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
- Cost-plus-fixed-fee structure
- No small business participation
- Long contract duration (2078 days)
Positive Signals
- Full and open competition
- Critical service for national weather prediction
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
- Environmental Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of small business participation
- Long contract duration may indicate potential for scope creep or evolving needs
- Need for robust oversight to ensure contractor performance and cost control
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 Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL 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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