DoD's $22M software contract with Innovative Concepts, Inc. awarded in 2006 for 1272 days

Contract Overview

Contract Amount: $21,957,973 ($22.0M)

Contractor: Innovative Concepts, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-28

End Date: 2009-10-21

Contract Duration: 1,272 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76179, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to INNOVATIVE CONCEPTS, INC. for work described as: Key points: 1. Contract value appears reasonable given the duration and nature of software services. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of over three years indicates a significant, ongoing need. 4. Awarded by the Defense Contract Management Agency, suggesting a focus on operational support. 5. The contract's primary focus on software publishing aligns with common defense IT needs. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The total award amount of approximately $22 million over 1272 days translates to roughly $17,263 per day. Without specific details on the software or services provided, a direct comparison is challenging. However, for a long-term, complex software solution for the Department of Defense, this daily rate appears within a reasonable range, especially considering potential customization and support requirements. The 'COST NO FEE' contract type suggests that the government is reimbursing the contractor for allowable costs, which can sometimes lead to higher overall spending if not managed tightly, but also allows for flexibility in evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The 'after exclusion of sources' phrasing might suggest that certain sources were initially considered and then excluded based on specific criteria before the final full and open competition phase, or it could be a standard clause. The level of competition is not explicitly stated in terms of the number of bidders, but the designation implies a robust process aimed at achieving the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Defense benefits from access to specialized software publishing services. This contract likely supports critical defense operations and information management systems. The geographic impact is likely national, given the nature of defense contracts, with potential for deployment to various operational theaters. Workforce implications could include specialized software developers, engineers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type requires diligent oversight to ensure costs remain reasonable and allocable.
The duration of the contract (1272 days) necessitates ongoing performance monitoring to ensure continued value.
The specific nature of the software and its criticality to defense operations could represent a risk if not adequately maintained or updated.

Positive Signals

Awarded through full and open competition, suggesting a potentially competitive and fair process.
The contract is managed by the Defense Contract Management Agency, indicating established oversight protocols.
The long duration suggests a stable, ongoing need that the contractor is fulfilling effectively.

Sector Analysis

The software publishing industry is a significant sector within the broader IT landscape, providing essential tools and platforms for various organizations. For the defense sector, software is critical for command and control, intelligence, logistics, and communication systems. Spending in this area can range from off-the-shelf software licenses to highly customized development. This contract, valued at approximately $22 million over three and a half years, falls within a moderate spending bracket for specialized defense software solutions. Comparable spending benchmarks would depend heavily on the specific functionalities and complexity of the software provided.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. This suggests that the primary contract was awarded to a large business or that the nature of the requirement did not lend itself to a set-aside. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a set-aside might mean fewer direct opportunities for small businesses as prime contractors on this specific award, though they could potentially participate as subcontractors if required by the prime.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations and that taxpayer funds are used appropriately. Oversight mechanisms would typically include regular performance reviews, cost audits (especially for cost-reimbursable contracts), and quality assurance checks. Transparency is generally maintained through contract databases and reporting requirements, although specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Software Development Contracts
IT Services for Department of Defense
Software Licensing and Maintenance
Command and Control Systems
Intelligence Software Solutions

Risk Flags

Cost Control Risk (CNF Contract)
Performance Monitoring Over Long Duration
Potential for Scope Creep
Dependence on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to INNOVATIVE CONCEPTS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INNOVATIVE CONCEPTS, 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 $22.0 million.

What is the period of performance?

Start: 2006-04-28. End: 2009-10-21.

What specific software or services did Innovative Concepts, Inc. provide under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 511210, which corresponds to 'Software Publishers.' This suggests that Innovative Concepts, Inc. was likely involved in the development, publishing, licensing, or distribution of software. Given the Department of Defense as the agency and the contract type (Cost No Fee), it's probable that the services involved custom software development, integration, maintenance, or the provision of specialized software solutions tailored to defense needs. Without more specific contract line item details or a Statement of Work, the exact nature of the software (e.g., for intelligence analysis, logistics, training, or operational support) remains unspecified in the provided summary data.

How does the total contract value of $21,957,973.25 compare to similar software publishing contracts for the DoD?

Comparing the total contract value of approximately $22 million requires context regarding the contract's duration, scope, and the specific type of software services rendered. This contract spanned 1272 days (over 3.5 years), making the average annual value around $6.3 million. For the Department of Defense, which procures a vast array of IT and software solutions, this value is moderate. Larger, more complex system developments or enterprise-wide software deployments can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused software development or licensing agreements might be in the low millions. Therefore, $22 million over 3.5 years for specialized software publishing services appears to be a reasonable investment, likely for a significant but not necessarily enterprise-scale solution.

What are the primary risks associated with a 'COST NO FEE' contract of this magnitude and duration?

A 'COST NO FEE' (CNF) contract, while allowing flexibility, carries inherent risks, primarily related to cost control and contractor performance. The main risk is that the government agrees to pay the contractor's allowable costs without a fixed profit margin. This can incentivize the contractor to incur higher costs, as their fee is not directly tied to cost efficiency. For the government, this necessitates robust oversight and auditing to ensure that all costs claimed are reasonable, allocable, and allowable according to the contract terms. Over the 1272-day duration, there's also a risk of scope creep if requirements are not clearly defined and managed, potentially leading to cost overruns. Ensuring the contractor maintains adequate performance and delivers the required software capabilities throughout the contract term is also crucial.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a multi-stage procurement process. Initially, the contracting agency likely identified potential sources for the required software services. Some of these sources may have been excluded based on specific criteria (e.g., capability, past performance, or specific technical requirements). Following this exclusion phase, the remaining requirement was then subjected to a full and open competition, meaning the solicitation was broadly advertised, and all responsible offerors were allowed to submit proposals. This approach aims to balance the need for specialized capabilities with ensuring a wide range of potential suppliers can compete, theoretically leading to better pricing and quality for the government.

How has the Department of Defense's spending on software publishing (NAICS 511210) evolved over the period this contract was active (2006-2009)?

During the period of this contract (roughly 2006-2009), the Department of Defense was undergoing significant technological shifts, influenced by ongoing military operations and the increasing importance of information technology. Spending on software publishing, encompassing development, licensing, and support, was likely substantial and growing. This era saw a greater emphasis on networked systems, data management, and cybersecurity. While specific year-over-year spending figures for NAICS 511210 within the DoD for this exact period are not provided, it's reasonable to infer that demand for sophisticated software solutions increased, driven by evolving mission requirements and technological advancements. This contract represents one component of that broader spending trend.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elbit Systems Ltd (UEI: 514421098)

Address: 8200 GREENSBORO DR STE 700, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline