TEKSYNAP CORPORATION awarded $28.18M for Nuclear Regulatory Commission's system operations and maintenance

Contract Overview

Contract Amount: $28,177,901 ($28.2M)

Contractor: Teksynap Corporation

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2021-03-25

End Date: 2026-09-24

Contract Duration: 2,009 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MISSION APPLICATION'S SYSTEM OPERATIONS AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20555

State: District of Columbia Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $28.2 million to TEKSYNAP CORPORATION for work described as: MISSION APPLICATION'S SYSTEM OPERATIONS AND MAINTENANCE Key points: 1. Value for money appears fair given the 5-year duration and scope of IT system operations. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and reliance on a single vendor for critical systems. 4. Performance context is tied to essential IT infrastructure support for the NRC. 5. Sector positioning is within IT services, specifically computer systems design and related services.

Value Assessment

Rating: fair

The contract's value of approximately $28.18 million over five years for system operations and maintenance seems reasonable for the scope of work. Benchmarking against similar IT support contracts for federal agencies of comparable size and complexity would provide a clearer picture of value. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this IT services requirement. While two bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A full and open competition, even with two bidders, generally benefits taxpayers by fostering a more competitive environment that can drive down prices compared to less competitive procurement methods.

Public Impact

The primary beneficiary is the Nuclear Regulatory Commission (NRC), which receives essential IT system operations and maintenance services. Services delivered include maintaining and operating critical IT systems that support the NRC's regulatory functions. The geographic impact is primarily within the District of Columbia, where the NRC is headquartered. Workforce implications include the employment of IT professionals by TEKSYNAP CORPORATION to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if system knowledge becomes highly concentrated with TEKSYNAP.
Reliance on a single vendor for critical IT infrastructure could pose a risk if the vendor experiences financial or operational difficulties.
The long contract duration (over 5 years including extensions) necessitates ongoing performance monitoring to ensure continued value.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract supports essential IT operations, indicating a critical need being met.
TEKSYNAP CORPORATION's role in system operations and maintenance implies a focus on stability and reliability.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently investing in maintaining and modernizing their technological infrastructure. Comparable spending benchmarks for similar IT operations and maintenance contracts can vary widely based on agency size, complexity of systems, and service level agreements. The NRC's need for reliable IT support is crucial for its regulatory mission.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract is likely minimal unless TEKSYNAP CORPORATION actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and service level agreements. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Operations and Maintenance Services
Computer Systems Design Services
Federal Civilian Agency IT Support
Nuclear Regulatory Commission IT Procurement

Risk Flags

Long-term contract duration requires sustained performance monitoring.
Reliance on a single vendor for critical systems poses a potential risk.
Moderate competition level (two bidders) may limit price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $28.2 million to TEKSYNAP CORPORATION. MISSION APPLICATION'S SYSTEM OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is TEKSYNAP CORPORATION.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2021-03-25. End: 2026-09-24.

What is TEKSYNAP CORPORATION's track record with federal IT service contracts, particularly in system operations and maintenance?

TEKSYNAP CORPORATION has a history of performing IT services for federal agencies. Analyzing their past performance on similar contracts, including any past performance evaluations or awards, would provide insight into their reliability and capability. Specific details on their experience with system operations and maintenance, especially for agencies with critical infrastructure like the NRC, are crucial. A review of their contract history, including any contract modifications, disputes, or terminations, can further illuminate their track record. Understanding their financial stability and capacity to handle large-scale IT operations is also important for assessing long-term performance potential.

How does the awarded amount of $28.18 million compare to similar IT system operations and maintenance contracts for federal agencies?

The $28.18 million awarded to TEKSYNAP CORPORATION for five years of IT system operations and maintenance represents an average annual value of approximately $5.64 million. To benchmark this effectively, comparisons should be made with contracts of similar scope, duration, and complexity awarded to other federal agencies. Factors such as the number of users supported, the criticality of the systems, and the specific services included (e.g., help desk, network management, cybersecurity) significantly influence pricing. Without detailed service level agreements and a breakdown of labor categories and rates, a precise comparison is difficult. However, this annual figure appears within a reasonable range for comprehensive IT support for a federal agency.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in due to specialized knowledge, reliance on a single vendor for critical IT infrastructure, and the possibility of cost overruns if labor hours are not managed efficiently. Mitigation strategies likely involve robust contract oversight by the NRC, including regular performance reviews, audits of labor hours, and clear service level agreements. The contract's duration, while providing stability, also necessitates proactive management to ensure continued value and adaptability to evolving technological needs. Contingency planning for potential vendor issues or system failures would also be a critical mitigation measure.

How effective is the current IT system operations and maintenance provided by TEKSYNAP CORPORATION in supporting the NRC's mission?

The effectiveness of the services is primarily measured by the NRC's internal performance metrics and user satisfaction. As this is an ongoing contract, the NRC's program managers are responsible for monitoring TEKSYNAP's performance against the contract's requirements and service level agreements. Indicators of effectiveness would include system uptime, response times for support requests, successful implementation of system updates, and overall reliability of the IT infrastructure. Without access to the NRC's internal performance reports or user feedback, a definitive assessment of effectiveness cannot be made from this data alone.

What are the historical spending patterns for IT system operations and maintenance at the Nuclear Regulatory Commission?

Historical spending patterns for IT system operations and maintenance at the NRC would reveal trends in investment in this area over time. Analyzing previous contracts, their values, durations, and awarded vendors can indicate whether spending has been consistent, increasing, or decreasing. This context is important for understanding if the current $28.18 million award represents a significant shift or aligns with past investment levels. Understanding these patterns can also highlight any shifts in procurement strategies or technology focus within the NRC's IT infrastructure management.

What is the potential impact of this contract on the broader federal IT services market and competition?

This contract contributes to the overall federal IT services market, representing a significant investment by the NRC. The fact that it was competed under full and open procedures, even with two bidders, suggests a degree of market openness. The award to TEKSYNAP CORPORATION indicates their capability and competitiveness in securing significant federal contracts. While this specific award might not drastically alter the broader market dynamics, it reinforces the importance of established IT service providers in supporting government operations. The level of competition (two bidders) suggests that while opportunities exist, the market may not be saturated with numerous highly competitive bids for all types of IT services.

Industry Classification

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

Solicitation ID: 31310020Q0107

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1900 ORACLE WAY, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,353,903

Exercised Options: $30,479,203

Current Obligation: $28,177,901

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $16,118,437

Parent Contract

Parent Award PIID: NRCHQ1017A0008

IDV Type: BPA

Timeline