DoD's $18M IT Infrastructure Task Order to ISHPI Information Technologies Inc. awarded under full and open competition

Contract Overview

Contract Amount: $18,079,819 ($18.1M)

Contractor: Ishpi Information Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-20

End Date: 2026-05-19

Contract Duration: 1,460 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT IN SUPPLYING INFRASTRUCTURE OF COLLABORATIVE ON-PREMISE AND CLOUD ARCHITECTURES.

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to ISHPI INFORMATION TECHNOLOGIES INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT IN SUPPLYING INFRASTRUCTURE OF COLLABORATIVE ON-PREMISE AND CLOUD ARCHITECTURES. Key points: 1. The contract focuses on providing support for collaborative on-premise and cloud architectures, indicating a need for robust IT infrastructure management. 2. Awarded under full and open competition, suggesting a competitive bidding process that could lead to better pricing. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility in scope. 4. The duration of 1460 days (4 years) points to a long-term need for these IT services. 5. The task order is a Delivery Order under a larger contract, implying it's part of a broader IT services framework. 6. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) is used, which may encompass a wide range of technical support activities.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more detailed cost breakdowns and comparisons to similar IT infrastructure support contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses plus a negotiated fixed fee, making direct price comparisons difficult. However, the total award amount of approximately $18 million over four years suggests a significant investment in IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 9 bidders suggests a healthy level of competition for this requirement. A competitive process generally allows the government to solicit proposals from multiple vendors, fostering price discovery and potentially leading to more favorable terms and pricing for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to obtain the best value for the IT infrastructure support services required by the Department of the Navy.

Public Impact

The Department of the Navy benefits from enhanced and supported collaborative on-premise and cloud IT architectures. This contract supports the delivery of critical IT infrastructure services essential for military operations and administrative functions. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially including various bases and facilities. Workforce implications may include the need for specialized IT personnel, both within ISHPI Information Technologies Inc. and potentially impacting government IT staff through collaboration and knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for actual costs incurred.
The broad NAICS code 541330 might obscure the specific nature of IT services provided, making detailed performance evaluation more complex.
The reliance on a single task order for a significant duration could create vendor lock-in if not carefully monitored for performance and value.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The task order has a defined duration, allowing for periodic reassessment of needs and contractor performance.
The contract aims to support collaborative on-premise and cloud architectures, aligning with modern IT infrastructure strategies.

Sector Analysis

The IT services sector is a critical component of modern government operations, encompassing a vast array of support functions from infrastructure management to cybersecurity. Spending in this sector is consistently high across all federal agencies. This contract fits within the broader IT services market, specifically focusing on infrastructure support, which is a foundational element for enabling other digital services. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure support contracts awarded by defense agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss is false, sb is false). Therefore, the primary contractor, ISHPI Information Technologies Inc., will likely be responsible for managing subcontracting opportunities. Analysis of subcontracting plans and actual performance would be necessary to determine the extent to which small businesses benefit from this award.

Oversight & Accountability

Oversight for this task order would fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance metrics outlined in the contract and the CPFF structure, which requires detailed cost reporting. Transparency is facilitated by the contract award being publicly available, but detailed performance data and cost breakdowns may be less accessible.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Cloud Computing Strategy
Collaborative IT Infrastructure Services
IT Engineering Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Vendor Lock-in Risk
Performance Measurement Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to ISHPI INFORMATION TECHNOLOGIES INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT IN SUPPLYING INFRASTRUCTURE OF COLLABORATIVE ON-PREMISE AND CLOUD ARCHITECTURES.

Who is the contractor on this award?

The obligated recipient is ISHPI INFORMATION TECHNOLOGIES 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 $18.1 million.

What is the period of performance?

Start: 2022-05-20. End: 2026-05-19.

What is the historical spending pattern for ISHPI Information Technologies Inc. with the Department of Defense, particularly for similar IT infrastructure support services?

