GSA awards $26.1M IT support contract to Wyle Information Systems, serving climate prediction services

Contract Overview

Contract Amount: $26,135,170 ($26.1M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: General Services Administration

Start Date: 2007-09-18

End Date: 2013-09-19

Contract Duration: 2,193 days

Daily Burn Rate: $11.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTIONS (NCEP) CLIMATE PREDICTION CENTER (PCP) INFORMATION AND TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $26.1 million to WYLE INFORMATION SYSTEMS, LLC for work described as: NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTIONS (NCEP) CLIMATE PREDICTION CENTER (PCP) INFORMATION AND TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract provides essential IT support for critical climate prediction data and services. 2. Competition was robust, with 6 bidders indicating potential for competitive pricing. 3. Contract duration of nearly 6 years suggests a stable, long-term need for these services. 4. The 'Other Computer Related Services' NAICS code covers a broad range of IT functions. 5. Performance is tied to the National Centers for Environmental Predictions (NCEP) Climate Prediction Center (PCP). 6. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight.

Value Assessment

Rating: good

The contract value of $26.1 million over approximately six years averages to about $4.35 million annually. Benchmarking this against similar IT support contracts for federal agencies requires detailed analysis of scope and deliverables. However, the competitive nature of the award suggests that the pricing was likely vetted against market rates. The Cost Plus Fixed Fee structure, while common, necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, attracting 6 distinct bidders. The presence of multiple bidders is a positive indicator of a healthy competitive environment, suggesting that the government had a range of options to choose from. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Provides critical IT infrastructure and support for the National Centers for Environmental Predictions (NCEP) Climate Prediction Center (PCP). Enables the continuous operation and improvement of climate modeling and forecasting services. Supports the dissemination of vital climate data to researchers, policymakers, and the public. Indirectly benefits sectors reliant on accurate climate predictions, such as agriculture, disaster management, and energy. The contract is performed in Maryland, supporting the local IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs if not properly managed.
The broad NAICS code 'Other Computer Related Services' may obscure specific service details and performance metrics.
Long contract duration requires ongoing monitoring to ensure continued value and alignment with evolving needs.

Positive Signals

Full and open competition with 6 bidders suggests a well-contested award.
The contract supports a critical national function (climate prediction), indicating high-value service delivery.
The award was made by the General Services Administration (GSA), a reputable contracting agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT support services. The market for IT services to government agencies is substantial, with significant spending allocated annually. This particular contract supports a specialized function within the environmental science domain, highlighting the diverse applications of IT services across federal agencies. Comparable spending benchmarks would typically be found within IT services categories for scientific and research-oriented government bodies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract may be limited unless Wyle Information Systems, LLC actively engages small businesses in its subcontracting chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the specific program office at NCEP. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure they align with the agreed-upon fixed fee. Transparency is generally facilitated through contract reporting requirements, and the Inspector General for GSA would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NOAA IT Support Services
NCEP Weather Forecasting Systems
Climate Data Management Contracts
Federal Cloud Computing Services
Scientific Research IT Infrastructure

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Potential for vendor lock-in if transition planning is inadequate.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.1 million to WYLE INFORMATION SYSTEMS, LLC. NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTIONS (NCEP) CLIMATE PREDICTION CENTER (PCP) INFORMATION AND TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2007-09-18. End: 2013-09-19.

What is the track record of Wyle Information Systems, LLC with federal contracts, particularly in IT support?

Wyle Information Systems, LLC, has a history of performing federal contracts, including those related to IT services and support. Analyzing their past performance on similar contracts, especially those with agencies like NOAA or GSA, would provide insight into their reliability, technical capabilities, and adherence to contract terms. Specific metrics such as past performance ratings, any contract disputes, or awards for exceptional performance would be key indicators. A review of their contract portfolio would reveal the types of IT services they have provided, the value of those contracts, and their duration, helping to assess their suitability for this climate prediction center support role.

How does the $26.1 million value compare to similar IT support contracts for climate prediction or meteorological services?

The $26.1 million contract value over approximately six years equates to an average annual spend of roughly $4.35 million. To benchmark this effectively, one would need to compare it with IT support contracts awarded to similar entities (e.g., NOAA, NASA, NSF) for comparable services like data management, system maintenance, network support, and software development for scientific applications. Factors such as the complexity of the systems supported, the level of security required, and the specific deliverables (e.g., uptime guarantees, data processing volumes) significantly influence contract value. Without access to a detailed database of comparable contracts, a precise benchmark is difficult, but the value appears reasonable for specialized IT support within a critical scientific agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns if not managed diligently. While the contractor is guaranteed a fixed fee, the 'cost plus' portion means the government reimburses allowable costs incurred. This structure can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant regardless of the actual expenses. For the government, the risk lies in paying more than necessary if cost controls are weak. Effective oversight, detailed cost accounting, and clear definition of allowable costs are critical to mitigate this risk. Additionally, defining the scope of work precisely is essential to prevent scope creep that could inflate costs.

How effective is the competition level (6 bidders) in ensuring value for money for this contract?

A competition level of 6 bidders is generally considered robust and is highly likely to ensure good value for money. With multiple companies vying for the contract, they are motivated to offer competitive pricing and demonstrate superior technical solutions to win the award. This competitive pressure typically drives down costs and encourages innovation. The government benefits from a wider range of choices, allowing them to select the offer that provides the best balance of cost, performance, and technical merit. The presence of numerous bidders suggests that the market for these IT support services is healthy and accessible, preventing a situation where a single provider could dictate terms.

What is the historical spending trend for IT support services at NCEP or similar NOAA divisions?

Analyzing historical spending trends for IT support services at NCEP or similar NOAA divisions is crucial for understanding the long-term investment in these capabilities. If spending has been consistently increasing, it might indicate growing needs or inflation. Conversely, stable or decreasing spending could suggest efficiency gains or a plateau in requirements. Comparing this contract's value ($26.1M over ~6 years) to previous contracts for similar services would reveal if this award represents an increase or decrease in investment. Understanding these patterns helps assess whether the current award is aligned with historical resource allocation and future projections for climate prediction IT infrastructure.

What are the potential performance challenges given the critical nature of climate prediction services?

The critical nature of climate prediction services presents several potential performance challenges for IT support. These include ensuring extremely high system availability and reliability (uptime) to prevent disruptions in data collection and model runs, maintaining robust cybersecurity to protect sensitive climate data, and managing large volumes of data efficiently for processing and dissemination. Performance issues could lead to delays in forecasts, inaccuracies in predictions, or data loss, with significant consequences for disaster preparedness and resource management. The IT support contractor must possess advanced technical expertise, rigorous quality control processes, and proactive maintenance strategies to meet these demanding requirements.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: R3073498

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wyle Services Corporation (UEI: 963281881)

Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 90

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $29,426,516

Exercised Options: $26,420,468

Current Obligation: $26,135,170

Parent Contract

Parent Award PIID: DOCCM130105CT0045

IDV Type: GWAC

Timeline