Commerce Dept. awards $8.5M for financial management support, extending services for NOAA

Contract Overview

Contract Amount: $8,500,483 ($8.5M)

Contractor: Data Networks, Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-06-30

End Date: 2026-03-29

Contract Duration: 272 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: THIS BRIDGE TASK ORDER (TO) IS TO PROVIDE BROAD BASED FINANCIAL MANAGEMENT SUPPORT (FMS) BRIDGE WHICH INCLUDES, BUT IS NOT LIMITED TO TASK ORDER MANAGEMENT, COST ESTIMATING, RECONCILIATION, PROGRAM CONTROL SUPPORT, CONGRESSIONAL ANALYSIS SUPPORT, NES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $8.5 million to DATA NETWORKS, INC. for work described as: THIS BRIDGE TASK ORDER (TO) IS TO PROVIDE BROAD BASED FINANCIAL MANAGEMENT SUPPORT (FMS) BRIDGE WHICH INCLUDES, BUT IS NOT LIMITED TO TASK ORDER MANAGEMENT, COST ESTIMATING, RECONCILIATION, PROGRAM CONTROL SUPPORT, CONGRESSIONAL ANALYSIS SUPPORT, NES Key points: 1. Contract provides essential financial management and program control support. 2. Duration of 272 days indicates a bridge or short-term need. 3. Task order is a Time and Materials type, which can carry cost risks. 4. Full and open competition was utilized, suggesting a competitive process. 5. The contract supports research and development activities within NOAA. 6. No small business set-aside was applied to this award.

Value Assessment

Rating: fair

The contract value of $8.5 million for a 272-day period suggests a daily rate of approximately $31,252. This rate appears high for financial management support, especially considering it's a Time and Materials contract. Benchmarking against similar contracts for broad-based financial management support would be necessary to definitively assess value for money. The lack of detailed service breakdowns makes precise comparison difficult.

Cost Per Unit: Approximately $31,252 per day.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates a competitive process, the specific exclusion of sources warrants further investigation to understand if it limited the pool of potential bidders. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs.

Public Impact

Federal agencies, specifically NOAA, benefit from continued financial management and program control support. Services include task order management, cost estimating, reconciliation, and congressional analysis. The contract supports research and development initiatives within the Department of Commerce. Workforce implications are likely minimal, as this appears to be a continuation of existing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The high daily rate warrants scrutiny to ensure efficient use of funds.
The 'exclusion of sources' in the competition type needs clarification to ensure maximum competition.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contract provides critical financial management support, ensuring operational continuity.
Supports vital research and development activities for NOAA.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting research and development (NAICS 541715). The market for financial management and program support services is competitive, with numerous firms offering specialized expertise. The value of this specific task order is moderate within the broader context of federal R&D spending, serving as a bridge to ensure continuity of essential financial operations.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to Data Networks, Inc., a company not explicitly identified as a small business in the provided data, suggests it may be an established mid-to-large-sized firm. The lack of small business focus means limited direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours and costs is crucial. Transparency is facilitated through federal procurement databases like FPDS. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any irregularities were detected.

Related Government Programs

Financial Management Support Services
Research and Development Support
NOAA Program Support
Federal Contract Task Orders

Risk Flags

High daily rate for T&M contract
Potential for cost overruns with T&M contract type
Ambiguity in 'Exclusion of Sources' impacting competition level

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $8.5 million to DATA NETWORKS, INC.. THIS BRIDGE TASK ORDER (TO) IS TO PROVIDE BROAD BASED FINANCIAL MANAGEMENT SUPPORT (FMS) BRIDGE WHICH INCLUDES, BUT IS NOT LIMITED TO TASK ORDER MANAGEMENT, COST ESTIMATING, RECONCILIATION, PROGRAM CONTROL SUPPORT, CONGRESSIONAL ANALYSIS SUPPORT, NES

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 $8.5 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-03-29.

What is the track record of Data Networks, Inc. in performing similar financial management support contracts for federal agencies?

Data Networks, Inc. has a history of performing various IT and professional services contracts with the federal government. While specific details on their financial management support track record require deeper analysis of contract databases, their presence in the federal contracting space suggests experience. It is important to review past performance evaluations and any reported issues on similar contracts to assess their capability and reliability in delivering the required financial management support services. Examining their portfolio for contracts with agencies like NOAA or other scientific bodies would provide further context on their suitability for this specific task order.

How does the daily rate of $31,252 compare to market benchmarks for similar financial management support services?

The daily rate of approximately $31,252 for this Time and Materials contract appears to be on the higher end for general financial management support. Market benchmarks for such services can vary significantly based on the complexity of tasks, required expertise, geographic location, and the specific agency's needs. Typically, rates for financial analysts, program controllers, and cost estimators can range from several hundred to a couple of thousand dollars per day, depending on seniority and specialization. A rate exceeding $30,000 per day suggests either highly specialized, niche expertise is required, or there may be an opportunity for cost savings through more competitive bidding or a fixed-price structure if the scope is well-defined. Further investigation into the specific skill sets and deliverables is needed for a precise comparison.

What are the primary risks associated with a Time and Materials contract for financial management support?

The primary risk with a Time and Materials (T&M) contract for financial management support is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours and materials used. If not managed diligently, contractors may extend timelines or increase hours billed, leading to higher-than-anticipated expenditures for the government. For financial management, this could manifest as extended reconciliation periods or prolonged analysis efforts. Robust oversight, detailed tracking of hours, and clear performance metrics are essential to mitigate these risks and ensure the government receives value for its investment.

What is the historical spending pattern for financial management support at NOAA or the Department of Commerce?

Analyzing historical spending patterns for financial management support at NOAA and the broader Department of Commerce is crucial for context. Without specific historical data, it's difficult to ascertain if this $8.5 million task order represents an increase, decrease, or consistent level of investment. Agencies often have ongoing needs for financial management, program control, and analytical support, particularly for complex research and development initiatives. Understanding previous contract values, durations, and awarded vendors for similar services can help identify trends, potential cost efficiencies, or areas where spending has escalated. This information is vital for assessing the reasonableness of the current award and forecasting future budgetary needs.

How does the 'Full and Open Competition After Exclusion of Sources' clause impact potential competition and pricing?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was intended to be broad, certain sources were specifically excluded from consideration. The impact on competition and pricing depends heavily on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or security mandates that only a few entities could meet, then the competition might have been necessarily limited, potentially leading to higher prices. Conversely, if the exclusions were arbitrary or overly restrictive, it could stifle competition and prevent the government from obtaining the best possible value. A thorough review of the source exclusion justification is necessary to understand its true impact.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1332KP25R0028

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, 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: $8,500,483

Exercised Options: $8,500,483

Current Obligation: $8,500,483

Actual Outlays: $5,290,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M423DNEEA0004

IDV Type: IDC

Timeline