DOI's $3.5M OCS AQS contract awarded to Xator LLC for custom programming services

Contract Overview

Contract Amount: $3,499,377 ($3.5M)

Contractor: Xator LLC

Awarding Agency: Department of the Interior

Start Date: 2019-10-01

End Date: 2026-09-30

Contract Duration: 2,556 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OUTER CONTINENTAL SHELF AIR QUALITY SYSTEM (OCS AQS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $3.5 million to XATOR LLC for work described as: OUTER CONTINENTAL SHELF AIR QUALITY SYSTEM (OCS AQS) Key points: 1. Contract value appears reasonable for custom programming services over a multi-year period. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of nearly 7 years presents potential for scope creep and cost escalation. 4. Fixed-price contract type mitigates some financial risk for the government. 5. Awarded to a single contractor, highlighting the need for robust performance monitoring. 6. Services are critical for environmental compliance and regulatory oversight.

Value Assessment

Rating: good

The contract's total value of approximately $3.5 million over nearly seven years suggests an average annual spend of around $500,000. This figure appears within a reasonable range for specialized IT services supporting complex regulatory functions like air quality monitoring. Benchmarking against similar custom computer programming contracts for environmental agencies would provide a more precise value-for-money assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With three bidders participating, the competition level suggests a moderately competitive market for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) benefits from enhanced air quality monitoring capabilities. Services delivered support regulatory compliance and environmental protection within the Outer Continental Shelf. Geographic impact is focused on offshore energy production areas. Workforce implications include the need for specialized IT and environmental science expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 7 years) increases the risk of cost overruns if not managed tightly.
Reliance on a single contractor for critical environmental monitoring systems requires diligent oversight.
Potential for vendor lock-in if proprietary systems are developed.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a robust market and potential for competitive pricing.
Services directly support a critical government mission for environmental safety.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for such services is vast and competitive, with numerous firms capable of developing and maintaining specialized software. The contract's focus on environmental regulatory support is a niche within this broader sector. Comparable spending benchmarks would involve looking at other federal IT contracts for environmental monitoring or data management systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight is likely managed by the Bureau of Safety and Environmental Enforcement (BSEE) program officials. Accountability measures would be tied to contract performance metrics and deliverables. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Monitoring Systems
IT Services for Regulatory Agencies
Offshore Energy Regulation Support
Custom Software Development Contracts

Risk Flags

Long contract duration
Single award contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.5 million to XATOR LLC. OUTER CONTINENTAL SHELF AIR QUALITY SYSTEM (OCS AQS)

Who is the contractor on this award?

The obligated recipient is XATOR LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Safety and Environmental Enforcement).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2019-10-01. End: 2026-09-30.

What is Xator LLC's track record with federal contracts, particularly within the Department of the Interior?

Xator LLC has a history of federal contracting, primarily serving agencies like the Department of Homeland Security and the Department of Defense, with a focus on security, training, and technical services. While their presence within the Department of the Interior might be less extensive compared to other agencies, their award for the OCS AQS system indicates a capability alignment with the Bureau of Safety and Environmental Enforcement's needs. A deeper dive into their past performance ratings on similar IT or environmental monitoring contracts would provide further insight into their reliability and effectiveness in delivering complex technical solutions.

How does the $3.5 million contract value compare to similar custom programming services for environmental monitoring?

The $3.5 million contract value, spread over nearly seven years, translates to an average annual expenditure of approximately $500,000. This figure appears reasonable for specialized custom computer programming services supporting a critical function like air quality monitoring for offshore operations. Benchmarking against similar contracts awarded by agencies like the EPA or NOAA for environmental data systems or regulatory software would offer a more precise comparison. However, given the complexity and niche nature of OCS air quality regulations, this investment seems proportionate to the required technical expertise and system development.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential cost overruns due to the long contract duration (2556 days), the possibility of scope creep if requirements are not clearly defined and managed, and vendor lock-in if proprietary technologies are heavily utilized. Mitigation strategies include the firm fixed-price (FFP) contract type, which caps the government's financial exposure and incentivizes the contractor to control costs. Robust performance monitoring by BSEE, clear contract modifications for any scope changes, and emphasis on open standards during development can further mitigate these risks. Regular reviews and milestone assessments are crucial for proactive risk management.

How effective is the 'full and open competition' approach in ensuring value for this specific type of IT service?

The 'full and open competition' approach is generally effective for ensuring value in IT services by allowing a broad range of qualified vendors to compete. For custom computer programming, this means the government can solicit proposals from companies with diverse technical capabilities and innovative solutions. The presence of three bidders in this case suggests a healthy, albeit not hyper-competitive, market. This process helps drive down prices through competitive bidding and encourages contractors to offer their best technical approach and pricing to win the award, ultimately benefiting taxpayers.

What are the historical spending patterns for air quality monitoring systems within the Department of the Interior?

Historical spending patterns for air quality monitoring systems within the Department of the Interior (DOI) are likely concentrated within bureaus responsible for resource management and environmental oversight, such as the Bureau of Safety and Environmental Enforcement (BSEE) and potentially the Bureau of Land Management (BLM) or U.S. Geological Survey (USGS). While specific aggregate data for 'air quality systems' might be difficult to isolate without detailed category analysis, spending typically involves procurement of monitoring equipment, software development for data analysis and reporting, and ongoing maintenance contracts. The $3.5 million OCS AQS contract represents a significant, multi-year investment in a specialized IT system, suggesting a strategic focus on enhancing offshore environmental compliance capabilities.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140E0119Q0021

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 1835 ALEXANDER BELL DR, RESTON, VA, 20191

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: $4,240,679

Exercised Options: $3,499,377

Current Obligation: $3,499,377

Actual Outlays: $3,142,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline