NOAA's $25.6M IT support contract awarded to ACTIONET INC, with 13 bids received
Contract Overview
Contract Amount: $25,616,018 ($25.6M)
Contractor: Actionet Inc
Awarding Agency: Department of Commerce
Start Date: 2021-04-29
End Date: 2026-05-31
Contract Duration: 1,858 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR NOAA OFFICE OF MARINE AND AVIATION OPERATIONS (OMAO), MARINE AND AVIATION CYBER CENTER (MACC).
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $25.6 million to ACTIONET INC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR NOAA OFFICE OF MARINE AND AVIATION OPERATIONS (OMAO), MARINE AND AVIATION CYBER CENTER (MACC). Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was fully and openly competed, suggesting a healthy market. 3. Risk indicators are moderate, with a Time and Materials pricing structure. 4. Performance context is IT support for critical marine and aviation operations. 5. Sector positioning is within IT services for a government agency. 6. The contract duration is substantial, spanning over 1800 days.
Value Assessment
Rating: good
The contract's total value of $25.6 million over its period of performance suggests a significant investment in IT support. While a direct per-unit cost comparison is difficult without more granular data on services rendered, the award to ACTIONET INC under full and open competition implies a benchmarked price against market rates. The Time and Materials (T&M) pricing structure, however, warrants careful monitoring to ensure costs remain aligned with expected effort and do not escalate beyond reasonable bounds.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. A total of 13 bids were received, demonstrating a robust level of interest and competition within the market for these IT support services. The significant number of bidders suggests that the government received a range of proposals and pricing, likely leading to a more competitive and potentially cost-effective outcome.
Taxpayer Impact: The high level of competition benefits taxpayers by driving down prices and encouraging contractors to offer their best value. It ensures that the government is not locked into a single provider and can leverage market forces to secure necessary services at a fair price.
Public Impact
Benefits NOAA's Office of Marine and Aviation Operations (OMAO) by ensuring the continuity of critical IT infrastructure. Delivers essential cybersecurity and IT support services to the Marine and Aviation Cyber Center (MACC). Geographic impact is primarily focused on supporting NOAA operations, which have national reach. Workforce implications include the potential for direct and indirect employment by ACTIONET INC and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not closely managed.
- The long duration of the contract (over 5 years) requires ongoing performance monitoring.
- Reliance on a single contractor for critical IT support could pose a risk if performance degrades.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- A significant number of bidders (13) suggests strong market interest and potential for good value.
- The contract supports critical NOAA operations, highlighting its importance and likely adherence to high standards.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and IT support. The market for government IT services is substantial, with agencies increasingly relying on external contractors for specialized expertise. Comparable spending benchmarks for similar IT support contracts within federal agencies often range from tens to hundreds of millions of dollars, depending on scope and duration. NOAA's award to ACTIONET INC appears to be within a typical range for comprehensive IT support.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, ACTIONET INC, may still engage small businesses as subcontractors to fulfill portions of the contract, depending on their own business practices and the specific needs of the services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within NOAA's OMAO. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- NOAA IT Services
- Department of Commerce IT Contracts
- Cybersecurity Support Services
- Custom Computer Programming Services
- Federal IT Infrastructure Support
Risk Flags
- Time and Materials Pricing
- Long Contract Duration
- Critical Infrastructure Support
Tags
it-services, department-of-commerce, noaa, full-and-open-competition, delivery-order, time-and-materials, cybersecurity, marine-operations, aviation-operations, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $25.6 million to ACTIONET INC. INFORMATION TECHNOLOGY SUPPORT SERVICES FOR NOAA OFFICE OF MARINE AND AVIATION OPERATIONS (OMAO), MARINE AND AVIATION CYBER CENTER (MACC).
Who is the contractor on this award?
The obligated recipient is ACTIONET INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $25.6 million.
What is the period of performance?
Start: 2021-04-29. End: 2026-05-31.
What is ACTIONET INC's track record with federal contracts, particularly within NOAA or similar agencies?
ACTIONET INC has a history of receiving federal contracts, primarily within the Department of Commerce and other civilian agencies. Their awards often center around IT services, including software development, cybersecurity, and general IT support. While specific performance metrics for past contracts are not detailed here, the fact that they were awarded this significant NOAA contract suggests a satisfactory performance history or a competitive proposal that met NOAA's requirements. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on previous federal awards to ACTIONET INC.
How does the $25.6 million contract value compare to similar IT support contracts awarded by NOAA or other agencies of comparable size?
The $25.6 million contract value for IT support services over approximately five years is a substantial but not unusual figure for a federal agency like NOAA. Comparable contracts for comprehensive IT support, cybersecurity, and custom programming services for agencies of similar scale (e.g., other bureaus within the Department of Commerce, or agencies like the National Science Foundation or parts of the Department of the Interior) can range from $10 million to over $50 million. The value is influenced by the scope of services, the criticality of the supported operations (marine and aviation operations are critical), and the duration. This award appears to be in line with market rates for such services.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?
The primary risk with a Time and Materials (T&M) contract, especially one valued at $25.6 million over five years, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed diligently, this can lead to costs exceeding initial estimates or budgets. Key risks include inefficient labor utilization, scope creep that isn't adequately controlled, and the contractor's incentive to prolong tasks. Robust oversight, detailed tracking of hours and materials, and clear definition of 'not to exceed' clauses or ceilings are crucial to mitigate these risks for NOAA.
How effective is the 'full and open competition' process in ensuring value for money for this specific IT support contract?
The 'full and open competition' process is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all eligible sources to compete, it fosters a competitive environment where contractors are incentivized to offer their best pricing and technical solutions. The fact that 13 bids were received for this NOAA contract indicates a healthy level of competition, which typically drives prices down and improves the quality of services offered. This process allows the government to select the offer that represents the best overall value, considering both price and technical merit, thereby maximizing taxpayer benefit.
What are the historical spending patterns for IT support services within NOAA's Office of Marine and Aviation Operations (OMAO)?
Historical spending patterns for IT support services within NOAA's OMAO would likely show a consistent need for such services, given the agency's mission-critical operations involving marine and aviation activities. Agencies like NOAA typically allocate significant portions of their budget to IT infrastructure, cybersecurity, and operational support. Past contracts for OMAO might reveal trends in service providers, contract types (e.g., T&M vs. fixed-price), and average annual spending. Understanding these patterns helps in assessing whether the current $25.6 million award represents an increase, decrease, or stable level of investment compared to previous periods, and whether it aligns with evolving technological needs and budget allocations.
What are the potential implications of awarding a large IT contract to a single vendor for critical cybersecurity functions?
Awarding a large IT contract for critical cybersecurity functions to a single vendor, like ACTIONET INC in this case, carries both benefits and risks. The benefit is streamlined management and a potentially deep, specialized understanding of NOAA's systems by the contractor. However, the risk lies in over-reliance and potential vendor lock-in. If the contractor underperforms, experiences security breaches themselves, or faces financial instability, it could severely impact NOAA's cybersecurity posture. It also limits the government's ability to quickly pivot to new technologies or alternative providers if needed. Robust performance standards, clear exit strategies, and potentially multi-vendor approaches for highly critical functions are often considered to mitigate these risks.
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 › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1305M221QNMAN0002
Offers Received: 13
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2600 PARK TOWER DR, VIENNA, VA, 22180
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $26,916,574
Exercised Options: $26,916,574
Current Obligation: $25,616,018
Actual Outlays: $16,014,594
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F327DA
IDV Type: FSS
Timeline
Start Date: 2021-04-29
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-04-09
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