Commerce Department's $14.3M Telework Support Contract Awarded to 22nd Century Technologies, Inc

Contract Overview

Contract Amount: $14,314,448 ($14.3M)

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: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EUS - TELEWORK SUPPORT SERVICES (TO-13) EUS (TO-13) - CONTRACTOR SUPPORT - TELEWORK 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 $14.3 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: EUS - TELEWORK SUPPORT SERVICES (TO-13) EUS (TO-13) - CONTRACTOR SUPPORT - TELEWORK SUPPORT SERVICES POP/FPOP: 02/01/2019 - 01/31/2020 Key points: 1. The contract value of $14.3 million over its period of performance suggests a significant investment in telework infrastructure. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources,' indicating a potentially competitive but specific bidding process. 3. The contract duration of 2690 days (approximately 7.4 years) points to a long-term need for these services. 4. The award to 22nd Century Technologies, Inc. represents a substantial single contract for the company within this service category. 5. The 'Computer Facilities Management Services' NAICS code suggests a focus on the technical and operational aspects of supporting remote work. 6. The contract type is 'FIRM FIXED PRICE,' which shifts cost risk to the contractor. 7. The 'Delivery Order' award type indicates this is a specific task order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $14.3 million contract for telework support services is challenging without more granular data on the specific services provided and the number of users supported. However, the duration of over seven years suggests a potentially favorable long-term rate if the scope remains consistent. Comparing it to similar IT support contracts within the federal government would require detailed analysis of service level agreements and performance metrics. The firm-fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

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 while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior arrangements. The number of bidders is not provided, making it difficult to fully assess the level of competition. A broad competition generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The 'Full and Open Competition After Exclusion of Sources' approach aims to ensure fair opportunity while potentially streamlining the process. The actual benefit to taxpayers depends on the number of responsive bids received and the resulting price.

Public Impact

Federal employees within the Department of Commerce, particularly those at the U.S. Patent and Trademark Office, are the primary beneficiaries, gaining access to reliable telework support. The services delivered likely include IT help desk support, network connectivity assistance, and management of remote access tools essential for telework. The geographic impact is primarily within the operational areas of the Department of Commerce, supporting a distributed federal workforce. Workforce implications include enabling federal employees to maintain productivity and connectivity while working remotely, supporting modern work arrangements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the long contract duration if not actively managed.
Reliance on a single contractor for critical telework infrastructure could pose a risk if performance degrades.
The 'Exclusion of Sources' aspect of the competition warrants further investigation to ensure no viable competitors were unfairly barred.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long-term contract provides stability and predictability for telework support services.
Award to an established company (22nd Century Technologies, Inc.) may indicate a level of proven capability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for such services is substantial within the federal government, as agencies increasingly rely on robust IT infrastructure to support their missions and a distributed workforce. Comparable spending benchmarks would typically be found in IT support and managed services contracts across various agencies, often categorized under NAICS code 541513. The trend towards telework has significantly increased demand for these types of services.

Small Business Impact

The provided data indicates that this contract was not 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. However, the prime contractor, 22nd Century Technologies, Inc., may engage small businesses as subcontractors, which would depend on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce. Performance monitoring, adherence to service level agreements, and invoice verification are standard oversight mechanisms. Accountability is established through the firm-fixed-price contract terms and the potential for remedies if performance standards are not met. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports may not always be publicly available.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense Information Network (DoDIN) Operations
Federal Civilian IT Modernization Initiatives
Agency-Specific Telework Program Support Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for reduced competition due to 'Exclusion of Sources'.
Performance data and user satisfaction not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $14.3 million to 22ND CENTURY TECHNOLOGIES, INC.. EUS - TELEWORK SUPPORT SERVICES (TO-13) EUS (TO-13) - CONTRACTOR SUPPORT - TELEWORK 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 $14.3 million.

What is the period of performance?

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

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

The provided data indicates the contract falls under NAICS code 541513 (Computer Facilities Management Services) and is for 'EUS - TELEWORK SUPPORT SERVICES (TO-13)'. While the exact scope is not detailed, typical services under such a designation would include help desk support for remote users, troubleshooting connectivity issues, managing VPN access, ensuring security protocols for remote access, and potentially providing or managing remote hardware/software solutions. The duration of over seven years suggests a comprehensive and ongoing support requirement rather than a short-term project.

How does the $14.3 million contract value compare to similar telework support contracts within the federal government?

Direct comparison of the $14.3 million value is difficult without knowing the exact period of performance it covers and the number of users supported. However, for a contract spanning approximately 7.4 years (from Feb 2019 to June 2026), this equates to roughly $1.9 million per year. This figure is within the range for significant IT support contracts, especially those involving comprehensive facilities management and user support for a large agency like the Department of Commerce. Larger agencies often have multi-million dollar annual IT support budgets, making this contract size plausible within that context.

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. However, for a 'Computer Facilities Management Services' contract focused on telework support, typical SLAs would likely include metrics such as average response time for help desk tickets, resolution rates for common issues, system uptime for remote access services, and user satisfaction scores. The firm-fixed-price nature suggests that meeting these defined performance standards is crucial for the contractor to achieve profitability.

What is the track record of 22nd Century Technologies, Inc. in providing similar telework or IT support services to the federal government?

22nd Century Technologies, Inc. has a history of receiving federal contracts, including those related to IT services. While specific details on their performance for this particular telework support contract are not provided in the summary data, their ability to win and perform on contracts of this magnitude suggests a level of established capability. A deeper analysis would involve reviewing their past performance evaluations (e.g., CPARS reports) and the types of IT services they have previously delivered to various government agencies.

What is the potential risk associated with the long duration (over 7 years) of this contract?

The long duration of this contract presents several potential risks. Firstly, technology evolves rapidly; services and infrastructure that are state-of-the-art at the start of the contract may become outdated over its 7+ year lifespan, potentially leading to inefficiencies or security vulnerabilities if not managed proactively. Secondly, long-term contracts can sometimes lead to complacency from the contractor if oversight is not rigorous. Thirdly, the government's needs may change significantly over such a period, and adapting the contract's scope or terms might become complex or costly. Finally, market prices for services can fluctuate, and a long-term fixed price might become uncompetitive over time.

How does the 'Exclusion of Sources' in the competition type affect price discovery and potential savings?

The 'Full and Open Competition After Exclusion of Sources' designation is somewhat contradictory. 'Full and Open' implies maximum competition, while 'Exclusion of Sources' suggests specific entities were deliberately not considered. This exclusion could limit the number of potential bidders, thereby reducing the intensity of competition. If the excluded sources were significant competitors, the remaining bidders might face less pressure to offer the lowest possible price. Consequently, price discovery might be less robust than in a truly unrestricted full and open competition, potentially leading to higher costs for the government compared to a scenario with broader participation.

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: $14,329,946

Exercised Options: $14,314,448

Current Obligation: $14,314,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1710003

IDV Type: IDC

Timeline