DoD Awards $10M Custom Programming Contract to Precise Systems, Inc. for Navy Support

Contract Overview

Contract Amount: $10,034,232 ($10.0M)

Contractor: Precise Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-10

End Date: 2027-01-09

Contract Duration: 1,095 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE PERIOD SUPPORT SERVICES - LABOR

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to PRECISE SYSTEMS, INC. for work described as: BASE PERIOD SUPPORT SERVICES - LABOR Key points: 1. Contract awarded for essential labor support services. 2. Precise Systems, Inc. is the prime contractor. 3. Competition method is 'Full and Open Competition After Exclusion of Sources'. 4. The contract falls under Custom Computer Programming Services. 5. The total value is over $10 million.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some predictability. Benchmarking against similar custom programming services is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. The exclusion of sources clause suggests specific capabilities were sought, but the overall competition framework is sound.

Taxpayer Impact: The $10 million award represents a significant investment, but the competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Ensures continued operational support for Department of the Navy systems. Supports critical custom computer programming services. Provides employment opportunities within the IT sector. Contributes to the readiness and effectiveness of naval operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Fixed Fee contract type.
Need for clear performance metrics to ensure value for money.

Positive Signals

Full and open competition ensures a competitive bidding process.
Contract supports critical IT services for national defense.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a vital component of the IT industry supporting government operations. Spending in this area is consistently high due to the need for specialized software development and maintenance.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses, suggesting that larger, established firms were likely the primary bidders. Further analysis would be needed to determine if small business participation is included as a subcontracting goal.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed service scope makes it difficult to assess true value.
Potential for scope creep if not managed tightly.
Reliance on a single contractor for critical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to PRECISE SYSTEMS, INC.. BASE PERIOD SUPPORT SERVICES - LABOR

Who is the contractor on this award?

The obligated recipient is PRECISE SYSTEMS, 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 $10.0 million.

What is the period of performance?

Start: 2024-01-10. End: 2027-01-09.

What specific programming services are included in this contract, and how do they align with current Navy IT modernization goals?

The contract specifies 'Custom Computer Programming Services' and 'Labor' for base period support. While the exact services are not detailed, they likely encompass software development, maintenance, and integration to support existing or evolving Navy IT systems. Alignment with modernization goals would depend on the specific tasks outlined in the delivery order, which are not provided here.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective service delivery?

Key performance indicators are crucial for Cost Plus Fixed Fee contracts to ensure value and effectiveness. While not detailed in the provided data, typical KPIs for such services might include on-time delivery of software modules, bug resolution rates, system uptime, and adherence to coding standards. The Navy's contracting officer would be responsible for defining and monitoring these metrics.

How does the fixed fee component of this contract ensure cost control and prevent contractor profit inflation?

In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee represents the contractor's profit, which is negotiated upfront and remains constant regardless of the actual costs incurred. This incentivizes the contractor to manage costs efficiently, as any savings below the estimated cost do not reduce their fee. However, robust oversight is still needed to ensure the 'cost' portion is reasonable and necessary.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0183

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 22290 EXPLORATION DR, STE 400, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,914,283

Exercised Options: $14,825,602

Current Obligation: $10,034,232

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,455,067

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0025

IDV Type: IDC

Timeline