DoD's $35.1M NMCI Program Office Support Contract Awarded to BearingPoint, Inc

Contract Overview

Contract Amount: $35,101,427 ($35.1M)

Contractor: Bearingpoint, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2010-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NAVY MARINE CORPS INTRANET (NMCI) PROGRAM OFFICE SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to BEARINGPOINT, INC. for work described as: NAVY MARINE CORPS INTRANET (NMCI) PROGRAM OFFICE SUPPORT Key points: 1. Contract awarded under a Cost Plus Award Fee structure, indicating performance incentives. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration of 1460 days (4 years) provides a stable period for service delivery. 4. The contract is categorized under Engineering Services, aligning with the NMCI program's technical needs. 5. The award was made by the Defense Contract Management Agency, a key oversight body. 6. The contract value of $35.1M over four years suggests a significant investment in IT infrastructure support.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided under the NMCI Program Office Support. However, the Cost Plus Award Fee (CPAF) structure suggests an attempt to incentivize performance and achieve value for money, though it can also lead to cost overruns if not managed tightly. Comparing this to similar IT support contracts within the DoD or other federal agencies would provide a clearer picture of its cost-effectiveness. The total award value of $35.1M over four years averages to approximately $8.775M annually, which for a program of NMCI's scale, may represent a reasonable investment for essential support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, which is the preferred method for ensuring the widest possible participation and the best possible prices for the government. The fact that it was competed openly suggests that multiple vendors were likely interested and submitted proposals. The number of bidders (3) is on the lower side for a full and open competition, which could warrant further investigation into potential barriers to entry or market concentration for these specialized services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation. A limited number of bidders, even in an open competition, might suggest that the government did not achieve the full benefit of market competition.

Public Impact

The primary beneficiaries are the Navy and Marine Corps, who rely on the NMCI program for their IT infrastructure. The services delivered are crucial for the operational effectiveness and cybersecurity of military networks. The geographic impact is nationwide, supporting military personnel and operations across various bases and locations. Workforce implications include support for IT professionals and contractors involved in managing and maintaining the NMCI infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize cost overruns if performance metrics are not strictly managed.
A limited number of bidders (3) in a full and open competition may indicate potential market limitations or high barriers to entry.
The specific nature of 'Program Office Support' can be broad, requiring clear definition of deliverables to ensure value for money.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
The Cost Plus Award Fee structure includes incentives for contractor performance.
The contract duration of 4 years provides stability for critical IT support services.

Sector Analysis

The Navy Marine Corps Intranet (NMCI) is a massive enterprise IT program critical to the operational readiness of the U.S. Navy and Marine Corps. This contract for program office support falls within the broader IT services sector, specifically focusing on the management and sustainment of large-scale government IT infrastructure. The market for such services is highly specialized, often dominated by large federal contractors with extensive experience in government IT. Comparable spending benchmarks would typically be found within other large-scale federal IT modernization and sustainment programs, which often run into hundreds of millions or billions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, BearingPoint, Inc., is a large business. While there is no direct set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which BearingPoint utilized small business subcontractors on this specific contract would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management and acquisition oversight bodies, potentially including the Defense Contract Management Agency (DCMA) and the agency's Inspector General. The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that award fees are justified by performance and that costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements and performance reviews stipulated in the contract.

Related Government Programs

Navy Marine Corps Intranet (NMCI)
Department of Defense IT Services
Enterprise IT Management Contracts
Information Technology Support Services

Risk Flags

Potential for cost growth due to CPAF structure.
Limited number of bidders may indicate market concentration or high barriers to entry.
Need for robust oversight to ensure performance metrics are met and costs are controlled.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to BEARINGPOINT, INC.. NAVY MARINE CORPS INTRANET (NMCI) PROGRAM OFFICE SUPPORT

Who is the contractor on this award?

The obligated recipient is BEARINGPOINT, 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 $35.1 million.

What is the period of performance?

Start: 2006-10-01. End: 2010-09-30.

What specific IT services were included under the 'NMCI Program Office Support' contract?

