DOI awards $18.6M for ITSS II BPA - AFMSS application support to NexGen Technologies

Contract Overview

Contract Amount: $18,568,191 ($18.6M)

Contractor: Nexgen Technologies Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-02-01

End Date: 2026-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITSS II BPA - AFMSS - AUTOMATED FLUID MINERAL SUPPORT SYSTEM APPLICATION SUPPORT

Place of Performance

Location: DENVER, ADAMS County, COLORADO, 80234

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $18.6 million to NEXGEN TECHNOLOGIES INC. for work described as: ITSS II BPA - AFMSS - AUTOMATED FLUID MINERAL SUPPORT SYSTEM APPLICATION SUPPORT Key points: 1. Contract value represents a significant investment in maintaining critical automated fluid mineral support systems. 2. NexGen Technologies, the sole awardee, will provide application support services. 3. The contract duration of 1460 days suggests a long-term need for these specialized IT services. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. The award falls under custom computer programming services, indicating a focus on software development and maintenance. 6. This contract is part of a larger Blanket Purchase Agreement (BPA), suggesting potential for future task orders.

Value Assessment

Rating: good

The contract value of $18.6 million over approximately four years for application support of a specialized system appears reasonable. Benchmarking against similar custom computer programming services contracts for government agencies indicates a competitive pricing structure is likely. The firm-fixed-price nature of the award provides cost certainty for the Bureau of Land Management. Further analysis would require comparing the specific scope of work and service levels to other contracts for similar IT support.

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 specific number of bidders is not provided, but the competitive process is expected to drive fair market pricing. A full and open competition generally leads to a wider pool of potential offerors and can result in more innovative solutions and better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for the application support services. This approach helps prevent overspending and ensures that federal funds are used efficiently.

Public Impact

The Bureau of Land Management (BLM) is the primary beneficiary, receiving essential IT support for its Automated Fluid Mineral Support System (AFMSS). The contract ensures the continued operation and maintenance of critical software applications supporting mineral resource management. Geographic impact is likely nationwide, as BLM operations span across various states. The contract supports a specialized IT workforce, potentially including software developers, system administrators, and support specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized and difficult to transition.
Reliance on a single vendor for critical application support could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
Long-term contract duration indicates a stable need and potential for sustained support.

Sector Analysis

The Information Technology Services sector is a vast and critical component of federal spending. This contract falls under custom computer programming services (NAICS 541511), which includes designing, developing, and maintaining software. The federal government is a major consumer of these services, with significant spending allocated to maintaining and modernizing legacy systems as well as developing new capabilities. Comparable spending benchmarks for IT application support can vary widely based on system complexity, security requirements, and service level agreements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, NexGen Technologies Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Bureau of Land Management's contracting officers and program managers. They will be responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Application Development
Software Maintenance Services
Custom Software Programming
Federal IT Services
Bureau of Land Management IT Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical system support

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.6 million to NEXGEN TECHNOLOGIES INC.. ITSS II BPA - AFMSS - AUTOMATED FLUID MINERAL SUPPORT SYSTEM APPLICATION SUPPORT

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 $18.6 million.

What is the period of performance?

Start: 2022-02-01. End: 2026-01-31.

What is the specific nature of the Automated Fluid Mineral Support System (AFMSS) and its criticality to the Bureau of Land Management's operations?

The Automated Fluid Mineral Support System (AFMSS) is a critical IT system used by the Bureau of Land Management (BLM) to manage and track fluid mineral resources. This includes data related to leases, production, royalties, and environmental compliance for oil, gas, and other fluid minerals. Its criticality stems from its role in ensuring accurate revenue collection for the government, enforcing regulatory compliance, and supporting informed decision-making regarding mineral development. Disruptions or inefficiencies in AFMSS could lead to significant financial losses, environmental risks, and operational delays for the BLM's mineral management functions. The application support contract awarded to NexGen Technologies Inc. is therefore essential for maintaining the integrity and functionality of this vital system.

How does the $18.6 million contract value compare to historical spending on AFMSS application support?

To accurately compare the $18.6 million contract value to historical spending on AFMSS application support, access to historical contract data for this specific system is required. Without direct historical figures for AFMSS support, a general comparison can be made to similar IT application support contracts within the Department of the Interior or other agencies managing natural resources. Typically, IT application support contracts for complex, mission-critical systems can range from hundreds of thousands to millions of dollars annually, depending on the system's size, user base, and required service levels. The $18.6 million awarded over approximately four years suggests an average annual spend of roughly $4.65 million, which appears within a reasonable range for supporting a significant government IT system. A detailed analysis would involve examining prior contracts for AFMSS or comparable systems to identify trends and justify the current award amount.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for an IT application support contract of this nature, typical KPIs and SLAs would likely focus on system availability and uptime, response times for issue resolution, bug fix turnaround times, user support response and resolution times, and the successful implementation of system updates or enhancements. The Bureau of Land Management would establish these metrics to ensure that NexGen Technologies Inc. meets the required standards for maintaining the AFMSS. Performance against these SLAs would be crucial for evaluating the contractor's effectiveness and ensuring the continued operational readiness of the system.

What is NexGen Technologies Inc.'s track record with the Department of the Interior or similar agencies for IT support services?

NexGen Technologies Inc. has a history of performing IT services for federal agencies. While specific details of their track record with the Department of the Interior (DOI) for AFMSS application support are not detailed in the provided data, their past performance in similar IT service contracts would have been evaluated during the procurement process. Federal agencies typically review a contractor's past performance, including their ability to meet deadlines, manage costs, and deliver quality services, before awarding significant contracts. A review of federal procurement databases would likely reveal other contracts awarded to NexGen Technologies Inc. for IT support, custom programming, or related services, which would provide further insight into their capabilities and reliability.

Are there any identified risks associated with the transition to or continued reliance on NexGen Technologies Inc. for AFMSS support?

Potential risks associated with reliance on NexGen Technologies Inc. for AFMSS support include vendor lock-in, where the agency becomes overly dependent on the contractor's proprietary knowledge or specific methodologies, making future transitions difficult or costly. Another risk is the potential for performance issues if the contractor fails to meet contractual obligations, which could disrupt critical BLM operations. Furthermore, if NexGen Technologies Inc. experiences financial instability or significant changes in its business operations, it could impact service delivery. The government typically mitigates these risks through robust contract management, clear performance expectations, and contingency planning, including the possibility of exercising contract options or seeking alternative solutions if necessary.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $18,568,191

Exercised Options: $18,568,191

Current Obligation: $18,568,191

Actual Outlays: $18,568,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140L0620A0013

IDV Type: BPA

Timeline