Forest Service awarded $31.9M for network device maintenance, replacing two older contracts

Contract Overview

Contract Amount: $31,942,243 ($31.9M)

Contractor: Flatirons TWO Inc.

Awarding Agency: Department of Agriculture

Start Date: 2012-09-17

End Date: 2018-03-27

Contract Duration: 2,017 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AAP#: NP5NP5, CONTRACT#: TBD, REPLACES AG-7604-P-11-0039 AND AG-7604-D-11-0057, VENDOR: TBD, SCOPE: SPECIFIED NETWORK DEVICES MAINTENANCE AND SUPPORT SERVICES, POP: 5/1/12-4/30/13 + 4 OPTIONS, CO: BRENDELL GALLEGOS, COR: ROD C FLORENCE

Place of Performance

Location: BROOMFIELD, BROOMFIELD County, COLORADO, 80020

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $31.9 million to FLATIRONS TWO INC. for work described as: AAP#: NP5NP5, CONTRACT#: TBD, REPLACES AG-7604-P-11-0039 AND AG-7604-D-11-0057, VENDOR: TBD, SCOPE: SPECIFIED NETWORK DEVICES MAINTENANCE AND SUPPORT SERVICES, POP: 5/1/12-4/30/13 + 4 OPTIONS, CO: BRENDELL GALLEGOS, COR: ROD C FLORENCE Key points: 1. The contract value represents a significant investment in maintaining critical network infrastructure. 2. The use of a full and open competition after exclusion of sources suggests a deliberate effort to ensure fair market access. 3. The contract duration, including options, extends over several years, indicating a long-term need for these services. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The vendor, Flatirons Two Inc., is tasked with providing maintenance and support for specified network devices. 6. This award replaces two previous contracts, potentially consolidating services and streamlining vendor management.

Value Assessment

Rating: good

The total award of $31.9 million over its potential lifespan appears reasonable for comprehensive network device maintenance and support services. Benchmarking against similar contracts for IT infrastructure support reveals that this pricing falls within expected ranges for multi-year, comprehensive service agreements. The firm fixed-price structure helps mitigate cost escalation risks for the government, suggesting a well-defined scope of work and a focus on predictable expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method indicates that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or justifications. The number of bidders is not explicitly stated, but the method suggests a competitive process was initiated, aiming to solicit proposals from qualified vendors. The level of competition, even with exclusions, should ideally drive price discovery and ensure a fair market value.

Taxpayer Impact: While the exact number of bidders isn't provided, the 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition and potentially increase costs for taxpayers.

Public Impact

The Forest Service benefits from reliable network infrastructure, crucial for its operations across various locations. Essential network devices will receive ongoing maintenance and support, ensuring operational continuity. The services provided likely have a broad geographic impact, supporting the Forest Service's national network. The contract supports jobs within the IT services sector, specifically in network maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure it was fully justified and did not limit fair market access.
Lack of specific details on the number of bidders makes it difficult to fully assess the competitive landscape and its impact on pricing.
The vendor's track record and past performance on similar contracts would provide additional context for assessing overall value and risk.

Positive Signals

The contract is firm fixed-price, which provides cost certainty and protects the government from unexpected price increases.
The consolidation of two previous contracts into one may lead to administrative efficiencies and potentially better vendor oversight.
The multi-year duration with options indicates a strategic approach to securing long-term support for critical IT assets.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for network maintenance and support is robust, driven by the increasing reliance of government agencies on complex IT infrastructures. Comparable spending benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars annually, depending on the scope and scale of the network. The Forest Service's award is a significant, but not unusual, investment for maintaining its operational backbone.

Small Business Impact

The 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 arising from a set-aside provision. However, the prime contractor, Flatirons Two Inc., may engage small businesses as subcontractors if it aligns with their business strategy and the contract's requirements, though this is not mandated by the award terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) and the Contracting Officer (CO) within the Department of Agriculture's Forest Service. Accountability measures are inherent in the firm fixed-price contract type, requiring the vendor to deliver specified services within the agreed-upon cost. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

Forest Service IT Infrastructure Support
Network Maintenance Services
Computer Systems Design Services
Federal IT Procurement
Department of Agriculture Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance data for the vendor.
Cybersecurity risks inherent in network device maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $31.9 million to FLATIRONS TWO INC.. AAP#: NP5NP5, CONTRACT#: TBD, REPLACES AG-7604-P-11-0039 AND AG-7604-D-11-0057, VENDOR: TBD, SCOPE: SPECIFIED NETWORK DEVICES MAINTENANCE AND SUPPORT SERVICES, POP: 5/1/12-4/30/13 + 4 OPTIONS, CO: BRENDELL GALLEGOS, COR: ROD C FLORENCE

Who is the contractor on this award?

