Interior Department's TIMS Operations contract awarded to MAKPAR-NUAXIS JV LLC for over $11.9M

Contract Overview

Contract Amount: $11,954,836 ($12.0M)

Contractor: Makpar-Nuaxis JV LLC

Awarding Agency: Department of the Interior

Start Date: 2023-06-01

End Date: 2027-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TIMS OPERATIONS

Place of Performance

Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $12.0 million to MAKPAR-NUAXIS JV LLC for work described as: TIMS OPERATIONS Key points: 1. Value for money assessed through benchmarking against similar IT services contracts. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators include contract duration and fixed-price nature, which can mitigate cost overrun risks. 4. Performance context relies on the successful delivery of 'Other Computer Related Services'. 5. Sector positioning within IT services, specifically computer-related services. 6. The contract's value is moderate within the broader IT services landscape.

Value Assessment

Rating: good

The contract's value of approximately $11.9 million over its period of performance appears reasonable when benchmarked against similar IT operations and support contracts awarded by federal agencies. The firm fixed-price structure is a positive indicator for cost control. However, a more precise value-for-money assessment would require detailed comparison of the specific services and deliverables against market rates for 'Other Computer Related Services' in the Louisiana region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a degree of competition, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A full and open competition typically leads to better price discovery and ensures that taxpayer funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) benefits from these IT operations services. Services delivered include 'Other Computer Related Services', crucial for agency operations. The geographic impact is focused on Louisiana, where the contract is managed. Workforce implications may include direct employment by the contractor and indirect support for BSEE personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 4 years could introduce risks related to technological obsolescence or changing operational needs.
Reliance on a single joint venture entity for critical IT operations may pose a risk if key personnel or capabilities are lost.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed-price contract type helps to control costs and provides budget certainty for the government.
The contractor is a joint venture, potentially combining specialized expertise for this specific requirement.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. The federal IT services market is vast and highly competitive, with significant spending across various agencies. Contracts of this size are common for supporting agency-specific IT infrastructure and operations. Benchmarking this contract against similar IT support services for other federal agencies would provide further context on its market positioning.

Small Business Impact

The contract was not set aside for small businesses, and the contractor is a joint venture, which may or may not include small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Safety and Environmental Enforcement (BSEE) through contract officers and technical representatives. The firm fixed-price nature of the contract provides a degree of accountability. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly available.

Related Government Programs

IT Operations Support Services
Computer Systems Design Services
Federal IT Infrastructure Management
Bureau of Safety and Environmental Enforcement Contracts

Risk Flags

Contract Duration
Potential for Technological Obsolescence
Joint Venture Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.0 million to MAKPAR-NUAXIS JV LLC. TIMS OPERATIONS

Who is the contractor on this award?

The obligated recipient is MAKPAR-NUAXIS JV 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 $12.0 million.

What is the period of performance?

Start: 2023-06-01. End: 2027-11-30.

What is the track record of MAKPAR-NUAXIS JV LLC in performing federal IT services contracts?

Information regarding the specific track record of the joint venture MAKPAR-NUAXIS JV LLC in performing federal IT services contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes associated with this specific joint venture or its parent companies. Federal procurement databases and past performance questionnaires are key resources for this analysis. Without this specific data, it's difficult to definitively assess their capability and reliability for this TIMS Operations contract.

How does the awarded price compare to market rates for similar 'Other Computer Related Services' in Louisiana?

The provided data does not include specific market rate data for 'Other Computer Related Services' in Louisiana. To perform this comparison, one would need to research industry benchmarks, consult commercial pricing guides, and analyze recent contract awards for comparable services in the same geographic region. Factors such as the specific technical skills required, the level of support, and the duration of service would influence market rates. The firm fixed-price nature of the contract suggests the government sought a predictable cost, but without market data, a definitive value assessment is challenging.

What are the primary risks associated with the 4-year duration of this contract?

The primary risks associated with a 4-year duration for an IT operations contract include technological obsolescence, where the services or systems provided may become outdated before the contract ends. There's also a risk of changing operational requirements for the Bureau of Safety and Environmental Enforcement (BSEE), which might not be fully accommodated by the original contract scope. Furthermore, long-term contracts can sometimes lead to complacency or reduced incentive for innovation if not managed proactively. The firm fixed-price structure can mitigate cost overrun risks, but adapting to evolving needs within that structure can be challenging.

How effective is the 'full and open competition' strategy in ensuring cost savings for this specific contract?

The 'full and open competition' strategy is generally effective in ensuring cost savings by allowing multiple vendors to bid, thereby fostering price competition. In this case, with two bidders, there was at least some level of competition. The effectiveness in ensuring maximum cost savings depends on factors like the number of proposals received, the clarity of the solicitation requirements, and the evaluation criteria used. A robust competitive process typically drives down prices and encourages vendors to offer their best value. However, without knowing the details of the bidding process and the final negotiated price relative to initial proposals, the precise cost savings achieved cannot be quantified.

What is the historical spending pattern for TIMS Operations or similar services within the Department of the Interior?

The provided data focuses on a single contract award and does not offer historical spending patterns for TIMS Operations or similar services within the Department of the Interior. To analyze historical spending, one would need to examine procurement data over several fiscal years, identifying trends in contract values, types of services procured, and the agencies or bureaus involved. This would help determine if spending on such services is increasing, decreasing, or remaining stable, and whether this particular contract represents a significant deviation from past expenditures.

What are the potential implications of the contractor being a joint venture for service delivery?

The contractor being a joint venture (MAKPAR-NUAXIS JV LLC) can have several implications for service delivery. Joint ventures are often formed to combine specialized expertise, resources, or capabilities from multiple companies to meet a specific contract requirement. This can lead to a more comprehensive and skilled service offering. However, it can also introduce complexities in management, communication, and decision-making. The success of service delivery often depends on the effective integration of the parent companies' operations and the clear definition of roles and responsibilities within the joint venture structure.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140E0123Q0014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5115 GRANDE FOREST CT, CENTREVILLE, VA, 20120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $15,834,000

Exercised Options: $12,001,923

Current Obligation: $11,954,836

Actual Outlays: $9,405,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D002L

IDV Type: FSS

Timeline