Interior's $33.9M IT EPLC Project Management contract awarded to Data Networks, Inc. for 5.5 years

Contract Overview

Contract Amount: $33,898,920 ($33.9M)

Contractor: Data Networks, Inc.

Awarding Agency: Department of the Interior

Start Date: 2010-09-10

End Date: 2016-03-09

Contract Duration: 2,007 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE SCOPE OF WORK WILL INCLUDE PERFORMING SERVICES THAT SUPPORT THE IMPLEMENTATION OF THE IHS IT EPLC PROJECT MANAGEMENT INITIATIVE THROUGHOUT THE OFFICE OF INFORMATION TECHNOLOGY, AS WELL AS OTHER SERVICES THAT SUPPORT THE MISSION OF OIT AND ITS RELATIONSHIP WITH OTHER PROGRAMS WITHIN IHS.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87102

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $33.9 million to DATA NETWORKS, INC. for work described as: THE SCOPE OF WORK WILL INCLUDE PERFORMING SERVICES THAT SUPPORT THE IMPLEMENTATION OF THE IHS IT EPLC PROJECT MANAGEMENT INITIATIVE THROUGHOUT THE OFFICE OF INFORMATION TECHNOLOGY, AS WELL AS OTHER SERVICES THAT SUPPORT THE MISSION OF OIT AND ITS RELATIONSHIP WITH OTHER PROGRAMS … Key points: 1. Contract supports the implementation of the IHS IT EPLC Project Management Initiative. 2. Services provided are crucial for the Office of Information Technology's mission. 3. The contract was awarded under full and open competition. 4. The duration of the contract was over 5 years. 5. The contract type was Time and Materials, which can pose cost control challenges. 6. The award was a Delivery Order, indicating it was part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract's value of $33.9 million over approximately 5.5 years suggests a significant investment in IT project management support. Benchmarking this against similar contracts for IT project management services within federal agencies is challenging without more specific details on the scope and deliverables. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not closely monitored, making a direct value-for-money assessment difficult without detailed performance data and cost tracking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which implies a competitive process was initiated, but specific details on the number of bidders or the reasons for excluding certain sources are not provided. This type of award suggests that multiple vendors had the opportunity to bid, which generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Beneficiaries include the Indian Health Service (IHS) and its Office of Information Technology (OIT). Services delivered support the implementation of IT project management initiatives. The geographic impact is primarily within New Mexico, where the contract was managed. Workforce implications include the potential for IT professionals to be engaged in project management support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not managed tightly.
Limited detail on the specific project management methodologies or tools required.
The 'Exclusion of Sources' clause warrants further investigation into the competitive landscape.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
Supports a critical initiative (EPLC Project Management) within the IHS.
Long-term contract (over 5 years) suggests a stable need for these services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. Agencies increasingly rely on external expertise for complex IT project management, especially for initiatives like the EPLC (Electronic Health Record) project management, which are critical for modernizing healthcare systems. Spending in this area is driven by the need for specialized skills in project lifecycle management, system implementation, and IT governance.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large contract awarded through full and open competition, it's possible that larger prime contractors were involved, and the extent of small business participation would depend on subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of the Interior's Office of Information Technology. Accountability measures would be tied to the performance metrics outlined in the contract's Statement of Work. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

IHS IT Modernization Projects
Federal Health IT Initiatives
IT Project Management Support Services
Department of the Interior IT Contracts

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Lack of specific performance metrics makes value assessment difficult.
Details surrounding 'Exclusion of Sources' are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $33.9 million to DATA NETWORKS, INC.. THE SCOPE OF WORK WILL INCLUDE PERFORMING SERVICES THAT SUPPORT THE IMPLEMENTATION OF THE IHS IT EPLC PROJECT MANAGEMENT INITIATIVE THROUGHOUT THE OFFICE OF INFORMATION TECHNOLOGY, AS WELL AS OTHER SERVICES THAT SUPPORT THE MISSION OF OIT AND ITS RELATIONSHIP WITH OTHER PROGRAMS WITHIN IHS.

Who is the contractor on this award?

The obligated recipient is DATA NETWORKS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.9 million.

What is the period of performance?

Start: 2010-09-10. End: 2016-03-09.

What specific project management methodologies or frameworks were mandated or utilized under this contract?

The provided data does not specify the project management methodologies or frameworks required for this contract. Typically, IT project management contracts within federal agencies might mandate frameworks such as Agile, Waterfall, or a hybrid approach, often aligned with the agency's IT governance policies like the Enterprise Performance Life Cycle (EPLC). Understanding the specific methodologies used would provide insight into the efficiency and adaptability of the project execution and the contractor's alignment with best practices.

How did the final cost compare to the initial estimated cost, given the Time and Materials (T&M) pricing structure?

The provided data does not include information on the initial estimated cost or the final obligated amount, making a direct comparison impossible. Time and Materials contracts are inherently flexible but carry a risk of cost escalation if not meticulously managed. To assess value, one would need to compare the final expenditure against a baseline estimate, analyze the hours billed versus the work accomplished, and evaluate if the project objectives were met within the budgetary constraints. Without this data, it's difficult to determine if the $33.9 million represented good value.

What was the specific nature of the 'Exclusion of Sources' in this 'Full and Open Competition after Exclusion of Sources' award?

The 'Full and Open Competition after Exclusion of Sources' designation suggests that while the competition was intended to be open, certain potential sources were deliberately excluded. The reasons for such exclusions can vary, including prior performance issues, lack of specific qualifications, or proprietary technology limitations. Without further details from the contract award documentation, it is unclear which sources were excluded and why. This exclusion could potentially limit the competitive pool and impact the final pricing and innovation achieved.

What were the key performance indicators (KPIs) for this contract, and how did Data Networks, Inc. perform against them?

The provided data does not contain information regarding the specific Key Performance Indicators (KPIs) established for this contract or Data Networks, Inc.'s performance against them. Effective oversight of IT service contracts relies heavily on measurable KPIs related to project timelines, budget adherence, quality of deliverables, and stakeholder satisfaction. Without access to performance reports or contractually defined metrics, it is impossible to assess the contractor's effectiveness or the overall success of the IT EPLC Project Management Initiative support.

How does the awarded amount of $33.9 million compare to average spending on similar IT project management support contracts within the Department of the Interior or IHS?

Comparing the $33.9 million contract value requires context regarding the duration and scope of services. Federal IT project management support contracts can vary widely in cost based on complexity, duration, and specific requirements. To benchmark this contract, one would need to analyze historical spending data for similar services within the Department of the Interior and IHS, considering factors like the number of projects supported, the size of the IT infrastructure, and the level of expertise required. Without such comparative data, it's difficult to ascertain if this amount represents a typical or outlier investment for the services rendered.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,808,433

Exercised Options: $44,808,433

Current Obligation: $33,898,920

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0616Z

IDV Type: GWAC

Timeline