Army IT Services Contract Awarded to IP Network Solutions Inc. for $20.75M
Contract Overview
Contract Amount: $20,753,123 ($20.8M)
Contractor: IP Network Solutions Inc.
Awarding Agency: Department of Defense
Start Date: 2013-08-30
End Date: 2017-05-29
Contract Duration: 1,368 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF:: ARMY SUSTAINMENT COMMAND INFORMATION TECHNOLOGY SERVICE AND SUPPORT FOR 401ST ARMY FIELD SUPPORT BRIGADE (AFGHANISTAN)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to IP NETWORK SOLUTIONS INC. for work described as: IGF::OT::IGF:: ARMY SUSTAINMENT COMMAND INFORMATION TECHNOLOGY SERVICE AND SUPPORT FOR 401ST ARMY FIELD SUPPORT BRIGADE (AFGHANISTAN) Key points: 1. Contract value of $20.75 million for IT services. 2. Competition was 'full and open after exclusion of sources'. 3. Risk is moderate due to contract type and duration. 4. Sector is Information Technology, specifically computer facilities management.
Value Assessment
Rating: fair
The contract was a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award amount of $20.75M over nearly four years suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The competition method was 'full and open after exclusion of sources', indicating a competitive process but with specific limitations. This method aims for fair pricing but the exclusion could limit the pool of bidders.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure reasonable pricing, but the cost-plus structure warrants scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Ensures critical IT infrastructure and support for Army operations in Afghanistan. Supports approximately 401st Army Field Support Brigade's mission readiness. Contract duration of nearly four years impacts long-term IT planning and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Contract duration of 1368 days (approx. 3.75 years) is substantial.
- Exclusion of sources in competition limits potential bidder pool.
Positive Signals
- Full and open competition was utilized.
- Contract supports critical military operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Benchmarks for similar contracts vary widely based on scope, duration, and location, but a $20.75M award over nearly four years for deployed IT support is significant.
Small Business Impact
The data indicates the prime contractor is IP Network Solutions Inc. There is no explicit information regarding small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract type (Cost Plus Fixed Fee) and duration necessitate robust oversight to manage costs and ensure performance standards are met. The 'exclusion of sources' clause in the competition also warrants review for justification.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- Exclusion of sources in competition.
- Operational environment (Afghanistan) may increase risk.
- Lack of explicit small business participation data.
Tags
computer-facilities-management-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to IP NETWORK SOLUTIONS INC.. IGF::OT::IGF:: ARMY SUSTAINMENT COMMAND INFORMATION TECHNOLOGY SERVICE AND SUPPORT FOR 401ST ARMY FIELD SUPPORT BRIGADE (AFGHANISTAN)
Who is the contractor on this award?
The obligated recipient is IP NETWORK SOLUTIONS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.8 million.
What is the period of performance?
Start: 2013-08-30. End: 2017-05-29.
What was the justification for excluding certain sources in the 'full and open competition' process, and did this exclusion impact the final pricing?
The justification for excluding sources is crucial for understanding the competitive landscape. If specific capabilities were required, excluding sources without them is standard. However, if sources were excluded without clear technical rationale, it could limit competition and potentially lead to higher prices than a truly open bid might have achieved. Further review of the solicitation documents is needed.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and prevent contractor overspending, given the contract's duration and operational environment?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective management requires stringent oversight, detailed cost tracking, and clear performance metrics. For this contract, assessing the final cost against initial projections and reviewing any incurred cost variances would indicate the level of control exercised. The operational environment in Afghanistan could also introduce unforeseen costs.
What was the actual performance level of IP Network Solutions Inc. in delivering IT services, and did it meet the Army's requirements for the 401st Army Field Support Brigade?
Performance evaluation is key to determining the effectiveness of any contract. Without performance reports or user feedback, it's difficult to assess if the services provided met the Army's needs. Metrics such as system uptime, response times for support requests, and successful implementation of IT solutions would be necessary to gauge effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J12R0219
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 13921 PARK CENTER RD STE 380, HERNDON, VA, 20170
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,753,123
Exercised Options: $20,753,123
Current Obligation: $20,753,123
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-08-30
Current End Date: 2017-05-29
Potential End Date: 2017-05-29 12:05:00
Last Modified: 2021-02-24
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