The provided data indicates the contract is for 'NMCI Program Office Support' and falls under the 'Engineering Services' (NAICS 541330) category. While the specific details are not fully elaborated in the summary data, 'Program Office Support' for a large enterprise IT program like NMCI typically encompasses a range of activities. These could include project management, systems engineering, technical support, lifecycle management, requirements analysis, acquisition support, financial management, and potentially cybersecurity oversight related to the NMCI infrastructure. The Cost Plus Award Fee (CPAF) structure suggests that the contractor's performance in delivering these support services was evaluated against specific criteria, with financial incentives tied to achieving or exceeding performance targets. Detailed statements of work (SOW) within the contract would provide the precise scope of services.

How does BearingPoint, Inc.'s track record with federal contracts influence the assessment of this award?

BearingPoint, Inc. has a history of holding significant federal contracts, particularly within the IT and management consulting space. Assessing their track record involves reviewing past performance evaluations, any documented issues such as contract disputes, overruns, or quality deficiencies, and their success in similar large-scale IT programs. A positive track record with demonstrated success in delivering complex IT solutions and support services would bolster confidence in their ability to execute the NMCI Program Office Support contract effectively. Conversely, a history of performance issues or financial instability could raise concerns. Without specific past performance data for BearingPoint on comparable contracts, a definitive assessment is challenging, but their presence as a bidder in a full and open competition suggests they met initial qualification criteria.

Can the $35.1M contract value be considered a good value for money compared to similar IT support contracts?

Determining 'good value for money' for this $35.1M contract requires a detailed comparison against benchmarks for similar IT program office support services within the federal government. Factors to consider include the scope and complexity of services, the duration of the contract (4 years), the specific technologies involved, and the prevailing market rates for such expertise. The Cost Plus Award Fee (CPAF) structure implies that value is intended to be achieved through performance incentives, but it also carries risks of cost escalation if not managed diligently. If BearingPoint, Inc. successfully met or exceeded performance targets, and the costs were deemed reasonable relative to market rates and the achieved outcomes, then it could represent good value. However, without detailed cost breakdowns and performance metrics, a definitive judgment is difficult.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract structure for this program?

The primary risk associated with a Cost Plus Award Fee (CPAF) contract is the potential for cost growth. While the 'cost plus' element covers allowable costs incurred by the contractor, the 'award fee' component means that the contractor can earn additional profit based on performance against pre-defined criteria. If these criteria are not clearly defined, measurable, and rigorously assessed, or if the government's oversight is insufficient, contractors may be incentivized to incur higher costs to achieve higher performance ratings, thereby increasing the total contract price. This structure requires strong government oversight to ensure that award fees are truly earned and that costs remain reasonable and allocable to the contract objectives. There's also a risk that the focus on achieving award fee targets might inadvertently shift attention away from other critical aspects of the program if not balanced properly.

How does the 'Engineering Services' NAICS code (541330) align with IT program office support?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is typically associated with firms that provide engineering design, development, and consulting services. While seemingly distinct from pure IT services, it aligns with IT program office support in contexts where the program involves significant systems engineering, integration, technical architecture, and complex problem-solving related to IT infrastructure. For a program like NMCI, which is a vast and complex IT enterprise, the engineering aspects—such as designing network resilience, ensuring interoperability, planning for upgrades, and managing technical lifecycles—are critical. Therefore, engineering services firms with deep IT expertise are often contracted for program management and support roles within large technology initiatives, bridging the gap between pure IT operations and the underlying engineering principles.

What does the limited number of bidders (3) in a full and open competition suggest about the NMCI support market?

A full and open competition theoretically allows any interested and capable vendor to bid. When only three bidders participate in such a competition for a significant contract like NMCI Program Office Support, it can suggest several possibilities about the market. Firstly, the specialized nature of the services required might mean that only a few companies possess the necessary technical expertise, security clearances, and past performance credentials. Secondly, the cost and effort involved in preparing a comprehensive bid for a large federal contract can be substantial, potentially deterring smaller or less experienced firms. Thirdly, there might be consolidation within the federal IT support sector, leading to fewer large players capable of undertaking such work. This limited competition could potentially impact price discovery and innovation, even though the process was open.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3498

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $607,989,286

Exercised Options: $223,613,531

Current Obligation: $35,101,427

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4020

IDV Type: IDC

Timeline