DoD awards $49.8M for smartphones and software, with 6 bidders competing

Contract Overview

Contract Amount: $49,787,821 ($49.8M)

Contractor: Igov Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-23

End Date: 2023-03-31

Contract Duration: 738 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PROCUREMENT OF SMART PHONES AND ASSOCIATED SOFTWARE AND LICENSES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.8 million to IGOV TECHNOLOGIES, INC. for work described as: THE PROCUREMENT OF SMART PHONES AND ASSOCIATED SOFTWARE AND LICENSES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition with 6 bidders suggests fair price discovery. 3. Risk indicators are low due to firm fixed-price contract type and established vendor. 4. Performance context is a delivery order under a larger contract, indicating ongoing needs. 5. Sector positioning is within IT services, specifically computer-related services. 6. The contract duration of approximately two years aligns with typical technology refresh cycles.

Value Assessment

Rating: good

The contract value of $49.8 million for smartphones and associated software over two years appears to be within a reasonable range, especially considering it was awarded under full and open competition. Benchmarking against similar large-scale procurements for mobile devices and software licenses by other federal agencies suggests that the pricing is likely competitive. The firm fixed-price nature of the contract further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the initial solicitation allowed all responsible sources to submit offers. The presence of 6 bidders signifies a healthy level of competition, which is generally expected to drive down prices and encourage innovation. This broad competition suggests that the market for these services is robust and that the government had a good selection of potential providers.

Taxpayer Impact: A competitive award like this benefits taxpayers by ensuring that the government is not overpaying for essential technology and services. The multiple bids likely resulted in a more favorable price than would be achievable through a sole-source or limited competition.

Public Impact

The Department of the Army benefits from receiving updated mobile technology and software to support its operations. Personnel within the Army will have access to necessary communication and productivity tools. The geographic impact is likely widespread, supporting Army personnel across various locations. Workforce implications include enabling soldiers and civilian employees with modern devices for mission effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if software licenses are proprietary and difficult to transfer.
Dependence on a single vendor for hardware and software could lead to future price increases if not managed proactively.
Security risks associated with mobile devices and software require continuous monitoring and updates.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks for the government.
Competitive award process suggests a fair market price was secured.
Delivery order structure allows for flexibility in acquiring specific quantities and configurations as needed.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on the procurement of hardware (smartphones) and software/licenses. The market for enterprise mobile devices and associated management software is substantial, with numerous vendors competing. The Department of Defense is a significant consumer of such technologies, often requiring robust, secure, and scalable solutions to support its vast operational needs. Comparable spending benchmarks for similar IT procurements by large federal agencies can range from tens to hundreds of millions of dollars annually.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedule IT contracts
Department of Defense Enterprise Mobile Device procurements
Software and License Procurement
Mobile Device Management (MDM) Solutions

Risk Flags

Potential for technology obsolescence
Cybersecurity risks associated with mobile devices
Dependence on specific software ecosystems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.8 million to IGOV TECHNOLOGIES, INC.. THE PROCUREMENT OF SMART PHONES AND ASSOCIATED SOFTWARE AND LICENSES

Who is the contractor on this award?

The obligated recipient is IGOV 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 $49.8 million.

What is the period of performance?

Start: 2021-03-23. End: 2023-03-31.

What is the track record of IGOV TECHNOLOGIES, INC. with federal contracts, particularly for similar IT hardware and software?

A review of federal procurement data indicates that IGOV TECHNOLOGIES, INC. has a history of receiving federal contracts, primarily within the IT services and hardware domain. While specific details on the scale and nature of past contracts would require deeper analysis, their presence as a prime contractor suggests a level of established capability and experience. For this particular $49.8 million award, the company was selected through a competitive process, implying they met the technical and performance requirements set forth by the Department of the Army. Further investigation into past performance reviews and any reported issues on previous contracts would provide a more comprehensive understanding of their reliability and quality of service.

How does the $49.8 million value compare to typical spending on smartphones and software by the Department of Defense or similar agencies?

The $49.8 million awarded to IGOV TECHNOLOGIES, INC. for smartphones and associated software over approximately two years represents a significant, but not extraordinary, investment for a large federal agency like the Department of Defense. Large-scale procurements for enterprise mobile solutions can easily reach these figures, especially when factoring in device costs, software licenses, mobile device management (MDM) platforms, and ongoing support. For context, other branches of the military or agencies like the Department of Homeland Security often award similar or larger contracts for mobile technology. The competitive nature of this award suggests the price is aligned with market rates for such bulk purchases, rather than being an outlier.

What are the primary risks associated with this type of contract, and how are they mitigated?

The primary risks associated with this contract include potential vendor lock-in due to proprietary software, the rapid obsolescence of mobile technology, and cybersecurity vulnerabilities inherent in connected devices. Vendor lock-in is mitigated by the competitive bidding process, which encourages standard solutions, and by contract terms that should ideally allow for data portability. Technology obsolescence is managed through the contract's defined period (ending March 2023) and the expectation of future refresh cycles. Cybersecurity risks are addressed through stringent security requirements in the contract, regular software updates, and the Department of Defense's own robust cybersecurity protocols for device and network management.

What is the expected effectiveness or program outcome of providing these smartphones and software to the Army?

The expected effectiveness of this contract is to enhance the operational capabilities and communication efficiency of Department of the Army personnel. By providing modern smartphones and necessary software/licenses, the program aims to ensure that soldiers and civilian staff have reliable tools for communication, data access, situational awareness, and mission execution, regardless of their location. This can lead to improved decision-making, faster response times, and increased productivity. The specific software and licenses procured will dictate the exact functionalities, but generally, these procurements support a wide range of military applications, from logistics and intelligence to personnel management and field operations.

What are the historical spending patterns for similar mobile technology procurements by the Department of the Army?

Historical spending patterns for the Department of the Army on mobile technology, including smartphones, tablets, and associated software/services, have been substantial and generally increasing over the past decade. Agencies like the Army often procure these devices through various contract vehicles, including GSA schedules, other agency contracts, and direct solicitations. Spending can fluctuate based on modernization initiatives, troop deployments, and the lifecycle of existing equipment. While the $49.8 million for this specific delivery order is a notable amount, it aligns with the ongoing trend of equipping military personnel with advanced mobile capabilities to maintain operational readiness and technological superiority.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MA Federal, Inc.

Address: 12030 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,863,670

Exercised Options: $49,787,821

Current Obligation: $49,787,821

Actual Outlays: $5,530,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD81B

IDV Type: GWAC

Timeline