NRC awards $3.5M contract for digital services support, highlighting need for independent verification

Contract Overview

Contract Amount: $3,532,826 ($3.5M)

Contractor: Aegis.net, Inc.

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2021-08-16

End Date: 2026-08-15

Contract Duration: 1,825 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SUPPORT SERVICES FOR DIGITAL SERVICES CENTER (DSC) UNDER INDEPENDENT VERIFICATION AND VALIDATION (IV&V)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $3.5 million to AEGIS.NET, INC. for work described as: SUPPORT SERVICES FOR DIGITAL SERVICES CENTER (DSC) UNDER INDEPENDENT VERIFICATION AND VALIDATION (IV&V) Key points: 1. Contract focuses on independent verification and validation (IV&V) for the Digital Services Center (DSC). 2. AEGIS.NET, INC. secured the award through full and open competition. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 5. The contract type is a BPA Call, implying it's a task order under a broader agreement. 6. The award value of $3.5M over five years suggests a moderate annual spend for specialized IT support.

Value Assessment

Rating: good

The contract value of $3.5M over five years, averaging $706,565 annually, appears reasonable for specialized IT support services. Benchmarking against similar IV&V contracts would provide a more precise value-for-money assessment. The use of Labor Hours pricing allows for flexibility but requires diligent oversight to ensure efficient resource utilization. Without specific performance metrics or comparisons to industry standards for IV&V services, a definitive value assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

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 specific number of bidders is not provided, but the competitive process is expected to drive price discovery and ensure the government receives fair market value. The use of a BPA Call suggests a pre-competed framework agreement, with this specific task order being competed among eligible parties.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. It ensures that public funds are used efficiently by preventing sole-source awards that might otherwise be more expensive.

Public Impact

The primary beneficiaries are the Nuclear Regulatory Commission (NRC) and its mission to ensure nuclear safety and security. The contract delivers essential support services for the Digital Services Center (DSC), crucial for modernizing and securing digital infrastructure. Services provided include independent verification and validation (IV&V), which are critical for ensuring the reliability and security of IT systems. The geographic impact is primarily within Maryland, where the contractor is located, and supports the NRC's national mission. The contract supports a specialized IT workforce, likely involving skilled professionals in cybersecurity, software testing, and IT project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour contracts if not tightly managed.
Reliance on a single contractor for critical IV&V services could pose a risk if performance degrades.
Ensuring consistent quality of IV&V services across the contract duration requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term (5-year) contract indicates a stable need and potential for contractor expertise development.
Focus on IV&V aligns with best practices for ensuring IT system integrity and security.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' NAICS code, which encompasses a wide array of IT support functions. The market for independent verification and validation (IV&V) services is specialized, requiring expertise in testing, security, and system assurance. Government spending in this area is significant, driven by the need to modernize legacy systems, enhance cybersecurity, and ensure the reliability of critical infrastructure, such as that managed by the NRC. Comparable spending benchmarks would typically be found within IT support services for federal agencies, with specific IV&V contracts varying based on scope and complexity.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The prime contractor, AEGIS.NET, INC., is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides appears minimal for this specific award. However, the prime contractor may engage small businesses for subcontracting opportunities, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract is likely managed by the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to specific deliverables and service levels. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Support Services
Digital Services
Independent Verification and Validation (IV&V)
Cybersecurity Services
IT Modernization Contracts

Risk Flags

Labor Hour Contract Type
Long-Term Contract Duration
Reliance on Specialized IT Services

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $3.5 million to AEGIS.NET, INC.. SUPPORT SERVICES FOR DIGITAL SERVICES CENTER (DSC) UNDER INDEPENDENT VERIFICATION AND VALIDATION (IV&V)

Who is the contractor on this award?

The obligated recipient is AEGIS.NET, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2021-08-16. End: 2026-08-15.

What is the track record of AEGIS.NET, INC. with the federal government, particularly in providing IV&V services?

A review of federal procurement data indicates that AEGIS.NET, INC. has a history of receiving federal contracts. To assess their track record specifically for IV&V services, a deeper dive into contract databases like FPDS-NG or USASpending.gov would be necessary. This would involve examining past performance evaluations, the types of services they've provided under previous contracts, and their success in meeting performance requirements. Without this specific data, it's difficult to definitively state their expertise and reliability in IV&V, although securing this NRC contract suggests they met the agency's requirements for this specific solicitation.

How does the annual cost of this contract compare to similar IV&V services procured by other federal agencies?

The annual cost for this contract averages approximately $706,565 ($3.5M / 5 years). To benchmark this effectively, we would need to compare it against contracts for similar IV&V services awarded to other federal agencies. Key comparison factors include the scope of work, the complexity of the systems being verified, the labor categories involved, and the specific deliverables required. Agencies like the Department of Defense, NASA, or the Department of Energy often procure similar high-assurance IT services. A comprehensive analysis would involve querying procurement databases for contracts with comparable NAICS codes (e.g., 541519) and service descriptions, filtering by contract type and duration, and then analyzing the average annual cost per contract.

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

Primary risks include potential scope creep due to the labor hours pricing model, which could lead to cost overruns if not managed diligently. Another risk is the potential for performance degradation by the contractor over the five-year period, impacting the quality of IV&V services. Mitigation strategies likely involve robust contract oversight by the NRC, including regular performance reviews, detailed monitoring of labor hours used against milestones, and clear communication channels. The contract's performance work statement (PWS) should outline specific metrics and deliverables that AEGIS.NET, INC. must meet, with penalties or corrective actions defined for non-compliance. Furthermore, the competitive nature of the initial award provides some assurance of contractor capability.

How effective is the Digital Services Center (DSC) in achieving its mission, and how critical is this IV&V support to its success?

The effectiveness of the Digital Services Center (DSC) is directly tied to its ability to modernize and secure the NRC's digital infrastructure. Independent Verification and Validation (IV&V) is critical because it provides an objective assessment of the DSC's systems, software, and processes, ensuring they are reliable, secure, and meet regulatory requirements. Without robust IV&V, the DSC might deploy systems with vulnerabilities or functional defects, potentially compromising the NRC's core mission of nuclear safety and security. Therefore, this contract is essential for maintaining the integrity and trustworthiness of the NRC's digital operations.

What has been the historical spending trend for similar IT support and IV&V services at the Nuclear Regulatory Commission?

Analyzing historical spending trends for IT support and IV&V services at the NRC would require accessing historical contract data. This would involve querying databases for contracts awarded by the NRC under relevant NAICS codes (e.g., 541519) and service descriptions over several fiscal years. We would look for patterns in spending levels, the number of contracts awarded, and the types of services procured. This analysis could reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether the NRC is consolidating or diversifying its IT support vendors. Such trends can inform future budget planning and procurement strategies.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 31310021Q0077

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aegis.net Inc

Address: 2275 RESEARCH BLVD, STE 500, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $3,532,826

Exercised Options: $3,532,826

Current Obligation: $3,532,826

Actual Outlays: $2,972,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 31310020A0003

IDV Type: BPA

Timeline