NOAA's $9.88M IT Support Services Contract Awarded to Earth Resources Technology, LLC

Contract Overview

Contract Amount: $9,881,777 ($9.9M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2008-04-14

End Date: 2012-07-31

Contract Duration: 1,569 days

Daily Burn Rate: $6.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $9.9 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: IT SUPPORT SERVICES Key points: 1. Contract awarded using a competitive delivery order, suggesting a degree of market vetting. 2. The contract duration of 1569 days (over 4 years) indicates a significant, long-term need for IT support. 3. The Time and Materials pricing structure can pose a risk for cost overruns if not closely managed. 4. The specific NAICS code (541519) points to a broad category of IT services, requiring detailed performance monitoring. 5. The contract was awarded to a single entity, Earth Resources Technology, LLC, necessitating an assessment of their performance and pricing. 6. The contract's value is moderate within the context of federal IT spending, but its specific impact depends on the services rendered.

Value Assessment

Rating: fair

The contract's value of approximately $9.88 million over its term is moderate for IT support services. Without specific benchmarks for the 'Other Computer Related Services' category (NAICS 541519) or details on the scope of work, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. Comparing this to similar NOAA or Department of Commerce IT support contracts would provide better context on whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating it was likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract that underwent full and open competition. The fact that it is a delivery order suggests multiple potential bidders could have vied for this specific task order under the parent IDIQ. The number of bidders for the parent IDIQ is not specified here, but the 'competitive' nature of the award implies that more than one offer was considered.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more favorable pricing than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its various departments, which receive essential IT support services. The services delivered likely include IT infrastructure maintenance, software support, network management, and potentially help desk functions, ensuring NOAA's operational continuity. The geographic impact is centered in Maryland (ST: MD), where the contractor is located and likely where the services are primarily performed or managed. The contract supports jobs within the IT services sector, specifically for the contractor Earth Resources Technology, LLC, and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not rigorously monitored and controlled by the government.
The broad NAICS code (541519) for 'Other Computer Related Services' might obscure the specific nature of services, making performance evaluation more complex.
Lack of specific details on the parent IDIQ contract limits the ability to assess the initial competition and its impact on this delivery order's pricing.
The contract duration of over four years necessitates ongoing vigilance to ensure continued value and alignment with evolving technological needs.

Positive Signals

The award was made through a competitive delivery order, suggesting that multiple vendors had the opportunity to bid, promoting a degree of market competition.
The contract duration indicates a stable, long-term need for these IT services, providing continuity for NOAA's operations.
The contractor, Earth Resources Technology, LLC, has secured a significant federal contract, demonstrating their capacity to serve government requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under IT Support Services. The federal IT market is vast, with agencies consistently procuring services for infrastructure, software, cybersecurity, and operational support. Contracts like this are crucial for maintaining the digital backbone of government operations. Benchmarking this $9.88 million contract would involve comparing its scope, duration, and pricing structure to other IT support service contracts awarded by NOAA, the Department of Commerce, or similar civilian agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (SS: false, SB: false). Therefore, the primary contractor, Earth Resources Technology, LLC, is likely a large business or a small business that did not receive a set-aside award. There is no information provided regarding subcontracting plans or goals for small businesses on this specific delivery order. The impact on the small business ecosystem would depend on whether Earth Resources Technology, LLC actively seeks small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program managers within NOAA. As a delivery order under a potentially larger IDIQ, oversight mechanisms would be defined by the parent contract's terms. The Department of Commerce's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

IT Professional Services
IT Operations and Support
Cloud Computing Services
Network Infrastructure Services
Software Development and Maintenance

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Broad NAICS code may obscure specific service details and complicate performance monitoring.
Limited transparency on the competition level of the parent IDIQ contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $9.9 million to EARTH RESOURCES TECHNOLOGY, LLC. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2008-04-14. End: 2012-07-31.

What is the specific scope of IT support services covered under this contract, and how does it align with NOAA's mission-critical functions?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This is a broad classification that can encompass a wide range of IT support activities, including but not limited to help desk support, network administration, system maintenance, hardware/software troubleshooting, and potentially IT project management. To understand its alignment with NOAA's mission, one would need to examine the detailed Statement of Work (SOW) for this specific delivery order. NOAA relies heavily on robust IT infrastructure for its data collection, analysis, and dissemination activities related to weather, climate, oceans, and coasts. Therefore, effective IT support is crucial for ensuring the uninterrupted operation of these vital services. Without the SOW, it's difficult to pinpoint the exact services and their direct mission impact.

How does the Time and Materials (T&M) pricing structure compare to industry standards for similar IT support contracts, and what are the associated risks?

Time and Materials (T&M) contracts are common for IT support services, especially when the scope of work is not clearly defined at the outset or is expected to evolve. This structure allows for flexibility, enabling the government to adapt to changing needs. However, T&M contracts carry inherent risks for cost control. Unlike fixed-price contracts, the government pays for the actual labor hours and materials used, plus a fixed fee or rate. This can lead to cost overruns if the contractor's efficiency is low or if the government's requirements expand significantly without proper scope management. Industry standards often favor fixed-price or cost-plus-fixed-fee contracts for well-defined IT projects to ensure better cost predictability. For T&M contracts to be effective, rigorous oversight, detailed tracking of hours and materials, and clear ceiling limitations are essential to mitigate risks and ensure value for taxpayers.

What was the competitive landscape for the parent IDIQ contract under which this delivery order was issued, and how many bids were received?

The provided data indicates this is a 'COMPETITIVE DELIVERY ORDER,' suggesting it was issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract that was competed. However, the specific details regarding the parent IDIQ contract, such as its name, the number of bidders who responded to its initial solicitation, and the number of awardees, are not included in this data snippet. Typically, competitive IDIQ contracts are awarded after a full and open competition process, where multiple vendors submit proposals. The number of bids received for the parent IDIQ would provide a clearer picture of the initial market competition. Without this information, we can infer that the delivery order itself was competed among potential awardees of the parent IDIQ, but the depth of the original competition remains unknown.

What is the track record of Earth Resources Technology, LLC in performing federal IT support contracts, particularly with NOAA or the Department of Commerce?

Assessing the track record of Earth Resources Technology, LLC requires accessing historical contract data beyond this single award. Information such as past performance evaluations, previous contract values, types of services rendered, and client agencies would be necessary. A review of the Federal Awardee Performance and Integrity Information System (FAPIIS) or other performance databases could reveal formal ratings or concerns associated with the contractor. Without access to this broader performance history, it's difficult to definitively state their track record. However, securing a multi-year, multi-million dollar contract like this suggests they have met certain baseline requirements and possess the capacity to perform federal IT support functions.

How does the total contract value of $9.88 million compare to historical spending patterns for IT support services at NOAA or the National Oceanic and Atmospheric Administration?

To compare this $9.88 million contract value to NOAA's historical spending, one would need to analyze NOAA's IT procurement data over several fiscal years. This analysis should focus specifically on contracts categorized under IT support services, potentially using similar NAICS codes (like 541519) or contract descriptions. Understanding the average contract size, the number of IT support contracts awarded annually, and the total annual expenditure on such services would provide context. If NOAA typically awards numerous smaller contracts, this $9.88 million award might represent a significant single investment or a consolidation of services. Conversely, if NOAA frequently awards larger contracts, this might be considered a standard-sized award. Without historical data specific to NOAA's IT support spending, it's challenging to definitively benchmark this contract's value against past trends.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14401 SWEITZER LN STE 300, LAUREL, MD, 20707

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,886,777

Exercised Options: $9,881,777

Current Obligation: $9,881,777

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0041N

IDV Type: FSS

Timeline