DoD's Army awards $29.3M for CSEPP AIS maintenance to IEM International, Inc
Contract Overview
Contract Amount: $29,318,828 ($29.3M)
Contractor: IEM International, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-08
End Date: 2024-02-08
Contract Duration: 1,826 days
Daily Burn Rate: $16.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM (CSEPP) WEBPUFF AUTOMATED INFORMATION SYSTEM (AIS) MAINTENANCE AND LIFECYCLE SUPPORT.
Place of Performance
Location: MORRISVILLE, WAKE County, NORTH CAROLINA, 27560
Plain-Language Summary
Department of Defense obligated $29.3 million to IEM INTERNATIONAL, INC. for work described as: CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM (CSEPP) WEBPUFF AUTOMATED INFORMATION SYSTEM (AIS) MAINTENANCE AND LIFECYCLE SUPPORT. Key points: 1. The contract supports critical chemical stockpile emergency preparedness. 2. IEM International, Inc. is the sole provider for this specialized maintenance. 3. The contract duration is 5 years, ending in February 2024. 4. This is a firm-fixed-price contract, indicating price certainty.
Value Assessment
Rating: fair
The contract value of $29.3 million over five years suggests a significant investment in specialized IT support. Without specific benchmarks for similar systems, a direct comparison is difficult, but the price appears reasonable for a sole-source, long-term maintenance agreement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to higher costs than if the service had been open to multiple bidders.
Taxpayer Impact: Taxpayer funds are being used for a critical national security program. While the cost is significant, the lack of competition means the full value for taxpayer money is harder to ascertain.
Public Impact
Ensures the operational readiness of the Chemical Stockpile Emergency Preparedness Program's information system. Supports the Department of Defense's ability to respond to chemical threats. Maintains vital infrastructure for national security and public safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration without re-competition.
- Lack of transparency on specific performance metrics.
Positive Signals
- Supports a critical national security program.
- Firm-fixed-price contract provides cost certainty.
- Experienced contractor likely ensures system stability.
Sector Analysis
The IT support services sector is broad, but this contract falls under specialized system maintenance for a government program. Spending benchmarks for similar niche government IT maintenance contracts are difficult to establish due to unique requirements and limited competition.
Small Business Impact
This contract was awarded to IEM International, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight would focus on ensuring the contractor meets the defined service level agreements and maintains the system's integrity and availability as per the contract terms.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to sole-source award
- Long-term reliance on a single vendor
- Limited transparency on performance metrics
Tags
all-other-support-services, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to IEM INTERNATIONAL, INC.. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM (CSEPP) WEBPUFF AUTOMATED INFORMATION SYSTEM (AIS) MAINTENANCE AND LIFECYCLE SUPPORT.
Who is the contractor on this award?
The obligated recipient is IEM INTERNATIONAL, 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 $29.3 million.
What is the period of performance?
Start: 2019-02-08. End: 2024-02-08.
What is the justification for the sole-source award, and was a market research conducted to confirm no other vendors could provide the required services?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity of services where only one vendor can meet the requirements. A thorough market research process should have been conducted to validate that no other capable sources exist, ensuring the government explored all viable options before proceeding without competition.
How does the cost of this contract compare to industry benchmarks for similar specialized IT maintenance and lifecycle support, considering the sole-source nature?
Benchmarking sole-source contracts is challenging due to the absence of competitive pricing. While the firm-fixed-price structure offers cost certainty, the lack of competition means the price might be higher than in a competitive environment. A detailed cost analysis by the agency, comparing labor rates and overhead to industry standards, would be necessary to assess value for money.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being monitored to ensure the effectiveness of the CSEPP AIS maintenance?
Effective oversight requires clearly defined KPIs, such as system uptime, response times for critical issues, and successful implementation of updates or patches. The Department of the Army should have a robust performance monitoring system in place, including regular reviews and reporting, to ensure IEM International, Inc. is meeting all contractual obligations and maintaining the system's operational effectiveness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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: W911SR19R0008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2801 SLATER RD STE 110, MORRISVILLE, NC, 27560
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $29,318,828
Exercised Options: $29,318,828
Current Obligation: $29,318,828
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-02-08
Current End Date: 2024-02-08
Potential End Date: 2024-02-08 00:00:00
Last Modified: 2023-02-06
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