Commerce Department's $28.8M Desktop Support Contract Awarded to 22nd Century Technologies, Inc

Contract Overview

Contract Amount: $28,851,553 ($28.9M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-02-01

End Date: 2026-08-14

Contract Duration: 2,751 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EUS TO-01- CONTRACTOR SUPPORT - DESKTOP SUPPORT SERVICES POP/FPOP: 02/01/2019 - 01/31/2020

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $28.9 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: EUS TO-01- CONTRACTOR SUPPORT - DESKTOP SUPPORT SERVICES POP/FPOP: 02/01/2019 - 01/31/2020 Key points: 1. The contract value of $28.8 million over its period of performance suggests a significant investment in IT infrastructure support. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources,' indicating a potentially competitive bidding process. 3. The contract's duration, extending to August 2026, implies a long-term need for these services. 4. The fixed-price contract type aims to control costs by establishing a set price for services. 5. The services provided fall under Computer Facilities Management, a critical component of IT operations. 6. The award was a Delivery Order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $28.8 million contract for desktop support services requires comparison to similar contracts for Computer Facilities Management. Without specific details on the scope of services, number of users supported, and service level agreements, a precise value-for-money assessment is challenging. However, the duration of the contract (over 7 years) suggests a potentially favorable long-term pricing structure if the per-unit costs remain competitive. The firm-fixed-price nature of the contract provides cost certainty for the government.

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.' This designation implies that the solicitation was broadly advertised, but specific sources may have been excluded based on predefined criteria. The number of bidders is not provided, which limits the assessment of the true level of competition. A robust competition typically leads to better pricing and service offerings for the government.

Taxpayer Impact: The 'Full and Open Competition' aspect is generally positive for taxpayers, as it aims to leverage market forces to secure the best value. However, the 'Exclusion of Sources' clause warrants further investigation to ensure it did not unduly limit competition and potentially inflate costs.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from reliable desktop support, ensuring the smooth operation of its IT systems. Employees at the USPTO receive essential IT support for their workstations, enabling them to perform their duties efficiently. The services are geographically focused within Virginia, where the USPTO has a significant presence. The contract supports the IT workforce by providing specialized technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive pressure on pricing.
The 'Exclusion of Sources' clause could potentially restrict competition if not justified by clear and objective criteria.
The long contract duration may present risks if technology or service needs evolve significantly beyond the contract's scope.
Without detailed performance metrics, it's difficult to assess the contractor's performance beyond contract compliance.

Positive Signals

The contract was awarded through a full and open competition process, suggesting an effort to maximize value.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration indicates a stable, long-term relationship for essential IT support services.
The award to 22nd Century Technologies, Inc. contributes to the government's utilization of established IT service providers.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. The U.S. Patent and Trademark Office (USPTO) relies heavily on robust IT systems to manage patent and trademark applications, making reliable desktop support crucial. Comparable spending benchmarks for similar IT support contracts within federal agencies can vary widely based on scope, duration, and service level agreements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, 22nd Century Technologies, Inc., is likely a large business, and their subcontracting opportunities would depend on their own business practices and the terms of any potential prime contract this delivery order is associated with.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General for the Department of Commerce may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense (DoD) IT Support Services
National Institutes of Health (NIH) IT Support Contracts
Federal Civilian Agency IT Modernization Programs

Risk Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Long contract duration may not adapt well to rapid technological changes.
Lack of specific performance metrics in summary data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $28.9 million to 22ND CENTURY TECHNOLOGIES, INC.. EUS TO-01- CONTRACTOR SUPPORT - DESKTOP SUPPORT SERVICES POP/FPOP: 02/01/2019 - 01/31/2020

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 $28.9 million.

What is the period of performance?

Start: 2019-02-01. End: 2026-08-14.

What is the specific scope of 'Desktop Support Services' covered under this contract?

The provided data identifies the contract as 'EUS TO-01- CONTRACTOR SUPPORT - DESKTOP SUPPORT SERVICES' and its North American Industry Classification System (NAICS) code as 541513, 'Computer Facilities Management Services.' This typically encompasses a range of services including installation, maintenance, and repair of computer hardware and software, help desk support, network troubleshooting at the user level, and potentially asset management. However, the precise deliverables, service level agreements (SLAs), and the number of end-users supported are not detailed in the provided summary. A comprehensive understanding would require reviewing the full contract statement of work (SOW).

How does the awarded amount of $28.8 million compare to similar desktop support contracts at the USPTO or other federal agencies?

Comparing the $28.8 million award requires context regarding the contract's duration and scope. This contract spans from February 1, 2019, to August 14, 2026, a period of over seven years. For a contract of this length, the annual average is approximately $4.1 million. This figure needs to be benchmarked against the number of users supported, the complexity of the IT environment, and the specific services required. Without these details, a direct comparison is difficult. However, federal IT support contracts can range from a few million to tens or hundreds of millions of dollars annually, depending on agency size and needs. The 'Full and Open Competition' suggests an effort to achieve competitive pricing.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, desktop support contracts include metrics such as response times for help desk tickets, resolution times for different priority issues, system uptime, and user satisfaction ratings. These KPIs are crucial for measuring the contractor's performance and ensuring the government receives the expected level of service. The firm-fixed-price nature of the contract implies that the contractor is obligated to meet these undefined performance standards to receive full payment, and penalties may apply for failing to meet critical SLAs.

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

22nd Century Technologies, Inc. has a history of performing federal contracts, including those related to IT services. To assess their track record specifically for desktop support, one would need to examine their past performance on similar contracts, looking at factors like on-time delivery, quality of service, and any past performance issues or awards. Publicly available data, such as contract award histories and performance evaluations (if accessible), would be necessary for a thorough analysis. Their ability to secure this contract through 'Full and Open Competition' suggests they met the government's requirements and demonstrated capability.

What is the historical spending pattern for desktop support services at the U.S. Patent and Trademark Office?

The provided data focuses on a single contract award. To understand historical spending patterns for desktop support at the USPTO, one would need to analyze spending data over multiple fiscal years. This would involve identifying all contracts related to desktop support, their values, durations, and awarded contractors. Analyzing this trend would reveal whether spending has increased, decreased, or remained stable, and whether there has been a shift in the primary contractors utilized. Such an analysis could highlight changes in IT strategy, user base growth, or evolving support needs within the USPTO.

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: $28,851,553

Exercised Options: $28,851,553

Current Obligation: $28,851,553

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1710003

IDV Type: IDC

Timeline