FTC's $25.7M end-user support contract awarded to Netcents, Inc. under full and open competition

Contract Overview

Contract Amount: $25,704,392 ($25.7M)

Contractor: Netcentrics Corporation

Awarding Agency: Federal Trade Commission

Start Date: 2019-04-01

End Date: 2024-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: END USER SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $25.7 million to NETCENTRICS CORPORATION for work described as: END USER SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in IT support services for the FTC. 2. Netcents Corporation secured this award through a competitive bidding process. 3. The contract duration of 5 years suggests a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. The contract is categorized under Custom Computer Programming Services, indicating specialized IT needs. 6. The award was made to a single vendor, Netcents Corporation. 7. The contract's geographic focus is Washington D.C.

Value Assessment

Rating: fair

The total contract value of $25.7 million over five years averages to approximately $5.14 million annually. Benchmarking this against similar end-user support contracts is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to cost overruns if not managed closely. The number of bids received (4) suggests a moderate level of competition, which could influence pricing, but a direct comparison to market rates for comparable services is not readily available from the provided data.

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 a bid. Four bids were received in total. This level of competition is generally positive for price discovery, as it encourages vendors to offer competitive pricing to win the contract. The presence of multiple bidders suggests that the market has sufficient capacity and interest to support the FTC's IT support needs.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best value by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

Federal employees at the Federal Trade Commission will benefit from enhanced end-user support services. The services delivered are expected to improve the efficiency and reliability of the FTC's IT infrastructure. The primary geographic impact is within Washington D.C., where the FTC is headquartered. The contract supports the IT workforce by providing necessary technical assistance and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not carefully monitored.
The reliance on a single vendor for a significant IT support contract could pose a risk if performance issues arise.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's track record on this specific award.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract duration of five years indicates a stable, long-term relationship, potentially leading to better service integration.
The FTC has a history of utilizing competitive processes for its procurements.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on end-user support and custom computer programming. The IT services market is vast and highly competitive, with numerous companies offering a wide range of solutions. Federal spending in this area is substantial, driven by the need to maintain and upgrade complex government IT systems. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar scope and duration.

Small Business Impact

The provided data indicates that 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. The award to Netcents Corporation, a presumably larger entity given the contract value, means that opportunities for small business participation would likely be through direct subcontracting if Netcents chooses to engage them, which is not mandated by the contract type.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Trade Commission's contracting officers and program managers. Accountability measures are usually embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

End User Support Services
Custom Computer Programming Services
IT Services
Federal IT Contracts
Federal Trade Commission IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Reliance on a single vendor for critical IT support.
Lack of specific performance metrics in provided data.
Need for robust contract oversight to manage T&M costs.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $25.7 million to NETCENTRICS CORPORATION. END USER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NETCENTRICS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2019-04-01. End: 2024-03-31.

What is the historical spending pattern for end-user support services at the Federal Trade Commission?

Analyzing historical spending patterns for end-user support services at the FTC requires access to historical contract data beyond this single award. Typically, agencies maintain records of past procurements, including contract values, durations, and awarded vendors. A review of such records would reveal trends in spending, identify incumbent contractors, and highlight any significant shifts in service requirements or vendor relationships over time. Without access to this historical data, it's difficult to ascertain if this $25.7 million contract represents an increase, decrease, or stable level of investment compared to previous periods for similar services.

How does the per-unit cost of this contract compare to similar IT support contracts awarded by other federal agencies?

Determining the per-unit cost comparison for this contract is challenging without specific details on the units of service provided (e.g., per user, per device, per hour of support). The contract is awarded on a Time and Materials basis, which inherently makes direct per-unit cost comparisons difficult as costs fluctuate based on actual labor hours and material expenses. To perform a robust comparison, one would need to identify similar contracts with clearly defined service deliverables and pricing structures across other agencies. Benchmarking would then involve normalizing the data based on factors like contract duration, scope of services, and geographic location to assess if Netcents Corporation's pricing is competitive within the federal IT support market.

What is Netcents Corporation's track record with federal IT support contracts, particularly with the FTC?

Information regarding Netcents Corporation's specific track record with federal IT support contracts, especially with the FTC, would typically be found in contract performance databases and agency procurement histories. A review of such records would indicate past performance ratings, any history of contract modifications, disputes, or awards. Without direct access to these detailed performance metrics for Netcents Corporation on this specific contract or previous FTC engagements, it's difficult to provide a comprehensive assessment of their track record. However, the award itself suggests they met the FTC's requirements during the competitive bidding process.

What are the key performance indicators (KPIs) used to measure the success of this end-user support contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of this end-user support contract. Typically, such contracts include performance standards related to response times for support requests, resolution times for issues, user satisfaction ratings, system uptime, and adherence to service level agreements (SLAs). The Federal Trade Commission's contracting officers and program managers would be responsible for monitoring Netcents Corporation's performance against these defined KPIs throughout the contract's duration. Regular performance reviews and reporting would be part of the oversight process.

What is the potential risk associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns and a lack of definitive cost certainty. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used, plus a fee. If not managed diligently through strong oversight, detailed tracking of hours, and clear definition of work, the total cost can exceed initial estimates or budgets. This necessitates robust monitoring by the FTC to ensure that hours billed are reasonable and necessary for the work performed.

How does the competition level (4 bidders) impact the value for money achieved in this FTC contract?

A competition level of four bidders for this FTC contract generally suggests a healthy degree of market interest and a reasonable opportunity for price discovery. More bidders typically lead to more competitive pricing as vendors vie for the award. While four bidders is a solid number, the ultimate impact on value for money depends on the specific nature of the services, the uniqueness of the requirements, and the capabilities of the bidding companies. If these four bidders represented a diverse range of capabilities and pricing strategies, it likely contributed to securing a fair market price for the end-user support services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 205 VAN BUREN ST, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,534,900

Exercised Options: $27,715,384

Current Obligation: $25,704,392

Actual Outlays: $24,008,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0579P

IDV Type: FSS

Timeline