Commerce Dept. awards $20M for network support, exceeding initial estimates by 15%
Contract Overview
Contract Amount: $20,051,321 ($20.1M)
Contractor: Cambridge International Systems Inc.
Awarding Agency: Department of Commerce
Start Date: 2013-12-20
End Date: 2017-06-30
Contract Duration: 1,288 days
Daily Burn Rate: $15.6K/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: TCO NETWORK AND INFRASTRUCTURE SUPPORT IGF::OT::IGF
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $20.1 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC. for work described as: TCO NETWORK AND INFRASTRUCTURE SUPPORT IGF::OT::IGF Key points: 1. Value for money appears fair given the duration and scope of network infrastructure support. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a Time and Materials contract type posing potential cost escalation. 4. Performance context shows a multi-year support contract for critical Census Bureau infrastructure. 5. Sector positioning is within IT services, specifically computer systems design. 6. The contract's total value is substantial, reflecting the complexity of network management.
Value Assessment
Rating: fair
The total contract value of approximately $20 million over nearly four years suggests a moderate annual spend. Benchmarking against similar IT infrastructure support contracts is challenging without more granular data on service levels and specific technologies deployed. However, the duration and scope indicate a significant investment in maintaining essential network operations for the U.S. Census Bureau. The Time and Materials pricing model, while flexible, carries inherent risks of cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had specific exclusions, the final award was made through a broad competitive process. The presence of four bids suggests a reasonable level of competition, which typically aids in price discovery and achieving market-based rates. However, the specific nature of 'after exclusion of sources' warrants further investigation to understand if it limited the competitive pool.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the government likely received competitive offers, potentially leading to a more cost-effective outcome compared to sole-source or limited competition scenarios.
Public Impact
The U.S. Census Bureau benefits from reliable network and infrastructure support, crucial for data collection and dissemination. Services delivered include computer systems design and ongoing network maintenance. Geographic impact is national, supporting the Census Bureau's nationwide operations. Workforce implications include the potential for IT professionals employed by the contractor to support federal systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure maximum competition was achieved.
- Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Contract duration of over three years suggests a stable and ongoing need for these services.
- The contractor, Cambridge International Systems Inc., has a track record of performing federal contracts.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design and related services. The market for network and infrastructure support is highly competitive, with numerous firms offering specialized solutions. The U.S. government is a significant consumer of these services, with spending often concentrated on maintaining critical IT infrastructure for agencies like the Census Bureau. Comparable spending benchmarks would typically involve analyzing the average cost of similar multi-year network support contracts across federal agencies.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature and value of the contract, it is likely that larger, established IT service providers were the primary bidders. Further analysis would be needed to determine if any small business participation was mandated or occurred through subcontracting.
Oversight & Accountability
Oversight for this contract would typically reside with the U.S. Census Bureau's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Infrastructure Support Services
- Computer Systems Design Services
- Network Management Contracts
- Federal IT Modernization Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need to verify the justification and impact of 'exclusion of sources' on competition.
- Lack of detailed performance metrics makes outcome assessment difficult.
Tags
it-services, computer-systems-design, network-infrastructure, department-of-commerce, u-s-census-bureau, time-and-materials, full-and-open-competition, delivery-order, mid-atlantic, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $20.1 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC.. TCO NETWORK AND INFRASTRUCTURE SUPPORT IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is CAMBRIDGE INTERNATIONAL SYSTEMS INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2013-12-20. End: 2017-06-30.
What is the specific nature of the network and infrastructure support provided under this contract?
The contract, "TCO NETWORK AND INFRASTRUCTURE SUPPORT," awarded to Cambridge International Systems Inc. by the U.S. Census Bureau, focuses on computer systems design services (NAICS code 541512). While the specific details of the 'network and infrastructure support' are not fully elaborated in the provided data, it generally encompasses the design, implementation, maintenance, and management of IT networks and related infrastructure. This could include hardware, software, telecommunications, data centers, and cybersecurity elements essential for the Census Bureau's operations. The Time and Materials (T&M) pricing structure suggests that the scope might have been flexible or involved unforeseen technical challenges requiring ongoing adjustments to labor and materials.
How does the total contract value of $20 million compare to similar IT infrastructure support contracts?
The total contract value of approximately $20 million over 1288 days (roughly 3.5 years) translates to an average annual value of about $5.7 million. Comparing this to similar contracts requires access to a broader dataset of federal IT infrastructure support awards. However, for a multi-year contract supporting a critical federal agency like the Census Bureau, this value is within a plausible range. Factors influencing this value include the complexity of the network, the number of users supported, the criticality of uptime, and the specific services required (e.g., hardware maintenance, software updates, network security, help desk support). Without detailed service level agreements and specific technology stacks, a precise benchmark is difficult, but it appears to be a significant investment reflecting substantial operational needs.
What are the primary risks associated with the Time and Materials (T&M) contract type used here?
The primary risk associated with a Time and Materials (T&M) contract type, as used in this award, is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. If the contractor's labor hours are underestimated, if project scope creeps without adequate controls, or if material costs increase unexpectedly, the total cost to the government can significantly exceed initial projections. Effective oversight, detailed tracking of hours and materials, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value.
What is the track record of Cambridge International Systems Inc. in performing federal contracts?
Cambridge International Systems Inc. has a history of performing federal contracts, as indicated by its presence in federal procurement databases. While the provided data snippet doesn't detail their entire contract history, the fact that they were awarded this $20 million contract by the Department of Commerce suggests they have demonstrated capabilities and experience relevant to government IT needs. Further investigation into their past performance ratings, other contract awards, and any past performance issues would provide a more comprehensive understanding of their track record. However, securing a contract of this magnitude implies a level of established performance and trust with federal agencies.
How does the competition level ('Full and Open Competition After Exclusion of Sources') impact taxpayer value?
The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain sources or types of sources were excluded from the initial solicitation phase. Ideally, full and open competition maximizes the number of potential bidders, driving down prices through market forces and encouraging innovation. However, the 'exclusion of sources' element introduces a nuance. If the exclusions were justified (e.g., based on specific technical requirements or past performance), the competition might still yield good value. If the exclusions were arbitrary or overly restrictive, they could limit competition, potentially leading to higher prices for taxpayers than a truly unrestricted competition might achieve. The presence of four bidders indicates some level of competition was achieved.
What are the potential implications of this contract on the IT services market and small businesses?
This contract, valued at $20 million and awarded to Cambridge International Systems Inc., likely represents a significant portion of work within the IT services market, specifically in computer systems design and network support. For larger prime contractors, it offers substantial revenue and project experience. For the broader IT market, it signifies continued government investment in essential infrastructure. Regarding small businesses, the impact is less clear from the provided data. As it was not a small business set-aside, direct benefits to small businesses are unlikely unless they are subcontractors. The government's overall strategy for small business participation, including subcontracting goals, would determine the extent to which this contract indirectly supports the small business ecosystem.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
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: 2300 CLARENDON BLVD STE 705, ARLINGTON, VA, 22201
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $21,247,435
Exercised Options: $21,247,435
Current Obligation: $20,051,321
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200059W
IDV Type: GWAC
Timeline
Start Date: 2013-12-20
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2020-07-28
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