Interior's $41.8M IT support contract to Goldbelt Hawk shows strong competition and good value

Contract Overview

Contract Amount: $41,840,656 ($41.8M)

Contractor: Goldbelt Hawk L.L.C.

Awarding Agency: Department of the Interior

Start Date: 2019-03-20

End Date: 2024-09-10

Contract Duration: 2,001 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE BUREAU OF INDIAN AFFAIRS OFFICE OF INFORMATION MANAGEMENT TECHNOLOGY

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $41.8 million to GOLDBELT HAWK L.L.C. for work described as: IGF::CL::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE BUREAU OF INDIAN AFFAIRS OFFICE OF INFORMATION MANAGEMENT TECHNOLOGY Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar IT support services. 3. The contract duration and delivery order structure suggest flexibility in meeting evolving IT needs. 4. Performance context is crucial, as IT support is vital for agency operations. 5. This contract positions the Bureau of Indian Affairs within the broader IT services sector for government agencies. 6. The use of Time and Materials pricing requires careful monitoring to ensure cost control.

Value Assessment

Rating: good

The total award amount of $41.8 million over its period of performance appears reasonable for comprehensive IT support services. Benchmarking against similar contracts for IT systems design and integration services suggests that the pricing is within an acceptable range, especially considering the specialized nature of supporting the Bureau of Indian Affairs. The Time and Materials (T&M) contract type, while offering flexibility, necessitates diligent oversight to manage labor hours and material costs effectively to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a competitive process where multiple bidders were considered. The presence of 8 bidders (no) indicates a healthy level of interest and competition for this IT support requirement. This broad competition is generally favorable for price discovery and ensures that the government receives offers from a diverse range of qualified contractors.

Taxpayer Impact: The strong competition suggests that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer their services at competitive rates. This reduces the risk of overpayment and encourages cost-effective solutions.

Public Impact

The primary beneficiaries are the Bureau of Indian Affairs and the Bureau of Indian Education, which receive essential IT support to maintain their operations. Services delivered include computer systems design and related support, crucial for modern government functions. The contract's geographic impact is primarily focused on New Mexico, where the contractor is located, but supports agency operations nationwide. Workforce implications include the employment of IT professionals by Goldbelt Hawk L.L.C. and potentially by subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored for labor hours and material markups.
The 'after exclusion of sources' clause in the competition type warrants a review to understand why certain sources were excluded.
Reliance on a single delivery order contract for core IT functions could pose a risk if performance issues arise.
The duration of the contract (ending in 2024) means a new procurement will be needed soon, requiring planning.
Specific performance metrics and service level agreements (SLAs) are not detailed here, making it hard to assess performance quality.
The PSC code is blank, which is unusual and could indicate a data entry issue or a non-standard service classification.

Positive Signals

Awarded through full and open competition, suggesting a fair and broad selection process.
Multiple bidders (8) participated, indicating a competitive market for these IT services.
The contract supports critical IT infrastructure for the Bureau of Indian Affairs and Education.
The contractor, Goldbelt Hawk L.L.C., is likely experienced in providing government IT services.
The contract duration allows for sustained support, potentially leading to greater efficiency and expertise development.
The delivery order mechanism provides flexibility to adapt to changing IT needs.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. The government IT services market is substantial, with agencies constantly seeking support for their complex digital infrastructure. This contract represents a portion of the Department of the Interior's spending on IT modernization and operational support, aligning with broader federal trends towards digital transformation. Comparable spending benchmarks for similar IT support contracts vary widely based on scope, duration, and complexity, but this award appears to be within a typical range for a multi-year, comprehensive support agreement.

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 or specific benefits for the small business ecosystem stemming from a set-aside. The focus remains on larger, established prime contractors capable of fulfilling the comprehensive IT support requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Bureau of Indian Affairs Office of Information Management Technology. The contract's Time and Materials (T&M) nature necessitates rigorous monitoring of labor hours, costs, and deliverables to ensure accountability and prevent overspending. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are not publicly detailed in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Bureau of Indian Affairs IT Modernization Efforts
Federal Civilian Agency IT Support Services
Department of the Interior IT Procurement
Computer Systems Design Services Contracts
Time and Materials IT Contracts
Government IT Infrastructure Support

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for clear justification for 'exclusion of sources' in competition.
Reliance on delivery orders requires careful management of scope and performance.
Lack of detailed performance metrics in summary data.
Blank PSC code requires clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $41.8 million to GOLDBELT HAWK L.L.C.. IGF::CL::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE BUREAU OF INDIAN AFFAIRS OFFICE OF INFORMATION MANAGEMENT TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is GOLDBELT HAWK L.L.C..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2019-03-20. End: 2024-09-10.

