Spatial Front Inc. awarded $31.7M for Enterprise Initiatives Support and Modernization by the Census Bureau

Contract Overview

Contract Amount: $31,739,021 ($31.7M)

Contractor: Spatial Front Inc

Awarding Agency: Department of Commerce

Start Date: 2019-09-25

End Date: 2022-11-25

Contract Duration: 1,157 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENTERPRISE INITIATIVES SUPPORT AND MODERNIZATION (EISM)

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $31.7 million to SPATIAL FRONT INC for work described as: ENTERPRISE INITIATIVES SUPPORT AND MODERNIZATION (EISM) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The award value of $31.7M over approximately three years indicates a significant investment in IT modernization. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Spatial Front Inc., has secured a substantial award, indicating a strong performance record or competitive bid. 7. The contract duration of 1157 days (approx. 3.17 years) suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $31.7M for custom computer programming services over three years averages to approximately $10.5M annually. Benchmarking this against similar large-scale IT modernization contracts is difficult without more specific service details. However, Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts if not meticulously monitored. The number of bids received (2) is low for a full and open competition, which might suggest either a niche service area or potential limitations in the bidding pool, potentially impacting the overall value achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, only two bids were received. This limited number of bidders could indicate a specialized service requirement, high barriers to entry for potential competitors, or perhaps a less effective outreach strategy for the solicitation. While competition was technically open, the low bid count may have constrained price discovery and potentially led to a less competitive outcome than ideal.

Taxpayer Impact: A low number of bidders in a full and open competition can mean taxpayers may not have benefited from the most competitive pricing possible. The government might have secured a reasonable price, but the potential for even lower costs through broader competition was likely missed.

Public Impact

The U.S. Census Bureau benefits from modernized enterprise initiatives and improved IT infrastructure. Services delivered likely include custom software development, system integration, and IT support to enhance data collection and processing. The geographic impact is primarily national, supporting the Census Bureau's nationwide operations. Workforce implications may include the need for specialized IT professionals within the Census Bureau and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely managed.
Low number of bidders (2) in a full and open competition raises questions about the extent of competition achieved.
The specific nature of 'Enterprise Initiatives Support and Modernization' is broad and requires detailed oversight to ensure alignment with strategic goals.

Positive Signals

Awarded through full and open competition, indicating an effort to maximize potential sources.
The substantial award value suggests a critical need and commitment to modernizing essential government functions.
The contract duration implies a stable, long-term partnership for critical IT services.

Sector Analysis

This contract falls within the custom computer programming services sector, a key component of the broader IT services industry. The IT services market is highly competitive and dynamic, with significant government spending focused on modernization, cybersecurity, and cloud migration. The U.S. Census Bureau's need for enterprise initiatives support and modernization is representative of a larger trend across federal agencies seeking to upgrade legacy systems and improve data management capabilities. Comparable spending benchmarks for large-scale IT modernization projects can vary widely based on scope, but contracts in the tens of millions of dollars are common for such critical functions.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals mandated, the direct benefit to the small business ecosystem from this particular award is likely limited, unless Spatial Front Inc. proactively engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to delivery schedules, quality standards, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

IT Modernization Programs
Custom Software Development Services
Enterprise Resource Planning (ERP) Systems
Data Management and Analytics Solutions
Cloud Computing Services

Risk Flags

Low bidder count in full and open competition
Time and Materials contract type carries inherent cost risk
Broad scope of 'Enterprise Initiatives Support and Modernization' requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $31.7 million to SPATIAL FRONT INC. ENTERPRISE INITIATIVES SUPPORT AND MODERNIZATION (EISM)

Who is the contractor on this award?

The obligated recipient is SPATIAL FRONT INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2019-09-25. End: 2022-11-25.

What is the specific nature of the 'Enterprise Initiatives Support and Modernization' being provided by Spatial Front Inc.?

The contract description 'ENTERPRISE INITIATIVES SUPPORT AND MODERNIZATION (EISM)' is broad. Based on the NAICS code 541511 (Custom Computer Programming Services), it is highly probable that the services involve the development, implementation, and maintenance of custom software solutions designed to improve the Census Bureau's internal operations and data processing capabilities. This could encompass areas such as upgrading legacy systems, integrating disparate IT platforms, enhancing data analytics tools, and providing ongoing technical support to ensure the smooth functioning of these modernized enterprise initiatives. The 'support' aspect likely includes help desk functions, system administration, and potentially cybersecurity measures related to the modernized systems.

How does the Time and Materials (T&M) contract type compare to other contract types for IT modernization projects of this scale?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined at the outset or is expected to evolve, which can be common in IT modernization. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk for the government regarding cost control, as the final price is not predetermined. For large-scale IT modernization, fixed-price or cost-plus-fixed-fee contracts are often preferred when requirements are well-defined, as they provide greater cost certainty. However, if the Census Bureau needed agility to adapt to changing technological landscapes or evolving requirements during the modernization process, a T&M contract, coupled with strong oversight and defined ceiling prices, could be justified.

What are the potential risks associated with Spatial Front Inc. having only two bidders in a full and open competition?

A low number of bidders, even in a full and open competition, can signal several potential risks. Firstly, it might indicate that the market for these specific services is smaller than anticipated, or that the barriers to entry (e.g., required certifications, past performance, technical expertise) are high, limiting the pool of qualified contractors. Secondly, it could suggest that the solicitation was not widely disseminated or that the requirements were so specialized that only a few firms could realistically compete. This limited competition can reduce the government's leverage in negotiating the best possible price and terms, potentially leading to higher costs for taxpayers. It also concentrates the risk on the few bidders, meaning if one were to fail or withdraw, the government would have very limited options.

What is the historical spending pattern for similar IT support and modernization contracts at the U.S. Census Bureau?

Analyzing historical spending patterns for similar contracts at the U.S. Census Bureau requires access to detailed contract databases. However, it's reasonable to infer that the Bureau, like other large federal agencies, has consistently invested in IT infrastructure and modernization to manage vast amounts of data and support its decennial census operations and ongoing surveys. Spending on custom programming, system integration, and data management solutions would likely be a significant and recurring budget item. The $31.7M award for EISM suggests a substantial, multi-year initiative, which aligns with the ongoing need for technological advancement within the Bureau. Without specific historical data, it's difficult to state precise patterns, but the trend is towards continuous investment in robust IT capabilities.

How does the $31.7M award compare to the overall IT budget of the U.S. Census Bureau?

To accurately compare the $31.7M award to the U.S. Census Bureau's overall IT budget, specific budget figures for the relevant fiscal years would be needed. Federal agencies typically allocate significant portions of their budgets to IT, covering operations, maintenance, and modernization efforts. Given that the Census Bureau handles massive datasets and complex statistical operations, its IT budget is likely substantial. An award of $31.7M over approximately three years represents a considerable investment, potentially constituting a significant fraction of the Bureau's IT modernization or specific program support budget during that period. It underscores the importance placed on the 'Enterprise Initiatives Support and Modernization' project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR, BETHESDA, MD, 20817

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,292,429

Exercised Options: $33,041,229

Current Obligation: $31,739,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0648Y

IDV Type: FSS

Timeline