Commerce Department's $55.7M IT contract for computer systems design services awarded to PARADYME SOLUTIONS, LLC

Contract Overview

Contract Amount: $55,758,915 ($55.8M)

Contractor: Paradyme Solutions, LLC

Awarding Agency: Department of Commerce

Start Date: 2016-09-23

End Date: 2021-09-23

Contract Duration: 1,826 days

Daily Burn Rate: $30.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: LABOR HOURS

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 $55.8 million to PARADYME SOLUTIONS, LLC for work described as: IGF::OT::IGF Key points: 1. Value for money appears fair given the 5-year duration and labor hour contract type. 2. Competition dynamics indicate a limited competition environment, potentially impacting price discovery. 3. Risk indicators include the labor hour contract type, which can present oversight challenges. 4. Performance context is within computer systems design services, a broad IT category. 5. Sector positioning is within the IT services sector, supporting government digital infrastructure.

Value Assessment

Rating: fair

The contract's total value of $55.7 million over five years averages to approximately $11.15 million annually. Benchmarking this against similar IT services contracts is challenging without more specific service details. However, the labor hour contract type suggests that costs are driven by personnel time, making it crucial to assess the reasonableness of hourly rates against market standards for comparable skill sets and experience levels. Without specific rate data, a definitive value assessment is difficult, but the overall spend is substantial for IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was intended for smaller dollar value procurements. The data indicates 3 bidders participated in the competition. While some level of competition existed, SAP procurements can sometimes limit the pool of potential offerors compared to full and open competition, potentially affecting the breadth of price discovery and innovation.

Taxpayer Impact: For taxpayers, limited competition under SAP may mean that the government does not always secure the absolute lowest price achievable through a wider, more robust bidding process.

Public Impact

The U.S. Census Bureau benefits from these computer systems design services, likely supporting data collection, processing, and dissemination. Services delivered are crucial for maintaining and enhancing the technological infrastructure of a key government agency. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment opportunities for IT professionals within PARADYME SOLUTIONS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contract type can lead to cost overruns if not closely monitored.
Limited competition may result in less favorable pricing than a broader competition.
The duration of the contract (5 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded to a single contractor, allowing for focused service delivery and relationship building.
Competition, even if limited, suggests some market validation of the chosen vendor.
The contract falls under IT services, a critical area for government operations.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of support, development, and maintenance activities. This contract for computer systems design services fits within this broad category, supporting the operational needs of the U.S. Census Bureau. Comparable spending benchmarks in this area are vast, but IT services consistently represent billions of dollars annually across federal agencies, reflecting the increasing reliance on technology for government functions.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without a small business set-aside, larger businesses or those capable of competing under SAP are the primary awardees, potentially limiting direct opportunities for smaller firms unless they are part of a larger team or can secure subcontracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. Given it's a labor hour contract, diligent monitoring of hours worked, labor categories, and adherence to the Statement of Work is essential. Transparency is facilitated through contract award databases, but detailed performance metrics and oversight reports are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Procurement
U.S. Census Bureau Operations
Contracting under Simplified Acquisition Procedures

Risk Flags

Labor Hour Contract Type
Limited Competition
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $55.8 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 $55.8 million.

What is the period of performance?

Start: 2016-09-23. End: 2021-09-23.

What is the track record of PARADYME SOLUTIONS, LLC with federal contracts, particularly in IT services?

PARADYME SOLUTIONS, LLC has a history of federal contracting, with this specific award representing a significant portion of their reported federal obligations. Analyzing their broader contract portfolio would reveal their experience across different agencies and service types. For IT services, their performance on this contract, including adherence to schedule, budget, and technical requirements, would be a key indicator of their capability. Past performance reviews and any documented issues or successes on previous government contracts would provide further insight into their reliability and expertise in delivering complex IT solutions.

How does the average annual value of this contract compare to similar IT services contracts awarded by the Department of Commerce?

The average annual value of this contract is approximately $11.15 million ($55.7M / 5 years). To compare this effectively, one would need to analyze other IT services contracts awarded by the Department of Commerce, specifically those for computer systems design or similar services, over comparable timeframes. Factors such as contract scope, complexity, labor categories, and the specific agency sub-component awarding the contract are crucial for a meaningful comparison. Without access to a detailed database of comparable contracts and their specific values and scopes, it is difficult to definitively state whether this contract's annual value is high, low, or average relative to its peers within the Department of Commerce.

What are the primary risks associated with a labor hour contract type for computer systems design services?

The primary risk associated with a labor hour contract type for computer systems design services is the potential for cost overruns and a lack of defined scope, which can lead to inefficiencies. Unlike fixed-price contracts, labor hour contracts do not pre-define the total cost, making it harder for the government to budget precisely. Oversight is critical to ensure that only necessary hours are billed at agreed-upon rates and that the work performed aligns with the objectives. There's also a risk that the contractor may not be incentivized to complete tasks efficiently, as more hours worked directly translate to more revenue. This necessitates robust monitoring and reporting mechanisms from the government side.

How effective has the U.S. Census Bureau been in managing its IT contracts, and does this contract align with historical spending patterns?

Assessing the overall effectiveness of the U.S. Census Bureau in managing its IT contracts requires a review of their procurement history, contract performance metrics, and any audits or evaluations conducted by oversight bodies like the IG. This specific contract, awarded under SAP, suggests a procurement approach often used for services deemed less complex or of lower dollar value, though its $55.7M total value is substantial. Historical spending patterns for the Census Bureau's IT needs would reveal if this type of contract and vendor engagement is typical or an outlier. Understanding their past successes and challenges in IT procurement and management is key to evaluating the potential effectiveness of this particular award.

What is the potential impact of this contract on the broader IT services market, considering the contractor's size and the competition level?

The potential impact of this contract on the broader IT services market depends on PARADYME SOLUTIONS, LLC's market share and the specific niche within computer systems design they occupy. As a single awardee, it represents a significant revenue stream for them. The limited competition (3 bidders) suggests that the market for this specific type of service, or at least for this particular government requirement, may be concentrated among a few providers. This could influence pricing dynamics and innovation within that segment of the IT services market. If PARADYME is a smaller or mid-sized business, this contract could significantly boost their profile and capacity, potentially enabling them to compete for larger opportunities in the future.

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

Solicitation ID: YA1323-16-RP-0006

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $55,758,915

Exercised Options: $55,758,915

Current Obligation: $55,758,915

Actual Outlays: $2,661,477

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCYA132315BU0042

IDV Type: BPA

Timeline