Commerce Department's NOAA awarded $27M contract for IT services to Diversified Global Partners JV LLC

Contract Overview

Contract Amount: $27,021,606 ($27.0M)

Contractor: Diversified Global Partners JV LLC

Awarding Agency: Department of Commerce

Start Date: 2015-09-01

End Date: 2016-08-31

Contract Duration: 365 days

Daily Burn Rate: $74.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF PROGRAM MANAGEMENT, O&M, AND SOFTWARE DEVELOPMENT, AND SECURITY IN SUPPORT OF THE CLASS SYSTEM.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $27.0 million to DIVERSIFIED GLOBAL PARTNERS JV LLC for work described as: IGF::OT::IGF PROGRAM MANAGEMENT, O&M, AND SOFTWARE DEVELOPMENT, AND SECURITY IN SUPPORT OF THE CLASS SYSTEM. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can carry higher risk if not managed closely. 3. The contract duration was 365 days, suggesting a focused, short-term project. 4. The award was a Delivery Order, implying it was part of a larger contract vehicle. 5. The primary service category is Computer Systems Design Services, a common IT support function. 6. The contractor, Diversified Global Partners JV LLC, is a joint venture.

Value Assessment

Rating: fair

The total award amount of $27,021,605.72 for 365 days of IT services appears substantial for a single delivery order. Without specific performance metrics or comparison to similar NOAA IT support contracts, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs if not meticulously managed and if the fixed fee is not appropriately calibrated to the effort and risk involved. Benchmarking this against industry standards for similar IT system design and support services would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This designation suggests that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, or the exclusion was a result of a specific justification. The number of bidders is not provided, which limits the assessment of the competitive landscape. A limited competition, even if initially open, may not yield the most competitive pricing compared to a truly unrestricted full and open competition.

Taxpayer Impact: The 'limited' competition aspect means taxpayers may not have benefited from the broadest possible range of offers, potentially leading to a higher price than if more vendors had participated. The exclusion of sources, if not fully justified, could represent a missed opportunity for cost savings.

Public Impact

The primary beneficiaries are likely the National Oceanic and Atmospheric Administration (NOAA) and its personnel, who receive support for the CLASS system. The services delivered include IT program management, operations and maintenance, and security for the CLASS system. The geographic impact is primarily within the operational scope of NOAA, likely supporting its national and potentially international data and research initiatives. Workforce implications include the employment of IT professionals by Diversified Global Partners JV LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize fee if not properly managed.
Limited competition may result in less favorable pricing for the government.
The specific justification for 'exclusion of sources' needs further review to ensure fairness and optimal value.
Lack of detailed performance metrics makes it hard to assess efficiency and effectiveness of services rendered.

Positive Signals

Awarded through a competitive process, indicating some level of market vetting.
Contract supports critical IT infrastructure for NOAA's CLASS system.
The contractor is a joint venture, potentially bringing diverse capabilities.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under computer systems design services, a segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The market size for such services is in the billions globally. This specific contract, valued at approximately $27 million, represents a mid-tier award within the federal IT landscape. Comparable federal spending often includes IT support, system integration, and cybersecurity services across various agencies, with significant portions allocated to maintaining and upgrading legacy systems like NOAA's CLASS.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if the prime contractor is a small business. The contractor is identified as 'DIVERSIFIED GLOBAL PARTNERS JV LLC', which is a joint venture. The structure of joint ventures can sometimes obscure the small business status of the individual partners. Further investigation would be needed to determine if small business subcontracting goals were established or met, and the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's Office of Inspector General (OIG) and NOAA's internal contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports and audits are often internal or subject to specific disclosure rules. The effectiveness of oversight depends on the resources and diligence applied by these bodies.

Related Government Programs

NOAA IT Support Contracts
Federal Computer Systems Design Services
IT Program Management Contracts
Software Development and Security Contracts
Cloud and Data Management Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition may impact price competitiveness.
Need to verify justification for 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $27.0 million to DIVERSIFIED GLOBAL PARTNERS JV LLC. IGF::OT::IGF PROGRAM MANAGEMENT, O&M, AND SOFTWARE DEVELOPMENT, AND SECURITY IN SUPPORT OF THE CLASS SYSTEM.

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED GLOBAL PARTNERS JV LLC.

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 $27.0 million.

What is the period of performance?

Start: 2015-09-01. End: 2016-08-31.

What is the track record of Diversified Global Partners JV LLC in performing similar federal IT contracts?

Assessing the track record of Diversified Global Partners JV LLC requires a review of their past performance on federal contracts, particularly those involving IT program management, O&M, and security for complex systems. Information from sources like the Federal Procurement Data System (FPDS) and potentially past performance evaluations would be crucial. A joint venture's track record can be complex, as it may reflect the combined experience of its partners or the performance of the JV entity itself on specific awards. Without specific data on prior awards, contract values, and performance ratings for this JV, it's difficult to provide a definitive assessment of their capabilities and reliability for this NOAA contract.

How does the $27 million cost compare to similar IT support contracts for NOAA's CLASS system or comparable systems?

Benchmarking the $27 million cost requires comparing it against similar contracts for IT program management, operations, maintenance, and security services for large-scale systems within NOAA or other federal agencies. The duration of 365 days is a key factor; the annual cost is thus the full award amount. Factors such as the complexity of the CLASS system, the specific services required (e.g., 24/7 support, advanced cybersecurity measures), and the labor categories involved would influence the price. A direct comparison would ideally involve contracts with similar scope, duration, and contract type (CPFF). Without access to detailed pricing structures of comparable contracts, it's challenging to definitively state if $27 million represents high, low, or average spending for this type of service.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services, and how were they mitigated?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is a percentage of the allowable costs. This can lead to cost overruns if not managed diligently. For IT services, risks include scope creep, unforeseen technical challenges, and cybersecurity vulnerabilities. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear definition of allowable costs, and strong performance management. The fixed fee itself should be set at a level that appropriately compensates the contractor for the risk and effort, incentivizing efficiency. The effectiveness of mitigation depends heavily on the government's program management and oversight capabilities.

What is the historical spending pattern for IT services related to the CLASS system prior to this contract?

To analyze historical spending patterns for the CLASS system, one would need to query federal procurement databases (like FPDS) for contracts awarded to NOAA for IT program management, O&M, and security specifically related to the CLASS system over several fiscal years. This would involve identifying relevant Product Service Codes (PSCs) and keywords. Examining trends in award amounts, contract types, and durations would reveal whether spending has been consistent, increasing, or decreasing. Understanding these patterns provides context for the $27 million award, indicating if it aligns with previous investments or represents a significant shift in resource allocation for the system's IT support.

What specific IT systems or functions does the CLASS system encompass, and why is its IT support critical?

The CLASS system, likely referring to the Climate Litigation and Administrative Support System or a similar NOAA-specific platform, is critical for managing climate data, research, administrative functions, or potentially litigation support related to climate science. Its IT support is vital for ensuring the integrity, accessibility, and security of potentially sensitive or crucial climate-related information. Disruptions or failures in IT support could compromise data analysis, hinder scientific research, impede administrative processes, or expose the system to cyber threats. Therefore, robust program management, continuous operations and maintenance, and stringent security are essential for NOAA's mission-critical functions.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8403 COLESVILLE RD 10TH FL, SILVER SPRING, MD, 20910

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,859,429

Exercised Options: $29,859,429

Current Obligation: $27,021,606

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133E08CQ0020

IDV Type: IDC

Timeline