DoD's $9.99M Apptricity Contract for TIS Program Lacked Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $9,990,952 ($10.0M)
Contractor: Apptricity Corporation
Awarding Agency: Department of Defense
Start Date: 2007-04-24
End Date: 2012-04-29
Contract Duration: 1,832 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: U434I10 APPTRICITY- FOR TIS PROGRAM
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75038
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to APPTRICITY CORPORATION for work described as: U434I10 APPTRICITY- FOR TIS PROGRAM Key points: 1. Contract awarded to Apptricity Corporation for custom computer programming services. 2. Significant spending of $9.99M over 1832 days. 3. Lack of competition raises questions about price discovery and potential overpayment. 4. Services fall under IT sector, specifically custom computer programming.
Value Assessment
Rating: questionable
The contract's total value of $9.99M over five years suggests a substantial investment. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar custom programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The TIS program's effectiveness could be impacted if the chosen vendor's solution is not optimal. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Contract awarded to a single vendor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Benchmarks for similar services can vary widely based on complexity and vendor, but competitive bidding is crucial for establishing fair market value.
Small Business Impact
The contract data does not indicate any specific provisions or awards made to small businesses. The sole-source nature of the award further suggests limited opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing competitive procedures. Accountability for ensuring fair pricing and value for taxpayer money is diminished without a competitive process.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in procurement
- No clear indication of small business participation
- Questionable value for taxpayer money
Tags
custom-computer-programming-services, department-of-defense, tx, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to APPTRICITY CORPORATION. U434I10 APPTRICITY- FOR TIS PROGRAM
Who is the contractor on this award?
The obligated recipient is APPTRICITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2007-04-24. End: 2012-04-29.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research report conducted to confirm the absence of viable alternatives?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would require access to the contract file to ascertain the specific justification, such as unique capabilities or urgent need. Without this documentation, it's impossible to confirm if adequate market research was performed to validate the sole-source determination and ensure no other vendors could meet the requirement.
How was the 'fair and reasonable' price determined for this sole-source contract, and what benchmarks were used to validate the pricing against industry standards?
Determining a 'fair and reasonable' price for a sole-source contract is challenging without competitive bids. Agencies typically rely on historical pricing, catalog prices, or independent government cost estimates. The data provided does not include this information, making it difficult to assess if the $9.99M awarded price accurately reflects market value for custom computer programming services.
What metrics were used to measure the effectiveness and value delivered by Apptricity Corporation for the TIS Program under this contract?
Effectiveness and value metrics are critical for any contract, especially sole-source ones. The contract data itself doesn't specify performance metrics or deliverables. An assessment would require reviewing performance reports, user feedback, and program outcomes related to the TIS program to determine if the $9.99M investment yielded the intended benefits and met the government's 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: W912HZ07R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5605 N MACARTHUR BLVD STE 200, IRVING, TX, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $9,990,952
Exercised Options: $9,990,952
Current Obligation: $9,990,952
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-24
Current End Date: 2012-04-29
Potential End Date: 2012-04-29 00:00:00
Last Modified: 2010-04-27
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