Analyzing ISHPI Information Technologies Inc.'s historical contract data with the Department of Defense is crucial for assessing their track record and reliability. A review of past awards would reveal the types of services they have provided, their performance ratings, and the total value of contracts they have managed. For instance, if they have a history of successfully delivering complex IT infrastructure projects on time and within budget, it would increase confidence in their ability to execute this current task order. Conversely, any past performance issues, such as cost overruns, schedule delays, or quality deficiencies, would warrant closer scrutiny of this new award and potentially require enhanced oversight measures. Understanding their prior engagement with DoD IT initiatives provides a baseline for evaluating their capabilities and potential risks associated with this contract.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other IT infrastructure support contracts awarded by the Department of the Navy?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, allowing for flexibility. In the context of IT infrastructure support, this can be beneficial for adapting to changing technological landscapes or unforeseen challenges. However, CPFF contracts carry inherent risks of cost growth, as the government reimburses the contractor for actual costs incurred, plus a fixed fee. Comparing this to other Navy IT contracts would reveal if CPFF is a common approach for similar services or if other contract types, like Firm-Fixed-Price (FFP), are more prevalent. If FFP is more common, it might suggest that the Navy typically seeks more defined scopes for IT infrastructure, and the use of CPFF here could indicate a higher degree of uncertainty or complexity in the requirements. Understanding this comparison helps assess whether the chosen contract type is appropriate for maximizing value and controlling costs for the taxpayer.

What are the specific performance metrics and key performance indicators (KPIs) associated with this task order, and how will they be measured?

The effectiveness of this $18 million task order hinges on clearly defined performance metrics and Key Performance Indicators (KPIs) that align with the objective of supporting collaborative on-premise and cloud architectures. These metrics should quantify aspects such as system uptime, response times for support requests, successful implementation of cloud integrations, security compliance adherence, and user satisfaction. The contract should specify how these KPIs will be measured, reported, and evaluated. For example, system uptime could be measured by monitoring tools, while response times might be tracked through a ticketing system. Regular performance reviews, potentially quarterly, would assess ISHPI Information Technologies Inc.'s adherence to these KPIs. Failure to meet critical KPIs could trigger contractual remedies, such as incentive fee reductions or corrective action plans, ensuring accountability and driving desired outcomes for the Department of the Navy.

Given the 4-year duration, what is the projected evolution of IT infrastructure needs for the Department of the Navy, and how does this contract accommodate future technological advancements?

The Department of the Navy's IT infrastructure needs are constantly evolving due to rapid technological advancements and changing operational requirements. A 4-year contract duration necessitates a forward-looking approach to ensure it remains relevant and effective. This task order's focus on 'collaborative on-premise and cloud architectures' suggests an intent to leverage modern IT paradigms. However, the specific mechanisms for adapting to future technologies within this contract need examination. This could include provisions for incorporating new cloud services, adopting emerging security protocols, or integrating advanced data analytics capabilities. The CPFF structure might offer some flexibility for incorporating new requirements, but a clear process for scope adjustments and technology insertion is vital. Without explicit clauses for incorporating future technologies or regular reviews to align with evolving DoD IT strategies, the contract risks becoming outdated, diminishing its long-term value.

What is the potential impact of this contract on the broader IT services market, particularly concerning competition and pricing for similar government contracts?

The award of this $18 million task order to ISHPI Information Technologies Inc. under full and open competition can have ripple effects on the broader IT services market, especially within the defense sector. The fact that 9 bidders participated indicates a competitive landscape, which generally benefits the government by driving down prices and fostering innovation. However, the specific nature of the services (IT infrastructure support for cloud and on-premise architectures) is a high-demand area. If ISHPI Information Technologies Inc. performs exceptionally well, it could enhance their market position and potentially influence future bidding strategies of competitors. Conversely, if the CPFF structure leads to significant cost growth, it might make agencies more hesitant to use this contract type for similar future procurements, favoring more fixed-price arrangements. The long-term impact also depends on how effectively the Department of the Navy manages this contract and ensures value for money.

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: N6523622R3003

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ishpi Information Technologies, Inc.

Address: 401 SEACOAST PARKWAY, MOUNT PLEASANT, SC, 29464

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,998,799

Exercised Options: $18,998,799

Current Obligation: $18,079,819

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7895

IDV Type: IDC

Timeline