FCC Awards $21.7M for Auction Bidding System Support to Power Auctions LLC

Contract Overview

Contract Amount: $21,714,039 ($21.7M)

Contractor: Power Auctions LLC

Awarding Agency: Federal Communications Commission

Start Date: 2024-04-04

End Date: 2027-04-03

Contract Duration: 1,094 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUCTION BIDDING SYSTEM SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $21.7 million to POWER AUCTIONS LLC for work described as: AUCTION BIDDING SYSTEM SUPPORT SERVICES Key points: 1. Contract awarded to Power Auctions LLC for auction bidding system support. 2. The contract has a total value of $21.7 million over approximately 3 years. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. The sector is IT, specifically Computer Systems Design Services.

Value Assessment

Rating: fair

The contract value of $21.7M over 3 years for system support services appears within a reasonable range for specialized IT support. Benchmarking against similar government contracts for auction platforms or complex IT system maintenance would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' indicates that multiple bidders were likely considered, which generally promotes competitive pricing. The final price reflects the outcome of this bidding process.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, as multiple vendors vied for the contract.

Public Impact

Ensures the continued operation and support of critical auction bidding systems for the FCC. Supports the government's ability to conduct efficient and transparent spectrum auctions. Potential impact on the efficiency and fairness of future spectrum allocation processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if specialized knowledge is required.
Dependence on a single vendor for critical system support.

Positive Signals

Competitive award process.
Clear contract duration and defined scope.
Use of a firm-fixed-price contract type.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, supporting everything from IT infrastructure to specialized software solutions. Benchmarks for similar IT support contracts vary widely based on complexity and scope.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had the opportunity to participate in the full and open competition.

Oversight & Accountability

The Federal Communications Commission is responsible for overseeing this contract. Standard government procurement oversight processes should apply, including monitoring performance and ensuring compliance with contract terms.

Related Government Programs

Computer Systems Design Services
Federal Communications Commission Contracting
Federal Communications Commission Programs

Risk Flags

Potential for vendor lock-in.
Dependence on a single vendor for critical IT infrastructure.
Need for ongoing performance monitoring.
Cybersecurity risks associated with system support.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $21.7 million to POWER AUCTIONS LLC. AUCTION BIDDING SYSTEM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is POWER AUCTIONS LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2024-04-04. End: 2027-04-03.

What specific functionalities does the auction bidding system support, and how critical are these to the FCC's mission?

The auction bidding system likely supports the technical infrastructure for conducting complex auctions, such as those for radio spectrum. Its criticality stems from enabling fair, transparent, and efficient allocation of valuable public resources. The system's reliability directly impacts the government's ability to generate revenue and manage the electromagnetic spectrum effectively.

Are there any identified risks associated with Power Auctions LLC's ability to provide continuous and secure support for this system?

Without detailed performance history or security audits of Power Auctions LLC, specific risks are difficult to ascertain. Potential risks could include cybersecurity vulnerabilities, system downtime, or inadequate technical expertise for future system upgrades. A thorough review of the vendor's past performance and security protocols is essential to mitigate these concerns.

How does the pricing of this contract compare to industry standards for similar IT support services, considering the specialized nature of auction systems?

Benchmarking this contract's pricing requires comparing it against similar government or private sector contracts for specialized IT system support, particularly those involving auction platforms or high-security environments. The firm-fixed-price structure provides cost certainty, but the actual value depends on the vendor's efficiency and the complexity of the services delivered over the contract's lifespan.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 273FCC23R0018

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3333 K ST NW, WASHINGTON, DC, 20007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,146,613

Exercised Options: $22,004,039

Current Obligation: $21,714,039

Actual Outlays: $12,259,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline