DoD's $19.2M Problem-Knowledge Coupler Contract for ADP Software Raises Concerns Over Competition and Value

Contract Overview

Contract Amount: $27,880,000 ($27.9M)

Contractor: Problem-Knowledge Coupler Corporation

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2007-09-30

Contract Duration: 729 days

Daily Burn Rate: $38.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200602!115734!1700!N65236!SPACE AND NAVAL WARFARE SYSTEMS !N6523606C6234 !A!N! !N! ! !20051001!20060930!192264927!192264927!192264927!N!PKC CORPORATION !1 MILL ST !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000006850000!N!N!000027850000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !511210!E! !3! ! ! ! ! !99990909!B!A!Y!A! !D!U!J!1!001!N!1G!Z!N!Z! ! !Y!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N65236!0001! !

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to PROBLEM-KNOWLEDGE COUPLER CORPORATION for work described as: 200602!115734!1700!N65236!SPACE AND NAVAL WARFARE SYSTEMS !N6523606C6234 !A!N! !N! ! !20051001!20060930!192264927!192264927!192264927!N!PKC CORPORATION !1 MILL ST !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHIT… Key points: 1. The contract awarded to PROBLEM-KNOWLEDGE COUPLER CORPORATION for ADP Software lacks clear competition, raising questions about price discovery. 2. With a total value of $19.2 million over two years, the per-unit cost is difficult to assess without further data. 3. The 'NOT COMPETED' award type suggests potential risks related to market research and obtaining the best value. 4. The IT sector, particularly software, often sees significant price variations, making benchmarks crucial for evaluation.

Value Assessment

Rating: questionable

The total contract value is $19.2 million. Without specific unit details or comparison points for similar ADP software contracts, it's challenging to definitively assess if this pricing is competitive or represents good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source or limited competition scenario. This method of procurement can limit price discovery and may not always result in the most cost-effective solution for the government.

Taxpayer Impact: The lack of robust competition could lead to taxpayers potentially overpaying for the required ADP software and related services.

Public Impact

Taxpayers may not be receiving the best possible price due to the non-competitive award. The effectiveness of the ADP software and its impact on naval warfare systems operations is not detailed. Future procurements of similar software could be influenced by this non-competitive award, potentially limiting broader market engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Unclear value for money
Potential for overpayment

Positive Signals

Contract awarded to a specific company, potentially fulfilling a niche requirement.

Sector Analysis

This contract falls within the Information Technology sector, specifically for ADP software. Spending in this area is substantial across government agencies, with significant variation in pricing based on software type, licensing, and support.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure that adequate justification existed for bypassing competitive procedures and that the government secured fair and reasonable pricing.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Non-competitive award
Lack of transparency in pricing
Potential for suboptimal value
Limited market research evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to PROBLEM-KNOWLEDGE COUPLER CORPORATION. 200602!115734!1700!N65236!SPACE AND NAVAL WARFARE SYSTEMS !N6523606C6234 !A!N! !N! ! !20051001!20060930!192264927!192264927!192264927!N!PKC CORPORATION !1 MILL ST !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000006850000!N!N!000027850000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !511210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is PROBLEM-KNOWLEDGE COUPLER 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 $27.9 million.

What is the period of performance?

Start: 2005-10-01. End: 2007-09-30.

What specific justification was provided for not competing this contract, and how does it align with federal procurement regulations for sole-source awards?

Federal regulations allow for sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the agency's needs. The justification would need to detail why other potential vendors could not provide the required ADP software or services, and why competition was not feasible or would not be in the government's best interest.

How does the $19.2 million contract value compare to industry benchmarks for similar ADP software solutions, considering the contract duration and scope?

Without detailed specifications of the ADP software, its features, licensing model, and support requirements, a direct benchmark comparison is difficult. However, for a two-year contract of this magnitude, agencies typically conduct market research to ensure pricing is fair and reasonable against comparable commercial offerings or previous government contracts.

What performance metrics or deliverables are associated with this contract to ensure the effectiveness and value of the ADP software procured?

The provided data does not specify performance metrics or deliverables. Effective oversight would require clear performance standards, acceptance criteria, and regular reviews to ensure the software meets the Navy's operational needs and provides the intended value, especially given the non-competitive nature of the award.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 MILL ST, BURLINGTON, VT, 00

Business Categories: Category Business, Small Business

Timeline