Commerce Department's $7.4M IT support contract awarded to International Business Sales and Services Corp

Contract Overview

Contract Amount: $7,411,751 ($7.4M)

Contractor: International Business Sales and Services Corp

Awarding Agency: Department of Commerce

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY PROGRAM SUPPORT SERVICES

Place of Performance

Location: WOODS HOLE, BARNSTABLE County, MASSACHUSETTS, 02543

State: Massachusetts Government Spending

Plain-Language Summary

Department of Commerce obligated $7.4 million to INTERNATIONAL BUSINESS SALES AND SERVICES CORP for work described as: INFORMATION TECHNOLOGY PROGRAM SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract type and duration, but detailed benchmarking is needed. 2. Full and open competition suggests a competitive pricing environment, but the number of bidders is not specified. 3. Risk indicators are moderate, with a time-and-materials contract type posing potential cost escalation risks. 4. Performance context is within IT program support, a common area for federal spending. 5. Sector positioning is within Information Technology services, a significant area of government expenditure.

Value Assessment

Rating: fair

The contract's total value of $7.4 million over three years suggests a moderate annual spend. Benchmarking against similar IT program support contracts is crucial to assess if the pricing is competitive. The time-and-materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed closely, making direct value-for-money assessment challenging without detailed labor rates and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While this generally promotes competitive pricing, the specific number of bidders (10 offers received) is important to understand the true level of competition. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are federal agencies requiring IT program support services, ensuring continuity and efficiency in their operations. Services delivered include custom computer programming and related IT support, crucial for modern government functions. The geographic impact is likely national, supporting the Department of Commerce's operations across various locations. Workforce implications include potential employment opportunities for IT professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The contractor's track record with similar large-scale federal IT contracts needs further investigation.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Multiple offers received (10), indicating significant interest and potential for competitive pricing.
Contract duration of three years provides stability for IT program support.

Sector Analysis

The Information Technology sector is a major area of federal spending, with significant investment in custom computer programming and IT support services. This contract falls under the broader category of IT services, which includes a wide range of activities from software development to system maintenance. Comparable spending benchmarks for similar IT support contracts within federal agencies can range widely depending on scope and complexity, but this contract's value is moderate within the context of large IT procurements.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates the primary awardee is not a small business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. Accountability measures would be defined in the contract's performance work statement and administered by the contracting officer's representative. Transparency is generally facilitated through contract award databases, but detailed performance and cost oversight information may not be publicly available.

Related Government Programs

IT Program Support Services
Custom Computer Programming Services
MAS Schedule Contracts
Department of Commerce IT Procurement

Risk Flags

Time and Materials contract type carries inherent cost escalation risk.
Lack of detailed performance metrics requires close monitoring.
Contractor's past performance on similar large-scale contracts needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $7.4 million to INTERNATIONAL BUSINESS SALES AND SERVICES CORP. INFORMATION TECHNOLOGY PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS SALES AND SERVICES CORP.

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 $7.4 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is the specific nature of the IT program support services being provided under this contract?

The contract specifies 'Custom Computer Programming Services' (NAICS code 541511) and general 'Information Technology Program Support Services'. This typically encompasses a range of activities such as software development, system integration, IT consulting, database management, network support, and potentially project management for IT initiatives. The exact deliverables would be detailed in the Performance Work Statement (PWS) which is not provided here. These services are crucial for maintaining and enhancing the technological infrastructure and capabilities of the National Oceanic and Atmospheric Administration (NOAA).

How does the awarded amount of $7.4 million compare to historical spending on similar IT support services by NOAA or the Department of Commerce?

Without historical spending data specific to NOAA's IT program support or custom programming services, a direct comparison is difficult. However, $7.4 million over three years averages to approximately $2.47 million per year. This is a moderate-sized contract within the federal IT landscape. Agencies like NOAA often have substantial IT budgets, and spending can fluctuate based on specific project needs, system modernization efforts, and contract renewals. Benchmarking against similar contracts awarded to other agencies for comparable services would provide better context on whether this amount is within the expected range.

What are the potential risks associated with the 'Time and Materials' (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project timelines extend unexpectedly, the total cost can escalate significantly beyond initial estimates. Effective oversight, including detailed tracking of labor hours and material usage, and clear definition of 'not-to-exceed' clauses are critical to mitigate these risks for the government.

Given 10 offers were received, what does this suggest about the competitiveness of the market for these IT services?

Receiving 10 offers under a full and open competition indicates a healthy level of interest and competition within the market for these specific IT program support services. This suggests that multiple companies possess the capabilities and are willing to bid on contracts of this nature. A higher number of bidders generally leads to more competitive pricing as contractors vie for the award. It also provides the government with a broader range of technical solutions and potentially better value for taxpayer dollars compared to situations with fewer bidders.

What is the track record of International Business Sales and Services Corp. in performing similar federal IT contracts?

Information on the specific track record of International Business Sales and Services Corp. for similar federal IT contracts is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the size and complexity of previous contracts they have held, and client feedback. Understanding their history with custom computer programming and IT program support, particularly within agencies of similar size and scope to NOAA, is crucial for evaluating their capability to successfully execute this $7.4 million contract.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1305M323QNFFM0058

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1110 BONIFANT ST SUITE 501, SILVER SPRING, MD, 20910

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,706,022

Exercised Options: $7,512,114

Current Obligation: $7,411,751

Actual Outlays: $5,282,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M421ANAAA0044

IDV Type: BPA

Timeline