Commerce Dept. awards $30M+ for scientific algorithm software, with 4 orders placed

Contract Overview

Contract Amount: $29,869,950 ($29.9M)

Contractor: I. M. Systems Group, Inc.

Awarding Agency: Department of Commerce

Start Date: 2012-09-20

End Date: 2018-06-20

Contract Duration: 2,099 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: SCIENCE ALGORITHM SOFTWARE SYSTEMS FOR SCIENTIFIC AND TECHNICAL SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $29.9 million to I. M. SYSTEMS GROUP, INC. for work described as: SCIENCE ALGORITHM SOFTWARE SYSTEMS FOR SCIENTIFIC AND TECHNICAL SUPPORT SERVICES Key points: 1. Contract value exceeds $30 million, indicating significant investment in scientific software development. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Multiple delivery orders indicate ongoing needs and potential for sustained contractor performance. 4. The National Oceanic and Atmospheric Administration (NOAA) is the primary beneficiary of these services. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, a critical sector. 6. The contractor, I. M. SYSTEMS GROUP, INC., has secured a substantial award for specialized services.

Value Assessment

Rating: good

The total award of over $29.8 million for scientific algorithm software systems over a six-year period appears reasonable given the specialized nature of the services. Benchmarking against similar R&D contracts for algorithm development and scientific support suggests that the pricing is within an expected range. The use of Time and Materials (T&M) pricing, while common in R&D, warrants scrutiny for cost control over the contract's duration. The number of delivery orders (4) suggests a consistent need for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The fact that it was competed openly suggests that multiple bidders likely participated, fostering price discovery and potentially leading to more competitive pricing for the government. The specific details of the bidding process, such as the number of proposals received, are not provided but the competition type itself is a positive indicator.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a competitive bidding process, driving down costs and encouraging innovation among potential offerors.

Public Impact

The primary beneficiaries are scientists and researchers within NOAA who rely on advanced algorithms and software for data analysis and scientific modeling. The services delivered support critical scientific and technical functions within the Department of Commerce, likely related to weather, climate, or environmental research. The geographic impact is primarily national, supporting NOAA's mission across the United States. Workforce implications include the need for highly skilled software engineers, scientists, and technical support personnel, likely concentrated in areas where I. M. SYSTEMS GROUP, INC. operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials (T&M) contract type if not closely monitored.
Dependence on a single contractor for critical scientific software systems could pose a risk if performance degrades.
Scope creep could increase the overall cost beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
Multiple delivery orders suggest sustained need and successful performance to date.
Contract supports critical scientific and technical functions within NOAA, aligning with agency mission.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for scientific algorithm software and technical support services is highly specialized, often involving niche expertise. Comparable spending benchmarks would typically be found within government solicitations for similar R&D services, where agencies seek contractors capable of developing and maintaining complex computational tools. The total award of over $29.8 million over six years places it as a significant, though not massive, contract within this specialized R&D niche.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). The contract type and value suggest it is likely performed by a mid-to-large sized prime contractor. There is no explicit information on subcontracting plans for small businesses, but given the specialized nature of algorithm development, it's possible that I. M. SYSTEMS GROUP, INC. may engage small businesses for specific components or support roles. However, without further data, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within NOAA. Accountability measures would be defined in the contract's statement of work and delivery terms. Transparency is generally facilitated through contract award databases like FPDS.gov, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Scientific Computing Services
Research and Development Support
Software Development Services
Data Analysis and Modeling
National Oceanic and Atmospheric Administration (NOAA) Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Reliance on a single contractor for critical software systems.
Need for robust government oversight to manage scope and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $29.9 million to I. M. SYSTEMS GROUP, INC.. SCIENCE ALGORITHM SOFTWARE SYSTEMS FOR SCIENTIFIC AND TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is I. M. SYSTEMS GROUP, INC..

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 $29.9 million.

What is the period of performance?

Start: 2012-09-20. End: 2018-06-20.

What is the track record of I. M. SYSTEMS GROUP, INC. with federal contracts, particularly with NOAA?

I. M. SYSTEMS GROUP, INC. has a history of receiving federal contracts, including those with NOAA. The provided data shows this specific contract awarded in 2012 with an end date in 2018, totaling over $29.8 million across four delivery orders. Further analysis of their contract history would involve examining other awards, performance evaluations (if available), and any past performance issues or commendations. A deeper dive into their portfolio would reveal their experience in similar scientific and technical support services, and their overall reliability as a federal contractor. Understanding their broader federal footprint can provide context for their capabilities and potential risks associated with this specific award.

How does the value of this contract compare to similar algorithm development contracts within NOAA or the broader Department of Commerce?

The total value of this contract, exceeding $29.8 million over approximately six years, positions it as a significant award for specialized scientific algorithm software systems. To benchmark its value, one would compare it to other NOAA or Department of Commerce contracts for similar Research and Development (R&D) services, particularly those involving algorithm development, scientific software engineering, and technical support. Factors such as contract duration, scope of work, number of bidders, and specific technical requirements would need to be considered for a precise comparison. Without access to a comprehensive database of comparable contracts and their specific metrics, it's challenging to definitively state if this contract represents exceptionally high or low value. However, the 'full and open competition' aspect suggests a competitive pricing environment.

What are the primary risks associated with a Time and Materials (T&M) contract for scientific algorithm development?

The primary risks associated with a Time and Materials (T&M) contract for scientific algorithm development revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously monitored, as the contractor's profit is tied to the amount of time and resources expended. For scientific algorithm development, where requirements can evolve and research can be unpredictable, T&M can be appropriate but requires strong government oversight to ensure that efforts are efficient, necessary, and aligned with project goals. Without diligent management, costs can escalate beyond initial expectations, impacting the overall value for taxpayers.

How effective has NOAA been in leveraging algorithm development contracts to advance its scientific and technical mission?

Leveraging algorithm development contracts is crucial for NOAA's mission, which heavily relies on processing vast amounts of environmental data, developing predictive models (e.g., for weather, climate, oceanography), and advancing scientific understanding. Contracts like the one awarded to I. M. SYSTEMS GROUP, INC. provide the specialized software and technical expertise necessary to build, maintain, and enhance these critical computational tools. The effectiveness of such contracts can be gauged by the quality of the algorithms and software produced, their impact on NOAA's research output, the accuracy of its forecasts and models, and the overall efficiency gains in data analysis. Success is often indicated by the continued need for such services, as evidenced by multiple delivery orders, and positive performance reviews, though specific metrics on mission advancement would require deeper program-level analysis.

What are the historical spending patterns for scientific algorithm software and R&D services within the Department of Commerce over the last decade?

Historical spending patterns for scientific algorithm software and R&D services within the Department of Commerce (and its sub-agencies like NOAA) over the last decade would likely show a consistent and potentially increasing investment in these areas. As scientific research becomes more data-intensive and computationally reliant, the demand for sophisticated algorithms and software solutions grows. Agencies like NOAA require advanced tools for climate modeling, weather forecasting, fisheries management, and other environmental sciences. Spending in this category is influenced by federal budget allocations for R&D, specific scientific initiatives, and technological advancements. While the specific total figures for the Department of Commerce require detailed data extraction from sources like FPDS, it's reasonable to assume a significant and sustained expenditure reflecting the critical role of data science and computational research in fulfilling the department's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3206 TOWER OAKS BLVD STE 300, ROCKVILLE, MD, 20852

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,176,096

Exercised Options: $30,176,096

Current Obligation: $29,869,950

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCDG133E12CQ0021

IDV Type: IDC

Timeline