DoD's $11.7M contract for TOPS software operations and engineering services awarded to Apptricity Corporation

Contract Overview

Contract Amount: $11,690,473 ($11.7M)

Contractor: Apptricity Corporation

Awarding Agency: Department of Defense

Start Date: 2023-07-03

End Date: 2026-07-02

Contract Duration: 1,095 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TOPS (THEATER OPERATIONS) O&M AND TECHNICAL ENGINEERING SERVICES FOR TOPS SOFTWARE.

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75039

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to APPTRICITY CORPORATION for work described as: TOPS (THEATER OPERATIONS) O&M AND TECHNICAL ENGINEERING SERVICES FOR TOPS SOFTWARE. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long-term contract duration of 3 years may indicate a need for sustained support. 3. Firm Fixed Price contract type shifts cost risk to the contractor. 4. Services are for Computer Systems Design, a common IT support category. 5. Contractor Apptricity Corporation is the sole awardee. 6. Geographic location of performance is Texas.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The contract's value of approximately $11.7 million over three years, averaging $3.9 million annually, appears within a reasonable range for specialized IT operations and engineering services. However, the lack of competition raises concerns about whether the government secured the best possible price. Without comparative data from similar sole-source procurements or a clear understanding of the unique capabilities Apptricity Corporation provides, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Apptricity Corporation, was solicited. The justification for sole-source procurement is not provided in the data, but typically it implies that only one responsible source is capable of meeting the government's needs. This lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a higher price than might have been achieved otherwise.

Taxpayer Impact: The absence of competition for this $11.7 million contract means taxpayers may not have received the most cost-effective solution. Without multiple bids, there's less pressure on the contractor to offer competitive pricing.

Public Impact

The Department of the Army benefits from continued operations and technical engineering support for its TOPS software. This contract ensures the ongoing functionality and maintenance of critical software systems used by the military. The primary geographic impact is in Texas, where the services will be performed. The contract supports specialized IT roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency regarding the justification for sole-source procurement.
Limited insight into performance metrics and contractor track record for this specific contract.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Contract duration of 3 years suggests a stable, long-term need for these services.
Services are for essential IT operations and engineering support.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex software systems requiring specialized maintenance and operational support. Contracts like this, for Theater Operations Management Systems (TOPS), are crucial for maintaining situational awareness and operational efficiency. The market for such specialized defense IT services is often concentrated, with a few key players possessing the necessary security clearances and technical expertise. Annual spending on IT services for the Department of Defense is in the tens of billions, making this contract a small but vital component.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans for small businesses. Given the specialized nature of the services and the sole-source award, it is unlikely that small businesses will be significantly involved as prime contractors or major subcontractors unless Apptricity Corporation voluntarily includes them in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are established through the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature and the absence of a public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense IT Operations and Maintenance
Software Engineering Services
Theater Operations Management Systems (TOPS)
Department of the Army IT Procurement

Risk Flags

Sole-source award raises concerns about price competition.
Lack of publicly available justification for sole-source procurement.
Limited performance metrics available in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to APPTRICITY CORPORATION. TOPS (THEATER OPERATIONS) O&M AND TECHNICAL ENGINEERING SERVICES FOR TOPS SOFTWARE.

Who is the contractor on this award?

The obligated recipient is APPTRICITY 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 $11.7 million.

What is the period of performance?

Start: 2023-07-03. End: 2026-07-02.

What is the specific justification for awarding this contract on a sole-source basis to Apptricity Corporation?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as unique capabilities, urgent needs, or when only one responsible source can fulfill the requirement. For this contract, the Department of the Army would have had to document why competition was not feasible or advantageous. Common reasons include proprietary software requiring specialized knowledge only the original developer possesses, or a critical need where delaying for a competitive process would be detrimental to national security. Without this documentation, it's impossible to fully assess the necessity of the sole-source approach.

How does the annual cost of this contract compare to similar IT operations and engineering support contracts within the Department of Defense?

The annual cost of this contract is approximately $3.9 million ($11.7 million / 3 years). Comparing this to similar contracts is difficult without more specific data on the scope of services, performance levels, and contract types. However, for specialized IT operations and engineering services supporting complex defense systems, this annual figure is not inherently excessive. Many large-scale IT support contracts for the DoD can range from several million to hundreds of millions of dollars annually. The key differentiator here is the sole-source nature, which prevents a direct price-to-price comparison with competitively awarded contracts for similar services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected performance standards for the contractor, Apptricity Corporation. Typically, for IT operations and engineering services, KPIs might include system uptime percentages, response times for technical support, bug resolution rates, and successful implementation of software updates or enhancements. The absence of this information in the summary data limits the ability to assess the contractor's performance obligations and the government's ability to measure value received.

What is Apptricity Corporation's track record with the Department of Defense, particularly concerning contracts of this nature?

The provided data indicates that Apptricity Corporation is the contractor for this $11.7 million contract. However, it does not offer details on their broader track record with the Department of Defense or other federal agencies. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous DoD engagements. Understanding their experience with similar software systems (like TOPS) and their history of meeting performance requirements and managing costs would provide valuable context for evaluating this current award.

What is the historical spending trend for TOPS software operations and technical engineering services within the Department of the Army?

The provided data focuses solely on the current contract awarded in July 2023. It does not offer any historical spending data for TOPS software operations and technical engineering services. To analyze spending trends, one would need access to historical contract awards for this specific system or category of services over several fiscal years. This would allow for an examination of whether spending has increased, decreased, or remained stable, and whether the shift to a sole-source award represents a change in procurement strategy or a continuation of previous practices.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W519TC23RTOPS

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 220 LAS COLINAS BLVD E STE 400, IRVING, TX, 75039

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,167,340

Exercised Options: $11,690,473

Current Obligation: $11,690,473

Actual Outlays: $3,679,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline