Commerce awards $24.7M for IT O&M, with Spatial Front Inc. securing a Time & Materials contract

Contract Overview

Contract Amount: $24,764,103 ($24.8M)

Contractor: Spatial Front Inc

Awarding Agency: Department of Commerce

Start Date: 2024-06-12

End Date: 2026-06-11

Contract Duration: 729 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT FOR OPERATIONS AND MAINTENANCE (O&M) BY PERFORMING INSTALLATIONS, UPGRADES, TESTING, CODING, MAINTENANCE, MONITORING, TROUBLESHOOTING, RECOVERY, AND DECOMMISSIONING FOR SYSTEMS, COMPUTE, USER EQUIPMENT, SOFTWARE, APPLICATIONS, AND APPLIAN

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $24.8 million to SPATIAL FRONT INC for work described as: SUPPORT FOR OPERATIONS AND MAINTENANCE (O&M) BY PERFORMING INSTALLATIONS, UPGRADES, TESTING, CODING, MAINTENANCE, MONITORING, TROUBLESHOOTING, RECOVERY, AND DECOMMISSIONING FOR SYSTEMS, COMPUTE, USER EQUIPMENT, SOFTWARE, APPLICATIONS, AND APPLIAN Key points: 1. Contract focuses on essential IT operations and maintenance, including upgrades, testing, and troubleshooting. 2. The award utilizes a Time and Materials pricing structure, which can pose cost control challenges. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially complex procurement process. 4. The contract duration of 729 days indicates a medium-term need for these IT services. 5. The National Oceanic and Atmospheric Administration (NOAA) is the primary beneficiary of these IT support services. 6. The contract value of approximately $24.7 million falls within a moderate spending range for IT O&M.

Value Assessment

Rating: fair

The contract value of $24.7 million for IT operations and maintenance appears reasonable given the scope of services. However, the Time and Materials (T&M) pricing model warrants careful monitoring to ensure cost efficiency. Without specific benchmarks for comparable T&M IT O&M contracts of this size and complexity, a definitive value-for-money assessment is challenging. The contract's duration and the nature of the services suggest a need for ongoing support, but the T&M structure introduces inherent risk for cost overruns if not managed diligently.

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.' This specific procurement method implies that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior arrangements. The number of bidders is not explicitly stated, but the method suggests a deliberate approach to ensure a competitive landscape while potentially addressing specific technical or programmatic requirements. The level of competition, even with exclusions, should theoretically drive price discovery, but the specifics of the exclusion could impact the ultimate competitiveness.

Taxpayer Impact: The 'full and open competition after exclusion of sources' approach aims to balance broad market access with specific needs, potentially leading to a fair price for taxpayers. However, the details of the exclusion are critical for understanding if the most competitive pricing was achieved.

Public Impact

The primary beneficiaries are NOAA, enabling the continuous operation and modernization of its critical IT systems. Services delivered include installation, upgrades, testing, coding, maintenance, monitoring, troubleshooting, recovery, and decommissioning of IT infrastructure. The geographic impact is primarily within Maryland, where the contractor is located, but the IT services support NOAA's national operations. Workforce implications include the need for skilled IT professionals to perform the specified O&M tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely managed.
The 'exclusion of sources' in the competition method warrants scrutiny to ensure maximum competition was achieved.
Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency.
The broad scope of 'operations and maintenance' could lead to scope creep if not clearly defined and monitored.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The contract addresses essential IT infrastructure support, crucial for NOAA's mission.
The contractor, Spatial Front Inc., is performing a vital role in maintaining government IT systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. This sector is characterized by a high demand for specialized skills in maintaining and upgrading complex IT infrastructures. Spending in this area is driven by the government's continuous need to modernize legacy systems and adopt new technologies to support agency missions. Comparable spending benchmarks for IT O&M contracts of this magnitude are common across various federal agencies, reflecting the ongoing investment in digital infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus remains on larger prime contractors and their ability to fulfill the contract requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within NOAA. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Operations and Maintenance Services
Computer Systems Design Services
Federal IT Modernization Programs
NOAA IT Infrastructure Support
Time and Materials Contracts

