NOAA's $58M environmental data services contract awarded to Riverside Technology Inc. shows fair value with 4 bidders

Contract Overview

Contract Amount: $58,047,449 ($58.0M)

Contractor: Riverside Technology Inc

Awarding Agency: Department of Commerce

Start Date: 2019-02-07

End Date: 2024-02-07

Contract Duration: 1,826 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OBTAINING OPERATIONAL MISSION SUPPORT SERVICES TO ACQUIRE, INGEST, ARCHIVE, PROCESS, ANALYZE AND TO PROVIDE ACCESS TO ENVIRONMENTAL DATA AND TO PRODUCE AND DELIVER ENVIRONMENTAL INTELLIGENCE TO USERS.

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $58.0 million to RIVERSIDE TECHNOLOGY INC for work described as: OBTAINING OPERATIONAL MISSION SUPPORT SERVICES TO ACQUIRE, INGEST, ARCHIVE, PROCESS, ANALYZE AND TO PROVIDE ACCESS TO ENVIRONMENTAL DATA AND TO PRODUCE AND DELIVER ENVIRONMENTAL INTELLIGENCE TO USERS. Key points: 1. The contract's value appears reasonable given the scope of environmental data acquisition, processing, and intelligence delivery. 2. Full and open competition suggests a healthy market for these specialized services, potentially driving competitive pricing. 3. The duration of the contract (5 years) indicates a long-term need for these critical environmental data capabilities. 4. Performance context is crucial; ongoing assessment of data quality and user access will determine true value. 5. This contract positions Riverside Technology Inc. as a key provider in the environmental data services sector for NOAA. 6. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a focus on advanced analytical capabilities.

Value Assessment

Rating: fair

The contract's total value of approximately $58 million over five years averages to about $11.6 million annually. This appears to be a fair valuation for comprehensive environmental data services, including acquisition, processing, analysis, and intelligence delivery. Benchmarking against similar large-scale data management and analysis contracts within federal agencies suggests this pricing is within an expected range, especially considering the specialized nature of environmental data and the need for robust analytical tools. The cost-plus-fixed-fee (CPFF) structure allows for flexibility while maintaining cost control.

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 offers. With four bidders participating, the competition level suggests a reasonably active market for these specialized environmental data services. The presence of multiple bidders generally contributes to price discovery and can lead to more competitive pricing for the government. The agency's decision to pursue full and open competition is a positive indicator of seeking the best value from the market.

Taxpayer Impact: The full and open competition process for this contract likely resulted in a more favorable price for taxpayers by encouraging multiple companies to bid and offer their best terms. This competitive environment helps ensure that taxpayer funds are used efficiently for essential environmental data services.

Public Impact

Environmental scientists, researchers, and policymakers benefit from access to processed and analyzed environmental data. The contract delivers critical services for acquiring, archiving, processing, analyzing, and providing access to environmental data. Geographic impact is nationwide, supporting environmental monitoring and intelligence across various regions. Workforce implications include supporting federal employees and contractors involved in environmental science and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can sometimes lead to cost overruns if not managed tightly.
Reliance on a single contractor for critical data infrastructure could pose a risk if performance degrades.
Ensuring data integrity and security throughout the acquisition and analysis lifecycle is paramount.

Positive Signals

Awarded under full and open competition, indicating a robust market and potential for competitive pricing.
The contract duration of five years suggests a stable, long-term need and commitment to environmental data services.
Riverside Technology Inc. has secured a significant contract, indicating a level of trust and capability in this specialized field.

Sector Analysis

The environmental data services sector is crucial for government agencies like NOAA, which are responsible for understanding and managing natural resources and environmental changes. This contract fits within the broader market for data management, analytics, and scientific research services. The NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) highlights the scientific and technical nature of the work. Comparable spending benchmarks would involve looking at other large federal contracts for data processing, scientific analysis, and environmental monitoring services, which can range from tens to hundreds of millions of dollars depending on scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Riverside Technology Inc. is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Riverside Technology Inc. actively seeks small business partners for specialized services or if the contract's nature limits subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and public reporting. While no specific Inspector General jurisdiction is mentioned, the Department of Commerce's Office of Inspector General would likely have oversight authority over significant contracts within NOAA.

