Commerce Department's $25.1M IT Support Contract Awarded to Systems Research Group, Inc

Contract Overview

Contract Amount: $25,130,246 ($25.1M)

Contractor: Systems Research Group, Inc.

Awarding Agency: Department of Commerce

Start Date: 2008-07-20

End Date: 2009-08-22

Contract Duration: 398 days

Daily Burn Rate: $63.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $25.1 million to SYSTEMS RESEARCH GROUP, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Contract value of $25.1M for IT support services. 2. Awarded to Systems Research Group, Inc. under full and open competition. 3. Contract duration of 398 days. 4. Service Acquisition Management (SAM) is the awarding agency. 5. The contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code. 6. The contract was awarded as a Cost Plus Fixed Fee (CPFF) type. 7. The contract was awarded in Colorado.

Value Assessment

Rating: fair

The contract value of $25.1M for IT support services over approximately 13 months appears to be within a reasonable range for such services, though specific benchmarks are difficult without detailed service scope. The CPFF pricing structure carries inherent risk of cost overruns if not managed tightly. Benchmarking against similar IT support contracts of comparable scope and duration would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is generally expected to yield fair market pricing and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value through a wide range of offers.

Public Impact

The primary beneficiaries are likely the various departments and agencies within the Department of Commerce that rely on IT support services. The services delivered include IT support, crucial for the operational efficiency of the National Oceanic and Atmospheric Administration (NOAA). The geographic impact is centered in Colorado, where the contract was awarded and likely performed. The contract supports the IT infrastructure and personnel necessary for NOAA's data collection, analysis, and dissemination activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely monitored.
Limited information on the specific IT support services provided makes it difficult to assess performance against expectations.
The contract duration of just over a year may indicate a need for ongoing services or a transition to a new contract.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contractor, Systems Research Group, Inc., has experience in government contracting.
The contract supports critical IT infrastructure for the Department of Commerce.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on support and maintenance. The IT services market is vast and highly competitive, with numerous companies offering a wide range of solutions. Government IT spending is a significant portion of this market, driven by the need for modernization, cybersecurity, and operational efficiency across various agencies. Comparable spending benchmarks would involve analyzing other IT support contracts awarded by federal agencies of similar size and scope.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Commerce, specifically the National Oceanic and Atmospheric Administration (NOAA), through contract officers and technical representatives. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee agreement and performance metrics. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be.

Related Government Programs

IT Services Contracts
Department of Commerce IT Spending
NOAA IT Support
Cost-Plus Contracts
Federal IT Procurement

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns.
Limited public data on specific performance metrics and outcomes.
Contract duration is relatively short, suggesting potential for follow-on contracts or ongoing needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25.1 million to SYSTEMS RESEARCH GROUP, INC.. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SYSTEMS RESEARCH 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 $25.1 million.

What is the period of performance?

Start: 2008-07-20. End: 2009-08-22.

What is the track record of Systems Research Group, Inc. with federal contracts, particularly in IT support?

Systems Research Group, Inc. has a history of receiving federal contracts. While specific details on their IT support performance for this particular NOAA contract are not readily available in the provided data, their presence as a contractor suggests experience in navigating federal procurement processes. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes on similar IT support or maintenance contracts, would be necessary to fully assess their track record. Examining contract close-out data and any available CPARS (Contractor Performance Assessment Reporting System) reports would offer more granular insights into their reliability and quality of service delivery in the federal space.

How does the $25.1M contract value compare to similar IT support contracts awarded by NOAA or other Commerce Department agencies?

Benchmarking the $25.1M contract value requires comparing it against IT support contracts of similar scope, duration, and service complexity within the Department of Commerce or other federal agencies. Without specific details on the exact services rendered (e.g., help desk, network maintenance, cybersecurity support, hardware/software management), a precise comparison is challenging. However, for a contract spanning approximately 13 months, $25.1M suggests a substantial scope, potentially encompassing a wide range of IT functions for a significant user base. Federal IT support contracts can range from a few million to tens or even hundreds of millions of dollars, depending on the agency's size, technological needs, and the level of support required. Further analysis would involve identifying comparable contracts using keywords like 'IT support,' 'help desk,' 'network services,' and filtering by agency and contract value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Systems Research Group, Inc., is the potential for cost overruns. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost plus' element means the government pays the contractor's allowable costs incurred in performing the contract. If costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient performance, the total contract cost to the government can increase significantly. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The government bears the financial risk of cost increases, whereas the contractor's fee is fixed, incentivizing them to control costs to maximize their profit margin within the fee.

What is the expected effectiveness of IT support services under this contract for NOAA's operations?

The effectiveness of IT support services under this contract is critical for NOAA's ability to conduct its scientific and operational missions, which rely heavily on robust and reliable IT infrastructure. Effective support ensures minimal downtime for essential systems, timely resolution of technical issues, and maintenance of network security. Given that this contract was awarded through full and open competition, it suggests that the government sought the best available solution. However, actual effectiveness will depend on the contractor's performance, the clarity of service level agreements (SLAs), and the government's oversight. Without specific performance metrics or post-award evaluations, it's difficult to definitively assess expected effectiveness, but the contract's existence implies a recognized need for these services to maintain NOAA's operational continuity and data integrity.

How has federal spending on IT support services evolved, and where does this contract fit within that trend?

Federal spending on IT support services has generally trended upwards over the past decade, driven by increasing reliance on technology, the need for cybersecurity, cloud migration, and modernization efforts across agencies. Agencies like NOAA require continuous IT support to manage vast datasets, complex modeling, and global communication networks. This $25.1M contract, awarded in 2008 for a duration of approximately 13 months, represents a specific investment within this broader trend. While it's a significant amount for a single contract, it's part of a much larger federal IT budget. Understanding the evolution requires looking at overall federal IT spending reports, agency-specific IT budgets, and the increasing complexity and scope of services demanded, which often necessitate specialized support contracts.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 740 WOOTEN RD STE 108, COLORADO SPRINGS, CO, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,201,918

Exercised Options: $27,201,918

Current Obligation: $25,130,246

Timeline