Commerce Department's NOAA awarded $33.8M IT services contract to Actionet Inc. under full and open competition

Contract Overview

Contract Amount: $33,790,636 ($33.8M)

Contractor: Actionet Inc

Awarding Agency: Department of Commerce

Start Date: 2013-03-19

End Date: 2017-06-30

Contract Duration: 1,564 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INTEGRATED INFRASTRUCTURE SERVICES CONTRACT (IISC)

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $33.8 million to ACTIONET INC for work described as: IGF::OT::IGF INTEGRATED INFRASTRUCTURE SERVICES CONTRACT (IISC) Key points: 1. The contract value of $33.8 million over approximately 4 years represents a moderate investment in IT infrastructure support. 2. Actionet Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The contract's firm-fixed-price nature indicates that the contractor bears the primary risk for cost overruns. 4. Performance occurred primarily in Maryland, suggesting a localized impact on the regional IT workforce. 5. The NAICS code 541519 (Other Computer Related Services) positions this contract within a broad IT services sector.

Value Assessment

Rating: fair

The contract value of $33.8 million over 4 years averages to approximately $8.45 million annually. Benchmarking this against similar IT services contracts requires more granular data on the specific services rendered. However, the firm-fixed-price structure suggests an attempt to control costs. Without detailed service descriptions and performance metrics, a definitive value-for-money assessment is challenging, but the competitive award mechanism provides some assurance.

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 responsible sources were permitted to submit offers. The presence of two bidders (no) suggests a moderate level of competition for this specific award. While more than one bidder is positive, a higher number typically leads to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award process, even with two bidders, is beneficial for taxpayers as it likely drove down costs compared to a sole-source or limited competition scenario.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from enhanced IT infrastructure services. The contract supports essential IT operations and potentially research and data management functions within NOAA. The primary geographic impact is in Maryland, where the contractor's services were likely delivered. The contract may have implications for the IT workforce in the Maryland region, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.
Lack of detailed performance metrics makes it difficult to fully assess the quality and effectiveness of services rendered.
The contract duration of over 4 years could lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract shifts cost risk to the contractor.
Actionet Inc. has experience providing IT services, as evidenced by winning this contract.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services.' The IT services market is vast and highly competitive, encompassing a wide range of support, development, and maintenance activities. Government spending in this area is substantial, driven by the need to maintain and modernize complex technological infrastructures. Comparable spending benchmarks would depend on the specific nature of the 'other computer related services' provided, but contracts of this size are common for supporting agency-wide IT operations.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). As a result, there is no direct analysis of small business set-aside implications. However, the prime contractor, Actionet Inc., may have subcontracting opportunities for small businesses, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means larger businesses were eligible and likely participated in the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within NOAA. Performance monitoring, delivery tracking, and invoice review are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's performance or closeout.

Related Government Programs

IT Professional Services
Information Technology Support Services
Cloud Computing Services
Cybersecurity Services
Data Management Services

Risk Flags

Limited competition may impact price.
Scope of 'Other Computer Related Services' is broad and requires further definition.
Performance metrics not detailed, limiting assessment of service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $33.8 million to ACTIONET INC. IGF::OT::IGF INTEGRATED INFRASTRUCTURE SERVICES CONTRACT (IISC)

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 $33.8 million.

What is the period of performance?

Start: 2013-03-19. End: 2017-06-30.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data does not specify the exact 'Other Computer Related Services' (NAICS 541519). This category is broad and can encompass a wide array of IT support functions beyond traditional software development or hardware maintenance. Examples could include IT consulting, IT disaster recovery services, IT system integration, IT network management, IT data processing services, or IT cybersecurity consulting. To understand the precise nature of the services, one would need to consult the contract's statement of work (SOW) or task orders issued against the contract. Without this detail, it's difficult to benchmark performance or cost-effectiveness accurately.

How does Actionet Inc.'s performance on this contract compare to industry benchmarks for similar IT services?

Assessing Actionet Inc.'s performance against industry benchmarks requires access to detailed performance metrics and quality data from the contract itself, which is not provided in the summary data. Typically, government contracts include performance standards, quality assurance surveillance plans (QASPs), and contractor performance evaluation reports (CPARS). Without these specific reports or a detailed breakdown of services rendered and their associated quality outcomes, a comparison to industry benchmarks is speculative. The fact that the contract was awarded and completed suggests a baseline level of acceptable performance, but does not indicate exceptional or subpar results relative to the broader IT services market.

What was the total spending on IT services by NOAA during the contract period (2013-2017)?

The provided data focuses solely on this specific contract awarded to Actionet Inc., totaling $33.8 million. It does not offer a comprehensive view of NOAA's total IT spending during the contract period of 2013-2017. To determine NOAA's overall IT expenditure during those years, one would need to analyze NOAA's annual budget reports, agency financial statements, or comprehensive federal procurement databases that aggregate spending across all contracts and categories for the agency. This single contract represents only a fraction of NOAA's potential IT investments in that timeframe.

Were there any significant cost underruns or overruns on this firm-fixed-price contract?

Firm-fixed-price (FFP) contracts are designed to place the cost risk on the contractor. While the contract value was $33.8 million, the final amount paid could deviate slightly due to adjustments for specific deliverables or contract modifications. However, significant cost overruns are generally the contractor's responsibility to absorb. The provided summary data does not indicate whether Actionet Inc. experienced cost underruns or overruns. To ascertain this, one would need to examine the contract's final payment records and any associated modification history. The absence of reported issues suggests the contract likely concluded within its awarded value, but confirmation requires deeper financial analysis.

What is the typical cost range for 'Other Computer Related Services' contracts of similar scope and duration?

The typical cost range for 'Other Computer Related Services' (NAICS 541519) contracts varies significantly based on the specific services, complexity, geographic location, and the level of expertise required. A contract valued at $33.8 million over approximately 4 years ($8.45 million annually) is a substantial award, suggesting a significant scope of work, potentially involving system-wide support, specialized consulting, or large-scale integration projects. Smaller contracts in this category might range from tens of thousands to a few million dollars. Larger, more complex contracts supporting major federal agencies can easily reach tens or hundreds of millions. Benchmarking requires detailed comparison of the Statement of Work (SOW) and deliverables against other similar government contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Solicitation ID: DG-133W-13-RP-0033

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 PARK TOWER DR STE 1000, VIENNA, VA, 22180

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $35,858,673

Exercised Options: $35,027,850

Current Obligation: $33,790,636

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCDG133W10CQ0027

IDV Type: IDC

Timeline