Commerce Department's $10.86M contract for collaboration event services awarded to 22nd Century Technologies, Inc

Contract Overview

Contract Amount: $10,862,223 ($10.9M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-02-01

End Date: 2026-06-14

Contract Duration: 2,690 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COLLABORATION EVENT SERVICES AND AV SUPPORT POP/FPOP: 2/1/2019 TO 1/31/2020 CONTRACT: DOC56PAPT1700440

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $10.9 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: COLLABORATION EVENT SERVICES AND AV SUPPORT POP/FPOP: 2/1/2019 TO 1/31/2020 CONTRACT: DOC56PAPT1700440 Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract duration extends significantly beyond the initial performance period, suggesting potential for follow-on work or scope expansion. 3. The contract type is Firm Fixed Price, which generally shifts cost risk to the contractor. 4. The agency is the Department of Commerce, specifically the U.S. Patent and Trademark Office. 5. The North American Industry Classification System (NAICS) code 541513 points to Computer Facilities Management Services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

The total value of $10.86 million for collaboration event services and AV support over a period that could extend to 2026 appears to be within a reasonable range for such specialized services. Benchmarking against similar contracts is challenging without more specific details on the scope of 'collaboration event services' and the level of AV support required. However, the firm fixed-price nature of the contract suggests that the pricing structure was agreed upon upfront, potentially offering cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the opportunity was broadly advertised and multiple bidders were likely considered. This method generally promotes price discovery and allows the government to select the best value offering. The specific number of bidders is not provided, but the designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is expected to drive down prices through market competition and lead to the selection of the most cost-effective solution.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced collaboration and audiovisual support, crucial for its operations. Federal employees and potentially external stakeholders involved in USPTO events will experience improved communication and presentation capabilities. The contract supports the functioning of a key agency within the Department of Commerce, contributing to its mission. The services provided likely involve technical support for meetings, conferences, and other collaborative activities, impacting workforce productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'collaboration event services' are not clearly defined.
Reliance on a single contractor for critical AV and event support could pose a risk if performance issues arise.
The extended contract duration raises questions about the long-term need and potential for evolving technology.

Positive Signals

Firm Fixed Price contract structure helps control costs and manage budget.
Full and open competition suggests a competitive market was leveraged for award.
The contract is managed by the Department of Commerce, a major federal agency with established procurement processes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT support and event management. The market for collaboration and AV support services is competitive, with numerous providers ranging from small specialized firms to large technology integrators. Spending in this area is driven by the increasing need for effective communication and remote collaboration tools within government agencies. Comparable spending benchmarks would depend heavily on the specific scale and technical requirements of the events supported.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, 22nd Century Technologies, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this specific award, which means the direct impact on the small business ecosystem from this particular contract is likely minimal unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office contracting officers and program managers within the Department of Commerce. Accountability is established through the Firm Fixed Price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated by the contract award being made under full and open competition, with details typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
IT Professional Services
Audiovisual Equipment and Services
Event Management Services
Department of Commerce IT Contracts

Risk Flags

Extended contract duration beyond typical service lifecycles.
Potential for technological obsolescence in AV and collaboration tools.
Lack of specific performance metrics in the provided summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.9 million to 22ND CENTURY TECHNOLOGIES, INC.. COLLABORATION EVENT SERVICES AND AV SUPPORT POP/FPOP: 2/1/2019 TO 1/31/2020 CONTRACT: DOC56PAPT1700440

Who is the contractor on this award?

The obligated recipient is 22ND CENTURY TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2019-02-01. End: 2026-06-14.

What is the specific scope of 'collaboration event services' covered by this contract?

The term 'collaboration event services' is broad and can encompass a range of activities. For this contract with the U.S. Patent and Trademark Office (USPTO), it likely includes the planning, setup, execution, and breakdown of various events such as conferences, workshops, training sessions, and internal meetings. This could involve venue coordination, agenda management, speaker support, and participant engagement strategies. The 'AV Support' component specifically refers to the provision and management of audio-visual equipment and technical expertise, including sound systems, projectors, screens, video conferencing capabilities, and live streaming services, essential for effective communication and presentation during these events. The exact deliverables would be detailed in the contract's Statement of Work (SOW).

How does the pricing of this $10.86 million contract compare to similar government contracts for collaboration and AV support?

Directly comparing the $10.86 million price tag without a detailed breakdown of services, duration, and specific technical requirements is difficult. However, the contract's value should be assessed against the scale and complexity of the USPTO's needs. Given that it's a Firm Fixed Price award under full and open competition, the price reflects a negotiated agreement based on market rates and anticipated costs. To benchmark effectively, one would need to analyze contracts with similar NAICS codes (e.g., 541513, 561920 - Meeting and Event Planning Services) awarded to agencies of comparable size and technical sophistication. Factors like the number of events supported, attendee numbers, and the level of AV technology deployed would be critical for a meaningful comparison.

What are the primary risks associated with this contract for the Department of Commerce?

The primary risks for the Department of Commerce (specifically the USPTO) revolve around contractor performance and potential cost overruns if the scope is not tightly managed. Since the contract extends to June 2026, there's a risk of technological obsolescence in AV equipment or collaboration tools if the contractor does not maintain state-of-the-art solutions. Another risk is the potential for vendor lock-in or over-reliance on 22nd Century Technologies, Inc., which could reduce flexibility in future procurements. Ensuring the contractor meets service level agreements (SLAs) for event support and AV reliability is crucial to mitigate performance risks. The firm-fixed-price nature helps control costs, but inadequate performance could still lead to disruptions and necessitate costly corrective actions or re-procurement.

What is the track record of 22nd Century Technologies, Inc. in performing similar government contracts?

Information regarding the specific track record of 22nd Century Technologies, Inc. for contracts of this nature (collaboration event services and AV support) is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any reported issues or successes. Generally, agencies evaluate past performance as a key factor during source selection. Without access to their performance history, it's difficult to definitively assess their reliability and capability for this specific requirement. However, their selection under full and open competition suggests they met the minimum requirements and were deemed capable by the USPTO.

How does the duration of this contract (potentially ending in 2026) align with typical procurement cycles for event and AV services?

The contract's performance period, which began in February 2019 and can extend to June 2026, represents a significant duration, approximately 7.5 years. Typical procurement cycles for IT services and event support can vary, but contracts often range from 1 to 5 years, with options for extensions. A duration extending beyond 5 years might be justified if the services are mission-critical, require deep institutional knowledge, or are part of a larger, long-term strategic initiative. For event and AV services, which can be subject to rapid technological change, such a long duration could pose risks related to outdated technology unless robust refresh clauses or performance standards are included. The award as a Delivery Order suggests it might be under an IDIQ vehicle with its own established ordering period limits.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 EXECUTIVE DR STE 285, SOMERSET, NJ, 08873

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,862,223

Exercised Options: $10,862,223

Current Obligation: $10,862,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1710003

IDV Type: IDC

Timeline