DoD Awards $6.28M for Custom Computer Programming Services to DCS Corporation
Contract Overview
Contract Amount: $6,281,568 ($6.3M)
Contractor: DCS Corporation
Awarding Agency: Department of Defense
Start Date: 2024-11-07
End Date: 2026-11-17
Contract Duration: 740 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CMPC ADDITIONAL SOFTWARE DEVELOPMENT
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.3 million to DCS CORPORATION for work described as: CMPC ADDITIONAL SOFTWARE DEVELOPMENT Key points: 1. Significant contract value for specialized software development. 2. DCS Corporation is a key player in defense IT services. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. IT services sector sees consistent demand for custom solutions.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk for cost overruns. Benchmarking against similar custom programming services is difficult without more granular data on scope and complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF structure may incentivize higher costs compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are utilized for custom software development, with the CPFF structure requiring careful oversight to ensure cost efficiency.
Public Impact
Enhances Department of the Navy's technological capabilities. Supports critical defense operations through custom software. Potential for job creation within the IT sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing risk
- Potential for scope creep
- Limited transparency on specific deliverables
Positive Signals
- Full and open competition
- Experienced contractor
- Addresses specific DoD needs
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is driven by the need for specialized software to support government operations and modernization efforts.
Small Business Impact
The contract was not awarded to a small business. There is an opportunity to ensure future contracts in this domain are structured to encourage small business participation.
Oversight & Accountability
The CPFF structure necessitates robust oversight from the Department of Defense to monitor costs and ensure the contractor delivers on scope and quality. Regular performance reviews are crucial.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee pricing model
- Lack of detailed scope in provided data
- No small business participation noted
- Potential for cost escalation
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.3 million to DCS CORPORATION. CMPC ADDITIONAL SOFTWARE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is DCS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $6.3 million.
What is the period of performance?
Start: 2024-11-07. End: 2026-11-17.
What specific custom computer programming services are included in this contract, and how do they align with the Navy's strategic objectives?
The contract details are limited, but it pertains to custom computer programming services for the Department of the Navy. The specific alignment with strategic objectives would require access to the detailed statement of work. Generally, such services support modernization, operational efficiency, and data management within naval forces.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing model for this contract, and how are they being mitigated?
The primary risk of CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, clear definition of allowable costs, and performance incentives tied to efficiency. The government's oversight team plays a critical role in managing these risks.
How does the awarded amount of $6.28 million compare to industry benchmarks for similar custom computer programming services, considering the contract duration?
Benchmarking this specific contract is challenging without detailed scope. However, $6.28 million over approximately two years for custom programming for a major agency like the DoD suggests a significant undertaking. Industry rates for skilled software developers can vary widely, but this amount indicates a substantial project requiring specialized expertise.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0001919R0040
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6909 METRO PK DR STE 500, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,685,533
Exercised Options: $16,693,057
Current Obligation: $6,281,568
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001920D0023
IDV Type: IDC
Timeline
Start Date: 2024-11-07
Current End Date: 2026-11-17
Potential End Date: 2029-11-17 00:00:00
Last Modified: 2025-12-31
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