Enterprise-Wide Data Modernization Advisory and Support Services contract awarded to Applied Enterprise Management Corporation for $8.99M

Contract Overview

Contract Amount: $8,987,208 ($9.0M)

Contractor: Applied Enterprise Management Corporation

Awarding Agency: Corporation for National and Community Service

Start Date: 2023-01-03

End Date: 2026-07-02

Contract Duration: 1,276 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENTERPRISE-WIDE DATA MODERNIZATION ADVISORY AND SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $9.0 million to APPLIED ENTERPRISE MANAGEMENT CORPORATION for work described as: ENTERPRISE-WIDE DATA MODERNIZATION ADVISORY AND SUPPORT SERVICES Key points: 1. Contract focuses on critical data modernization efforts, aiming to improve efficiency and accessibility of government data. 2. The chosen contractor has a track record in enterprise management, suggesting potential for successful project execution. 3. A full and open competition was utilized, indicating a broad search for qualified vendors and potentially competitive pricing. 4. The contract duration of over three years allows for sustained support and development in data modernization. 5. Performance is being monitored by the Corporation for National and Community Service, the awarding and servicing agency. 6. The contract type is Time and Materials, which can offer flexibility but requires careful oversight to manage costs.

Value Assessment

Rating: good

The contract value of $8.99 million for enterprise-wide data modernization advisory and support services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT modernization contracts suggests that this figure falls within expected ranges for comprehensive advisory and support. The Time and Materials pricing structure, while flexible, necessitates diligent monitoring to ensure costs remain aligned with project milestones and market rates for specialized IT consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, suggesting that multiple vendors were invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition implies that the Corporation for National and Community Service sought the best value proposition from the market.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price by allowing a wide range of qualified contractors to participate and present their best offers.

Public Impact

The primary beneficiaries are federal agencies within the Corporation for National and Community Service, which will gain improved data management capabilities. Services delivered include advisory and support for data modernization, likely encompassing strategy development, system integration, and data governance. The geographic impact is likely national, as data modernization efforts often have broad implications across an organization's operations. Workforce implications may include the need for upskilling existing IT personnel or the engagement of specialized external consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely managed, as it directly links payment to labor hours and material costs.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The broad scope of 'data modernization' could lead to scope creep if not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
The contract duration of over three years allows for sustained focus and development on critical data modernization initiatives.
The Corporation for National and Community Service, as both awarding and servicing agency, provides a clear point of oversight and accountability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming and IT advisory services. The market for data modernization and IT consulting is substantial, with government agencies increasingly investing in upgrading legacy systems to improve efficiency, security, and data analytics capabilities. Comparable spending benchmarks for large-scale IT modernization projects often run into tens or hundreds of millions of dollars, making this $8.99 million contract a significant but not exceptionally large investment in this domain.

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 set-aside provision. However, the prime contractor, Applied Enterprise Management Corporation, may still engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the Corporation for National and Community Service, which is both the awarding and servicing agency. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General jurisdiction is not detailed here, federal contracts are generally subject to IG oversight for fraud, waste, and abuse.

Related Government Programs

Federal IT Modernization Initiatives
Custom Computer Programming Services
IT Consulting and Advisory Services
Data Management and Analytics Contracts
Enterprise Resource Planning (ERP) Modernization

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk in complex data modernization projects.
Need for robust government oversight to ensure value for money.
Dependence on contractor expertise for successful modernization outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $9.0 million to APPLIED ENTERPRISE MANAGEMENT CORPORATION. ENTERPRISE-WIDE DATA MODERNIZATION ADVISORY AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is APPLIED ENTERPRISE MANAGEMENT CORPORATION.

Which agency awarded this contract?

Awarding agency: Corporation for National and Community Service (Corporation for National and Community Service).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2023-01-03. End: 2026-07-02.

What is the track record of Applied Enterprise Management Corporation with federal contracts, particularly in data modernization?

Applied Enterprise Management Corporation (AEMC) has a history of federal contracting, though specific details on their data modernization expertise require deeper investigation beyond this single award. A review of federal procurement databases would reveal the number and types of contracts AEMC has held previously, their performance ratings, and the agencies they have served. Understanding their past performance on similar IT projects, especially those involving complex data systems or modernization efforts, is crucial for assessing their capability to deliver on this $8.99 million contract. Without more granular data on their prior engagements, it's difficult to definitively gauge their specific track record in data modernization.

How does the $8.99 million contract value compare to similar enterprise-wide data modernization projects in the federal government?

The $8.99 million contract value for enterprise-wide data modernization advisory and support services is a moderate investment for such a broad scope. Large-scale federal IT modernization projects can range from tens of millions to hundreds of millions of dollars, depending on the complexity, number of systems involved, and the duration of the effort. This contract's value suggests a focused initiative or a specific phase of a larger modernization program. When compared to contracts for custom computer programming services (NAICS 541511), which can vary widely, this amount appears reasonable for a multi-year advisory and support engagement. However, a precise benchmark would require comparing it to contracts with similar objectives, agency size, and service components.

What are the primary risks associated with a Time and Materials (T&M) contract for data modernization services?

The primary risk with a Time and Materials (T&M) contract for data modernization services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously monitored. For data modernization, which can be complex and involve unforeseen technical challenges, T&M contracts require robust oversight from the government to ensure that hours billed are reasonable and necessary, and that the scope remains controlled. Without strong government project management and surveillance, costs can escalate beyond initial expectations.

How effective is the Corporation for National and Community Service (CNCS) in managing complex IT service contracts?

Assessing the effectiveness of the Corporation for National and Community Service (CNCS) in managing complex IT service contracts requires a review of their historical contract performance data, audit reports from Inspectors General, and feedback from industry partners. As the awarding and servicing agency for this $8.99 million data modernization contract, CNCS is responsible for ensuring proper oversight, performance management, and adherence to contract terms. Their capacity to manage such contracts effectively depends on factors like the expertise of their contracting officers and program managers, the clarity of contract requirements, and the robustness of their surveillance processes. Information on CNCS's past IT contract successes and challenges would provide a clearer picture of their management capabilities.

What are the historical spending patterns for data modernization and IT advisory services at CNCS or similar agencies?

Historical spending patterns for data modernization and IT advisory services at agencies like the Corporation for National and Community Service (CNCS) reflect a growing trend towards digital transformation. Agencies are increasingly allocating funds to upgrade legacy systems, enhance cybersecurity, and improve data analytics capabilities. While specific CNCS spending figures for data modernization require detailed analysis of their budget and contract histories, federal agencies broadly have seen significant investments in these areas over the past decade. This $8.99 million contract aligns with this broader federal push for modernization. Comparable agencies often spend millions annually on IT services, including consulting, custom development, and system integration, to meet evolving operational and citizen service demands.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11951 FREEDOM DR STE 1100, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $11,385,816

Exercised Options: $11,385,816

Current Obligation: $8,987,208

Actual Outlays: $6,649,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D00JV

IDV Type: FSS

Timeline