Commerce Department's NOAA awarded $25.9M IT services contract to Actionet Inc. over 4 years
Contract Overview
Contract Amount: $25,867,834 ($25.9M)
Contractor: Actionet Inc
Awarding Agency: Department of Commerce
Start Date: 2016-09-14
End Date: 2020-07-31
Contract Duration: 1,416 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS)
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22180
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $25.9 million to ACTIONET INC for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include reliance on a single vendor for critical IT infrastructure. 4. Performance context is within NOAA's need for ongoing IT support. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The contract was awarded as a delivery order under a larger IDIQ vehicle.
Value Assessment
Rating: good
The total award of $25.9 million over approximately four years for IT support services to NOAA appears to be within a reasonable range for this type of contract. Benchmarking against similar IT support contracts for federal agencies of comparable size and scope suggests that the pricing is likely competitive, especially given the full and open competition. The contract type (Time and Materials) allows for flexibility but requires careful monitoring of labor hours and rates to ensure value.
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 multiple vendors were likely solicited and allowed to bid. The presence of 4 bidders (no) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the number of bidders can influence price discovery. A higher number of bidders typically leads to more aggressive pricing.
Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which should drive down costs and ensure fair market pricing for essential IT services.
Public Impact
The National Oceanic and Atmospheric Administration (NOAA) benefits from continuous IT support services. Services include computer systems design and related support, crucial for NOAA's operations. The contract's geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include potential employment opportunities for IT professionals supporting the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials contract type if not closely managed.
- Dependence on a single contractor for critical IT functions could pose a risk.
- Scope creep could increase the overall cost beyond initial projections.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contract duration of over 4 years provides stability for service delivery.
- Contractor has a track record of performing under federal contracts.
Sector Analysis
The Information Technology (IT) services sector is a significant area of federal spending. This contract for computer systems design services falls under the broader IT services market, which includes areas like software development, cloud computing, cybersecurity, and IT support. Federal spending in this sector is consistently high, driven by the need to modernize legacy systems, enhance cybersecurity, and leverage new technologies. Comparable spending benchmarks for IT support services vary widely based on agency size, complexity of needs, and contract type, but this award of approximately $6.5 million annually is in the mid-range for a significant agency like NOAA.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates the contractor (Actionet Inc.) is not a small business. There is no explicit information regarding subcontracting plans for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though the overall IDIQ vehicle under which it was awarded might have different provisions.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within NOAA, responsible for monitoring performance, deliverables, and compliance. The contract type (Time and Materials) necessitates diligent oversight to control costs and ensure efficient use of labor. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Computer Systems Design Services
- NOAA IT Modernization Efforts
- Federal IT Services Contracts
- Department of Commerce IT Spending
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Reliance on a single vendor for critical IT functions.
- Need for robust oversight to ensure value for money.
Tags
it-services, computer-systems-design, department-of-commerce, noaa, time-and-materials, full-and-open-competition, delivery-order, actionet-inc, virginia, mid-tier-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $25.9 million to ACTIONET INC. IGF::OT::IGF INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS)
Who is the contractor on this award?
The obligated recipient is ACTIONET 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 $25.9 million.
What is the period of performance?
Start: 2016-09-14. End: 2020-07-31.
What is Actionet Inc.'s past performance record with the federal government, particularly on similar IT support contracts?
Actionet Inc. has a history of performing federal contracts, including those related to IT services. Reviewing their past performance evaluations and contract history within the Federal Procurement Data System (FPDS) would provide specific details on their success rates, any performance issues encountered, and client satisfaction levels. For this particular contract, the award itself suggests a positive assessment of their capabilities by NOAA. However, a deeper dive into specific past projects, their complexity, and outcomes would be necessary for a comprehensive understanding of their track record and reliability in delivering IT support.
How does the awarded price per year compare to industry benchmarks for similar IT support services provided to federal agencies?
The contract's average annual value is approximately $6.5 million ($25.9M / 4 years). Benchmarking this against industry data for IT support services to federal agencies requires considering factors like the specific services rendered (e.g., help desk, network management, systems integration), the labor categories and rates involved, and the agency's size and complexity. General market research suggests that while IT support costs can vary significantly, this annual figure appears within a reasonable range for supporting a major agency like NOAA. However, a precise comparison would necessitate access to detailed labor rates and service level agreements specific to this contract and comparable market data.
What are the primary risks associated with this Time and Materials (T&M) contract, and how are they being mitigated?
The primary risk with Time and Materials contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can lead to unpredictable costs if not managed tightly. Mitigation strategies include establishing clear ceilings on total contract value, requiring detailed timesheets and justifications for hours worked, and robust oversight by the Contracting Officer's Representative (COR) to ensure efficiency and necessity of services. NOAA's COR would be responsible for closely monitoring labor hours, rates, and the overall progress to prevent scope creep and control expenditures.
How effective has NOAA been in managing its IT support contracts to ensure optimal value and service delivery?
Assessing the overall effectiveness of NOAA's IT contract management requires analyzing trends in their IT spending, contract performance metrics, and user satisfaction surveys over time. While this specific contract award indicates a need for ongoing IT support, it doesn't inherently reveal the effectiveness of NOAA's management practices. Factors to consider include the number of contract modifications, on-time delivery rates, achievement of performance standards, and feedback from NOAA's IT users. A review of NOAA's Inspector General reports or GAO audits related to their IT procurements could offer insights into their management effectiveness.
What has been the historical spending trend for IT support services at NOAA over the past 5-10 years?
Analyzing NOAA's historical spending on IT support services would reveal trends in their investment in this area. This includes understanding if spending has been increasing, decreasing, or remaining stable, and whether it aligns with their modernization goals or operational needs. Such analysis would require accessing historical procurement data from FPDS or agency budget documents. Understanding these trends provides context for the current $25.9 million award, indicating whether it represents a significant shift or a continuation of previous investment levels in IT support.
Were there any specific performance issues or challenges identified with previous IT support contracts at NOAA that might have influenced the structure or award of this contract?
Information regarding specific performance issues with prior NOAA IT support contracts is not directly available in the provided data. However, if past contracts experienced significant problems such as cost overruns, missed deadlines, or inadequate service levels, these could influence the terms and conditions of subsequent awards. Agencies often incorporate lessons learned into new solicitations, potentially including stricter performance metrics, different contract types, or more rigorous vendor vetting. A review of NOAA's contract close-out documents or IG reports might uncover such historical challenges.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2600 PARK TOWER DR STE 1000, VIENNA, VA, 22180
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $31,454,963
Exercised Options: $29,337,569
Current Obligation: $25,867,834
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200202W
IDV Type: GWAC
Timeline
Start Date: 2016-09-14
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2023-09-26
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