Interior Department awards $55M IT contract to ASRC Federal for systems integration and sustainment

Contract Overview

Contract Amount: $55,062,737 ($55.1M)

Contractor: Asrc Federal Data Network Technologies, LLC

Awarding Agency: Department of the Interior

Start Date: 2018-06-14

End Date: 2024-04-15

Contract Duration: 2,132 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DMIX SYSTEMS INTEGRATION AND SUSTAINMENT

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $55.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC for work described as: DMIX SYSTEMS INTEGRATION AND SUSTAINMENT Key points: 1. Contract focuses on computer systems design services, a critical area for agency operations. 2. ASRC Federal, a significant player in government contracting, secured this award. 3. The contract duration extends over several years, indicating a need for sustained support. 4. Pricing structure is Time and Materials, which can pose budget management challenges. 5. The award was made under full and open competition, suggesting a competitive process. 6. This contract represents a substantial investment in the Department of the Interior's IT infrastructure.

Value Assessment

Rating: fair

The contract value of $55 million over its period of performance appears to be within a reasonable range for complex IT systems integration and sustainment services. However, the Time and Materials (T&M) pricing structure warrants careful monitoring. T&M contracts can sometimes lead to costs exceeding initial estimates if not managed diligently, as they are tied to the hours worked and materials used rather than a fixed scope. Benchmarking against similar large-scale IT sustainment contracts awarded by other federal agencies would provide a clearer picture of value for money, but preliminary assessment suggests a fair, albeit potentially variable, cost.

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,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of 5 bids suggests a healthy level of competition for this significant IT services contract. A competitive process generally helps in achieving better pricing and service quality as contractors vie for the award.

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, potentially leading to cost savings and a more robust service delivery.

Public Impact

The primary beneficiaries are the Department of the Interior's various agencies, which will receive enhanced IT systems and ongoing support. Services delivered include computer systems design, integration, and sustainment, crucial for the department's mission. The contract's impact is likely nationwide, supporting the IT infrastructure used across the Department of the Interior's operations. This contract supports a segment of the federal IT workforce, including technical specialists and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely managed.
The long duration of the contract requires ongoing vigilance to ensure continued value.
Dependence on a single contractor for critical IT systems integration and sustainment could pose risks.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
ASRC Federal has a track record in government IT services, suggesting experience.
The contract addresses essential IT infrastructure needs for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in modernizing and sustaining their digital infrastructure. This contract for systems integration and sustainment is a common type of award within the federal government, reflecting the ongoing need for specialized IT support. Comparable spending benchmarks for similar large-scale IT services contracts can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The contract was awarded to ASRC Federal Data Network Technologies, LLC, and the data indicates no specific small business set-aside or subcontracting requirements were explicitly mentioned in this summary. Therefore, the direct impact on small businesses through this specific award is not detailed. However, large prime contractors like ASRC Federal often engage small businesses for subcontracting opportunities, which could provide work for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Systems Modernization
Cloud Computing Services
Cybersecurity Services
Enterprise Resource Planning (ERP) Systems
IT Infrastructure Support

Risk Flags

Time and Materials pricing structure requires diligent oversight to control costs.
Long contract duration necessitates ongoing performance monitoring and adaptability to technological changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $55.1 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC. DMIX SYSTEMS INTEGRATION AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $55.1 million.

What is the period of performance?

Start: 2018-06-14. End: 2024-04-15.

What is ASRC Federal's track record with the Department of the Interior and other federal agencies for similar IT services?

ASRC Federal has a significant history of performing IT services for various federal agencies, including the Department of the Interior. Their portfolio often includes systems integration, sustainment, cybersecurity, and network management. Reviews of past performance and contract awards indicate a substantial presence in the federal IT landscape. Specific to the Department of the Interior, ASRC Federal has held numerous contracts over the years, demonstrating a capacity to meet the agency's complex IT requirements. Their track record generally shows experience in delivering complex solutions, though like any large contractor, specific project outcomes can vary. A deeper dive into their performance ratings on past contracts would provide more granular insights into their reliability and effectiveness.

How does the $55 million contract value compare to similar IT systems integration and sustainment contracts awarded by the Department of the Interior or other agencies?

The $55 million contract value for IT systems integration and sustainment over its period of performance is substantial but not unusual for a contract of this nature supporting a large federal agency like the Department of the Interior. Large-scale IT modernization and sustainment efforts often run into tens or hundreds of millions of dollars. For instance, similar contracts for enterprise IT support, network infrastructure upgrades, or core application sustainment awarded to other major federal IT contractors by agencies such as the Department of Defense, GSA, or HHS can easily exceed this amount. The Time and Materials (T&M) pricing structure means the final cost could fluctuate, making direct comparisons challenging without knowing the exact labor hours and materials utilized. However, in the context of federal IT spending, $55 million represents a significant, but not outlier, investment.

What are the primary risks associated with a Time and Materials (T&M) contract for IT systems sustainment?

The primary risk with Time and Materials (T&M) contracts, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. If not managed rigorously, this structure can incentivize longer task durations or increased material usage, leading to costs exceeding initial estimates. For the government, this necessitates robust oversight, detailed tracking of hours and materials, and clear definition of 'materials.' Without strong controls, the government may end up paying more than anticipated for the services rendered. This risk is particularly relevant for sustainment contracts where the scope might evolve or unforeseen issues arise.

How does the 'full and open competition after exclusion of sources' method impact price discovery and taxpayer value?

The 'full and open competition after exclusion of sources' method is a specific type of competitive procurement. It means the solicitation was made available to all responsible sources (full and open competition), but certain sources were excluded based on pre-defined criteria, often related to specific capabilities or past performance requirements that are essential for the contract's success. This approach aims to ensure a competitive environment while also ensuring that only qualified vendors participate. For taxpayers, this method generally promotes better price discovery than a sole-source award because multiple bidders are incentivized to offer competitive pricing. However, if the exclusion criteria are too narrow, it could inadvertently limit competition, potentially leading to less optimal pricing than a truly unrestricted full and open competition.

What are the implications of a 2,132-day contract duration (approximately 5.8 years) for IT systems sustainment?

A contract duration of approximately 5.8 years for IT systems sustainment implies a long-term commitment to maintaining and evolving critical technological infrastructure. This extended period allows for deeper integration of the contractor's services with the agency's operations and fosters a more stable IT environment. For the agency, it can mean consistent support and a reduced need for frequent re-competition, which can be resource-intensive. However, such long durations also carry risks. Technology evolves rapidly, and a contract locked in for nearly six years might not always align with the latest advancements or agency needs. It also requires sustained oversight to ensure the contractor remains efficient and innovative throughout the period, and that the T&M pricing remains fair and justified over time.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0418Q0172

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,985,992

Exercised Options: $89,985,992

Current Obligation: $55,062,737

Actual Outlays: $54,437,662

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $6,760,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200127W

IDV Type: GWAC

Timeline