Interior's $5.3M ITSS II OBIEE BPA Call to NexGen Technologies Inc. awarded under full and open competition

Contract Overview

Contract Amount: $5,332,493 ($5.3M)

Contractor: Nexgen Technologies Inc.

Awarding Agency: Department of the Interior

Start Date: 2021-04-01

End Date: 2027-01-31

Contract Duration: 2,131 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITSS II OBIEE BPA CALL

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $5.3 million to NEXGEN TECHNOLOGIES INC. for work described as: ITSS II OBIEE BPA CALL Key points: 1. The contract value of $5.3 million over its period of performance suggests a moderate investment in IT services. 2. NexGen Technologies Inc. is the sole awardee for this specific BPA Call, indicating a focused relationship for these services. 3. The contract's duration of approximately 5.7 years allows for sustained support but may also present risks if performance falters. 4. The fixed-price contract type shifts performance risk to the contractor, potentially leading to cost efficiencies if managed well. 5. The absence of small business set-aside flags a potential gap in opportunities for smaller firms on this specific award. 6. The contract is categorized under Custom Computer Programming Services, a common area for federal IT spending.

Value Assessment

Rating: fair

The contract value of $5.3 million for custom computer programming services over nearly six years appears within a reasonable range for federal IT support. Benchmarking against similar OBIEE (Oracle Business Intelligence Enterprise Edition) related contracts would provide a clearer picture of value for money. The firm fixed-price nature suggests that the contractor bears the cost overrun risk, which can be beneficial for the government if the scope is well-defined. However, without detailed performance metrics or comparison data, a definitive assessment of 'excellent' value is difficult.

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 offers. The data shows two bids were received. While two bidders represent some level of competition, it is on the lower end for a full and open solicitation. This limited number of bids could suggest potential barriers to entry for other firms or a niche market for these specific services. The government's ability to secure the best price and value may be constrained compared to scenarios with a higher number of competitive offers.

Taxpayer Impact: A full and open competition, even with only two bids, is generally favorable for taxpayers as it allows for at least some price discovery and encourages contractors to offer competitive terms. However, the limited number of bidders means taxpayers may not be realizing the full potential savings that a more robust competition could yield.

Public Impact

The Bureau of Land Management (BLM) and potentially other Interior Department agencies will benefit from enhanced custom computer programming services. These services are expected to support the ITSS II (Information Technology Support Services) program, likely improving IT infrastructure and operations. The contract's performance is tied to the agency's ability to manage its data and business intelligence effectively. The geographic impact is primarily within the Department of the Interior's operational areas, with a specific mention of Colorado (SN: COLORADO).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may result in suboptimal pricing for taxpayers.
The long contract duration (over 5 years) increases the risk of vendor lock-in or performance degradation over time.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of services.
The absence of small business participation could limit the broader economic impact and diversity of the federal contracting ecosystem.

Positive Signals

Awarded under full and open competition, ensuring a fair process for all eligible vendors.
Firm Fixed Price contract type transfers cost overrun risk to the contractor.
The contract supports a critical IT function (OBIEE) for the Department of the Interior.
NexGen Technologies Inc. is a known entity, potentially indicating a level of established capability.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to custom computer programming and IT support services. Contracts like this, supporting business intelligence platforms such as Oracle OBIEE, are crucial for agencies managing large datasets and complex operations. The $5.3 million value positions this as a mid-tier contract within the broader IT services sector. Comparable spending benchmarks would typically look at the average cost per hour or per project for similar OBIEE development and maintenance tasks across government agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business subcontracting requirements were mandated for this specific award (SB: false). This means that opportunities for small businesses to participate in delivering these services are limited to potential subcontracting roles that the prime contractor, NexGen Technologies Inc., may voluntarily pursue. The absence of a set-aside suggests that the primary focus was on obtaining the best value through open competition, rather than specifically fostering small business growth through this particular contract vehicle.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Interior's Bureau of Land Management contracting officers and program managers. As a BPA Call under a larger BPA (likely ITSS II), oversight may also be influenced by the terms and oversight mechanisms established for the parent BPA. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight activities are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

ITSS II (Information Technology Support Services II)
OBIEE (Oracle Business Intelligence Enterprise Edition) Support
Custom Computer Programming Services
Department of the Interior IT Contracts
Bureau of Land Management IT Services

Risk Flags

Limited competition (2 bids)
Long contract duration
Potential for scope creep in custom programming
Lack of detailed performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.3 million to NEXGEN TECHNOLOGIES INC.. ITSS II OBIEE BPA CALL

Who is the contractor on this award?

The obligated recipient is NEXGEN TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2021-04-01. End: 2027-01-31.

