Interior Department Awards $36.2M for Sensaphone Stratus EMS Premium Subscriptions to NEW Tech Solutions, Inc

Contract Overview

Contract Amount: $36,205 ($36.2K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-08-23

End Date: 2027-08-29

Contract Duration: 1,101 days

Daily Burn Rate: $33/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SENSAPHONE STRATUS EMS PREMIUM SUBSCRIPTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20526

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $36,205 to NEW TECH SOLUTIONS, INC. for work described as: SENSAPHONE STRATUS EMS PREMIUM SUBSCRIPTIONS Key points: 1. Contract value of $36.2 million over approximately 3 years. 2. Awarded under full and open competition. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. The North American Industry Classification System (NAICS) code is 541519, 'Other Computer Related Services'. 5. The contract involves premium subscription services, likely for a specific software or system. 6. The period of performance spans from August 2024 to August 2027. 7. The contractor, NEW TECH SOLUTIONS, INC., is based in the District of Columbia.

Value Assessment

Rating: fair

The contract value of $36.2 million for a 3-year subscription service appears to be within a reasonable range for enterprise-level software, though specific benchmarking is difficult without knowing the exact service provided. The firm fixed-price nature helps manage cost predictability. However, without details on the number of users or specific features, a precise value-for-money assessment is challenging. Further analysis would require comparing the per-user cost or feature set against similar government or commercial offerings.

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 suggests that while the competition was open, there might have been prior considerations or exclusions that were justified. The presence of 3 bidders indicates a degree of competition, which is generally positive for price discovery. However, the 'after exclusion of sources' phrasing warrants a closer look at the justification for any initial exclusions to ensure maximum competition was achieved.

Taxpayer Impact: A full and open competition, even with initial exclusions, generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing and innovative solutions, potentially leading to better value.

Public Impact

The primary beneficiaries are likely federal agencies within the Department of the Interior that require the SENSAPHONE STRATUS EMS system. The services delivered are premium subscriptions, suggesting ongoing access to a specialized software or communication platform. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the service likely supports operations nationwide. Workforce implications are minimal in terms of direct job creation from this contract, but it supports the existing workforce's operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure no viable competitors were unfairly barred.
Lack of detailed service description makes it difficult to assess if the premium subscription offers truly unique or essential capabilities.
The contract duration of over three years may lock the government into a specific solution, potentially limiting future flexibility or cost savings if better alternatives emerge.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contract supports essential operational capabilities for the Department of the Interior.
The contractor is a registered entity, implying a level of established business practice.

Sector Analysis

The contract falls within the 'Other Computer Related Services' sector, a broad category encompassing a wide range of IT support and software services. This sector is characterized by rapid innovation and a diverse range of providers, from large IT conglomerates to specialized niche firms. Government spending in this area is substantial, driven by the need for modernizing IT infrastructure, enhancing cybersecurity, and acquiring specialized software solutions. Benchmarking this contract's value would ideally involve comparing its per-user cost and feature set against similar enterprise EMS (Emergency Management System) or communication platform subscriptions within the federal government or large commercial enterprises.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'ss': false and 'sb': false. The prime contractor, NEW TECH SOLUTIONS, INC., is not specified as a small business. Therefore, the direct impact on small business set-asides is nil. However, the potential for subcontracting opportunities with small businesses by the prime contractor exists, though it is not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on whether NEW TECH SOLUTIONS, INC. actively engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price structure, requiring delivery of specified services. Transparency is facilitated by the contract award being publicly available. While no specific Inspector General jurisdiction is mentioned, the Department of the Interior's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal IT Services Contracts
Software Subscription Services
Emergency Management Systems
Department of the Interior IT Spending
Computer Related Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of vendor lock-in with a 3-year subscription.
Uncertainty regarding the specific value proposition of 'premium' features.
Need for detailed justification of source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $36,205 to NEW TECH SOLUTIONS, INC.. SENSAPHONE STRATUS EMS PREMIUM SUBSCRIPTIONS

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36,205.

What is the period of performance?

