Commerce Awards $19.17M for USPTO Network Operations, Competition Method Raises Questions

Contract Overview

Contract Amount: $19,174,619 ($19.2M)

Contractor: 22ND Century Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-01-31

End Date: 2024-08-14

Contract Duration: 2,022 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY19 EUS NETWORK OPERATIONS SUPPORT (TO-10) CONTRACT DOC50PAPT1710003 TASK ORDER DOC56PAPT1700441 POP/FPOP: 2/01/2019-1/31/2020 OIEO 2253; ACQ-19-0192

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $19.2 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: FY19 EUS NETWORK OPERATIONS SUPPORT (TO-10) CONTRACT DOC50PAPT1710003 TASK ORDER DOC56PAPT1700441 POP/FPOP: 2/01/2019-1/31/2020 OIEO 2253; ACQ-19-0192 Key points: 1. Contract value of $19.17M for network operations support. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants scrutiny. 3. Risk of limited competition impacting price discovery. 4. IT sector contract for computer facilities management services.

Value Assessment

Rating: fair

The contract value of $19.17M for network operations support appears within a reasonable range for similar IT services. However, without specific benchmarks for USPTO-level network complexity, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while initially open, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The exclusion of sources in the competition process may lead to higher costs for taxpayers if a more competitive environment could have yielded better pricing.

Public Impact

USPTO users may experience improved network stability and performance. Taxpayers may be paying a premium due to limited competition. Potential for future contract awards to be influenced by this exclusion method.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government, with benchmarks varying widely based on agency size and technical requirements.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract or if opportunities were provided. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight of this contract should focus on the justification for excluding sources and ensuring fair pricing. Regular performance reviews and cost audits are recommended.

Related Government Programs

Risk Flags

Tags

computer-facilities-management-services, department-of-commerce, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $19.2 million to 22ND CENTURY TECHNOLOGIES, INC.. FY19 EUS NETWORK OPERATIONS SUPPORT (TO-10) CONTRACT DOC50PAPT1710003 TASK ORDER DOC56PAPT1700441 POP/FPOP: 2/01/2019-1/31/2020 OIEO 2253; ACQ-19-0192

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 $19.2 million.

What is the period of performance?

Start: 2019-01-31. End: 2024-08-14.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The justification for excluding sources is critical for understanding the competitive landscape. Without this information, it's difficult to assess if the exclusion was necessary for technical reasons or if it unduly limited competition, potentially leading to higher costs for the government and taxpayers. A thorough review of the procurement documentation is required.

How does the pricing of this contract compare to similar network operations support contracts at agencies of comparable size and complexity?

Benchmarking this contract's price against similar IT support services at agencies like the IRS or SSA would provide valuable context. Factors like the scope of services, service level agreements, and the specific technologies supported need to be considered for an accurate comparison. A significant deviation could indicate overpricing or underperformance.

What are the potential long-term implications of using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' on future IT procurement strategies within the Department of Commerce?

The repeated use of this procurement method could signal a trend towards more restricted competition, potentially discouraging new entrants and limiting innovation. It may also raise concerns among watchdog groups and Congress about the government's commitment to maximizing competition and achieving the best value for taxpayer dollars.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $19,174,619

Exercised Options: $19,174,619

Current Obligation: $19,174,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1710003

IDV Type: IDC

Timeline

Start Date: 2019-01-31

Current End Date: 2024-08-14

Potential End Date: 2024-08-14 00:00:00

Last Modified: 2025-04-10

More Contracts from 22ND Century Technologies, Inc.

View all 22ND Century Technologies, Inc. federal contracts →

Other Department of Commerce Contracts

View all Department of Commerce contracts →

Explore Related Government Spending