Interior's Bureau of Indian Affairs awards $8.86M for Enterprise Case Management System support to Arctic Information Technology

Contract Overview

Contract Amount: $8,860,327 ($8.9M)

Contractor: Arctic Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-07-01

End Date: 2026-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE CASE MANAGEMENT SYSTEM SUPPORT FOR BIA

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $8.9 million to ARCTIC INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE CASE MANAGEMENT SYSTEM SUPPORT FOR BIA Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 1095 days (3 years) indicates a need for sustained support. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The award is a definitive contract, suggesting a formal and established agreement. 6. The contract is not competed under the Simplified Acquisition Procedures (SAP), implying a value above typical SAP thresholds. 7. The contract is for Enterprise Case Management System support, crucial for administrative functions.

Value Assessment

Rating: questionable

Benchmarking the value of this $8.86 million contract is challenging without comparable sole-source awards for similar case management systems. The firm fixed-price structure provides cost predictability, but the lack of competition raises concerns about whether the government secured the best possible price. The contract's value appears to be within a reasonable range for enterprise-level IT support over three years, but a competitive process would have provided a stronger basis for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Arctic Information Technology, Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that could have arisen from a bidding war among multiple qualified vendors. This could result in a higher overall expenditure for the services provided.

Public Impact

The Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) are the primary beneficiaries, receiving support for their critical Enterprise Case Management System. This contract ensures the continued operation and maintenance of a system vital for managing cases within these agencies. The services delivered are essential for the administrative efficiency and effectiveness of the BIA and BIE. The geographic impact is national, as the BIA and BIE serve diverse populations across the United States. Workforce implications include the potential for Arctic Information Technology, Inc. to utilize its skilled IT professionals for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in due to specialized system support.
Absence of performance metrics or benchmarks in the provided data.
Contract value is substantial, warranting closer scrutiny of cost-effectiveness.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Contract duration suggests a stable, ongoing need for the service.
Arctic Information Technology, Inc. is the awardee, implying they possess the necessary qualifications.
The contract supports a critical system for agency operations.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and support. The market for enterprise case management systems and their ongoing support is significant, with numerous vendors offering solutions. However, the sole-source nature of this award suggests that Arctic Information Technology, Inc. may have unique expertise or a pre-existing relationship with the system. Comparable spending benchmarks for similar enterprise system support contracts can vary widely based on system complexity, user base, and vendor.

Small Business Impact

The 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 stemming from a small business set-aside. The award to Arctic Information Technology, Inc., a presumably larger entity given the contract value, means that opportunities for small business participation through subcontracting are not explicitly mandated by this specific award mechanism.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers within the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award; the justification for this procurement method would be a key area for review. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Bureau of Indian Affairs IT Modernization Efforts
Federal Case Management System Contracts
Department of the Interior IT Services
Custom Computer Programming Services
Enterprise Resource Planning (ERP) System Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding the necessity of sole-source procurement.
No clear performance metrics provided in award data.
Contract value is substantial, requiring robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.9 million to ARCTIC INFORMATION TECHNOLOGY, INC.. ENTERPRISE CASE MANAGEMENT SYSTEM SUPPORT FOR BIA

Who is the contractor on this award?

The obligated recipient is ARCTIC INFORMATION TECHNOLOGY, INC..

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 $8.9 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-06-30.

What is the specific Enterprise Case Management System being supported, and what is Arctic Information Technology, Inc.'s history with it?

The provided data does not specify the exact name or vendor of the Enterprise Case Management System (ECMS). However, the award to Arctic Information Technology, Inc. (AIT) for support suggests that AIT either developed, previously maintained, or possesses specialized knowledge of this particular ECMS. A deeper dive into AIT's contract history with the Department of the Interior, specifically the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE), would reveal the extent of their involvement. Typically, sole-source awards for system support are granted to the incumbent contractor or a firm with unique, proprietary knowledge of the system to ensure continuity and avoid costly transitions. Understanding the system's criticality to BIA/BIE operations and the potential disruption or cost associated with switching vendors would further contextualize the sole-source decision.

How does the $8.86 million contract value compare to similar IT support contracts for federal agencies?

The $8.86 million contract value for three years of Enterprise Case Management System support is a significant investment. Benchmarking this against similar contracts is complex due to variations in system scope, user base, and service level agreements. However, for enterprise-level IT support, including custom programming and system maintenance, this figure appears to be within a plausible range, especially for agencies with extensive operational needs like the BIA and BIE. Without access to a database of comparable sole-source IT support contracts, a precise value-for-money assessment is difficult. A competitive process would have yielded clearer benchmarks. The firm fixed-price nature suggests the government aims for cost certainty, but the lack of competition prevents a direct comparison of pricing efficiency against market alternatives.

What are the primary risks associated with a sole-source award for critical IT system support?

The primary risks associated with a sole-source award for critical IT system support include reduced price competition, potentially leading to higher costs for the government and taxpayers. There's also a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making future transitions difficult and expensive. Without competitive pressure, the vendor may have less incentive to innovate or provide superior service levels. Furthermore, the justification for a sole-source award needs rigorous scrutiny to ensure it is truly warranted and not a result of poor planning or a desire to avoid the competitive process. This lack of competition can obscure potential inefficiencies or suboptimal performance that might be exposed in a competitive environment.

What is the expected impact of this contract on the operational effectiveness of the Bureau of Indian Affairs and Bureau of Indian Education?

This contract is expected to have a positive impact on the operational effectiveness of the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) by ensuring the continued functionality and support of their Enterprise Case Management System (ECMS). An ECMS is crucial for managing various administrative processes, tracking cases, and maintaining records efficiently. By securing dedicated support from Arctic Information Technology, Inc., the agencies can anticipate system stability, timely issue resolution, and potentially system enhancements or maintenance that improve user experience and data integrity. This continuity is vital for the agencies to effectively serve their constituents and manage their programs without disruption caused by IT system failures or performance degradation.

How has federal spending on custom computer programming services (NAICS 541511) trended in recent years, and where does this contract fit?

Federal spending on custom computer programming services (NAICS 541511) has generally trended upwards over the past decade, reflecting the increasing reliance of government agencies on specialized IT solutions to manage operations, improve efficiency, and enhance service delivery. This category encompasses a wide range of services, from software development to system integration and IT consulting. The $8.86 million award to Arctic Information Technology, Inc. for Enterprise Case Management System support fits within this trend as a significant investment in maintaining and supporting a critical custom-built or highly tailored system. While specific year-over-year spending data for this NAICS code across the entire federal government isn't provided, contracts of this magnitude are common for agencies undertaking major IT initiatives or requiring long-term support for complex systems.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11500 SUKDU WAY, ANCHORAGE, AK, 99515

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,989,550

Exercised Options: $8,860,327

Current Obligation: $8,860,327

Actual Outlays: $7,647,023

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline