Nearly $20M for National Source Tracking System by OAO Corporation, awarded via competitive delivery order

Contract Overview

Contract Amount: $19,977,985 ($20.0M)

Contractor: OAO Corporation

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2005-12-22

End Date: 2011-05-31

Contract Duration: 1,986 days

Daily Burn Rate: $10.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SAFESOURCE PHASE II - NATIONAL SOURCE TRACKING SYSTEM

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $20.0 million to OAO CORPORATION for work described as: SAFESOURCE PHASE II - NATIONAL SOURCE TRACKING SYSTEM Key points: 1. Value for money assessed through competitive award, indicating potential for price discovery. 2. Competition dynamics show a delivery order under a larger contract, suggesting established relationships. 3. Risk indicators include a long performance period, requiring sustained oversight. 4. Performance context is a critical system for nuclear material tracking. 5. Sector positioning within IT services for government agencies.

Value Assessment

Rating: good

The contract value of approximately $20 million over its period of performance appears reasonable for a specialized IT system. Benchmarking against similar government IT contracts for tracking and database management suggests this falls within a typical range. The competitive award mechanism further supports the likelihood of a fair price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific order. While not a sole-source award, the competition might be limited by the pre-existing contract vehicle under which this delivery order was placed.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price competition and potentially leading to lower overall costs compared to sole-source procurements.

Public Impact

The primary beneficiary is the Nuclear Regulatory Commission (NRC), which gains a critical system for tracking nuclear materials. Services delivered include the development, implementation, and maintenance of the National Source Tracking System. The geographic impact is national, supporting the NRC's regulatory oversight across the United States. Workforce implications include the need for skilled IT professionals to develop and maintain the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance duration (over 5 years) increases the risk of scope creep or evolving requirements.
Reliance on a single contractor for a critical system could pose a risk if performance degrades.
The specific nature of nuclear tracking may involve unique security and data integrity risks.

Positive Signals

Awarded through a competitive process, suggesting initial vetting of vendor capabilities and pricing.
The system's purpose is critical for national security and regulatory compliance.
The contractor, OAO Corporation, has a history of performing government IT contracts.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on specialized software development and database management for a government agency. The market for such systems is characterized by high technical requirements and a need for robust security. Comparable spending benchmarks for similar government IT systems can vary widely based on complexity and scope, but this contract's value is consistent with mid-sized IT projects.

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 specialized nature of the National Source Tracking System, it is likely that larger, established IT firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved in subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally maintained through contract award databases and public reporting, though specific system details may be sensitive.

Related Government Programs

Nuclear Materials Tracking Systems
Government IT Infrastructure
Regulatory Compliance Software
National Security IT Projects

Risk Flags

Long contract duration
Critical infrastructure system
Potential for evolving requirements

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $20.0 million to OAO CORPORATION. SAFESOURCE PHASE II - NATIONAL SOURCE TRACKING SYSTEM

Who is the contractor on this award?

The obligated recipient is OAO CORPORATION.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2005-12-22. End: 2011-05-31.

What is the track record of OAO Corporation in delivering similar IT systems for government agencies?

OAO Corporation has a history of performing various IT services and software development contracts for U.S. federal agencies. While specific details on past performance for nuclear-related tracking systems would require deeper investigation into contract databases and performance reviews, their general experience in government IT suggests a foundational capability. Analyzing past contract awards and any associated performance evaluations would provide a clearer picture of their reliability and success in delivering complex, mission-critical systems. It's important to note that performance on one contract does not guarantee success on another, but a consistent record of positive performance is a good indicator.

How does the cost of this contract compare to similar national tracking systems?

Direct cost comparisons for highly specialized government IT systems like the National Source Tracking System are challenging due to unique requirements and varying contract structures. However, the approximate $20 million expenditure over a five-year period suggests a moderate investment for a system of this nature. To benchmark effectively, one would need to identify contracts for similar national-level tracking systems (e.g., for sensitive materials, critical infrastructure, or large databases) across different agencies. Factors such as the number of users, data volume, security protocols, and integration with other systems significantly influence cost. The competitive nature of this award provides some assurance that the price was market-driven at the time of procurement.

What are the primary risks associated with the long performance period of this contract?

The extended performance period of approximately five years for the National Source Tracking System introduces several potential risks. Firstly, technological obsolescence is a significant concern; IT systems can become outdated rapidly, requiring continuous updates and potential re-architecture to remain effective. Secondly, requirements may evolve over such a long period due to changes in regulations, operational needs, or threat landscapes, leading to scope creep and increased costs if not managed meticulously. Thirdly, contractor performance stability is a risk; key personnel may leave, or the contractor's financial health could change, impacting service delivery. Finally, maintaining consistent security posture over an extended duration requires ongoing vigilance and adaptation to new cyber threats.

How effective is the National Source Tracking System in fulfilling its stated purpose?

The effectiveness of the National Source Tracking System (NSTS) is crucial for the Nuclear Regulatory Commission's (NRC) mission of ensuring the security and accountability of nuclear materials. While the contract award itself signifies a need and investment in such a system, its actual effectiveness would be measured by its ability to accurately track the location, possession, and transfer of regulated nuclear materials throughout their lifecycle. Key performance indicators would likely include data accuracy, system uptime, reporting capabilities, and its contribution to preventing unauthorized access or diversion. Without direct access to NRC performance evaluations or audit reports related to the NSTS, a definitive assessment of its effectiveness is limited. However, its continued operation and funding suggest it is considered a vital tool.

What has been the historical spending trend for the National Source Tracking System or similar NRC IT initiatives?

Analyzing historical spending for the National Source Tracking System (NSTS) specifically would involve examining contract awards over time, including any modifications or follow-on contracts. This particular award of approximately $20 million covers a defined period. To understand the broader spending trend, one would need to look at the NRC's overall IT budget and spending patterns, particularly in areas related to regulatory systems, data management, and security. Comparing spending on the NSTS to other major IT procurements within the NRC or similar regulatory bodies can provide context. A consistent investment in such systems suggests a long-term commitment to maintaining and upgrading critical infrastructure for regulatory oversight.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 7500 GREENWAY CENTER DR #, GREENBELT, MD, 20770

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,977,985

Exercised Options: $19,977,985

Current Obligation: $19,977,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4524G

IDV Type: FSS

Timeline