DoD Spends $39.9M on Custom Computer Programming Services via Sole Source Contract
Contract Overview
Contract Amount: $39,891,039 ($39.9M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2016-03-14
End Date: 2019-10-31
Contract Duration: 1,326 days
Daily Burn Rate: $30.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF HARDWARE FOR APPS
Plain-Language Summary
Department of Defense obligated $39.9 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: IGF::OT::IGF HARDWARE FOR APPS Key points: 1. Significant spending on custom programming services highlights reliance on specialized IT support. 2. The contract was awarded on a sole-source basis, raising questions about competition. 3. A firm-fixed-price contract was used, providing cost certainty but potentially limiting flexibility. 4. The contract duration of over three years suggests a long-term need for these services.
Value Assessment
Rating: questionable
The contract value of $39.9 million for custom computer programming services is substantial. Without specific benchmarks for similar custom development projects, it's difficult to definitively assess if this pricing is competitive. The sole-source nature further complicates value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor was considered. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation compared to a full and open competition.
Taxpayer Impact: The lack of competition for a nearly $40 million contract may result in taxpayers paying more than necessary for these custom programming services.
Public Impact
Citizens may be concerned about the lack of competitive bidding for a large IT services contract. The Department of Defense's reliance on specialized, non-competed services could impact overall IT modernization efficiency. Transparency in sole-source justifications is crucial for public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Significant contract value
Positive Signals
- Firm fixed price contract type
Sector Analysis
The IT services sector, particularly custom computer programming, is critical for government operations. Spending benchmarks vary widely based on complexity and specialization, but nearly $40 million for a single contract warrants scrutiny, especially when not competitively bid.
Small Business Impact
This contract was not awarded to a small business. The sole-source nature of the award suggests that opportunities for small businesses to compete for this specific requirement were not provided.
Oversight & Accountability
The sole-source justification for this contract should be thoroughly reviewed by oversight bodies to ensure it was appropriate and that taxpayer funds were used efficiently. Further investigation into the necessity of a sole-source award is recommended.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to lack of competitive pricing.
- Limited transparency in vendor selection.
- No small business participation.
- Long contract duration may indicate a missed opportunity for re-competition.
Tags
custom-computer-programming-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to MISCELLANEOUS FOREIGN AWARDEES. IGF::OT::IGF HARDWARE FOR APPS
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 2016-03-14. End: 2019-10-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., unique capabilities, urgent need). Adequate documentation is crucial for accountability and to ensure the government received fair value and explored all viable options.
How does the $39.9 million cost compare to industry benchmarks for similar custom computer programming services, considering the contract's duration and scope?
Without detailed scope of work and specific deliverables, a direct cost comparison is challenging. However, $39.9 million over approximately 3.5 years for custom programming is a significant investment. Benchmarking would require analyzing the complexity of the services, the number of personnel involved, and the specific technologies used, ideally against competitively procured contracts for comparable services.
What is the potential impact on future IT service procurement strategies within the Department of the Army given this sole-source award?
A sole-source award of this magnitude could signal a reliance on specific vendors or a gap in internal capabilities. It might prompt a review of procurement strategies to encourage more competition in the future, potentially through market research, breaking down large requirements, or developing internal expertise to reduce future sole-source needs.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56SGK16R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 F ST NW, WASHINGTON, DC, 20405
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $39,891,040
Exercised Options: $39,891,040
Current Obligation: $39,891,039
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-03-14
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2019-12-03
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