Related Government Programs

NOAA Environmental Data Services
Federal Data Management Contracts
Scientific Research and Development Services
Environmental Intelligence Platforms
Cloud Data Processing and Analytics

Risk Flags

Potential for cost overruns due to CPFF structure
Data security and integrity risks
Contractor performance dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $58.0 million to RIVERSIDE TECHNOLOGY INC. OBTAINING OPERATIONAL MISSION SUPPORT SERVICES TO ACQUIRE, INGEST, ARCHIVE, PROCESS, ANALYZE AND TO PROVIDE ACCESS TO ENVIRONMENTAL DATA AND TO PRODUCE AND DELIVER ENVIRONMENTAL INTELLIGENCE TO USERS.

Who is the contractor on this award?

The obligated recipient is RIVERSIDE TECHNOLOGY 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 $58.0 million.

What is the period of performance?

Start: 2019-02-07. End: 2024-02-07.

What is Riverside Technology Inc.'s track record with NOAA and other federal agencies for similar data services?

Riverside Technology Inc. has a history of providing environmental data services to NOAA and other federal entities. Their experience often includes data acquisition, processing, analysis, and dissemination for various environmental applications, such as weather forecasting, climate monitoring, and oceanographic research. Examining past performance evaluations and contract history with agencies like the National Weather Service, NASA, or the Department of Defense can provide further insight into their reliability, technical capabilities, and ability to meet complex requirements. A review of their contract portfolio would reveal the scale and complexity of projects they have successfully managed, offering a baseline for assessing their suitability for this significant award.

How does the pricing of this contract compare to similar environmental data service contracts awarded by NOAA or other agencies?

The total contract value of approximately $58 million over five years, averaging around $11.6 million annually, appears competitive for the scope of services. To benchmark effectively, one would compare this to other large-scale contracts for environmental data acquisition, processing, analysis, and intelligence delivery. Factors such as the specific types of data (e.g., satellite imagery, sensor data, climate models), the required analytical sophistication, the number of users, and the geographic coverage significantly influence pricing. Given the full and open competition with four bidders, the price achieved suggests a reasonable market rate. However, a detailed comparison would require access to pricing data from comparable contracts, considering variations in service levels and technical requirements.

What are the key performance indicators (KPIs) used to measure the success and value of this contract?

Key performance indicators for this contract would likely focus on the timeliness, accuracy, and accessibility of environmental data and intelligence. Specific KPIs could include data ingest rates, processing turnaround times, data quality metrics (e.g., error rates, completeness), system uptime and availability for user access, and the successful delivery of actionable environmental intelligence reports. User satisfaction surveys and feedback from NOAA stakeholders would also be critical. The effectiveness of the analytical tools and the ability to derive meaningful insights from the data would be paramount. Performance against these KPIs would directly inform the assessment of value for money and contractor performance.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this environmental data service?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for evolving requirements common in R&D and data services, carries inherent risks. The primary risk is that costs could exceed initial estimates, although the fixed fee provides the contractor with a defined profit margin. Effective oversight by NOAA is crucial to monitor expenditures, ensure that costs are reasonable and allocable, and prevent scope creep that could inflate the overall contract value. If not managed diligently, the government might end up paying more than anticipated. However, for complex services where precise cost estimation is difficult upfront, CPFF can be an appropriate choice when balanced with strong government oversight.

How does this contract contribute to NOAA's broader mission and strategic goals related to environmental monitoring and prediction?

This contract is central to NOAA's mission of understanding and predicting changes in the Earth's environment, from the depths of the ocean to the atmosphere and outer space. By ensuring the acquisition, processing, analysis, and accessibility of vast amounts of environmental data, it directly supports NOAA's operational forecasting, climate research, and resource management activities. The environmental intelligence produced enables better decision-making for weather preparedness, climate adaptation, sustainable fisheries, and coastal resilience. This contract empowers NOAA to fulfill its mandate of providing critical environmental information to the nation, thereby safeguarding lives and property and promoting economic well-being.

What are the historical spending patterns for environmental data services at NOAA, and how does this contract fit within them?

Historical spending on environmental data services at NOAA has likely been substantial and consistent, reflecting the agency's core mission. This typically includes significant investments in data acquisition infrastructure (satellites, sensors), data management systems, processing capabilities, and analytical tools. Contracts for data processing and analysis, like this one, represent a key component of that spending. This $58 million, five-year contract appears to be a significant, but not necessarily unprecedented, investment for comprehensive data services. Understanding past spending trends would involve analyzing NOAA's budget allocations for IT, research, and operational data systems over several fiscal years to contextualize the scale and importance of this particular award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3350 EASTBROOK DR STE 270, FORT COLLINS, CO, 80525

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,155,014

Exercised Options: $67,349,922

Current Obligation: $58,047,449

Actual Outlays: $7,452,728

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $28,551,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCST133017CQ0058

IDV Type: IDC

Timeline