Commerce awards $10.2M for data conversion, with VASTEC Inc. securing a firm-fixed-price contract

Contract Overview

Contract Amount: $10,211,323 ($10.2M)

Contractor: Vastec Inc

Awarding Agency: Department of Commerce

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTINUOUS DATA CONVERSION OF VARIOUS DOCUMENT TYPES TO XML4IP.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33602

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $10.2 million to VASTEC INC for work described as: CONTINUOUS DATA CONVERSION OF VARIOUS DOCUMENT TYPES TO XML4IP. Key points: 1. Contract value appears reasonable given the scope of continuous data conversion services. 2. Full and open competition suggests a competitive pricing environment. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. Contract duration of 4 years provides stability for service delivery. 5. Services align with the need for modernizing data management at the USPTO. 6. Potential for future task orders exists within the contract's scope.

Value Assessment

Rating: good

The contract's total value of $10.2 million over four years for continuous data conversion is within a reasonable range for such specialized IT services. Benchmarking against similar contracts for document digitization and data processing reveals that the pricing structure, being firm-fixed-price, is standard for defined scopes of work. While specific per-unit cost data is not provided, the overall award amount suggests a competitive outcome from the full and open solicitation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderately competitive landscape for this specific requirement. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions, but two bidders still provide a basis for price discovery and selection of a qualified vendor.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, likely resulting in a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from modernized data management. Services include the continuous conversion of various document types to XML4IP. This contract supports the USPTO's operational efficiency and digital transformation goals. The geographic impact is primarily within the USPTO's operational centers, likely in Washington D.C. and potentially remote workforces. Workforce implications may include specialized roles in data conversion and IT support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'various document types' is not clearly defined.
Dependence on contractor's ability to maintain data quality and security.
Risk of vendor lock-in if transition to another vendor is complex.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
Long-term contract (4 years) allows for sustained service delivery and relationship building.
Award to an established entity (VASTEC INC) may indicate a track record of performance.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data processing and conversion. The market for these services is robust, driven by government and commercial entities seeking to digitize legacy data and improve information accessibility. Comparable spending benchmarks for large-scale data conversion projects vary widely based on complexity, volume, and technology used, but the $10.2 million award for a 4-year period is consistent with significant federal IT modernization efforts.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made under full and open competition. Therefore, the direct impact on small businesses is likely limited unless VASTEC INC engages in subcontracting opportunities with small businesses to fulfill the contract requirements. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Patent and Trademark Office (USPTO) contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm-fixed-price contract, including delivery schedules and quality standards. Transparency is facilitated through contract award databases, and any significant issues or disputes would be subject to standard government oversight and potentially the Inspector General if fraud or waste is suspected.

Related Government Programs

Federal Data Management Initiatives
IT Modernization Programs
Digital Transformation Services
Document Conversion Services
XML Data Conversion

Risk Flags

Data Quality Risk
Cybersecurity Risk
Performance Delivery Risk
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.2 million to VASTEC INC. CONTINUOUS DATA CONVERSION OF VARIOUS DOCUMENT TYPES TO XML4IP.

Who is the contractor on this award?

The obligated recipient is VASTEC 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 $10.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is VASTEC INC's past performance record with the federal government, particularly on similar data conversion contracts?

Assessing VASTEC INC's past performance is crucial. A review of federal procurement data (e.g., through the Federal Procurement Data System - Next Generation or contractor performance databases) would reveal their history of successfully completing similar contracts. Key metrics to examine include on-time delivery, adherence to budget, quality of deliverables, and any past performance issues or disputes. For this specific contract, the USPTO would have evaluated VASTEC's past performance as part of the source selection process. Without access to proprietary past performance evaluations, we rely on the fact that they were selected under full and open competition, suggesting their past performance met the government's minimum requirements.

How does the $10.2 million contract value compare to similar federal data conversion projects over a 4-year period?

The $10.2 million contract value for 4 years of continuous data conversion services needs to be benchmarked against comparable federal IT contracts. Factors influencing cost include the volume and complexity of documents, the required output format (XML4IP), security requirements, and the level of quality assurance. Projects involving digitization of large archives or complex legacy systems can range from millions to tens of millions of dollars. Given the 'continuous' nature and the specific XML4IP requirement for the USPTO, this value appears to be within a reasonable range, assuming a substantial volume and complexity of documents are involved. A detailed comparison would require access to specific contract details and volumes from other agencies.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential data quality issues during conversion, cybersecurity threats to sensitive data, contractor performance failures (e.g., delays, cost overruns if not strictly managed under FFP), and the risk of vendor lock-in. Mitigation strategies involve robust quality assurance processes defined in the contract, adherence to strict data security protocols, clear performance metrics and deliverables, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The government's oversight role, including regular progress reviews and acceptance testing, is also critical for risk mitigation. The USPTO's technical expertise in overseeing such a project is also a mitigating factor.

How effective is the 'continuous data conversion' service likely to be in supporting the USPTO's long-term goals?

The effectiveness of continuous data conversion hinges on its integration into the USPTO's broader digital strategy. If implemented well, it ensures that newly generated or acquired documents are immediately accessible in a standardized, machine-readable format (XML4IP), facilitating search, analysis, and long-term archival. This supports goals like improved patent examination, efficient information retrieval, and compliance with data management mandates. However, effectiveness also depends on the quality of the conversion process, the usability of the XML4IP output, and the USPTO's internal systems' ability to leverage this data. Regular performance reviews and feedback loops will be essential to ensure ongoing alignment with strategic objectives.

What are the historical spending patterns for data conversion and IT services at the USPTO or Department of Commerce?

Analyzing historical spending patterns for data conversion and IT services at the USPTO and the broader Department of Commerce provides context for this $10.2 million award. Agencies often have ongoing needs for digitizing records, modernizing IT infrastructure, and managing data. Spending can fluctuate based on specific modernization initiatives, budget allocations, and the lifecycle of IT systems. Understanding past investments in similar services can help determine if this contract represents a significant increase or decrease in spending, or if it aligns with established trends. For instance, if the USPTO has recently embarked on a major digital transformation, higher spending on conversion services would be expected.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1586565

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1101 CHANNELSIDE DR, TAMPA, FL, 33602

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,323,733

Exercised Options: $10,259,537

Current Obligation: $10,211,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F0154V

IDV Type: FSS

Timeline