EPA awards $99.1M contract for TRUSTD system development and maintenance to Insum Solutions Corp

Contract Overview

Contract Amount: $99,100 ($99.1K)

Contractor: Insum Solutions Corp

Awarding Agency: Environmental Protection Agency

Start Date: 2025-01-30

End Date: 2027-02-02

Contract Duration: 733 days

Daily Burn Rate: $135/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TRUSTD SYSTEM DEVELOPMENT & MAINTENANCE.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10016

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $99,100 to INSUM SOLUTIONS CORP for work described as: TRUSTD SYSTEM DEVELOPMENT & MAINTENANCE. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The contract duration of 733 days suggests a need for ongoing, specialized support. 3. Focus on custom computer programming services indicates a requirement for tailored software solutions. 4. The award to a single vendor may limit opportunities for broader market engagement and innovation. 5. Time and Materials pricing structure can introduce cost uncertainty if not closely managed. 6. The Environmental Protection Agency (EPA) is the primary agency involved in this procurement.

Value Assessment

Rating: questionable

The contract value of $99.1 million for custom computer programming services over approximately two years requires careful benchmarking. Without comparable sole-source contracts for similar system development and maintenance, assessing value for money is challenging. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed with strict oversight and defined labor categories. The absence of competition inherently removes a key mechanism for driving down prices and ensuring cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary specialized skills, technology, or proprietary knowledge. However, the lack of competition means that the EPA did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided. The rationale for sole-source procurement should be clearly documented and justified to ensure fairness and prevent potential overspending.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This necessitates robust internal oversight to validate the necessity and cost-effectiveness of the chosen vendor's services.

Public Impact

The primary beneficiaries are likely EPA staff who rely on the TRUSTD system for their daily operations. The contract will ensure the continued development and maintenance of critical IT infrastructure for environmental data management. Services delivered will focus on custom computer programming, likely involving software updates, bug fixes, and new feature development. The geographic impact is primarily within the EPA's operational centers, with potential implications for national environmental data reporting and analysis. Workforce implications may include the need for specialized IT personnel within the EPA to manage the contract and interface with the vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for cost savings.
Time and Materials contract type introduces cost uncertainty and requires diligent oversight.
Lack of competition may reduce incentives for vendor innovation and efficiency.
Absence of small business subcontracting goals on a sole-source award.

Positive Signals

Contract ensures continued support for a critical EPA system.
Specialized nature of the work may necessitate a single vendor's expertise.
Defined contract end date provides a future opportunity for re-competition or review.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services market. This sector is characterized by the development of unique software solutions tailored to specific client needs. The total IT services market for the federal government is substantial, with custom programming being a key component. Benchmarking this contract's value would involve comparing its per-project cost and duration against similar custom development and maintenance contracts awarded by other federal agencies, considering the complexity and criticality of the system being supported.

Small Business Impact

As this contract was awarded on a sole-source basis and there is no indication of small business set-aside or subcontracting requirements, the direct impact on the small business ecosystem is likely minimal. Sole-source awards typically do not include provisions for small business participation unless specifically mandated or if the sole-source vendor has a strong history of subcontracting with small businesses. This procurement strategy bypasses the typical mechanisms designed to ensure small business access to federal contracts.

Oversight & Accountability

Oversight for this contract will primarily reside with the Environmental Protection Agency's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms, particularly the Time and Materials pricing. Transparency may be limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

EPA IT Modernization Initiatives
Environmental Data Management Systems
Custom Software Development Contracts
Federal IT Services Procurement

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $99,100 to INSUM SOLUTIONS CORP. TRUSTD SYSTEM DEVELOPMENT & MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is INSUM SOLUTIONS CORP.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $99,100.

What is the period of performance?

Start: 2025-01-30. End: 2027-02-02.

What is the specific function and criticality of the TRUSTD system?

The provided data does not detail the specific functions or criticality of the TRUSTD system. However, given its award under custom computer programming services by the Environmental Protection Agency (EPA), it is likely a mission-critical IT system supporting environmental data management, regulatory compliance, or scientific research. The substantial contract value ($99.1M) and duration (over two years) suggest it is a complex system requiring ongoing development and maintenance. Understanding its precise role within the EPA's operations would be crucial for a comprehensive risk and value assessment. Without this context, it's difficult to fully evaluate the necessity of a sole-source award or the potential impact of any system disruptions.

What is the justification for the sole-source award of this contract?

The justification for this sole-source award is not detailed in the provided data. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or capable of providing the required service or supply. This could be due to unique proprietary technology, specialized expertise, or a critical need for continuity with an existing system where switching vendors would be prohibitively costly or disruptive. The EPA would need to have documented and approved this justification, likely citing reasons such as the unique knowledge Insum Solutions Corp possesses regarding the TRUSTD system or a lack of other qualified vendors capable of performing the required custom development and maintenance.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing for flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts because the government pays for the actual labor hours and materials used. For custom computer programming services, T&M can be appropriate for initial development phases or ongoing maintenance where the exact effort is uncertain. In contrast, fixed-price contracts provide greater cost certainty but require a well-defined scope. When compared to similar IT development contracts, T&M can be more expensive if not managed rigorously with defined labor rates, ceilings, and close monitoring of effort. Agencies often prefer firm-fixed-price contracts for well-defined projects to ensure budget predictability and cost control.

What is Insum Solutions Corp's track record with the EPA or similar federal agencies?

The provided data indicates that Insum Solutions Corp is the contractor for this $99.1 million EPA contract. However, it does not offer details on their specific track record, past performance ratings, or previous work with the EPA or other federal agencies. A thorough analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes from previous government engagements. Understanding their experience with similar custom computer programming services, system development lifecycles, and adherence to federal cybersecurity and data management standards would be crucial in assessing their capability to successfully execute this contract.

What are the potential risks associated with a sole-source, T&M contract for system development?

The primary risks associated with a sole-source, Time and Materials (T&M) contract for system development include potential cost overruns due to the open-ended nature of T&M pricing, lack of competitive pressure driving efficiency and innovation, and the risk of vendor lock-in. Without competition, there's less incentive for the contractor to optimize resource utilization or propose cost-saving solutions. The EPA must implement stringent oversight, including detailed monitoring of labor hours, validation of tasks performed, and comparison against established benchmarks for similar roles. Furthermore, the sole-source aspect means the agency is reliant on a single vendor's capabilities and performance, making vendor management and relationship oversight critical to mitigate risks.

How does this contract's value and duration compare to typical federal IT development contracts?

A $99.1 million contract over approximately two years for custom computer programming services is a significant award. Typical federal IT development contracts vary widely in value and duration depending on complexity, scope, and agency needs. However, for custom development and ongoing maintenance of a critical system, this value is substantial but not necessarily outside the norm for large-scale federal IT projects. The duration of 733 days (just over two years) is also reasonable for a project involving development and sustained support. Comparisons would ideally be made against contracts for similar systems (e.g., environmental data platforms, large-scale database management) awarded by agencies like the EPA, NOAA, or other science-focused organizations, considering factors like the number of users, data volume, and required functionalities.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 27 E 28TH ST FL 17, NEW YORK, NY, 10016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $277,200

Exercised Options: $181,500

Current Obligation: $99,100

Actual Outlays: $40,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline