Commerce Awards $49.9M R&D Contract to Data Networks, Inc. for Financial Management Support
Contract Overview
Contract Amount: $49,912,114 ($49.9M)
Contractor: Data Networks, Inc.
Awarding Agency: Department of Commerce
Start Date: 2019-12-27
End Date: 2025-06-29
Contract Duration: 2,011 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: FINANCIAL MANAGEMENT SUPPORT (FMS) TASK ORDER
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $49.9 million to DATA NETWORKS, INC. for work described as: FINANCIAL MANAGEMENT SUPPORT (FMS) TASK ORDER Key points: 1. Contract value of $49.9M for R&D services. 2. Awarded under full and open competition. 3. Potential risk associated with Time and Materials pricing structure. 4. Sector is Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored. Without a ceiling, it's difficult to assess value definitively against similar fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the T&M pricing structure may limit price discovery and potentially inflate costs compared to fixed-price awards.
Taxpayer Impact: Taxpayer funds are being used for R&D services. The T&M structure poses a risk of higher-than-anticipated costs, impacting the overall value for taxpayer investment.
Public Impact
Supports critical financial management functions within NOAA. R&D services may lead to future technological advancements. Contract duration extends over multiple fiscal years. Potential for cost increases due to T&M pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of cost ceiling
- Long contract duration
Positive Signals
- Full and open competition
- Supports critical agency functions
- Potential for innovation
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for innovation but can be subject to cost variability.
Small Business Impact
The contract was awarded to Data Networks, Inc. and does not indicate any specific set-asides or participation from small businesses in this particular award.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials contract effectively, ensuring costs remain within reasonable bounds and that the R&D objectives are met.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Lack of defined cost ceiling
- Long contract duration (over 5 years)
Tags
research-and-development-in-the-physical, department-of-commerce, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $49.9 million to DATA NETWORKS, INC.. FINANCIAL MANAGEMENT SUPPORT (FMS) TASK ORDER
Who is the contractor on this award?
The obligated recipient is DATA NETWORKS, 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 $49.9 million.
What is the period of performance?
Start: 2019-12-27. End: 2025-06-29.
What is the estimated cost per hour or labor category, and how does it compare to industry benchmarks for similar R&D support services?
The provided data does not include specific hourly rates or labor category breakdowns. A thorough analysis would require access to the contract's detailed pricing structure. Benchmarking against similar government and commercial contracts for R&D financial management support would be necessary to assess cost-effectiveness.
What are the specific performance metrics and deliverables for this contract, and how will they be measured to ensure effective R&D outcomes?
The data does not detail specific performance metrics or deliverables. Effective oversight would require clearly defined objectives, milestones, and quality standards for the R&D tasks. Regular performance reviews and progress reports are essential to track the achievement of these outcomes and ensure taxpayer value.
Given the Time and Materials structure, what mechanisms are in place to control costs and prevent scope creep throughout the contract's duration?
The Time and Materials (T&M) contract type inherently carries a risk of cost escalation and scope creep. Robust government oversight, including detailed review of timesheets, labor categories, and direct costs, is crucial. Establishing clear task orders with not-to-exceed (NTE) CLINs or specific deliverables can help mitigate these risks.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 1332KP19QNEEA0006
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,567,170
Exercised Options: $52,861,777
Current Obligation: $49,912,114
Actual Outlays: $23,051,324
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,434,070
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DOCST133017CQ0042
IDV Type: IDC
Timeline
Start Date: 2019-12-27
Current End Date: 2025-06-29
Potential End Date: 2025-06-29 00:00:00
Last Modified: 2025-05-08
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