Commerce Department's $19.4M IT Network Support Contract Awarded to Syneren Technologies Corporation

Contract Overview

Contract Amount: $19,424,708 ($19.4M)

Contractor: Syneren Technologies Corporation

Awarding Agency: Department of Commerce

Start Date: 2018-05-13

End Date: 2023-11-30

Contract Duration: 2,027 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF IT NETWORK SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $19.4 million to SYNEREN TECHNOLOGIES CORPORATION for work described as: IGF::OT::IGF IT NETWORK SUPPORT Key points: 1. Value for money appears fair given the 5-year duration and scope of IT network support. 2. The contract was competed, indicating a degree of market engagement. 3. Risk indicators are moderate, with a Time and Materials pricing structure potentially leading to cost overruns if not managed closely. 4. Performance context is for essential IT network support services for the Department of Commerce. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The award amount is within a reasonable range for similar large-scale IT support contracts.

Value Assessment

Rating: fair

The contract's total value of approximately $19.4 million over five years for IT network support services seems reasonable when benchmarked against similar government IT contracts. The Time and Materials (T&M) pricing structure, however, introduces a degree of risk for cost escalation if not meticulously managed and monitored by the agency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and scope suggest a standard market rate was likely considered.

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,' suggesting that while the initial intent might have involved specific exclusions, the final award was made through a broad competitive process. The presence of 4 bids indicates a reasonable level of competition, which generally aids in price discovery and achieving competitive pricing for the government. The specific nature of the exclusion of sources prior to the final competition is not detailed, but the ultimate open competition is a positive sign.

Taxpayer Impact: The open competition process, with multiple bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. This competitive environment encourages vendors to offer their best pricing to secure the contract.

Public Impact

The Department of Commerce benefits from continuous and reliable IT network support, crucial for its operations. Essential IT network infrastructure services are delivered, ensuring connectivity and data management. The primary geographic impact is within the District of Columbia, where the Department of Commerce is headquartered. The contract supports jobs within the IT services sector, contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The specific details of 'Exclusion of Sources' prior to full and open competition warrant further clarification.
Lack of detailed performance metrics makes it difficult to fully assess efficiency and effectiveness.
Contract duration of over 5 years (including options) requires sustained oversight.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (4) suggest a healthy competitive landscape.
Contract supports critical IT infrastructure for a major federal agency.
Syneren Technologies Corporation has a track record with government contracts.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. This contract for network support aligns with the broader trend of agencies outsourcing complex IT functions to specialized firms. The market for such services is competitive, with numerous providers capable of delivering these solutions. Benchmarks for similar contracts often range from millions to tens of millions annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements explicitly detailed in the provided data. The award to Syneren Technologies Corporation, a company that may or may not be classified as small depending on its size and revenue, means that the primary contract value does not directly flow to the small business ecosystem through a set-aside. However, the prime contractor may engage small businesses as subcontractors, which would be a secondary impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Commerce's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The contract's Time and Materials nature necessitates particularly diligent oversight to control costs. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense IT Support Services
Federal Civilian Agency IT Modernization Programs
IT Network Infrastructure Services

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for robust contract oversight to manage performance and costs.
Clarity needed on the rationale behind 'Exclusion of Sources' prior to open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $19.4 million to SYNEREN TECHNOLOGIES CORPORATION. IGF::OT::IGF IT NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is SYNEREN TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2018-05-13. End: 2023-11-30.

What is Syneren Technologies Corporation's past performance record with the federal government, particularly on similar IT network support contracts?

Syneren Technologies Corporation has a history of performing various IT services for federal agencies. While specific details on past performance for network support contracts of this magnitude are not fully elaborated in the provided data, their engagement with the government suggests a baseline familiarity with federal procurement processes and requirements. A deeper dive into their contract history, including any past performance evaluations or awards, would be necessary for a comprehensive assessment. Generally, agencies review past performance as a key factor in award decisions, looking for evidence of successful delivery, adherence to schedules, and effective management of resources on previous, comparable projects.

How does the awarded price compare to industry benchmarks for similar IT network support services over a five-year period?

Benchmarking the $19.4 million award for IT network support over five years requires comparing it against similar contracts awarded by other federal agencies or within the private sector. Given the scope of network support, which can include maintenance, upgrades, security, and helpdesk services, this figure appears within a plausible range for a large agency like the Department of Commerce. However, without granular details on the specific services included (e.g., number of users supported, complexity of the network, specific technologies involved), a precise comparison is difficult. The Time and Materials pricing structure also adds variability, meaning the final cost could deviate from the initial estimate. A detailed cost analysis by the agency would have ideally informed the pricing strategy.

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

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not managed stringently. Mitigation strategies employed by the government typically include establishing a "not-to-exceed" (NTE) ceiling for the contract, requiring detailed timesheets and expense reports, conducting regular audits of labor hours and material costs, and implementing robust project management oversight to ensure efficient task completion. The Department of Commerce's contracting officers would be responsible for actively monitoring these aspects to control costs and ensure value.

What is the historical spending pattern for IT network support services at the Department of Commerce, and how does this contract fit within that trend?

Historical spending data for IT network support at the Department of Commerce would provide crucial context for evaluating this $19.4 million, five-year contract. If the agency has consistently spent similar amounts on network support in the past, this award might represent a continuation of established service levels and costs. Conversely, a significant deviation from historical spending could indicate a change in scope, service provider, or pricing strategy. Analyzing trends in IT spending, including investments in network infrastructure, cybersecurity, and cloud migration, would reveal whether this contract aligns with broader departmental IT modernization efforts or represents a steady-state operational cost. Without access to this historical data, it's challenging to definitively place this contract within a trend.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the procurement process and potential impact on pricing?

The designation 'Full and Open Competition After Exclusion of Sources' suggests a nuanced procurement approach. Initially, certain sources or types of contractors may have been excluded from consideration, perhaps due to specific requirements, past performance issues, or a desire to focus on a particular segment of the market. However, the contract was ultimately awarded through a process open to all responsible sources, meaning multiple bidders were allowed to compete. This typically leads to competitive pricing. The exclusion phase might have aimed to refine the pool of potential bidders or ensure specific capabilities were met before opening it up, potentially balancing a desire for specialized solutions with the benefits of broad competition. The final outcome, with 4 bidders, indicates that the open competition phase was effective in attracting sufficient interest.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2000 14TH ST N, SUITE 730, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,777,217

Exercised Options: $19,424,708

Current Obligation: $19,424,708

Actual Outlays: $3,099,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200097W

IDV Type: GWAC

Timeline