Risk Flags

Time and Materials Pricing Risk
Potential for Scope Creep
Complexity of IT O&M Services
Effectiveness of Competition Method

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $24.8 million to SPATIAL FRONT INC. SUPPORT FOR OPERATIONS AND MAINTENANCE (O&M) BY PERFORMING INSTALLATIONS, UPGRADES, TESTING, CODING, MAINTENANCE, MONITORING, TROUBLESHOOTING, RECOVERY, AND DECOMMISSIONING FOR SYSTEMS, COMPUTE, USER EQUIPMENT, SOFTWARE, APPLICATIONS, AND APPLIAN

Who is the contractor on this award?

The obligated recipient is SPATIAL FRONT 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 $24.8 million.

What is the period of performance?

Start: 2024-06-12. End: 2026-06-11.

What is the track record of Spatial Front Inc. in performing similar IT Operations and Maintenance contracts for federal agencies?

Spatial Front Inc. has a history of performing IT services for federal agencies. While specific details on past O&M contracts of this exact scope and value are not provided in this data snippet, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and past performance on similar IT support roles would be necessary to fully assess their track record. This would include examining their ability to manage Time and Materials contracts effectively and deliver on complex IT maintenance and upgrade requirements across different agencies.

How does the awarded price of $24.7 million compare to similar IT O&M contracts awarded by NOAA or other agencies?

Benchmarking the $24.7 million award requires comparing it against IT O&M contracts with similar scopes of work, service levels, and contract types (e.g., Time and Materials) awarded by NOAA or comparable agencies. Without access to a detailed market analysis or a database of comparable contract values, a precise comparison is difficult. However, for a multi-year contract supporting comprehensive IT operations and maintenance for a significant agency like NOAA, this value appears to be within a moderate range. Factors such as the specific systems supported, the complexity of the infrastructure, and the required skill sets would influence the final price.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. If not managed rigorously, this structure can incentivize longer task durations or less efficient work, as the contractor is paid for time spent. For this $24.7 million contract, risks include uncontrolled labor hours, inflated material costs, and scope creep that isn't effectively managed, potentially leading to the final cost exceeding initial estimates. Robust oversight, detailed task tracking, and clear definition of work are crucial to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT O&M services?

The 'full and open competition after exclusion of sources' method aims to balance broad market participation with specific requirements that might necessitate excluding certain potential bidders. Its effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusion and the number of remaining eligible bidders. If the exclusion is well-founded and a sufficient number of capable vendors remain, it can lead to competitive pricing. However, if the exclusion significantly limits the pool of qualified bidders, it could inadvertently reduce competition and potentially lead to higher prices than a truly unrestricted full and open competition. Transparency regarding the reasons for exclusion is key to assessing its impact on price discovery.

What are the historical spending patterns for IT Operations and Maintenance at NOAA, and how does this award fit within them?

Analyzing historical spending patterns for IT O&M at NOAA would involve examining past contract awards for similar services over several fiscal years. This contract, valued at approximately $24.7 million over two years, represents a significant but not necessarily anomalous investment in maintaining NOAA's IT infrastructure. Understanding whether NOAA's IT O&M spending has been increasing, decreasing, or remaining stable would provide context. This award likely fits within a pattern of continuous investment required to keep complex scientific and operational IT systems functioning, updated, and secure, reflecting the ongoing operational needs of the agency.

What are the potential performance challenges or indicators of success for this specific IT O&M contract?

Potential performance challenges for this IT O&M contract include maintaining system uptime, successfully implementing upgrades without disrupting services, timely troubleshooting and recovery from incidents, and ensuring data integrity and security. Indicators of success would involve meeting or exceeding defined service level agreements (SLAs) for system availability and response times, successful completion of planned upgrades and maintenance tasks within schedule, positive feedback from end-users regarding system performance and reliability, and adherence to budget parameters, especially given the T&M structure. Effective project management and clear communication channels are vital for navigating these challenges and achieving success.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR, BETHESDA, MD, 20817

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small 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: $62,280,674

Exercised Options: $24,826,061

Current Obligation: $24,764,103

Actual Outlays: $20,084,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0044

IDV Type: GWAC

Timeline