NOAA's $102.7M Scientific Support Contract Awarded to I. M. Systems Group Faces Scrutiny

Contract Overview

Contract Amount: $102,671,335 ($102.7M)

Contractor: I. M. Systems Group, Inc.

Awarding Agency: Department of Commerce

Start Date: 2016-12-22

End Date: 2022-08-31

Contract Duration: 2,078 days

Daily Burn Rate: $49.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SCIENTIFIC SUPPORT SERVICES FOR THE NATIONAL WEATHER SERVICE'S NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $102.7 million to I. M. SYSTEMS GROUP, INC. for work described as: IGF::OT::IGF SCIENTIFIC SUPPORT SERVICES FOR THE NATIONAL WEATHER SERVICE'S NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 3. Lack of small business participation raises concerns about equitable distribution of federal funds. 4. The IT sector, particularly scientific support services, is critical for weather prediction accuracy.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee (CPFF) structure can lead to higher costs compared to fixed-price contracts. Benchmarking against similar scientific support contracts is needed to assess if the $102.7M award represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the CPFF structure might limit the price discovery benefits of competition, as costs can escalate.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The CPFF structure necessitates close oversight to ensure costs remain reasonable and avoid potential overspending.

Public Impact

Ensures critical scientific support for the National Weather Service's forecasting capabilities. Impacts the accuracy and timeliness of weather predictions, affecting public safety and economic activities. Supports advanced environmental modeling and data analysis essential for climate research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Environmental Consulting Services sector, supporting IT infrastructure and scientific analysis for the National Oceanic and Atmospheric Administration. Spending in this area is crucial for maintaining and improving national weather forecasting capabilities.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses in providing scientific support services to the National Weather Service were not leveraged under this award.

Oversight & Accountability

The cost-plus-fixed-fee nature of this contract requires robust oversight from NOAA to ensure that costs are reasonable and that the contractor is performing efficiently. Regular audits and performance reviews are essential for accountability.

Related Government Programs

Risk Flags

Tags

environmental-consulting-services, department-of-commerce, md, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $102.7 million to I. M. SYSTEMS GROUP, INC.. IGF::OT::IGF SCIENTIFIC SUPPORT SERVICES FOR THE NATIONAL WEATHER SERVICE'S NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION

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 $102.7 million.

What is the period of performance?

Start: 2016-12-22. End: 2022-08-31.

What specific scientific support services are provided under this contract, and how do they directly contribute to the National Weather Service's core mission?

The contract provides scientific support services for the National Centers for Environmental Prediction. This likely includes data analysis, model development, software maintenance, and research assistance crucial for generating accurate weather forecasts, climate predictions, and other environmental intelligence vital for public safety and economic planning.

Given the cost-plus-fixed-fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure value for taxpayer money?

The cost-plus-fixed-fee structure necessitates strong government oversight. Mechanisms should include detailed cost tracking, regular performance reviews against defined metrics, independent audits of expenditures, and clear contract clauses that penalize inefficiency or unjustified cost increases. The fixed fee component provides some incentive for the contractor to manage costs.

How effective has I. M. Systems Group been in delivering the scientific support services, and what is the impact on the National Weather Service's operational effectiveness?

Assessing effectiveness requires reviewing performance metrics, user feedback from the National Weather Service, and the actual impact on forecast accuracy and timeliness. Without specific performance data, it's difficult to quantify the effectiveness. However, the continued reliance on these services suggests a baseline level of effectiveness, though improvements may be possible.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesEnvironmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: EA-133W-15-RP-0100

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: I.M. Systems Group, Inc.

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

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

Financial Breakdown

Contract Ceiling: $130,785,501

Exercised Options: $130,785,501

Current Obligation: $102,671,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-12-22

Current End Date: 2022-08-31

Potential End Date: 2022-08-31 00:00:00

Last Modified: 2024-06-26

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