DoD's $6.6M IT/OT/Cybersecurity Engineering Support contract awarded to The Informatics Applications Group, Inc

Contract Overview

Contract Amount: $6,627,910 ($6.6M)

Contractor: THE Informatics Applications Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-06

End Date: 2026-06-05

Contract Duration: 364 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT)/OPERATIONAL TECHNOLOGY (OT) & CYBERSECURITY ENGINEERING SUPPORT (CES)

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to THE INFORMATICS APPLICATIONS GROUP, INC. for work described as: INFORMATION TECHNOLOGY (IT)/OPERATIONAL TECHNOLOGY (OT) & CYBERSECURITY ENGINEERING SUPPORT (CES) Key points: 1. The contract value of $6.6 million for a 12-month period suggests a moderate investment in specialized IT and cybersecurity engineering. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The Informatics Applications Group, Inc. secured this contract, indicating a track record or capability that met the Department of Defense's requirements. 4. The contract's focus on IT, Operational Technology, and Cybersecurity Engineering Support aligns with current defense priorities for secure and modern infrastructure. 5. The delivery order structure implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for flexibility in tasking. 6. The fixed fee component of the Cost Plus Fixed Fee (CPFF) contract type provides some cost control for the government while incentivizing efficiency.

Value Assessment

Rating: good

The contract value of $6.6 million for a 12-month duration appears reasonable for specialized IT, OT, and cybersecurity engineering support services. Benchmarking against similar contracts for engineering services within the Department of Defense, particularly for cybersecurity and IT integration, would provide a more precise value assessment. The CPFF contract type, while offering flexibility, requires careful monitoring to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 11 bids indicates a healthy level of interest and competition for these specialized services. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors, potentially leading to more competitive pricing and innovative solutions.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the best value. This process helps to drive down costs and ensures that the selected contractor offers a strong balance of price and performance.

Public Impact

The Department of the Navy benefits from enhanced IT, Operational Technology, and Cybersecurity Engineering Support, crucial for maintaining its technological edge and operational readiness. Services delivered will likely include system design, integration, testing, and cybersecurity assessments for critical naval systems. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting naval bases and deployed units. Workforce implications may include the need for highly skilled cybersecurity engineers and IT specialists, both within the contractor's organization and potentially requiring collaboration with government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overrun potential inherent in Cost Plus Fixed Fee (CPFF) contracts requires diligent oversight to manage expenditures effectively.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle necessitates clear scope definition and change management processes.
The specialized nature of cybersecurity engineering requires continuous vigilance against evolving threats and technological advancements.

Positive Signals

Awarded under full and open competition with 11 bidders, indicating a robust and competitive marketplace for these services.
The Informatics Applications Group, Inc. has secured a contract with a major federal agency, suggesting a level of established capability and trust.
The contract's focus on critical areas like IT, OT, and cybersecurity aligns with essential defense modernization and security objectives.

Sector Analysis

The IT, Operational Technology, and Cybersecurity Engineering Support sector is a critical and rapidly growing area within the federal government, particularly for defense agencies. This contract fits within the broader landscape of federal IT services, which sees significant annual spending. Comparable spending benchmarks would typically involve analyzing contracts for similar engineering and cybersecurity services awarded to large and medium-sized businesses across various defense branches. The market is characterized by a mix of large prime contractors and specialized small businesses, with a constant demand for expertise in areas like cloud security, network defense, and system integration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, The Informatics Applications Group, Inc., is likely a medium or large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. However, given the specialized nature of the work, it is possible that the prime contractor may engage small businesses for specific components or expertise, but this is not guaranteed without further subcontracting plan details.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be essential to ensure costs are controlled and deliverables are met. Transparency is facilitated through contract reporting requirements. While not explicitly stated, the Department of Defense's Inspector General typically has jurisdiction over such contracts for audit and investigation purposes.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Naval Sea Systems Command (NAVSEA) IT support contracts
Cybersecurity support services for federal agencies
IT modernization programs within the Department of Defense
Operational Technology integration services

Risk Flags

Potential for cost overruns in CPFF contracts
Evolving cybersecurity threat landscape
Integration challenges with legacy systems
Ensuring consistent performance across a 12-month period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to THE INFORMATICS APPLICATIONS GROUP, INC.. INFORMATION TECHNOLOGY (IT)/OPERATIONAL TECHNOLOGY (OT) & CYBERSECURITY ENGINEERING SUPPORT (CES)

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 $6.6 million.

