS code as 'Software Publishers' and the PSC as blank, offering limited insight into the specific software or services. To assess the true value, understanding the software's function, its impact on operational capabilities, and whether it met or exceeded performance requirements is crucial. Without this, it's difficult to definitively link the $17.3 million expenditure to mission success.
Given the 6-year duration, what measures were in place to mitigate risks associated with technological obsolescence or scope creep?
A 6-year contract duration for software development inherently carries risks of technological obsolescence and scope creep. While a firm fixed-price structure helps control costs, it doesn't inherently address evolving requirements or outdated technology. The contract likely included clauses for change management and potentially phased delivery, but specific details on how these risks were actively managed and mitigated are not provided.
How does the average daily cost of $7,507 compare to industry benchmarks for similar large-scale, firm-fixed-price software development contracts for government clients?
The approximate daily cost of $7,507 falls within a broad range for complex software development. However, without knowing the specifics of the software, the level of security clearance required, the complexity of integration, and the specific labor categories involved, a precise benchmark comparison is challenging. Generally, firm-fixed-price contracts for government software aim for efficiency, but the actual value depends heavily on the delivered product's utility and adherence to specifications.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001907R0060
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6000 WESTERN PL STE 600, FORT WORTH, TX, 76107
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $26,390,791
Exercised Options: $17,390,791
Current Obligation: $17,347,692
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-01-31
Current End Date: 2014-05-30
Potential End Date: 2014-05-30 00:00:00
Last Modified: 2015-11-02
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