Commerce Awards $64.6M Task Order to Earth Resources Technology for Non-Legacy System O&M
Contract Overview
Contract Amount: $64,639,537 ($64.6M)
Contractor: Earth Resources Technology, LLC
Awarding Agency: Department of Commerce
Start Date: 2023-04-24
End Date: 2027-03-28
Contract Duration: 1,434 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: OPERATIONS AND MAINTENANCE OF NON-LEGACY SYSTEMS (TASK ORDER 6) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $64.6 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: OPERATIONS AND MAINTENANCE OF NON-LEGACY SYSTEMS (TASK ORDER 6) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ Key points: 1. The contract focuses on maintaining non-legacy IT systems, a critical but often overlooked area. 2. Earth Resources Technology, LLC, a relatively small business, secured this significant award. 3. The Cost Plus Fixed Fee structure requires careful monitoring to ensure cost control. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope of work.
Value Assessment
Rating: fair
The award amount of $64.6M over approximately 4 years suggests a moderate annual spend. Benchmarking against similar IT O&M contracts is difficult without more granular cost data, but the fixed fee component provides some cost predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential IT system maintenance, ensuring continued operational capability for NOAA.
Public Impact
Ensures continued operation of critical NOAA IT systems. Supports a private sector company's role in government IT infrastructure. Potential for long-term reliance on this vendor for system upkeep.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires close oversight.
- Potential for scope creep in 'Other Computer Related Services'.
Positive Signals
- Awarded under full and open competition.
- Supports essential government IT operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on operations and maintenance. Spending benchmarks for IT O&M can vary widely based on system complexity and criticality, but this award represents a significant investment in maintaining existing infrastructure.
Small Business Impact
While Earth Resources Technology, LLC is a small business, this award is substantial. The government's ability to award large contracts to small businesses is a positive signal for market diversity, though it also raises questions about the capacity and long-term sustainability of such awards.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight from NOAA to manage costs effectively and prevent overruns. Regular performance reviews and financial audits will be crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Broad NAICS code may obscure specific service costs.
- Potential for vendor lock-in with non-legacy systems.
- Long-term sustainment strategy for systems not specified.
Tags
other-computer-related-services, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $64.6 million to EARTH RESOURCES TECHNOLOGY, LLC. OPERATIONS AND MAINTENANCE OF NON-LEGACY SYSTEMS (TASK ORDER 6) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ
Who is the contractor on this award?
The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.
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 $64.6 million.
What is the period of performance?
Start: 2023-04-24. End: 2027-03-28.
What is the specific breakdown of services covered under 'Other Computer Related Services' for these non-legacy systems?
The 'Other Computer Related Services' NAICS code (541519) is broad and can encompass a wide range of IT support activities beyond traditional software development or hardware maintenance. For this contract, it likely includes tasks such as system administration, network support, data management, cybersecurity patching, and potentially minor system upgrades or enhancements for non-legacy systems critical to NOAA's operations.
How will NOAA ensure cost control with a Cost Plus Fixed Fee contract, given the potential for undefined tasks?
NOAA will need to implement stringent oversight mechanisms, including detailed work breakdown structures, regular performance reviews, and thorough financial tracking. Clear definition of the 'fixed fee' component and robust negotiation of indirect cost rates are essential. Establishing clear performance metrics and milestones will also help manage costs and ensure value delivery.
What is the long-term strategy for managing these non-legacy systems beyond this contract's duration?
The long-term strategy is unclear from this award alone. NOAA should consider whether these non-legacy systems are slated for modernization or eventual decommissioning. Planning for future sustainment or replacement, and assessing whether future contracts will continue to be competed or awarded to the incumbent, are crucial for effective IT lifecycle management and taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14401 SWEITZER LN STE 300, LAUREL, MD, 20707
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $93,184,306
Exercised Options: $71,603,565
Current Obligation: $64,639,537
Actual Outlays: $40,017,434
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1332KP21DNEEB0011
IDV Type: IDC
Timeline
Start Date: 2023-04-24
Current End Date: 2027-03-28
Potential End Date: 2028-03-28 00:00:00
Last Modified: 2026-03-18
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