What is the period of performance?

Start: 2025-06-06. End: 2026-06-05.

What is the historical spending pattern for The Informatics Applications Group, Inc. with the Department of Defense?

Analyzing the historical spending of The Informatics Applications Group, Inc. with the Department of Defense requires access to federal procurement databases. Without direct access to this data, a precise historical spending pattern cannot be determined. However, securing a $6.6 million contract for IT/OT/Cybersecurity Engineering Support suggests the company has a demonstrated capability and potentially a prior relationship or successful bidding history with the DoD. Further investigation would involve querying databases like FPDS or USASpending.gov to identify previous awards, contract types, and the total value of contracts awarded to this entity by the DoD over time. This would help establish a baseline for their engagement and assess if this current award represents a significant increase or continuation of prior business.

How does the pricing of this contract compare to similar IT/OT/Cybersecurity engineering support contracts awarded by the DoD?

A direct pricing comparison for this $6.6 million contract requires access to detailed pricing data from comparable contracts, which is not fully available in the provided summary. However, the contract type, Cost Plus Fixed Fee (CPFF), allows for cost reimbursement plus a predetermined profit. The 'good' value rating suggests that, based on available benchmarks or internal DoD assessments, the pricing is considered competitive. Factors influencing this assessment would include the labor rates, overhead, and the fixed fee percentage relative to the scope of work. Benchmarking would involve comparing the estimated cost of labor hours, material costs, and the fixed fee against similar contracts awarded for similar services, considering factors like contract duration, complexity, and the specific technical requirements.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns inherent in the CPFF structure, scope creep if requirements are not clearly defined, and the evolving nature of cybersecurity threats. Mitigation strategies likely involve robust oversight by the Department of the Navy, including detailed cost tracking, performance monitoring, and stringent change control processes. For cybersecurity risks, the contractor is expected to employ best practices and adapt to emerging threats. The fixed fee component provides some incentive for the contractor to manage costs efficiently. The contract's 12-month duration also limits the exposure period for potential cost escalations compared to longer-term agreements.

How effective is the competition level (11 bidders) in ensuring value for taxpayers?

The competition level of 11 bidders for this contract is generally considered very effective in ensuring value for taxpayers. A higher number of bidders typically leads to more competitive pricing as companies vie for the award. This broad participation suggests that the government received a range of proposals, allowing for selection of the offer that best balances cost and technical merit. The full and open competition approach ensures that the market's best offerings are considered, preventing potential monopolies or limited choices that could drive up prices. This level of competition is a strong indicator that the government is likely to achieve favorable pricing and high-quality service delivery.

What is the typical performance context for IT/OT/Cybersecurity Engineering Support contracts within the Department of Defense?

The performance context for IT/OT/Cybersecurity Engineering Support contracts within the Department of Defense is typically demanding and mission-critical. These services are essential for maintaining the operational readiness, security, and technological superiority of defense systems. Performance expectations often include adherence to strict security protocols, timely delivery of complex engineering solutions, integration with existing legacy systems, and continuous adaptation to evolving cyber threats. Success is measured by factors such as system uptime, successful vulnerability mitigation, efficient project completion, and compliance with DoD cybersecurity standards. The environment requires highly skilled personnel capable of working with sensitive information and complex technological infrastructures.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523624R3041

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Informatics Applications Group Inc.

Address: 11911 FREEDOM DR, SUITE 1180, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $73,902,538

Exercised Options: $12,549,711

Current Obligation: $6,627,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7821

IDV Type: IDC

Timeline