DoD Awards $37.4M Cybersecurity Contract to The Informatics Applications Group, Inc

Contract Overview

Contract Amount: $37,431,369 ($37.4M)

Contractor: THE Informatics Applications Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2025-03-31

Contract Duration: 2,009 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY AND INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to THE INFORMATICS APPLICATIONS GROUP, INC. for work described as: CYBERSECURITY AND INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract value of $37.4M for cybersecurity and IT support. 2. Awarded to The Informatics Applications Group, Inc. under full and open competition. 3. Contract duration extends through March 2025. 4. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring to ensure cost efficiency. Benchmarking against similar IT support contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential cybersecurity and IT support services.

Public Impact

Ensures critical cybersecurity and IT infrastructure for the Department of Defense. Supports national security by maintaining advanced technological capabilities. Provides essential services to the Defense Contract Management Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration (until 2025) necessitates ongoing performance monitoring.

Positive Signals

Awarded via full and open competition, indicating potential for good value.
Supports critical defense IT and cybersecurity functions.

Sector Analysis

This contract falls within the IT and Engineering Services sector, which is a significant area of government spending. Benchmarks for similar cybersecurity and IT support services vary widely based on scope and complexity.

Small Business Impact

The contract was awarded to The Informatics Applications Group, Inc. and does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation as subcontractors.

Oversight & Accountability

The Defense Contract Management Agency is responsible for overseeing this contract. Regular performance reviews and financial audits are crucial for ensuring accountability and value for taxpayer money.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost-plus-fixed-fee structure may lead to cost overruns.
Long-term contract requires sustained oversight.
Potential for contractor to lack incentive for cost control.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to THE INFORMATICS APPLICATIONS GROUP, INC.. CYBERSECURITY AND INFORMATION TECHNOLOGY SUPPORT SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-03-31.

What is the typical cost range for similar cybersecurity and IT support services in the federal sector?

The cost range for similar federal cybersecurity and IT support services can vary significantly, often from tens of thousands to millions of dollars annually, depending on the complexity of the systems, the level of security required, the duration of the contract, and the specific services provided. Factors like specialized expertise, 24/7 support, and compliance with stringent government regulations also influence pricing.

What are the primary risks associated with a cost-plus-fixed-fee contract for IT services?

The primary risks with Cost-Plus-Fixed-Fee (CPFF) contracts include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen issues arise, leading to higher final prices for the government. There's also a risk of reduced incentive for the contractor to control costs aggressively, as their fee is fixed regardless of the final cost. Effective government oversight is critical to mitigate these risks.

How effective is full and open competition in ensuring competitive pricing for IT support services?

Full and open competition is generally highly effective in ensuring competitive pricing for IT support services. By allowing all responsible sources to submit offers, it fosters a market-driven environment where contractors are incentivized to provide the best value at the lowest possible price to win the contract. This broad competition increases the likelihood of obtaining favorable terms and pricing for the government.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523619R3017

Offers Received: 20

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: $42,685,164

Exercised Options: $41,995,428

Current Obligation: $37,431,369

Actual Outlays: $2,402,691

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