Commerce's USPTO Spends $44.6M on ITOM HW/SW Maintenance Support via Delivery Order

Contract Overview

Contract Amount: $44,615,612 ($44.6M)

Contractor: Information Innovators, LLC

Awarding Agency: Department of Commerce

Start Date: 2008-10-31

End Date: 2013-09-30

Contract Duration: 1,795 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ITOM HW/SW MAINTENANCE SUPPORT TO FM-03(DOC56PAPT0905004) POP 11/01/08 THROUGH 01/31/09

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22313

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $44.6 million to INFORMATION INNOVATORS, LLC for work described as: ITOM HW/SW MAINTENANCE SUPPORT TO FM-03(DOC56PAPT0905004) POP 11/01/08 THROUGH 01/31/09 Key points: 1. The contract awarded to Information Innovators, LLC for ITOM HW/SW Maintenance Support represents a significant investment in maintaining critical IT infrastructure. 2. Competition was conducted under a 'Full and Open Competition After Exclusion of Sources' clause, suggesting a specific justification for limiting initial bidders. 3. The short duration (approx. 5 months) for a $44.6M contract raises questions about the overall value and potential for cost savings through longer-term agreements. 4. The sector is IT, specifically Computer Facilities Management Services, a crucial area for government operations.

Value Assessment

Rating: questionable

The contract value of $44.6M for a 5-month period is exceptionally high on a per-month basis. Without detailed scope and service level agreements, it's difficult to benchmark against similar ITOM maintenance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific sources may have been excluded initially. This method can impact price discovery if the excluded sources represent significant competition.

Taxpayer Impact: The high expenditure for a short period warrants scrutiny to ensure taxpayer funds are used efficiently and that the pricing reflects fair market value.

Public Impact

Ensures continued operation of essential IT systems for the U.S. Patent and Trademark Office. Supports the agency's ability to process patents and trademarks, impacting businesses and innovators. The significant cost highlights the ongoing expense of maintaining complex IT environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for ITOM HW/SW maintenance can vary widely based on the complexity of the systems supported and the scope of services required.

Small Business Impact

The contract was awarded to Information Innovators, LLC, and the data indicates the company is not a small business. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The award was a Delivery Order under a larger contract. Oversight would typically involve monitoring performance against the contract's terms and conditions, ensuring timely delivery of services, and verifying that the contractor meets all requirements.

Related Government Programs

Risk Flags

Tags

computer-facilities-management-services, department-of-commerce, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $44.6 million to INFORMATION INNOVATORS, LLC. ITOM HW/SW MAINTENANCE SUPPORT TO FM-03(DOC56PAPT0905004) POP 11/01/08 THROUGH 01/31/09

Who is the contractor on this award?

The obligated recipient is INFORMATION INNOVATORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $44.6 million.

What is the period of performance?

Start: 2008-10-31. End: 2013-09-30.

What specific ITOM hardware and software are covered by this maintenance contract, and what is the criticality of these systems to USPTO operations?

The provided data does not specify the exact hardware and software components covered. However, ITOM (IT Operations Management) typically includes systems for monitoring, managing, and optimizing IT infrastructure and services. Given the USPTO's function, these systems are likely critical for ensuring the availability and performance of their patent and trademark processing platforms.

What was the justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The rationale for excluding specific sources is not detailed in the provided data. This procurement method suggests that while the competition was intended to be open, certain pre-existing conditions or requirements may have limited the pool of eligible bidders. Understanding the justification is key to assessing if the final price achieved optimal value or if potential cost savings were forgone.

How does the $44.6M cost for a 5-month period compare to industry benchmarks for similar ITOM maintenance and support services?

The cost of $44.6M for approximately five months translates to over $8.9M per month. This figure appears exceptionally high for ITOM maintenance and support services without further context on the scope, scale, and complexity of the systems managed. Benchmarking against similar government or commercial contracts would be necessary to determine if this represents a fair market price or an area of potential overspending.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Information Innovators Inc. (UEI: 078732862)

Address: 7400 FULLERTON RD STE 210, SPRINGFIELD, VA, 22153

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,619,622

Exercised Options: $44,619,622

Current Obligation: $44,615,612

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOC50PAPT0801008

IDV Type: IDC

Timeline

Start Date: 2008-10-31

Current End Date: 2013-09-30

Potential End Date: 2013-09-30 00:00:00

Last Modified: 2016-09-29

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