NOAA Awards $4.6M for Fisheries Observer Support, Raising Questions on R&D Classification
Contract Overview
Contract Amount: $4,630,948 ($4.6M)
Contractor: A.I.S., Inc.
Awarding Agency: Department of Commerce
Start Date: 2024-12-21
End Date: 2026-03-31
Contract Duration: 465 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: NEW TASK ORDER FOR OBSERVER SUPPORT SERVICES UNDER THE SOUTHEAST FISHERIES OBSERVER PROGRAM
Place of Performance
Location: GALVESTON, GALVESTON County, TEXAS, 77550
State: Texas Government Spending
Plain-Language Summary
Department of Commerce obligated $4.6 million to A.I.S., INC. for work described as: NEW TASK ORDER FOR OBSERVER SUPPORT SERVICES UNDER THE SOUTHEAST FISHERIES OBSERVER PROGRAM Key points: 1. Spending is for observer support services, classified under R&D, which may not align with the NAICS code. 2. The contract is a Time and Materials type, awarded under full and open competition after exclusion of sources. 3. A.I.S., Inc. is the contractor, with a duration of 465 days. 4. The contract's classification under R&D (541715) warrants scrutiny given the service description.
Value Assessment
Rating: questionable
The contract's value of $4.6M for observer support services, classified under R&D, appears high. Benchmarking against similar support service contracts is difficult due to the R&D classification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' this method suggests a competitive process was intended, but the exclusion of specific sources might limit price discovery.
Taxpayer Impact: Taxpayer funds are being used for observer support services. The classification and potential overpricing due to limited competition could impact the efficient use of these funds.
Public Impact
Fisheries management and conservation efforts may be impacted by the effectiveness and cost of observer services. The classification of observer support as R&D could misdirect research funding and inflate costs. Transparency in contracting is crucial for public trust, especially when classifications seem unusual.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Misclassification of service under R&D NAICS code.
- Potential for inflated costs due to T&M contract type and limited competition.
- Lack of clear justification for excluding sources in a full and open competition.
Positive Signals
- Contract awarded through a competitive process.
- Clear end date for service delivery.
Sector Analysis
The contract falls under the National Oceanic and Atmospheric Administration (NOAA), a sector focused on environmental and oceanic research. The spending benchmark for R&D services can vary widely, but classifying observer support under this category is unusual.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine small business participation.
Oversight & Accountability
Oversight would involve monitoring the performance of A.I.S., Inc. to ensure services are delivered as specified and within budget. Accountability rests with NOAA to justify the contract's classification and pricing.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential misclassification of contract type.
- Risk of cost escalation due to T&M structure.
- Limited competition despite 'full and open' designation.
- Lack of transparency in source exclusion.
- Questionable alignment of service with R&D NAICS code.
Tags
research-and-development-in-the-physical, department-of-commerce, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.6 million to A.I.S., INC.. NEW TASK ORDER FOR OBSERVER SUPPORT SERVICES UNDER THE SOUTHEAST FISHERIES OBSERVER PROGRAM
Who is the contractor on this award?
The obligated recipient is A.I.S., 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 $4.6 million.
What is the period of performance?
Start: 2024-12-21. End: 2026-03-31.
Is the classification of observer support services under NAICS code 541715 (R&D) appropriate and justified?
The classification appears questionable. NAICS 541715 typically covers fundamental research and experimental development. Observer support services are generally operational or logistical, not R&D. NOAA should provide a clear justification for this classification, as it may lead to misallocation of funds and inflated cost assessments compared to standard service contracts.
What is the potential risk of cost overruns with a Time and Materials (T&M) contract for observer support?
T&M contracts carry a significant risk of cost overruns because they reimburse the contractor for direct labor hours and costs, plus a fee. Without strong oversight and defined ceilings, the total cost can escalate beyond initial estimates, especially for services like observer support where the scope might be difficult to precisely define upfront.
How does the 'exclusion of sources' in a full and open competition impact the overall value for taxpayers?
While termed 'full and open competition,' the exclusion of sources suggests that only a subset of potential offerors were considered. This can limit the competitive landscape, potentially leading to higher prices than if all qualified sources were allowed to bid. Taxpayers may not receive the best possible value if the most competitive bids were excluded.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 14 BARNABAS ROAD, MARION, MA, 02738
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,247,161
Exercised Options: $5,247,161
Current Obligation: $4,630,948
Actual Outlays: $3,792,548
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1305M219DNFFN0019
IDV Type: IDC
Timeline
Start Date: 2024-12-21
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-03-23
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