NRC awards $11.5M task order for systems integration, with 3 bidders competing

Contract Overview

Contract Amount: $11,492,147 ($11.5M)

Contractor: Northramp LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2022-06-30

End Date: 2027-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SYSTEMS INTEGRATION TASK (SIT)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $11.5 million to NORTHRAMP LLC for work described as: SYSTEMS INTEGRATION TASK (SIT) Key points: 1. The contract value represents a moderate investment in IT services for the NRC. 2. Full and open competition suggests a healthy market for these services. 3. The duration of the contract (5 years) indicates a need for sustained support. 4. The task order is a BPA Call, implying a pre-negotiated framework agreement. 5. The contractor, NORTHRAMP LLC, is a new entity in federal contracting based on available data. 6. The labor hour pricing model allows for flexibility but requires careful monitoring of effort.

Value Assessment

Rating: fair

Benchmarking the value of this $11.5 million task order is challenging without more specific service details. However, the duration of five years suggests a consistent need for systems integration support. The labor hour pricing structure is common for IT services, but its value is highly dependent on the efficiency and skill of the contractor's personnel. Compared to other IT services contracts of similar duration and scope, the per-year cost appears within a reasonable range, though a detailed cost-benefit analysis would be needed to confirm true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders participating, the competition level suggests a moderately competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The agency's decision to use a BPA Call implies that a broader competition may have already occurred for the underlying Blanket Purchase Agreement.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overspending.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from enhanced IT systems and integration services. This contract supports the NRC's mission-critical functions related to nuclear safety and regulation. The services delivered will likely improve the efficiency and effectiveness of NRC's internal operations. The primary geographic impact is within Maryland, where the contractor is located. Workforce implications are primarily for NORTHRAMP LLC, potentially creating or sustaining jobs in IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not closely managed.
The contractor, NORTHRAMP LLC, appears to be a relatively new entity, raising questions about its track record and capacity for large federal contracts.
Limited public information on the specific systems being integrated makes it difficult to assess the true scope and complexity of the work.

Positive Signals

The contract was awarded under full and open competition, indicating a robust bidding process.
The task order is part of a larger BPA, suggesting a pre-vetted and potentially more efficient procurement vehicle.
The five-year duration indicates a stable, long-term need that the contractor is expected to fulfill.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a significant segment of the IT services market. The federal government is a major consumer of these services, utilizing them for everything from maintaining legacy systems to developing cutting-edge digital platforms. The market is characterized by a mix of large, established prime contractors and numerous smaller, specialized firms. Spending in this category is driven by the need for modernization, cybersecurity, and data management across all federal agencies. Comparable spending benchmarks would typically look at the average cost per hour for similar IT integration services across various agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated for this particular task order. This means that opportunities for small businesses to participate in this contract are likely limited to those that may be part of NORTHRAMP LLC's supply chain or if the prime contractor voluntarily engages them. The absence of set-asides or specific subcontracting plans may reduce the direct impact on the small business IT ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract will primarily reside with the Nuclear Regulatory Commission's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. While there is no specific mention of an Inspector General's direct jurisdiction over this task order in the provided data, the NRC's Office of Inspector General generally has oversight over agency spending and operations, and could investigate if significant issues arise.

Related Government Programs

IT Services
Custom Computer Programming Services
Systems Integration
Blanket Purchase Agreements (BPAs)
Task Orders

Risk Flags

Contractor track record unknown
Potential for cost overruns due to labor-hour pricing
Scope definition critical for successful integration

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $11.5 million to NORTHRAMP LLC. SYSTEMS INTEGRATION TASK (SIT)

Who is the contractor on this award?

The obligated recipient is NORTHRAMP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2022-06-30. End: 2027-06-30.

What is the track record of NORTHRAMP LLC in performing federal IT contracts?

Based on the provided data, NORTHRAMP LLC appears to be a relatively new entity in the federal contracting space. Specific details regarding their past performance on similar federal contracts, client satisfaction, and history of successful project completion are not readily available in this dataset. Further investigation into contract databases and agency performance reports would be necessary to establish a comprehensive understanding of their track record. For a contract of this value and duration, a proven history of delivering complex IT systems integration services would typically be a key consideration for the awarding agency.

How does the estimated value of this task order compare to similar IT systems integration contracts awarded by the NRC or other agencies?

The $11.5 million value over five years, averaging $2.3 million annually, places this task order in the mid-tier range for IT services. Without specific details on the scope of 'systems integration,' a direct comparison is difficult. However, agencies frequently award contracts in the low millions for specialized IT support and integration. The NRC's IT spending portfolio would provide the most relevant benchmark. Comparing this to similar task orders for custom computer programming or IT support services across agencies like the Department of Energy or other science-focused bodies could offer broader context. The key is to match contract duration, complexity, and service type for a meaningful comparison.

What are the primary risks associated with a labor-hour contract for systems integration?

Labor-hour contracts, like this one, carry inherent risks primarily related to cost control and scope creep. The government pays for the time and materials used, making it crucial to have robust oversight to ensure efficient work and prevent unnecessary hours from being billed. There's a risk that the contractor may not be incentivized to complete tasks quickly if billing is purely based on hours worked. For systems integration, which can be complex and prone to unforeseen challenges, effective project management and clear definition of milestones are essential to mitigate the risk of escalating costs and schedule delays. The government must actively monitor progress and resource allocation.

How effective is the 'full and open competition' approach likely to be for this specific systems integration need?

The 'full and open competition' approach, with three bidders, is generally considered effective for ensuring fair pricing and access to a broad range of qualified vendors. For IT systems integration, this method allows the NRC to solicit proposals from various companies, potentially leading to innovative solutions and competitive pricing. The presence of three bidders suggests sufficient market interest and capability. The effectiveness hinges on the clarity of the solicitation's requirements and the evaluation criteria used. If the requirements are well-defined and the evaluation is objective, this competitive approach should yield a cost-effective and technically sound solution for the NRC's needs.

What is the historical spending pattern for 'Custom Computer Programming Services' at the Nuclear Regulatory Commission?

Analyzing historical spending patterns for 'Custom Computer Programming Services' (NAICS code 541511) at the Nuclear Regulatory Commission (NRC) would reveal trends in IT investment. This data point, representing a $11.5M task order, contributes to the overall picture. Typically, agencies like the NRC spend consistently on IT services to maintain and upgrade their operational systems, support regulatory functions, and enhance data management. Examining past years' spending on this NAICS code would indicate whether this award represents an increase, decrease, or stable level of investment. It would also highlight key contractors and the types of services most frequently procured within this category.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 31310022Q0018

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $21,840,414

Exercised Options: $15,566,058

Current Obligation: $11,492,147

Actual Outlays: $10,393,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 31310021A0006

IDV Type: BPA

Timeline