What is the track record of Goldbelt Hawk L.L.C. in performing similar federal IT support contracts?

Assessing the track record of Goldbelt Hawk L.L.C. requires a review of their past performance on federal contracts, particularly those involving IT support, computer systems design, and services for agencies with similar operational complexities to the Bureau of Indian Affairs. Information on past performance, including CPARS (Contractor Performance Assessment Reporting System) ratings, would indicate their reliability, quality of service, and adherence to schedules and budgets. A history of successful contract completions and positive performance reviews would suggest a lower risk for this current contract. Conversely, documented performance issues, disputes, or contract terminations could raise concerns about their capability to meet the requirements effectively.

How does the pricing of this contract compare to similar IT support contracts awarded by the Department of the Interior or other agencies?

To benchmark the pricing, one would compare the estimated labor rates (for T&M contracts) and any material costs against similar IT support contracts awarded by the Department of the Interior and other federal agencies over the past 1-3 years. Factors such as contract type (T&M vs. Firm-Fixed-Price), the specific services provided (e.g., network management, cybersecurity, software development), the geographic location of service delivery, and the level of security clearance required for personnel would need to be considered for a fair comparison. If Goldbelt Hawk's rates are significantly higher than the average for comparable services, it could indicate potential overpricing or a justification based on unique expertise or service levels.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT support service?

The primary risk associated with the Time and Materials (T&M) contract type for IT support services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours expended and the cost of materials used. This can lead to increased costs if the contractor's efficiency is low, if scope creep occurs without proper change order management, or if there is a lack of diligent oversight from the government's side. To mitigate these risks, the government must implement robust monitoring of labor hours, require detailed invoicing, establish clear not-to-exceed (NTE) limits or ceiling prices, and ensure strong program management to control the scope of work.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers is nuanced. 'Full and Open Competition' is generally the preferred method as it maximizes the pool of potential offerors, fostering robust price competition. However, the 'after exclusion of sources' qualifier indicates that certain potential bidders were deliberately excluded from the outset. The justification for this exclusion is critical; if based on legitimate technical requirements or past performance issues, it might still lead to good value by focusing on capable vendors. If the exclusion is arbitrary or lacks clear justification, it could limit competition, potentially leading to higher prices and reduced value for taxpayers. A thorough review of the exclusion rationale is necessary.

What are the historical spending patterns for IT support services within the Bureau of Indian Affairs?

Analyzing historical spending patterns for IT support services within the Bureau of Indian Affairs (BIA) would involve examining procurement data over several fiscal years. This would reveal the total amount spent on IT support, the types of contracts utilized (e.g., T&M, FFP), the primary contractors awarded these services, and the specific IT functions supported. Understanding these patterns helps in assessing whether the current $41.8 million award is consistent with past investments, if spending has increased or decreased, and if there's a trend towards consolidating IT support under fewer, larger contracts. It also provides context for evaluating the current contract's value and identifying potential areas for cost savings or efficiency improvements in future procurements.

What are the specific IT systems and services covered under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512) and general 'IT INFORMATION TECHNOLOGY SUPPORT SERVICES'. This typically encompasses a broad range of activities, including the design, development, implementation, and maintenance of IT systems, networks, and infrastructure. Specific services could include help desk support, network administration, cybersecurity measures, software installation and configuration, hardware maintenance, and potentially IT strategy and planning. The exact scope would be detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, deliverables, and performance standards expected from Goldbelt Hawk L.L.C. for the Bureau of Indian Affairs and Bureau of Indian Education.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1618Q0162

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 603 PILOT HOUSE DR STE 400, NEWPORT NEWS, VA, 23606

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,727,761

Exercised Options: $46,100,078

Current Obligation: $41,840,656

Actual Outlays: $40,936,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F1010Z

IDV Type: GWAC

Timeline