DoD's $22.9M Game-Based Training Software Contract with Calytrix Technologies Raises Questions on Value and Competition
Contract Overview
Contract Amount: $22,889,600 ($22.9M)
Contractor: Calytrix Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-06-21
End Date: 2017-06-20
Contract Duration: 1,460 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GAME BASED TRAINING SOFTWARE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to CALYTRIX TECHNOLOGIES, INC. for work described as: GAME BASED TRAINING SOFTWARE Key points: 1. The contract awarded to Calytrix Technologies for game-based training software represents a significant investment in advanced simulation capabilities. 2. Competition was limited after exclusion of sources, potentially impacting price discovery and overall value for taxpayers. 3. The firm fixed-price contract structure aims to control costs, but the effectiveness and long-term value of specialized training software require scrutiny. 4. The sector involves custom computer programming, a field with evolving technologies and varying cost structures.
Value Assessment
Rating: questionable
The contract's value of $22.9 million for game-based training software needs further assessment against industry benchmarks for similar custom programming services. Without detailed cost breakdowns or comparisons to alternative solutions, it's difficult to ascertain if the pricing reflects optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific reasons for excluding other potential bidders may have limited the pool. This approach can sometimes lead to higher prices than a truly open competition.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this specialized software. The exclusion of sources warrants a review to ensure fair market value was achieved.
Public Impact
Enhances military training with advanced, engaging simulation technology. Potential for improved soldier readiness and skill development through realistic scenarios. Investment in cutting-edge technology could have broader applications in defense training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price fairness.
- Lack of transparency in source exclusion.
- Effectiveness and ROI of specialized training software are not immediately clear.
Positive Signals
- Utilizes advanced game-based technology for training.
- Firm fixed-price contract provides cost certainty.
- Contract duration suggests a sustained need for the capability.
Sector Analysis
The custom computer programming services sector (NAICS 541511) is dynamic, with costs varying significantly based on complexity, customization, and vendor expertise. This contract falls within a niche of defense-specific simulation software, where specialized development can command premium pricing.
Small Business Impact
The contract data indicates that the awardee, Calytrix Technologies, Inc., is not listed as a small business. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract's award under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a specific justification was made. Oversight should focus on the rationale for excluding sources and ensuring the final price reflects fair market value.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have inflated costs.
- Lack of clear performance metrics for training effectiveness.
- Potential for vendor lock-in with custom software.
- Uncertainty regarding long-term maintenance and upgrade costs.
Tags
custom-computer-programming-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to CALYTRIX TECHNOLOGIES, INC.. GAME BASED TRAINING SOFTWARE
Who is the contractor on this award?
The obligated recipient is CALYTRIX TECHNOLOGIES, 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 $22.9 million.
What is the period of performance?
Start: 2013-06-21. End: 2017-06-20.
What was the specific justification for excluding other sources in this 'full and open competition' scenario, and how did this impact the final price negotiated?
The justification for excluding sources is critical for understanding the competitive landscape. If valid technical or proprietary reasons existed, the price might be justified. However, if the exclusion was arbitrary, it could indicate a missed opportunity for better price discovery, potentially leading to a higher cost for the government and taxpayers than a truly open bid process would have yielded.
How is the effectiveness and return on investment (ROI) of this game-based training software being measured and validated by the Department of the Army?
Measuring the effectiveness of specialized training software is crucial for justifying its cost. The Army should have clear metrics to assess improvements in soldier performance, skill retention, and mission readiness directly attributable to this software. Without robust validation and ROI analysis, it's difficult to determine if the $22.9 million investment is yielding tangible benefits beyond the initial acquisition.
Are there comparable commercial off-the-shelf (COTS) or government-developed training solutions that could have met the Army's needs at a lower cost or with greater flexibility?
Exploring alternatives is key to ensuring value. A thorough analysis should have been conducted to compare the custom solution against existing COTS software or other government-developed programs. If similar capabilities existed at a lower price point or offered more adaptability, the decision to pursue this custom development contract, especially with limited competition, warrants further scrutiny regarding cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W900KK12R0027
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Calytrix Technologies PTY Ltd
Address: 3171 BEAVER-VU DR STE D, DAYTON, OH, 45434
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,562,193
Exercised Options: $22,909,098
Current Obligation: $22,889,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-06-21
Current End Date: 2017-06-20
Potential End Date: 2018-06-20 00:00:00
Last Modified: 2025-04-21
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