NOAA's CLASS Software Development contract awarded to Diversified Global Partners JV LLC for over $22.25 million

Contract Overview

Contract Amount: $22,250,310 ($22.3M)

Contractor: Diversified Global Partners JV LLC

Awarding Agency: Department of Commerce

Start Date: 2009-08-01

End Date: 2010-07-31

Contract Duration: 364 days

Daily Burn Rate: $61.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: COMPREHENSIVE LARGE ARRAY-DATA STEWARDSHIP SYSTEM (CLASS) SOFTWARE DEVELOPMENT, SYSTEMS SECURITY AND SYSTEM EVOLUTION TASK FOR THE PERIOD OF 8/1/2009-6/30/2010.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $22.3 million to DIVERSIFIED GLOBAL PARTNERS JV LLC for work described as: COMPREHENSIVE LARGE ARRAY-DATA STEWARDSHIP SYSTEM (CLASS) SOFTWARE DEVELOPMENT, SYSTEMS SECURITY AND SYSTEM EVOLUTION TASK FOR THE PERIOD OF 8/1/2009-6/30/2010. Key points: 1. The contract focused on software development, systems security, and system evolution for NOAA's CLASS. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract type was Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 4. The period of performance was one year, from August 2009 to June 2010. 5. The National Oceanic and Atmospheric Administration (NOAA) is the primary agency involved. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for similar large-scale data stewardship system development during that period. The Cost Plus Award Fee (CPAF) structure means the final cost could vary based on performance, making a fixed price comparison difficult. However, the awarded amount of over $22 million for a one-year period for comprehensive software development, security, and evolution suggests a significant investment in critical IT infrastructure.

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.' While this indicates an initial broad solicitation, the 'exclusion of sources' clause suggests that certain potential bidders may have been excluded after the initial open competition phase, potentially limiting the final pool of bidders. The presence of 6 bidders indicates a competitive process, but the exact implications for price discovery are unclear without knowing the reasons for source exclusion.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to better pricing and innovative solutions. However, any exclusion of sources warrants scrutiny to ensure it was justified and did not unduly restrict competition.

Public Impact

The primary beneficiaries are NOAA and its various divisions, which rely on the CLASS system for data stewardship. The services delivered include software development, system security enhancements, and ongoing system evolution. The geographic impact is likely national, supporting NOAA's nationwide operations and data collection efforts. Workforce implications include IT professionals and software developers employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Award Fee' contract type requires robust oversight to ensure costs are reasonable and award fees are justified.
The 'Exclusion of Sources' clause, even within a full and open competition, needs clear justification to ensure fair market access.
The specific nature of 'system evolution' can lead to scope creep if not managed tightly.

Positive Signals

Awarded under 'Full and Open Competition,' suggesting a broad initial market reach.
Multiple bidders (6) participated, indicating contractor interest and a degree of competition.
The contract addresses critical IT infrastructure for a key scientific agency (NOAA).

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital part of the IT industry. This sector is characterized by rapid technological advancements and a high demand for specialized skills in software development, cybersecurity, and system integration. Spending in this area supports government agencies' modernization efforts and their ability to manage vast amounts of data. Comparable spending benchmarks would typically involve other large government IT development contracts, often running into tens or hundreds of millions of dollars depending on scope and duration.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor is listed as 'DIVERSIFIED GLOBAL PARTNERS JV LLC,' which may or may not be a small business or joint venture primarily composed of small businesses. Further investigation would be needed to determine subcontracting opportunities for small businesses. The nature of large-scale IT development contracts often involves significant subcontracting, which can provide opportunities for specialized small businesses.

Oversight & Accountability

The oversight for a Cost Plus Award Fee (CPAF) contract is critical. NOAA would have been responsible for monitoring the contractor's performance against defined criteria to determine award fees. Transparency would be facilitated through contract reporting requirements and potentially through agency-level IT governance structures. Inspector General jurisdiction would typically apply to ensure the integrity of the contracting process and the proper use of funds.

