NOAA awards $54.3M for engineering and mission operations support, with R&D focus

Contract Overview

Contract Amount: $54,295,750 ($54.3M)

Contractor: Data Networks, Inc.

Awarding Agency: Department of Commerce

Start Date: 2021-05-24

End Date: 2026-03-28

Contract Duration: 1,769 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: ENGINEERING AND MISSION OPERATIONS SUPPORT SERVICES (EMOSS VI)

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $54.3 million to DATA NETWORKS, INC. for work described as: ENGINEERING AND MISSION OPERATIONS SUPPORT SERVICES (EMOSS VI) Key points: 1. Contract value represents a significant investment in critical scientific infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of service. 3. Performance period extends over several years, indicating a need for sustained support. 4. The contract aligns with NOAA's mission to understand and predict changes in climate, weather, oceans, and coasts. 5. Research and Development sector focus highlights investment in scientific advancement.

Value Assessment

Rating: good

The contract value of $54.3 million over its period of performance appears reasonable for specialized engineering and mission operations support. Benchmarking against similar R&D support contracts would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while common, requires careful monitoring to ensure costs remain within expected parameters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Benefits NOAA's scientific research and operational capabilities. Supports critical weather forecasting, climate monitoring, and oceanic research. Geographic impact is national, supporting NOAA's nationwide operations. Workforce implications include specialized engineering and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely managed.
Ensuring continued innovation and adaptation to evolving technological needs.
Maintaining a highly skilled workforce to meet specialized requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust process.
Long-term contract duration allows for sustained support and knowledge retention.
Focus on R&D aligns with national scientific advancement goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized support services is driven by government agencies with complex scientific missions. Comparable spending benchmarks would involve analyzing other large-scale R&D support contracts awarded by agencies like NASA, NSF, or DoD.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that larger, established firms were likely the primary bidders and recipients. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) within NOAA, who monitors performance, deliverables, and adherence to contract terms. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Research and Development Programs
National Weather Service Operations
National Ocean Service Programs
Climate Research Initiatives

Risk Flags

Potential cost overruns due to T&M pricing structure.
Limited competition (2 bidders) may result in suboptimal pricing.
Need for robust oversight to manage scope and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $54.3 million to DATA NETWORKS, INC.. ENGINEERING AND MISSION OPERATIONS SUPPORT SERVICES (EMOSS VI)

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 $54.3 million.

What is the period of performance?

Start: 2021-05-24. End: 2026-03-28.

What is the historical spending pattern for similar engineering and mission operations support services at NOAA?

Analyzing NOAA's historical spending on 'ENGINEERING AND MISSION OPERATIONS SUPPORT SERVICES (EMOSS VI)' and comparable contracts would reveal trends in contract values, durations, and competition levels. For instance, previous iterations of EMOSS or similar service contracts could indicate whether this $54.3 million award is an increase or decrease in investment. Understanding past spending helps in assessing the current contract's scale and potential for future renewals or expansions. It also provides context for evaluating the agency's consistent need for these types of specialized services and the market's capacity to meet those needs over time. Without specific historical data points for this exact service category, a general review of NOAA's R&D and operational support budgets would be necessary to establish a baseline.

How does the contractor, DATA NETWORKS, INC., perform on other federal contracts?

DATA NETWORKS, INC.'s performance on other federal contracts is a key indicator of their reliability and capability. A review of their contract history, particularly within the Department of Commerce and NOAA, would reveal their track record. This includes examining past performance evaluations, any instances of contract disputes or terminations, and their success in delivering services on time and within budget. High ratings and a history of successful contract completions suggest a lower risk for this current award. Conversely, a pattern of poor performance or unresolved issues would raise concerns about the effective execution of the EMOSS VI contract. Accessing federal procurement data systems would provide the necessary information to assess their overall performance profile.

What are the specific risks associated with a Time and Materials (T&M) contract type for this service?

Time and Materials (T&M) contracts, like the one awarded to DATA NETWORKS, INC., carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and materials used, plus a fixed fee or fixed hourly rate. This structure can lead to cost overruns if the scope of work is not well-defined or if contractor efficiency is low. The risk for the government lies in potentially paying more than anticipated if the project takes longer or requires more resources than initially estimated. Effective oversight, detailed work breakdown structures, and vigilant monitoring of labor hours and material costs are crucial to mitigate these risks and ensure fair pricing and value for taxpayer dollars.

What is the estimated value of this contract compared to the total R&D spending by NOAA?

To assess the estimated value of this $54.3 million contract relative to NOAA's total R&D spending, one would need access to NOAA's annual budget reports and specific breakdowns of R&D expenditures. If NOAA's total annual R&D budget is in the hundreds of millions or billions, this contract represents a significant but potentially proportional investment in a specific area. If NOAA's R&D budget is smaller, this contract could represent a substantial portion of their research funding. This comparison helps contextualize the contract's importance within the agency's broader scientific mission and resource allocation priorities. Without NOAA's specific R&D spending figures, a precise comparison cannot be made, but it is likely a substantial allocation for specialized support.

How does the number of bidders (2) impact the potential for cost savings for the government?

A competition with only two bidders, as seen in this award, generally offers less potential for cost savings compared to a scenario with numerous bidders. With more bidders, the competitive pressure tends to drive prices down as companies vie for the contract. Two bidders still provide some level of competition, preventing a sole-source situation, but the government may not achieve the lowest possible price. The contracting agency must ensure that the evaluation process is robust and that the awarded price is fair and reasonable, even with limited competition. Future solicitations might benefit from strategies to attract a broader range of qualified bidders to enhance price discovery.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1332KP21RNEEB0002

Offers Received: 2

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: $60,833,785

Exercised Options: $60,833,785

Current Obligation: $54,295,750

Actual Outlays: $28,846,189

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,763,321

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