ESIMPLICITY INC awarded $4.29M for data analytics support, raising questions on value and competition

Contract Overview

Contract Amount: $4,289,478 ($4.3M)

Contractor: Esimplicity Inc

Awarding Agency: Department of the Interior

Start Date: 2022-03-15

End Date: 2026-06-14

Contract Duration: 1,552 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DATA ANALYTICS SUPPORT SERVICES TO SBA OIG

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $4.3 million to ESIMPLICITY INC for work described as: DATA ANALYTICS SUPPORT SERVICES TO SBA OIG Key points: 1. The contract's value appears reasonable given the scope of data analytics support services. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The Time and Materials pricing structure introduces some risk of cost overruns. 4. Performance context is limited, making it difficult to assess the contractor's track record on this specific award. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The award is a BPA Call, indicating it's a task order under a larger agreement.

Value Assessment

Rating: fair

The contract value of $4.29 million for data analytics support services over approximately four years seems within a reasonable range for similar government contracts. However, without specific performance metrics or deliverables, a definitive value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while common, can lead to higher costs if not closely managed, compared to fixed-price contracts. Benchmarking against similar data analytics support contracts for OIGs would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible offerors. This method is intended to maximize competition and achieve the best possible pricing and quality. The number of bidders is not specified, but the use of full and open competition suggests that multiple companies had the opportunity to bid, potentially leading to a more competitive outcome and better price discovery for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiary is the Small Business Administration's Office of Inspector General (SBA OIG), which will receive enhanced data analytics capabilities. Services delivered include support for data analytics, crucial for oversight and identifying potential fraud, waste, and abuse. The geographic impact is primarily within the District of Columbia, where the SBA OIG is located. Workforce implications are likely to involve specialized data analysts and IT professionals, potentially augmenting the SBA OIG's internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risk of cost escalation if not meticulously monitored.
Lack of specific performance metrics in the provided data makes it difficult to gauge expected outcomes and contractor accountability.
The duration of the contract (over 3 years) necessitates ongoing vigilance to ensure continued value and alignment with SBA OIG needs.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract supports critical data analytics functions for an Inspector General's office, enhancing oversight capabilities.
The contractor, ESIMPLICITY INC, is providing specialized IT services, aligning with government needs for digital transformation.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services (NAICS 541512). The market for government IT services, particularly data analytics and cybersecurity support for oversight bodies, is substantial and growing. Agencies increasingly rely on advanced analytics to manage vast datasets, detect anomalies, and improve operational efficiency. Comparable spending benchmarks for similar data analytics support contracts within federal agencies, especially for Inspector General offices, would typically range from hundreds of thousands to several million dollars annually, depending on the complexity and scope of services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem through this specific award appears minimal. However, the prime contractor, ESIMPLICITY INC, may engage small businesses as subcontractors if their internal capabilities do not cover all aspects of the contract, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and the SBA Office of Inspector General's program managers who are receiving the services. The contract's performance will be monitored through regular reporting and adherence to the terms of the Time and Materials agreement. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards. The SBA OIG itself is responsible for overseeing the proper use of funds and the effectiveness of the services provided.

Related Government Programs

SBA OIG Data Analytics Services
Federal IT Support Contracts
Computer Systems Design Services
Time and Materials Contracts
BPA Call Awards

Risk Flags

Time and Materials Pricing Risk
Limited Performance Data
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.3 million to ESIMPLICITY INC. DATA ANALYTICS SUPPORT SERVICES TO SBA OIG

Who is the contractor on this award?

The obligated recipient is ESIMPLICITY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2022-03-15. End: 2026-06-14.

What is the track record of ESIMPLICITY INC in providing data analytics support services to federal agencies, particularly Inspector General offices?

Information regarding ESIMPLICITY INC's specific track record in providing data analytics support services, especially to federal Inspector General offices, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. While the company is awarded this contract under 'Computer Systems Design Services,' the depth and breadth of their experience in specialized data analytics for oversight functions remain unclear from this summary. Further investigation into their portfolio and client feedback would be necessary to fully evaluate their capabilities and reliability for this critical function.

How does the $4.29 million contract value compare to similar data analytics support contracts for federal OIGs?

The $4.29 million contract value for data analytics support services over approximately four years appears to be within a moderate range for federal contracts of this nature. However, a precise comparison is difficult without knowing the specific deliverables, scope of work, and the number of personnel involved. Contracts for OIGs often involve sensitive data analysis, fraud detection, and performance auditing, which can command significant investment. Benchmarking against contracts awarded to other agencies' OIGs for similar services, considering factors like contract duration, labor categories, and specific analytical tools used, would provide a more accurate assessment of whether this represents good value for money.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a predetermined ceiling on the total cost. This means that the government pays for the actual labor hours and materials used. If the project scope expands, timelines are extended, or inefficiencies arise, the total cost can escalate beyond initial expectations. Effective management, close monitoring of labor hours, and clear definition of tasks are crucial to mitigate these risks and ensure the contract remains within a reasonable budget. Without stringent oversight, T&M contracts can become significantly more expensive than initially anticipated.

How effective is 'full and open competition' in ensuring competitive pricing for IT services like data analytics support?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This broad competition drives down prices as contractors vie for the award. However, the actual effectiveness depends on the number of bidders who respond and the complexity of the requirements. If the technical requirements are highly specialized, the pool of qualified bidders might be limited, potentially reducing the competitive pressure. Nonetheless, it remains the preferred method for achieving best value and fair pricing.

What is the historical spending pattern for data analytics support services within the SBA OIG or similar agencies?

The provided data does not include historical spending patterns for data analytics support services within the SBA OIG or similar agencies. To establish such a pattern, one would need to analyze past contract awards for these services over several fiscal years. This analysis would reveal trends in contract values, types of services procured, dominant contractors, and pricing structures. Understanding historical spending is crucial for budgeting, identifying potential cost efficiencies, and assessing whether current spending aligns with past investments or indicates a significant shift in needs or market conditions.

What are the implications of this contract being a BPA Call award?

This contract being a BPA Call award signifies that it is a task order issued under a previously established Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles that agencies can use to streamline the procurement of recurring services or supplies from specific vendors. A BPA Call means that ESIMPLICITY INC was likely selected through a competitive process to be a vendor under a larger BPA, and this specific award represents a call for services against that agreement. This method can expedite the acquisition process and potentially offer better pricing due to pre-negotiated terms within the BPA. However, it also means the initial competition might have occurred at the BPA level, not necessarily for this specific task order.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422Q0104

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Esimplicity, Inc.

Address: 1751 ELTON RD, SILVER SPRING, MD, 20903

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

Financial Breakdown

Contract Ceiling: $6,336,778

Exercised Options: $6,336,778

Current Obligation: $4,289,478

Actual Outlays: $3,654,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0421A0026

IDV Type: BPA

Timeline