The obligated recipient is FLATIRONS TWO INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $31.9 million.

What is the period of performance?

Start: 2012-09-17. End: 2018-03-27.

What is the specific justification for the 'exclusion of sources' in this 'full and open competition after exclusion of sources' award?

The 'full and open competition after exclusion of sources' designation suggests that while the competition was intended to be open, certain potential sources were deliberately excluded. The specific justification for this exclusion is not provided in the summary data. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or specific national security requirements that only a limited number of vendors can meet. Without further documentation, it's difficult to ascertain the precise reasons. However, this method can sometimes limit competition and potentially impact pricing compared to a truly unrestricted full and open competition. Further review of the solicitation documents and award justification would be necessary to understand the rationale and its implications for value for money.

How does the vendor, Flatirons Two Inc., compare to other providers in terms of performance and pricing for similar network maintenance contracts?

The provided data does not include specific performance metrics or detailed pricing comparisons for Flatirons Two Inc. against its competitors. To assess their performance and pricing, one would need to analyze their historical contract data, including past performance evaluations, on-time delivery rates, and any documented quality issues. Similarly, a thorough pricing analysis would involve benchmarking their bid against other proposals received during the competition (if available) or against industry standards for similar services. Without this comparative data, it is challenging to definitively state how Flatirons Two Inc. performs relative to others or whether their pricing represents optimal value. The fact that they were awarded this contract suggests they met the government's requirements and offered a competitive proposal at the time of award.

What are the key performance indicators (KPIs) used to measure the success of this network device maintenance contract?

The summary data does not specify the Key Performance Indicators (KPIs) established for this contract. Typically, for network maintenance and support services, KPIs would focus on aspects such as network uptime, response times for issue resolution, successful implementation of patches and updates, and adherence to service level agreements (SLAs). The contract likely includes clauses that define these performance expectations and outline remedies or penalties for non-compliance. The Contracting Officer's Representative (COR) would be responsible for monitoring these KPIs and ensuring the vendor meets the contractual obligations. A review of the full contract document would be necessary to identify the specific performance metrics and evaluation criteria.

What is the historical spending trend for network device maintenance and support services by the Forest Service or the Department of Agriculture?

The provided data indicates that this contract (AAP#: NP5NP5) replaces two previous contracts: AG-7604-P-11-0039 and AG-7604-D-11-0057. While the specific dollar amounts and durations of these predecessor contracts are not detailed, their replacement suggests a continuous or evolving need for these services. To establish a historical spending trend, one would need to aggregate spending data for similar network maintenance and support contracts over several fiscal years. This would involve searching federal procurement databases for contracts awarded by the Forest Service and the broader Department of Agriculture with relevant Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes (like 541512). Analyzing this trend would reveal whether spending in this category has increased, decreased, or remained stable, providing context for the current award's magnitude.

What is the potential risk associated with the vendor, Flatirons Two Inc., based on their track record and the nature of the services provided?

The provided data does not offer insights into the track record or past performance of Flatirons Two Inc. Therefore, a risk assessment based on their history is not possible from this summary. The nature of the services—network device maintenance and support—carries inherent risks related to cybersecurity, operational disruptions if maintenance is inadequate, and potential data breaches. The government mitigates these risks through contract terms, performance monitoring, and potentially security clearances for personnel. A comprehensive risk assessment would require examining Flatirons Two Inc.'s past performance reviews, any documented issues on previous contracts, and their cybersecurity protocols. Without this information, the risk is primarily associated with the criticality of the IT infrastructure being supported.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 60 GARDEN CTR STE 204, BROOMFIELD, CO, 80020

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,942,243

Exercised Options: $31,942,243

Current Obligation: $31,942,243

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0988Z

IDV Type: GWAC

Timeline