Interior's $25.8M IT support contract awarded to Essex Management LLC for custom programming services

Contract Overview

Contract Amount: $25,789,499 ($25.8M)

Contractor: Essex Management LLC

Awarding Agency: Department of the Interior

Start Date: 2020-07-28

End Date: 2026-09-27

Contract Duration: 2,252 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CLINICAL TRIAL REPORTING PROGRAM SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $25.8 million to ESSEX MANAGEMENT LLC for work described as: CLINICAL TRIAL REPORTING PROGRAM SUPPORT SERVICES 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 risks if not managed diligently. 3. Performance period spans over six years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Essex Management LLC is the sole awardee for this specific delivery order. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $25.8 million contract over 6 years requires more granular data on the specific services provided and the labor categories involved. Time and Materials contracts can be prone to cost overruns if not closely monitored, making value assessment challenging without detailed performance metrics and comparison to similar IT support contracts. The absence of a specific task order ceiling or detailed CLIN structure within the provided data limits a precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, which is crucial for understanding the true level of competition. A robust competitive process generally leads to better pricing and innovation for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs and improving service quality.

Public Impact

The Department of the Interior benefits from continuous IT support for its custom programming needs. This contract ensures the availability of specialized IT services to support departmental operations. The services are likely to impact the efficiency and effectiveness of the Department's internal IT systems. The geographic impact is primarily within Maryland, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Long performance period (over 6 years) may lead to vendor lock-in if not managed proactively.
Lack of specific competition details (number of bidders) hinders a full assessment of price discovery.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contract duration suggests a stable, long-term need being met.
Clear identification of service type (custom computer programming) provides specificity.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is highly dynamic, with significant government spending allocated to software development, maintenance, and support. Comparable spending benchmarks would typically involve analyzing other large, multi-year IT support contracts awarded by federal agencies for similar custom programming requirements, considering factors like labor rates and service scope.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal unless Essex Management LLC voluntarily engages small businesses as subcontractors. The absence of set-asides means larger, established firms were likely the primary participants in the competition.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) monitoring performance, deliverables, and adherence to contract terms. Transparency is generally facilitated through contract award databases like FPDS. Accountability rests with Essex Management LLC to perform according to the contract and with the Department of the Interior to manage the contract effectively. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
Department of the Interior IT Contracts
Time and Materials Contracts
Delivery Orders

Risk Flags

Cost Control Risk (Time and Materials)
Long-Term Performance Monitoring
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.8 million to ESSEX MANAGEMENT LLC. CLINICAL TRIAL REPORTING PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ESSEX MANAGEMENT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2020-07-28. End: 2026-09-27.

What is the historical spending pattern for CLINICAL TRIAL REPORTING PROGRAM SUPPORT SERVICES by the Department of the Interior?

The provided data focuses on a single contract for 'CLINICAL TRIAL REPORTING PROGRAM SUPPORT SERVICES' awarded to Essex Management LLC. To understand historical spending patterns for this specific service category by the Department of the Interior, a broader analysis of federal procurement data (e.g., FPDS) would be necessary. This would involve searching for all contracts categorized under relevant NAICS codes (like 541511 for Custom Computer Programming Services) and service descriptions related to clinical trial reporting or similar IT support functions awarded by the DOI over several fiscal years. Analyzing trends in award amounts, number of contracts, and prime contractors would reveal historical spending patterns.

How does the per-unit cost of this contract compare to similar IT support contracts within the federal government?

A direct per-unit cost comparison is challenging without knowing the specific units of service (e.g., hours, deliverables) and their associated rates within this Time and Materials contract. The total award amount of $25.8 million over approximately 6 years ($4.3 million annually) provides a high-level figure. To benchmark effectively, one would need to compare the average hourly rates for labor categories (e.g., programmers, project managers) against government-wide salary data or rates established in similar IT support IDIQ vehicles. Additionally, comparing the scope of services and the complexity of the programming tasks against other custom programming contracts awarded by agencies like HHS or NIH could provide context, but precise 'per-unit' comparisons are often difficult due to variations in service definitions and contract structures.

What is Essex Management LLC's track record with federal IT contracts, particularly those involving custom programming?

Essex Management LLC has been awarded this $25.8 million contract for custom computer programming services by the Department of the Interior. To assess their track record, a review of their contract history in federal procurement databases (like FPDS) is needed. This would reveal past awards, their values, agencies involved, contract types, and performance periods. Specifically, looking for prior contracts with similar service descriptions (custom programming, IT support) and contract types (Time and Materials, Firm-Fixed-Price) would indicate their experience and performance history in this domain. Positive performance indicators might include contract completions without significant disputes or terminations, and positive past performance reviews, if available.

What are the primary risks associated with a Time and Materials contract of this duration and value?

The primary risks associated with a Time and Materials (T&M) contract of this $25.8 million value and 6-year duration include potential cost overruns and a lack of defined scope, which can lead to inefficiencies. Since the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials, there is less incentive for the contractor to control costs compared to a fixed-price contract. For the government, effective oversight is critical to ensure that labor hours are reasonable and necessary for the work performed, and that material costs are fair. The long duration amplifies these risks, as market rates can change, and the initial estimates may become outdated, necessitating careful monitoring and potential modifications.

How does the 'Custom Computer Programming Services' NAICS code (541511) typically align with the Department of the Interior's IT needs?

The NAICS code 541511, 'Custom Computer Programming Services,' aligns with the Department of the Interior's (DOI) need for developing and modifying software to meet specific organizational requirements. DOI, like many large federal agencies, relies heavily on tailored IT solutions for managing diverse operations, from resource management and environmental monitoring to administrative functions. Custom programming is essential when off-the-shelf software cannot fulfill unique business processes or data integration needs. This contract likely supports the development, maintenance, or enhancement of internal software applications critical to DOI's mission, ensuring its IT infrastructure remains functional and adaptable to evolving technological landscapes and agency priorities.

What is the significance of this contract being a 'Delivery Order' rather than a standalone contract?

This contract being a 'Delivery Order' signifies that it is a task-specific order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQs allow agencies to procure services or supplies over a set period, with specific quantities or task orders defined as needs arise. As a delivery order, this $25.8 million award represents a specific commitment for services to be rendered by Essex Management LLC within the framework of a larger, potentially broader contract. This structure provides flexibility for the agency to order services as needed while establishing overall terms and conditions, pricing, and a ceiling amount upfront.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 401 N WASHINGTON ST STE 700, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,923,073

Exercised Options: $25,923,073

Current Obligation: $25,789,499

Actual Outlays: $24,004,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D003A

IDV Type: FSS

Timeline