HUD awards $22M contract for Neighborhood Networks to DB Consulting Group, Inc
Contract Overview
Contract Amount: $21,991,703 ($22.0M)
Contractor: DB Consulting Group, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2004-09-30
End Date: 2005-09-29
Contract Duration: 364 days
Daily Burn Rate: $60.4K/day
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NEIGHBORHOOD NETWORKS
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $22.0 million to DB CONSULTING GROUP, INC. for work described as: NEIGHBORHOOD NETWORKS Key points: 1. Contract awarded for Neighborhood Networks program. 2. DB Consulting Group, Inc. is the primary contractor. 3. The contract value is $21,991,703. 4. The contract duration is 364 days. 5. The awarding agency is the Department of Housing and Urban Development.
Value Assessment
Rating: fair
The contract value of $21.99M for a 364-day duration appears to be within a reasonable range for IT support services. However, without specific details on the scope of work and deliverables, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition method is not specified, which makes it difficult to assess the price discovery process. If this was a sole-source or limited competition award, it may have resulted in a higher price than a full and open competition.
Taxpayer Impact: The impact on taxpayers is unknown without more information on the competition and pricing. A lack of robust competition could lead to less efficient use of taxpayer funds.
Public Impact
HUD's Neighborhood Networks program aims to provide computer and internet access to low-income residents. This contract supports the infrastructure and services for these networks. The success of this program relies on effective implementation and user adoption. DB Consulting Group's role is crucial for the program's operational continuity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency in competition method.
- Potential for inflated costs due to limited competition.
- Contract duration is just under one year, requiring potential re-compete soon.
Positive Signals
- Supports a program aimed at digital inclusion.
- Contract awarded to a specific firm for a defined period.
- Clear contract end date provides a review point.
Sector Analysis
The IT services sector is highly competitive. Contract values can vary significantly based on the complexity of the services, duration, and specific technologies involved. This contract falls within a moderate range for IT support and network management.
Small Business Impact
There is no information available regarding the involvement of small businesses in this contract. Further analysis would be needed to determine if small business participation goals were met.
Oversight & Accountability
Oversight by the Department of Housing and Urban Development is expected to ensure the contractor meets performance requirements. The contract's fixed-price nature provides some cost control, but performance monitoring is key.
Related Government Programs
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Lack of detailed competition information.
- Potential for cost overruns if scope is not well-defined.
- Dependence on a single contractor for critical infrastructure.
- Effectiveness of Neighborhood Networks program depends on more than just IT.
Tags
department-of-housing-and-urban-developm, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $22.0 million to DB CONSULTING GROUP, INC.. NEIGHBORHOOD NETWORKS
Who is the contractor on this award?
The obligated recipient is DB CONSULTING GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2004-09-30. End: 2005-09-29.
What specific IT services are included in this $22M contract for Neighborhood Networks, and how do they align with HUD's objectives for digital inclusion?
The contract likely encompasses network infrastructure management, hardware/software support, internet connectivity provision, and potentially user training for the Neighborhood Networks program. These services are critical for enabling low-income residents to access digital resources, bridging the digital divide and supporting educational and economic opportunities.
What were the primary factors influencing the decision to award this contract to DB Consulting Group, Inc., and what risk mitigation strategies were employed?
The award factors are not detailed, but could include past performance, technical approach, and price. Risks might involve contractor performance, cybersecurity, and user adoption. Mitigation could involve performance metrics, regular reporting, and phased rollouts to ensure successful program implementation and taxpayer value.
How does the $21.99M contract value compare to industry benchmarks for similar IT network support services, and what is the projected return on investment for the Neighborhood Networks program?
Benchmarking is challenging without detailed service scope. However, for a year-long, comprehensive IT network service contract, the value appears within a typical range. The ROI for the Neighborhood Networks program is measured not just in financial terms but in social impact, such as increased digital literacy and access to opportunities for underserved communities.
Contractor Details
Address: 1100 WAYNE AVE STE 801, SILVER SPRING, MD, 08
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,991,703
Exercised Options: $21,991,703
Current Obligation: $21,991,703
Parent Contract
Parent Award PIID: GS00F0053N
IDV Type: FSS
Timeline
Start Date: 2004-09-30
Current End Date: 2005-09-29
Potential End Date: 2008-12-15 00:00:00
Last Modified: 2013-10-14
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