DoD's $42.7M Informatics contract awarded to The Informatics Applications Group, Inc. for engineering services

Contract Overview

Contract Amount: $42,671,562 ($42.7M)

Contractor: THE Informatics Applications Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-22

End Date: 2023-02-21

Contract Duration: 1,460 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CLINICAL ENTERPRISE INTELLIGENCE AND HEALTH REGISTRIES SYSTEMS ENGINEERING

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to THE INFORMATICS APPLICATIONS GROUP, INC. for work described as: CLINICAL ENTERPRISE INTELLIGENCE AND HEALTH REGISTRIES SYSTEMS ENGINEERING Key points: 1. Value for money appears fair given the 4-year duration and fixed-fee structure. 2. Competition dynamics were robust, with 9 bidders indicating a healthy market. 3. Risk indicators are moderate, with a cost-plus fixed-fee contract type. 4. Performance context shows a contract spanning 4 years for critical health registry systems. 5. Sector positioning is within Defense IT, supporting naval health informatics.

Value Assessment

Rating: fair

The contract's total value of $42.7 million over four years suggests a moderate annual spend. Benchmarking against similar large-scale IT engineering contracts within the Department of Defense is challenging without more granular data on specific deliverables. However, the cost-plus fixed-fee structure implies that while the contractor is incentivized to control costs, the government bears the risk of cost overruns. The final cost relative to the initial estimate will be a key indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting a significant number of bidders (9). This level of competition is generally positive for price discovery and suggests that multiple capable vendors were interested in the work. The presence of numerous bidders typically drives down prices and encourages innovation as companies vie for the award.

Taxpayer Impact: The robust competition indicates that taxpayer dollars were likely used efficiently, as the government had a strong pool of offers to choose from, fostering a competitive bidding environment.

Public Impact

The Department of the Navy benefits from enhanced clinical enterprise intelligence and health registry systems. Services delivered include critical engineering and systems support for health informatics. The geographic impact is primarily within Department of Defense facilities and operations. Workforce implications include support for IT and engineering professionals within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed-fee contracts can lead to cost overruns if not closely managed.
The duration of the contract (4 years) requires sustained oversight to ensure performance.
Specific performance metrics and their achievement are not detailed here, posing a potential risk.
Reliance on a single contractor for critical systems engineering necessitates strong government oversight.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
The Informatics Applications Group, Inc. is the awardee, suggesting established capabilities.
The contract supports critical health registry systems, aligning with defense health priorities.
A fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the broader IT and Engineering Services sector, specifically supporting defense health informatics. The market for such specialized engineering services within the federal government is substantial, driven by the need for advanced data management and system integration. Comparable spending benchmarks would typically involve other large-scale IT system development and support contracts awarded by agencies like the DoD, HHS, or VA.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The award to a single entity, The Informatics Applications Group, Inc., suggests it is likely a larger firm. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages with small business partners.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Health Agency IT Modernization
Military Health System Electronic Health Records
DoD Enterprise IT Services
Naval Health IT Systems

Risk Flags

Cost-plus contract type requires diligent oversight to manage potential cost overruns.
Contract duration necessitates sustained performance monitoring.
Lack of specific performance metrics in summary data.
Dependence on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to THE INFORMATICS APPLICATIONS GROUP, INC.. CLINICAL ENTERPRISE INTELLIGENCE AND HEALTH REGISTRIES SYSTEMS ENGINEERING

Who is the contractor on this award?

The obligated recipient is THE INFORMATICS APPLICATIONS GROUP, 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 $42.7 million.

What is the period of performance?

Start: 2019-02-22. End: 2023-02-21.

What is the track record of The Informatics Applications Group, Inc. with federal contracts, particularly within the Department of Defense?

The Informatics Applications Group, Inc. has a history of securing federal contracts, primarily within the Department of Defense and other civilian agencies. Their awards often center around IT services, systems engineering, and data management solutions. While specific performance details for past contracts are not provided here, their ability to win and perform on contracts of this magnitude suggests a level of established capability and experience. Further analysis would involve reviewing past performance evaluations and contract completion records to assess their reliability and effectiveness in delivering complex IT solutions for government clients.

How does the per-unit cost or annual value of this contract compare to similar health informatics engineering contracts within the DoD?

Direct per-unit cost comparison is difficult without knowing the specific services rendered per unit (e.g., per hour, per system module). However, the annual value of approximately $10.7 million ($42.7M / 4 years) for a comprehensive health registry and intelligence systems engineering contract appears within a reasonable range for large-scale federal IT projects. Similar contracts within the DoD for enterprise-level IT support and system development can range from several million to tens of millions of dollars annually, depending on scope, complexity, and duration. The cost-plus fixed-fee structure introduces variability, but the initial award value provides a benchmark.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex IT systems engineering?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates. While the fixed fee provides the contractor with a profit incentive, the government bears the burden of actual allowable costs. This structure can reduce the contractor's incentive to control costs rigorously, potentially leading to cost overruns. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

How effective are the competition dynamics (9 bidders) in ensuring optimal pricing and innovation for this type of specialized engineering service?

Having nine bidders for this contract is a strong indicator of healthy competition, which generally leads to more optimal pricing and encourages innovation. A larger pool of bidders means the government has a wider selection of technical solutions and pricing proposals to evaluate. This competitive pressure incentivizes each bidder to offer their best value proposition, potentially driving down costs and pushing for more advanced or efficient solutions. The government's ability to select the most advantageous offer is significantly enhanced by such robust competition, benefiting taxpayers through better value and potentially superior system performance.

What is the historical spending trend for clinical enterprise intelligence and health registries engineering services within the Department of the Navy?

Analyzing historical spending trends for this specific niche within the Department of the Navy requires access to detailed historical contract data. However, it is reasonable to infer that spending in this area has likely increased over the past decade, driven by the broader push for digital transformation in healthcare and military readiness. Investments in health informatics, data analytics, and integrated registry systems are critical for improving patient care, operational efficiency, and research capabilities within the Navy. This $42.7M contract represents a significant, multi-year investment that aligns with these strategic priorities.

What are the potential long-term implications of this contract on the Navy's ability to manage and utilize health data?

This contract is crucial for enhancing the Navy's ability to manage and utilize health data effectively. By investing in clinical enterprise intelligence and health registries systems engineering, the Navy aims to create more integrated, accessible, and analyzable health information. This can lead to improved clinical decision-making, better tracking of population health trends, enhanced readiness reporting, and more efficient healthcare delivery. The successful execution of this contract should provide a robust foundation for leveraging data analytics and artificial intelligence in the future, ultimately supporting better health outcomes for service members and their families.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523619R3040

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Informatics Applications Group Inc.

Address: 1760 RESTON PKWY STE 510, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Other Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $43,889,637

Exercised Options: $43,792,445

Current Obligation: $42,671,562

Actual Outlays: $729,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017810D6093

IDV Type: IDC

Timeline