Related Government Programs

NOAA CLASS System
Government IT Modernization Programs
Federal Data Stewardship Contracts
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns inherent in CPAF contracts.
Need for rigorous oversight of award fee determination.
Justification required for 'Exclusion of Sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $22.3 million to DIVERSIFIED GLOBAL PARTNERS JV LLC. COMPREHENSIVE LARGE ARRAY-DATA STEWARDSHIP SYSTEM (CLASS) SOFTWARE DEVELOPMENT, SYSTEMS SECURITY AND SYSTEM EVOLUTION TASK FOR THE PERIOD OF 8/1/2009-6/30/2010.

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED GLOBAL PARTNERS JV 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 $22.3 million.

What is the period of performance?

Start: 2009-08-01. End: 2010-07-31.

What was the specific nature of the 'system evolution' tasks included in this contract?

The 'system evolution' aspect of the contract likely encompassed activities aimed at enhancing the existing Comprehensive Large Array-Data Stewardship System (CLASS) to meet evolving user needs, technological advancements, or new data requirements. This could include adding new functionalities, improving performance, integrating with other systems, or adapting the software to support new types of data or analytical tools. Without specific task orders or detailed contract modifications, the precise scope of 'system evolution' remains general, but it implies a proactive approach to maintaining and improving the system's long-term viability and utility beyond basic maintenance and security.

How did the 'Exclusion of Sources' clause impact the final competition and pricing?

The 'Exclusion of Sources' clause, applied after an initial 'Full and Open Competition,' suggests that while the market was broadly solicited, certain entities were subsequently deemed ineligible or unsuitable to bid. The impact on final competition and pricing is difficult to ascertain without knowing the specific criteria for exclusion. If the excluded sources were significant competitors, their removal could have reduced overall competition, potentially leading to less favorable pricing for the government. Conversely, if the exclusions were based on ensuring only qualified and capable vendors remained, it might have led to a more focused competition among highly suitable bidders, potentially yielding better technical solutions even if price competition was slightly constrained.

What were the key performance criteria used to determine the 'Award Fee' for Diversified Global Partners JV LLC?

For a Cost Plus Award Fee (CPAF) contract, the 'Award Fee' is typically determined based on the contractor's performance against a set of pre-defined criteria, often outlined in an Award Fee Plan. These criteria usually relate to aspects like technical performance, schedule adherence, cost control (within the cost-reimbursement framework), management effectiveness, and customer satisfaction. For a contract focused on software development, systems security, and evolution, criteria might include the successful delivery of software modules, meeting security compliance standards, timely completion of milestones, quality of deliverables, and responsiveness to NOAA's needs. The specific metrics and weighting for these criteria would have been detailed in the contract's Award Fee Plan.

What is the historical spending pattern for NOAA's CLASS system development and maintenance?

Analyzing the historical spending pattern for NOAA's CLASS system requires access to broader contract data beyond this single award. This $22.25 million contract represents spending for a specific one-year period (2009-2010) for development, security, and evolution. To understand the overall pattern, one would need to examine prior and subsequent contracts related to CLASS, including their values, durations, and scopes of work. This would reveal trends in investment, whether spending has been consistent, increasing, or decreasing, and how it aligns with NOAA's data management priorities and technological shifts over time. Without this broader context, this single data point offers limited insight into the long-term financial commitment to the CLASS system.

What risks are associated with a 'Cost Plus Award Fee' contract for complex IT systems?

Cost Plus Award Fee (CPAF) contracts, while offering flexibility for complex projects where scope may evolve, carry inherent risks. For the government, the primary risk is that costs can escalate, as the contractor is reimbursed for allowable expenses. The 'award fee' component introduces subjectivity; ensuring the criteria are objective and the evaluation fair is crucial to prevent disputes or perceptions of bias. There's also a risk that the contractor might focus excessively on achieving award fee targets rather than overall project success or cost efficiency if the fee structure is not well-aligned with desired outcomes. Robust government oversight is essential to manage these risks, ensuring that costs are reasonable and award fees are earned through demonstrable superior performance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8403 COLESVILLE RD 10TH FL, SILVER SPRING, MD, 20910

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,260,004

Exercised Options: $22,260,004

Current Obligation: $22,250,310

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCEA133E08CQ0020

IDV Type: IDC

Timeline