Start: 2024-08-23. End: 2027-08-29.

What specific functionalities does the SENSAPHONE STRATUS EMS PREMIUM SUBSCRIPTION offer, and how do these align with the Department of the Interior's operational needs?

The provided data does not detail the specific functionalities of the SENSAPHONE STRATUS EMS PREMIUM SUBSCRIPTION. However, 'EMS' typically refers to Emergency Management Systems, which are crucial for coordinating responses to various emergencies, including natural disasters, security incidents, and public health crises. Premium subscriptions often include advanced features such as real-time data analytics, enhanced communication tools, broader user access, priority support, and integration capabilities with other systems. For the Department of the Interior, these functionalities could be vital for managing its vast land holdings, protecting natural resources, and ensuring the safety of its personnel and the public across diverse and often remote locations. A deeper analysis would require reviewing the contract's Statement of Work (SOW) to understand the precise services and features being procured and how they directly support the agency's mission-critical operations.

How does the $36.2 million contract value compare to similar EMS or communication subscription services procured by other federal agencies?

Benchmarking the $36.2 million contract value requires comparing it against similar procurements for Emergency Management Systems (EMS) or advanced communication platforms within the federal government. Without specific details on the number of users, the scope of services, and the duration of comparable contracts, a precise comparison is challenging. However, for a 3-year period, this value suggests a significant deployment, potentially supporting a large user base or offering highly specialized, mission-critical features. Agencies like FEMA, DHS, or even large operational components within DoD might procure similar services. A thorough benchmark would involve analyzing the per-user cost, feature set, and service level agreements (SLAs) of other relevant federal contracts to determine if this award represents a competitive price point for the value delivered.

What is the track record of NEW TECH SOLUTIONS, INC. in delivering similar IT services or subscription-based solutions to the federal government?

Information regarding the specific track record of NEW TECH SOLUTIONS, INC. in delivering similar IT services or subscription-based solutions to the federal government is not detailed in the provided data. As a contractor awarded a Delivery Order under a larger contract vehicle (implied by 'AW': 'DELIVERY ORDER'), their past performance would have been evaluated during the initial award of that vehicle or through performance metrics on previous task orders. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (CPARS), and any publicly available information on their project history. A positive performance history on similar contracts would indicate a lower risk for this current award, while a history of issues could raise concerns about successful delivery and value for money.

What are the potential risks associated with a 3-year firm fixed-price contract for premium subscription services?

A 3-year firm fixed-price (FFP) contract for premium subscription services presents several potential risks. Firstly, the FFP structure, while providing cost certainty, can lead to the government overpaying if the contractor's costs decrease significantly over the contract period or if the actual usage is lower than anticipated. Secondly, the 3-year duration might lock the Department of the Interior into a specific technology or vendor, potentially hindering its ability to adopt newer, more cost-effective, or technologically superior solutions that emerge during the contract term. This could lead to vendor lock-in and reduced flexibility. Thirdly, if the 'premium' features are not fully utilized or do not deliver the expected benefits, the value for money could be questionable. Finally, the 'after exclusion of sources' aspect of the competition, if not adequately justified, could indicate a risk of limited competition impacting price and innovation.

How does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') impact the overall value and taxpayer cost for this contract?

The competition level, described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' has a mixed impact on taxpayer cost and value. 'Full and open competition' is generally the most desirable scenario for taxpayers, as it encourages multiple vendors to bid, driving down prices and fostering innovation. The presence of 3 bidders suggests that competition did occur. However, the qualifier 'after exclusion of sources' introduces a potential concern. It implies that certain potential sources were deliberately excluded before the open competition phase. If these exclusions were not based on legitimate, well-documented reasons (e.g., lack of capability, security concerns), they could have artificially limited the competitive pool, potentially leading to higher prices or less optimal solutions than if all capable sources had been allowed to compete. Taxpayers benefit most when the widest possible range of qualified vendors can participate.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,190

Exercised Options: $36,205

Current Obligation: $36,205

Actual Outlays: $24,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline