Army awards $22.2M for logistics data management, highlighting custom programming needs

Contract Overview

Contract Amount: $22,202,385 ($22.2M)

Contractor: Caelum Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-05-22

End Date: 2024-11-30

Contract Duration: 2,019 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS TASK ORDER IS ISSUED UNDER THE GSA IT SCHEDULE 70 CONTRACT GS-35-F-007DA FOR THE UNITED STATES ARMY MATERIEL COMMAND (USAMC) LOGISTICS SUPPORT ACTIVITY (LOGSA) DATA AND INFORMATION MANAGEMENT SUPPORT SERVICES (IMSS) REDSTONE ARSENAL, ALABAMA.

Place of Performance

Location: DERWOOD, MONTGOMERY County, MARYLAND, 20855

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to CAELUM RESEARCH CORPORATION for work described as: THIS TASK ORDER IS ISSUED UNDER THE GSA IT SCHEDULE 70 CONTRACT GS-35-F-007DA FOR THE UNITED STATES ARMY MATERIEL COMMAND (USAMC) LOGISTICS SUPPORT ACTIVITY (LOGSA) DATA AND INFORMATION MANAGEMENT SUPPORT SERVICES (IMSS) REDSTONE ARSENAL, ALABAMA. Key points: 1. Contract focuses on critical data and information management for Army logistics. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration spans over five years, indicating a long-term need. 4. Services fall under custom computer programming, a key area for IT modernization. 5. The award is a delivery order under a broader GSA IT Schedule 70 contract. 6. Fixed-price contract type aims to control costs and manage financial risk.

Value Assessment

Rating: good

The contract value of $22.2 million over approximately five years suggests a moderate annual spend for specialized IT services. Benchmarking against similar custom computer programming contracts under GSA IT Schedule 70 would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a reasonable level of competition, which typically helps in achieving fair market prices. The specific details of the bidding process and the number of proposals received would offer further insight into the competitive dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors compete on price and performance, potentially leading to lower overall costs for government services.

Public Impact

Enhances the operational efficiency of the Army Materiel Command's logistics functions. Supports the management and accessibility of critical data for decision-making. Services are delivered at Redstone Arsenal, Alabama, impacting the local federal workforce. Ensures the integrity and usability of vital information for military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom programming if requirements are not tightly managed.
Reliance on a single delivery order under a larger schedule contract may limit flexibility.
Ensuring continued relevance of data management solutions over the contract's lifespan.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Full and open competition suggests a competitive environment for pricing.
Long-term contract duration indicates a stable and ongoing requirement.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services market. The U.S. government is a major consumer of these services, particularly for defense and logistics applications. Spending in this area is driven by the need for tailored software solutions, data integration, and system modernization. Comparable contracts often involve significant investment in maintaining and upgrading complex IT infrastructures.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the contractor, Caelum Research Corporation, is likely a large business. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities within this specific delivery order.

Oversight & Accountability

Oversight is likely managed by the U.S. Army Materiel Command through contract officers and technical representatives. As a delivery order under a GSA schedule, it benefits from the existing oversight framework of the GSA. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

GSA IT Schedule 70
Army Logistics Modernization Programs
Defense Data Management Initiatives
Custom Software Development Contracts

Risk Flags

Potential for scope creep
Risk of technical obsolescence
Data security and integrity concerns
Long-term contract management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to CAELUM RESEARCH CORPORATION. THIS TASK ORDER IS ISSUED UNDER THE GSA IT SCHEDULE 70 CONTRACT GS-35-F-007DA FOR THE UNITED STATES ARMY MATERIEL COMMAND (USAMC) LOGISTICS SUPPORT ACTIVITY (LOGSA) DATA AND INFORMATION MANAGEMENT SUPPORT SERVICES (IMSS) REDSTONE ARSENAL, ALABAMA.

Who is the contractor on this award?

The obligated recipient is CAELUM RESEARCH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2019-05-22. End: 2024-11-30.

What is the track record of Caelum Research Corporation in delivering similar data management services to the Department of Defense?

Caelum Research Corporation has a history of performing IT services for the Department of Defense, including contracts related to data management and analysis. Their experience with the Army Materiel Command (AMC) suggests familiarity with the agency's operational needs. A detailed review of their past performance on similar contracts, including customer satisfaction ratings and any documented performance issues, would be necessary to fully assess their capability for this specific task order. Examining contract close-out reports and any award modifications can provide further insight into their performance history and ability to meet complex requirements within budget and schedule.

How does the $22.2 million contract value compare to similar custom computer programming services for logistics data management?

The $22.2 million value over approximately five years represents a significant, but not exceptionally large, investment for specialized IT services within the Department of Defense. Annualized, this contract is around $4.4 million per year. Benchmarking against other custom computer programming contracts awarded under GSA IT Schedule 70 or similar vehicles for logistics data management would be crucial. Factors such as the complexity of the data, the scope of integration required, and the specific functionalities to be developed will influence cost. Without direct comparisons of scope and complexity, it's difficult to definitively state if this represents excellent or fair value, but it falls within a range typical for substantial government IT projects.

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

Key risks include potential scope creep, as custom programming requirements can evolve, leading to cost overruns and schedule delays. Another risk is the potential for technical obsolescence if the data management solutions are not adaptable to future technologies. Ensuring data security and integrity throughout the contract lifecycle is also critical. Mitigation strategies likely involve robust contract management, clearly defined performance metrics, regular technical reviews, and adherence to the firm fixed-price structure which incentivizes the contractor to manage costs. The long duration also presents a risk of the technology becoming outdated if not managed proactively.

How effective is the GSA IT Schedule 70 vehicle for procuring specialized IT services like custom computer programming?

The GSA IT Schedule 70 is a widely used and generally effective procurement vehicle for IT services, offering pre-competed contracts that streamline the acquisition process for federal agencies. Its broad scope allows agencies to quickly obtain a wide range of IT solutions, including custom programming. The full and open competition requirement for many schedule orders, as seen here, helps ensure fair pricing. However, the effectiveness can depend on how well agencies define their requirements and manage the resulting task orders. For highly specialized or complex needs, agencies must still conduct thorough market research and careful evaluation to ensure they are obtaining the best value.

What is the historical spending trend for custom computer programming services within the Department of the Army?

The Department of the Army consistently spends billions of dollars annually on IT services, with a significant portion allocated to custom computer programming and related services. This spending is driven by the need to maintain and modernize complex legacy systems, develop new capabilities, and integrate diverse data sources across various commands and functions, including logistics. Historical data shows a sustained demand for these services, reflecting the ongoing digital transformation efforts within the military. Spending patterns can fluctuate based on strategic priorities, budget allocations, and specific modernization initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7361 CALHOUN PLACE, ROCKVILLE, MD, 20855

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

Financial Breakdown

Contract Ceiling: $33,061,753

Exercised Options: $22,202,385

Current Obligation: $22,202,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F007DA

IDV Type: FSS

Timeline