Interior's $215M Contract with SRI International for IT Services: A Decade of Spending

Contract Overview

Contract Amount: $21,543,389 ($21.5M)

Contractor: SRI International

Awarding Agency: Department of the Interior

Start Date: 2003-06-15

End Date: 2014-05-01

Contract Duration: 3,973 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of the Interior obligated $21.5 million to SRI INTERNATIONAL for work described as: Key points: 1. The contract, valued at $215.4 million, was awarded to SRI International for 'Other Computer Related Services'. 2. This represents a significant investment in IT services over a 10-year period. 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny regarding cost control and efficiency.

Value Assessment

Rating: fair

The contract's duration of over 10 years and significant value suggest a substantial need for services. However, the 'Cost Plus Fixed Fee' structure can lead to cost overruns if not managed tightly, making direct pricing comparisons difficult without detailed cost breakdowns.

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 ensures the government receives fair value.

Taxpayer Impact: While competition was present, the 'Cost Plus Fixed Fee' nature of the contract means taxpayer funds are utilized based on actual costs plus a negotiated fee, which can be less predictable than fixed-price contracts.

Public Impact

Long-term IT support for a federal agency can indicate critical operational needs. The substantial contract value highlights the significant investment in technology infrastructure. The use of 'Cost Plus Fixed Fee' may impact the predictability of final costs for taxpayers. The duration of the contract suggests a sustained relationship for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure
Long contract duration (over 10 years)

Positive Signals

Full and open competition utilized
Significant contract value awarded

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Federal spending in IT services is consistently high, supporting agency operations, cybersecurity, and digital transformation initiatives. Benchmarks for similar long-term, high-value IT service contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the services required were likely beyond the capacity or specialization of most small businesses, or that larger, established firms dominated the bidding process.

Oversight & Accountability

The long duration and significant value of this contract necessitate robust oversight to ensure cost efficiency, performance standards, and adherence to contract terms. Regular audits and performance reviews would be crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure
Long contract duration may indicate lack of flexibility or evolving needs
Lack of small business participation
Limited transparency on specific services and cost breakdowns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.5 million to SRI INTERNATIONAL. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2003-06-15. End: 2014-05-01.

What specific 'Other Computer Related Services' were provided under this contract, and how did their necessity justify the 'Cost Plus Fixed Fee' structure over a fixed-price alternative?

The specific services likely encompassed a broad range of IT support, including system maintenance, software development, network management, and potentially specialized consulting. The 'Cost Plus Fixed Fee' structure is often employed when the scope of work is uncertain or involves research and development, allowing flexibility but requiring stringent oversight to prevent cost escalation and ensure value for taxpayer money.

Given the 'Cost Plus Fixed Fee' structure and the contract's duration, what mechanisms were in place to mitigate potential cost overruns and ensure the government received fair value?

Effective mitigation would involve detailed cost accounting standards, regular audits of SRI International's expenditures, clear performance metrics, and potentially incentive clauses tied to cost savings or efficiency improvements. The fixed fee component provides some cost certainty, but the 'cost plus' element necessitates vigilant monitoring of direct and indirect costs incurred by the contractor.

How did the 'full and open competition' process ensure competitive pricing and prevent potential price gouging, especially considering the 'Cost Plus Fixed Fee' arrangement?

Full and open competition allows multiple qualified vendors to submit proposals, driving down prices through market forces. While the 'Cost Plus Fixed Fee' structure itself doesn't guarantee a fixed price, the competitive bidding process establishes a baseline for the contractor's fee and expected costs. The government's evaluation criteria would focus on both technical approach and cost realism to ensure the best value was selected.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 16

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 201 WASHINGTON RD, PRINCETON, NJ, 08540

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,543,389

Exercised Options: $21,543,389

Current Obligation: $21,543,389

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline