DoD's $14.7M Engineering Services Contract with Innovative Productivity, Inc. Lacks Competition
Contract Overview
Contract Amount: $14,781,227 ($14.8M)
Contractor: Innovative Productivity, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-26
End Date: 2012-09-26
Contract Duration: 1,827 days
Daily Burn Rate: $8.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE SERVICES
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40208
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $14.8 million to INNOVATIVE PRODUCTIVITY, INC. for work described as: THE CONTRACTOR SHALL PROVIDE SERVICES Key points: 1. Contract awarded to Innovative Productivity, Inc. for $14.7M. 2. Services fall under Engineering Services (NAICS 541330). 3. Contract was not competed, raising concerns about price discovery. 4. Long duration of 1827 days suggests significant project scope.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value for money. Benchmarking against similar engineering services contracts is challenging without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher cost to taxpayers than a competed contract would have.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation without market-driven incentives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Awarded to a single contractor, potentially indicating specialized expertise.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending in this sector can vary widely based on agency needs and project complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if this contract offered opportunities for them. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification and approval process. Oversight should ensure that such awards are truly necessary and that fair pricing was pursued.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Sole-source award justification unclear
- Potential for inflated costs due to CPFF and no competition
- Long contract duration without competitive re-evaluation
Tags
engineering-services, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to INNOVATIVE PRODUCTIVITY, INC.. THE CONTRACTOR SHALL PROVIDE SERVICES
Who is the contractor on this award?
The obligated recipient is INNOVATIVE PRODUCTIVITY, 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 $14.8 million.
What is the period of performance?
Start: 2007-09-26. End: 2012-09-26.
What was the justification for awarding this engineering services contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required services. This could be due to unique capabilities, proprietary technology, or urgent needs. Without specific documentation, it's impossible to confirm the exact reason, but it implies a lack of readily available alternatives in the market at the time of award.
How does the cost-plus-fixed-fee structure impact the risk for the government in a non-competed contract?
In a cost-plus-fixed-fee (CPFF) contract, the government pays the contractor's actual costs plus a fixed fee. When there's no competition, the government bears a higher risk because the contractor has less incentive to control costs, knowing that all allowable expenses will be reimbursed. The fixed fee, while intended to provide profit, doesn't directly incentivize cost reduction, increasing the potential for cost overruns.
What is the potential long-term effectiveness of engineering services provided under a non-competed, long-duration contract?
The long-term effectiveness can be variable. While a long duration might suggest continuity and deep understanding of the project, the lack of competition raises concerns about sustained quality and innovation. Without periodic re-evaluation through competition, the contractor might become complacent, potentially impacting the ultimate effectiveness and value delivered to the government over the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016707R0002
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 401 INDUSTRY RD STE 500, LOUISVILLE, KY, 03
Business Categories: Category Business, Nonprofit Organization, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,668,125
Exercised Options: $28,668,125
Current Obligation: $14,781,227
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-26
Current End Date: 2012-09-26
Potential End Date: 2012-09-26 00:00:00
Last Modified: 2011-08-18
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