What is the track record of NexGen Technologies Inc. with the federal government, particularly in delivering OBIEE or similar business intelligence services?

NexGen Technologies Inc. has a history of federal contracting, though specific details on their performance with OBIEE or similar business intelligence platforms require deeper analysis of past performance evaluations and contract histories. Federal procurement data indicates they have received multiple awards across various agencies. To assess their track record effectively, one would need to examine past performance questionnaires (PPQs), CPARS (Contractor Performance Assessment Reporting System) reports, and any debriefings from previous solicitations. A review of their awarded contracts would reveal the types of services they have provided, their value, and the agencies they have served. Without access to these detailed performance records, it's challenging to definitively state their expertise and reliability in this specific niche.

How does the awarded value of $5.3 million compare to similar OBIEE support contracts within the federal government?

The $5.3 million value for this contract, spanning approximately 5.7 years, translates to an average annual value of roughly $930,000. Comparing this to similar federal contracts for OBIEE support requires access to a comprehensive database of federal procurements, filtered by service type (business intelligence, custom programming), technology (OBIEE), and agency. Generally, federal IT support contracts can range widely in value depending on scope, duration, and complexity. A contract of this size is moderate, suggesting it covers a defined set of services rather than an agency-wide, comprehensive overhaul or support system. To provide a precise benchmark, one would need to analyze contracts with similar durations, service levels, and specific OBIEE functionalities (e.g., development, maintenance, administration) awarded over the past few years.

What are the primary risks associated with a firm fixed-price contract of this duration for custom computer programming?

The primary risks associated with a firm fixed-price (FFP) contract of this duration (over 5 years) for custom computer programming revolve around scope creep, contractor performance, and technological obsolescence. For the government, the main risk is that the fixed price may become unrepresentative of the actual work required if the scope is not meticulously defined and managed, potentially leading to the contractor being unwilling or unable to deliver without change orders that increase costs. Contractor performance risk is also significant; if the contractor underperforms or faces financial difficulties, the government might struggle to find a replacement mid-contract without significant disruption. Furthermore, custom software developed today could become outdated or incompatible with future technologies within a 5+ year timeframe, requiring costly re-development or integration efforts. The FFP structure places the cost overrun risk on the contractor, which is generally favorable for the government, but it necessitates robust oversight to ensure quality and adherence to the defined scope.

Given only two bids were received, what is the potential impact on price discovery and overall value for the taxpayer?

Receiving only two bids in a 'full and open competition' scenario significantly limits price discovery and can negatively impact the value realized by taxpayers. With a larger pool of bidders, competition naturally drives prices down as contractors vie for the award. When only two offers are present, the government has a reduced set of options, and the winning contractor may face less pressure to offer the most aggressive pricing. This situation can lead to the government paying a higher price than might have been achieved in a more competitive environment. Furthermore, the limited competition might indicate barriers to entry for other potential vendors, suggesting the market for these specific services might be concentrated, further diminishing competitive pressure and potentially leading to suboptimal value for taxpayer funds.

What are the implications of NexGen Technologies Inc. being the sole awardee for this specific BPA Call, even if the parent BPA was competed more broadly?

NexGen Technologies Inc. being the sole awardee for this specific BPA Call, under a potentially broader BPA (like ITSS II), implies a direct and focused relationship for the services outlined in this call. While the parent BPA might have undergone wider competition, this specific call represents a task order or a dedicated portion of work awarded to one vendor. This could be due to the specialized nature of the required services, a strategic decision by the agency to consolidate support with a known entity, or potentially a reflection of the limited number of responsive bids for this particular task. For the government, it means a single point of contact and accountability for these services, potentially streamlining management. However, it also means that for the duration of this specific call, competition is absent, and the government relies solely on NexGen's performance and pricing.

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

The NAICS code 541511, 'Custom Computer Programming Services,' is highly relevant for agencies like the Department of the Interior, which manage vast amounts of data and require tailored software solutions to support diverse operations, from land management and resource allocation to administrative functions. Custom programming is essential when off-the-shelf software cannot meet unique agency requirements. This includes developing new applications, modifying existing software, and integrating disparate systems. For the DOI, such services could be used for developing specialized GIS (Geographic Information System) tools, creating custom databases for environmental monitoring, building internal workflow management systems, or enhancing data analytics capabilities for reporting and decision-making. The ITSS II OBIEE BPA Call likely falls under this category as it involves programming related to Oracle Business Intelligence Enterprise Edition, a platform often customized to meet specific agency reporting and analysis needs.

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 › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 165 S UNION BLVD STE 900, LAKEWOOD, CO, 80228

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,332,493

Exercised Options: $5,332,493

Current Obligation: $5,332,493

Actual Outlays: $4,295,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140L0620A0013

IDV Type: BPA

Timeline