Interior Dept. Spends $108M on IT Facilities Management with Valdez International Corp

Contract Overview

Contract Amount: $108,401,810 ($108.4M)

Contractor: Valdez International Corporation

Awarding Agency: Department of the Interior

Start Date: 2012-06-26

End Date: 2021-12-25

Contract Duration: 3,469 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF SYSTEMS OPERATIONS AND ADMINISTRATION (SOA)

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $108.4 million to VALDEZ INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF SYSTEMS OPERATIONS AND ADMINISTRATION (SOA) Key points: 1. Significant spending on IT facilities management services. 2. Valdez International Corporation is the primary contractor. 3. Contract duration spans nearly a decade. 4. Full and open competition was utilized, suggesting potential for competitive pricing.

Value Assessment

Rating: fair

The total award amount of $108.4 million over nearly 9 years suggests a substantial investment. Benchmarking against similar IT facilities management contracts is necessary to assess value, especially given the time and materials pricing structure.

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, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.

Public Impact

Taxpayers funded over $108 million for IT infrastructure support. The long contract duration raises questions about adaptability to evolving technology. The Department of the Interior relies on this contractor for critical IT operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to outdated technology or services.
Time and Materials pricing can incentivize longer project durations.
Lack of specific NAICS code makes direct comparison difficult.

Positive Signals

Full and open competition was utilized.
Contract awarded to a single entity, potentially simplifying management.
Significant investment indicates perceived value by the agency.

Sector Analysis

This contract falls under IT services, specifically Computer Facilities Management. Spending benchmarks for this sector vary widely based on scope, but $108 million over 9 years for a large agency suggests a significant, ongoing operational requirement.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary contractor, Valdez International Corporation, is not identified as a small business in this context. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded under full and open competition, which implies a degree of oversight in the solicitation and award process. However, the long duration and time and materials structure warrant ongoing monitoring to ensure continued value and performance.

Related Government Programs

Computer Facilities Management Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Long contract duration potentially leading to obsolescence.
Time and Materials pricing structure carries cost overrun risk.
Lack of specific task order details hinders detailed analysis.
Potential for contractor lock-in due to long-term relationship.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $108.4 million to VALDEZ INTERNATIONAL CORPORATION. IGF::OT::IGF SYSTEMS OPERATIONS AND ADMINISTRATION (SOA)

Who is the contractor on this award?

The obligated recipient is VALDEZ INTERNATIONAL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $108.4 million.

What is the period of performance?

Start: 2012-06-26. End: 2021-12-25.

What specific IT facilities management services were provided under this contract, and how did their scope evolve over the 9-year period?

The contract, identified by NAICS code 541513 (Computer Facilities Management Services), likely encompassed a range of services such as data center operations, network management, hardware maintenance, and IT support. The evolution of scope over its 9-year duration would depend on the agency's changing technological needs and the flexibility built into the contract's task orders and modifications. Without specific task order details, a precise scope evolution is unknown.

How does the time and materials pricing structure compare to fixed-price or other contract types for similar IT facilities management services, and what are the associated risks?

Time and Materials (T&M) contracts offer flexibility but carry a higher risk of cost overruns as the government pays for actual labor hours and material costs. Compared to fixed-price contracts, T&M can be less predictable in terms of final cost. This structure can incentivize contractors to extend project timelines or increase labor hours, potentially leading to higher overall spending than anticipated, especially for long-duration contracts.

What was the rationale for awarding a single delivery order under full and open competition for such a long duration, and were there opportunities for re-competition?

Awarding a single delivery order under full and open competition for a long duration (3469 days) suggests the agency identified a sustained need for these specific IT facilities management services. While the initial award was competitive, the long duration might limit opportunities for re-competition unless specific clauses or break points were included. The agency likely determined this approach best met their long-term operational requirements at the time of award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: D12PS00050

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1490 GARDEN OF THE GODS RD STE B, COLORADO SPRINGS, CO, 80907

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $151,557,592

Exercised Options: $108,401,810

Current Obligation: $108,401,810

Actual Outlays: $27,203,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND12PC00431

IDV Type: IDC

Timeline