Commerce Department's $32M IT contract for computer systems design services awarded to PARADYME SOLUTIONS, LLC

Contract Overview

Contract Amount: $31,992,511 ($32.0M)

Contractor: Paradyme Solutions, LLC

Awarding Agency: Department of Commerce

Start Date: 2016-09-06

End Date: 2020-06-15

Contract Duration: 1,378 days

Daily Burn Rate: $23.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $32.0 million to PARADYME SOLUTIONS, LLC for work described as: IGF::OT::IGF Key points: 1. Value for money appears fair given the Time and Materials contract type and duration. 2. Competition dynamics indicate a BPA Call under SAP, suggesting a streamlined but potentially less competitive process. 3. Risk indicators include the Time and Materials pricing structure, which can lead to cost overruns if not managed closely. 4. Performance context is within computer systems design services, a broad category requiring careful scope management. 5. Sector positioning is within the IT services sector, a common area for federal contracting.

Value Assessment

Rating: fair

The contract's total value of approximately $32 million over its nearly four-year period suggests a moderate annual spend. Benchmarking against similar IT services contracts is challenging without more specific service details. However, Time and Materials contracts inherently carry a higher risk of cost escalation compared to fixed-price awards. The value needs to be assessed against the actual deliverables and project outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a BPA Call under Simplified Acquisition Procedures (SAP). While the data indicates 9 bidders, the specific nature of a BPA Call suggests it may have been competed among pre-qualified vendors on an existing Blanket Purchase Agreement, limiting the breadth of competition compared to a full and open solicitation.

Taxpayer Impact: The limited competition, even with multiple bidders, may have resulted in less aggressive pricing than a full and open competition, potentially costing taxpayers more.

Public Impact

The U.S. Census Bureau benefits from these computer systems design services, likely supporting data collection, processing, or dissemination. Services delivered are in the realm of IT infrastructure and application support, crucial for modern government operations. The geographic impact is primarily within the agency's operational centers, though the services could support nationwide data initiatives. Workforce implications may include the need for specialized IT personnel within the Census Bureau or reliance on contractor expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may have impacted price discovery.
Scope creep could be a risk with system design services.

Positive Signals

Awarded to a single contractor, indicating a clear point of responsibility.
Multiple bidders participated, suggesting some level of market interest.
Contract duration of over three years allows for sustained support.

Sector Analysis

The IT services sector is a significant portion of federal spending, encompassing a wide range of capabilities from software development to network management. Contracts for computer systems design services, like this one, are essential for agencies to maintain and modernize their technological infrastructure. The market is competitive, but specialized services can command premium pricing. This contract fits within the broader category of IT support and development for civilian agencies.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, and larger firms or those on existing BPA vehicles were likely the primary participants. Subcontracting opportunities for small businesses are not explicitly detailed but are a possibility in larger IT contracts.

Oversight & Accountability

Oversight would typically be managed by the U.S. Census Bureau's contracting officers and program managers. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is facilitated by contract databases like FPDS, but detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Blanket Purchase Agreements
Simplified Acquisition Procedures
Department of Commerce IT Spending

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may affect price.
Broad service category requires clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $32.0 million to PARADYME SOLUTIONS, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PARADYME SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2016-09-06. End: 2020-06-15.

What is the track record of PARADYME SOLUTIONS, LLC with federal contracts, particularly in computer systems design?

Assessing PARADYME SOLUTIONS, LLC's track record requires a deeper dive into their contract history beyond this single award. While this $32 million contract is substantial, it's important to examine other awards, their performance ratings on past contracts (if available), and any history of contract modifications or disputes. Federal procurement data can reveal if they have consistently delivered on similar IT services or if this represents a significant expansion of their capabilities. A review of their financial stability and past performance on government contracts would provide a more comprehensive understanding of their reliability and expertise in delivering complex computer systems design services.

How does the pricing structure (Time and Materials) compare to industry benchmarks for similar IT services?

Time and Materials (T&M) pricing is inherently flexible but carries a higher risk of cost escalation compared to fixed-price contracts. For computer systems design services, T&M can be justified when the scope of work is not well-defined at the outset or is expected to evolve significantly. However, industry benchmarks often show that well-defined projects completed under fixed-price or cost-plus-fixed-fee structures can yield better value for money. Agencies typically implement strict oversight, labor rate ceilings, and milestone tracking to mitigate T&M risks. Without specific labor categories and rates, a direct benchmark is difficult, but the inherent risk of T&M suggests that vigilant management is crucial to ensure value.

What specific computer systems design services were delivered under this contract?

The contract identifies the service as 'Computer Systems Design Services' (NAICS 541512), which is a broad category. To understand the value and performance, it's crucial to know the specifics. This could range from designing new software architectures, integrating complex IT systems, developing custom applications, or providing IT infrastructure design. The effectiveness of the contract hinges on how well these design services met the U.S. Census Bureau's requirements, whether they led to improved system performance, enhanced data processing capabilities, or successful implementation of new technological solutions. Detailed statements of work and performance reports would clarify the exact services rendered.

What was the rationale for using Simplified Acquisition Procedures (SAP) and a BPA Call for a contract of this value?

Simplified Acquisition Procedures (SAP) are generally used for purchases below the simplified acquisition threshold (currently $250,000), though certain other procurements can be conducted under these procedures. A Blanket Purchase Agreement (BPA) Call suggests that a master BPA was already in place, allowing for streamlined ordering against pre-negotiated terms and conditions. The use of SAP and a BPA Call for a $32 million contract might indicate that the individual calls against the BPA were structured to remain within certain thresholds, or that the BPA itself was established through a more comprehensive competition, with subsequent calls being administrative actions. The rationale likely centers on efficiency and speed for acquiring IT services, assuming the underlying BPA competition was adequate.

How has the Department of Commerce's spending on computer systems design services evolved over the past five years?

Analyzing the Department of Commerce's spending trends on computer systems design services over the past five years would provide valuable context. This includes identifying the primary recipients of these funds, the types of services procured, and whether spending has increased or decreased. Such an analysis could reveal shifts in agency priorities, technological investments, or contracting strategies. Comparing this $32 million contract to historical spending patterns would help determine if it represents a typical investment, an anomaly, or part of a larger trend in IT modernization efforts within the Department.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3820 39TH ST NW STE 119E, WASHINGTON, DC, 20016

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,634,145

Exercised Options: $35,634,145

Current Obligation: $31,992,511

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCYA132315BU0042

IDV Type: BPA

Timeline