FCC's $22.7M ISAS Auction Bidding System Replacement Contract Awarded to Power Auctions LLC

Contract Overview

Contract Amount: $22,697,188 ($22.7M)

Contractor: Power Auctions LLC

Awarding Agency: Federal Communications Commission

Start Date: 2014-04-04

End Date: 2019-04-03

Contract Duration: 1,825 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FEDERAL COMMUNICATIONS COMMISSION: ISAS AUCTION BIDDING SYSTEM REPLACEMENT IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $22.7 million to POWER AUCTIONS LLC for work described as: FEDERAL COMMUNICATIONS COMMISSION: ISAS AUCTION BIDDING SYSTEM REPLACEMENT IGF::OT::IGF Key points: 1. Contract awarded for a critical IT system supporting FCC auctions. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 5 years (1825 days) indicates a significant project. 4. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $22.7 million over five years averages to approximately $4.5 million annually. Benchmarking against similar IT system development and replacement contracts is difficult without more specific details on scope and complexity, but the annual spend appears moderate for a system of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are being used for the replacement of a critical IT system. The use of full and open competition aims to ensure that these funds are spent efficiently and effectively.

Public Impact

Ensures continued operation and modernization of the FCC's auction platform. Supports efficient and fair allocation of spectrum through robust bidding technology. Potential for improved user experience and enhanced security for auction participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns if scope significantly expands beyond initial estimates.
Dependency on a single vendor for a critical system.

Positive Signals

Firm fixed-price contract helps manage cost certainty.
Full and open competition suggests a competitive market was leveraged.
System replacement indicates an effort to modernize and improve functionality.

Sector Analysis

This contract falls within the Information Technology sector, specifically for the development and implementation of specialized auction software. Spending benchmarks for similar government IT system replacements vary widely based on complexity, but this contract's value appears within a reasonable range for a multi-year project.

Small Business Impact

The provided data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight would typically be managed by the Federal Communications Commission's contracting officers and program managers. Ensuring adherence to contract terms, performance standards, and budget is crucial for accountability.

Related Government Programs

Electronic Auctions
Federal Communications Commission Contracting
Federal Communications Commission Programs

Risk Flags

Potential for scope creep leading to cost overruns.
Over-reliance on a single vendor for a critical system.
Adequacy of cybersecurity measures for sensitive auction data.
Ensuring seamless transition from the legacy system to minimize disruption.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $22.7 million to POWER AUCTIONS LLC. FEDERAL COMMUNICATIONS COMMISSION: ISAS AUCTION BIDDING SYSTEM REPLACEMENT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is POWER AUCTIONS LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2014-04-04. End: 2019-04-03.

What specific functionalities does the ISAS Bidding System Replacement entail, and how do they compare to the legacy system's capabilities?

The provided data lacks specifics on the ISAS Bidding System Replacement's functionalities. A comprehensive analysis would require reviewing the Statement of Work (SOW) to understand the new system's features, improvements over the legacy system, and how these enhancements contribute to the FCC's mission of managing auctions more effectively and efficiently.

What are the key performance indicators (KPIs) for this contract, and how will Power Auctions LLC's performance be measured?

Key performance indicators are not detailed in the provided data. Effective oversight requires clearly defined KPIs related to system uptime, performance speed, security, user satisfaction, and successful completion of auction events. Measuring performance against these metrics is essential to ensure the contractor delivers the expected value and meets the FCC's operational needs.

What is the projected long-term cost of ownership for the ISAS Bidding System, including maintenance, support, and potential future upgrades?

The provided data only covers the initial contract award value and duration. A full assessment of long-term cost of ownership would necessitate examining potential sustainment contracts, licensing fees, and the anticipated lifecycle of the system. Understanding these future costs is critical for accurate budgeting and financial planning by the FCC.

Industry Classification

NAICS: Retail Trade › Electronic Shopping and Mail-Order Houses › Electronic Auctions

Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FCC13R0006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 POTOMAC ST NW STE 260, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $23,487,443

Exercised Options: $23,078,654

Current Obligation: $22,697,188

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline