NOAA's CLASS Program Management contract awarded to Diversified Global Partners JV LLC for $29.7M over 17 months

Contract Overview

Contract Amount: $29,689,555 ($29.7M)

Contractor: Diversified Global Partners JV LLC

Awarding Agency: Department of Commerce

Start Date: 2011-10-01

End Date: 2013-02-28

Contract Duration: 516 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COMPREHENSIVE LARGE ARRAY-DATA STEWERDSHIP SYSTEM (CLASS) PROGRAM MANAGEMENT, OPERATIONS AND MAINTENANCE, SOFTWARE DEVELOPMENT SUPPORT TASK

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $29.7 million to DIVERSIFIED GLOBAL PARTNERS JV LLC for work described as: COMPREHENSIVE LARGE ARRAY-DATA STEWERDSHIP SYSTEM (CLASS) PROGRAM MANAGEMENT, OPERATIONS AND MAINTENANCE, SOFTWARE DEVELOPMENT SUPPORT TASK Key points: 1. The contract's value appears reasonable given the scope of IT program management and software development support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can introduce cost-overrun risks if not closely managed. 4. Performance occurred over a 17-month period, indicating a focused, medium-term engagement. 5. The services fall within the Computer Systems Design sector, a critical area for federal IT infrastructure. 6. The awardee is a joint venture, potentially indicating a strategy to leverage specialized capabilities.

Value Assessment

Rating: good

The contract value of approximately $29.7 million over 17 months for program management and software development support for the CLASS program seems aligned with industry benchmarks for similar IT services. While specific comparable contracts are not detailed here, the pricing structure (Cost Plus Fixed Fee) allows for flexibility but requires diligent oversight to ensure value. The fixed fee component provides some cost certainty for the government.

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 multiple bids were likely considered. The specific exclusion of sources suggests a prior justification for limiting the initial pool, but the subsequent full and open competition implies a robust process to ensure fair market access. The number of bidders is not specified, but the process itself suggests a competitive environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services. It ensures that the government explores a wide range of potential contractors, increasing the likelihood of securing the best value for public funds.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its various scientific and operational programs that rely on the CLASS system. The services delivered include program management, operations and maintenance, and software development support, crucial for the continuity and enhancement of NOAA's data stewardship capabilities. The geographic impact is primarily national, supporting NOAA's nationwide data collection and dissemination efforts. Workforce implications include support for IT professionals and program managers involved in the CLASS program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee, necessitating strong government oversight.
The 'Exclusion of Sources' clause, even if followed by full and open competition, warrants scrutiny to understand the initial rationale and ensure it did not unduly restrict competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.

Positive Signals

The use of 'Full and Open Competition' indicates a commitment to leveraging the broadest possible market for services.
The contract duration of 17 months suggests a well-defined project scope and timeline.
The award to a joint venture (Diversified Global Partners JV LLC) may indicate a strategic approach to combining expertise for complex IT projects.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a vital component of the federal IT landscape. This sector encompasses a wide range of services, including IT consulting, systems integration, and software development. Federal spending in this area is substantial, driven by the need to modernize legacy systems, develop new capabilities, and maintain critical infrastructure. Comparable spending benchmarks would typically involve analyzing IT support contracts across various agencies with similar scopes of work, focusing on program management and software lifecycle support.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is none. However, as a joint venture, Diversified Global Partners JV LLC might involve small business participation as a subcontractor, depending on its internal structure and the terms of the joint venture agreement. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures would be embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NOAA Data Stewardship Program
Federal IT Modernization Initiatives
Cloud Computing Services Contracts
Software Development Lifecycle Support
IT Program Management Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Initial exclusion of sources warrants scrutiny for potential impact on competition.
Lack of specific performance metrics makes objective value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $29.7 million to DIVERSIFIED GLOBAL PARTNERS JV LLC. COMPREHENSIVE LARGE ARRAY-DATA STEWERDSHIP SYSTEM (CLASS) PROGRAM MANAGEMENT, OPERATIONS AND MAINTENANCE, SOFTWARE DEVELOPMENT SUPPORT TASK

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 $29.7 million.

What is the period of performance?

Start: 2011-10-01. End: 2013-02-28.

What is the track record of Diversified Global Partners JV LLC in managing similar federal IT contracts?

Information regarding the specific track record of Diversified Global Partners JV LLC in managing federal IT contracts of this magnitude and complexity is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. A thorough review would require examining past performance evaluations, contract awards, and any reported issues or successes associated with this entity or its constituent partners on prior government engagements. Understanding their experience with Cost Plus Fixed Fee structures and large-scale IT program management is crucial for assessing future performance.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility for complex IT projects. It differs from Fixed Price contracts, where the total price is set regardless of actual costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. While CPFF provides flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price arrangements, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. Agencies often prefer fixed-price contracts when requirements are stable to ensure better cost certainty for taxpayers.

What are the key performance indicators (KPIs) used to measure the success of the CLASS program management and support?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of the CLASS program management and support under this contract. Typically, for IT program management and software development support, KPIs might include metrics related to project schedule adherence, budget performance, software quality (e.g., defect rates, code complexity), system uptime and availability, user satisfaction, and the successful delivery of new functionalities or system enhancements. Effective oversight would involve tracking these KPIs and comparing them against established targets to ensure the contractor is delivering value and meeting program objectives.

What is the historical spending trend for the CLASS program or similar NOAA IT initiatives?

The provided data only details a single contract award for the CLASS program management and support from October 2011 to February 2013, totaling approximately $29.7 million. To understand historical spending trends, one would need to analyze a broader dataset encompassing previous contracts for the CLASS program, as well as other IT-related expenditures by NOAA over several fiscal years. This would involve looking at contract vehicles, task orders, and overall IT budget allocations to identify patterns in spending, identify periods of increased or decreased investment, and understand the long-term financial commitment to such programs.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type, while ultimately allowing for broad competition, introduces a layer of complexity and potential risk. The 'exclusion of sources' implies that certain potential bidders were initially disqualified or not considered, possibly due to specific requirements, prior contract history, or other justifications. While the subsequent 'full and open competition' aims to mitigate this by allowing all eligible sources to bid, the initial exclusion could raise questions about fairness or whether the most optimal solutions were considered from the outset. Transparency regarding the reasons for the initial exclusion is key to assessing whether this process truly maximized competition and taxpayer value.

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

Pricing Type: COST PLUS FIXED FEE (U)

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: $31,401,092

Exercised Options: $31,401,092

Current Obligation: $29,689,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133E08CQ0020

IDV Type: IDC

Timeline