Interior Department's $42.7M FlexTrain Equipment Purchase Awarded to Ravenswood Solutions, Inc

Contract Overview

Contract Amount: $42,725,769 ($42.7M)

Contractor: Ravenswood Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2016-02-08

End Date: 2017-08-27

Contract Duration: 566 days

Daily Burn Rate: $75.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLEXTRAIN EQUIPMENT PURCHASE NGB XCTC

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $42.7 million to RAVENSWOOD SOLUTIONS, INC. for work described as: FLEXTRAIN EQUIPMENT PURCHASE NGB XCTC Key points: 1. The contract value of $42.7 million represents a significant investment in specialized equipment. 2. Awarded on a sole-source basis, the lack of competition may impact price optimization. 3. The contract duration of 566 days suggests a focused, project-specific need. 4. The 'Other Communications Equipment Manufacturing' NAICS code indicates a niche market for this procurement. 5. The absence of small business set-aside provisions warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value for this specific 'FlexTrain Equipment Purchase' is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to definitively assess if the $42.7 million represents optimal value for money. However, the contract's fixed-price nature provides some cost certainty for the government. Further analysis would require comparing the delivered equipment's specifications and performance against similar, albeit potentially non-identical, procurements in the broader communications equipment sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Ravenswood Solutions, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to leverage market competition to drive down prices and ensure the best possible value.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from potentially lower prices that could have resulted from a bidding process. This could lead to a higher overall cost for the acquired equipment.

Public Impact

The primary beneficiaries are likely the Department of the Interior personnel who will utilize the FlexTrain equipment. The services delivered involve the provision of specialized communications equipment. The geographic impact is primarily within the operational areas of the Department of the Interior, with a specific mention of California (SN: CALIFORNIA). Workforce implications may include training for personnel on the new equipment and potential support roles for its maintenance and operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of transparency in the justification for sole-source procurement.
Potential for higher costs due to absence of competitive pressure.
Limited visibility into alternative solutions or technological advancements not offered by the sole provider.

Positive Signals

Fixed-price contract provides cost certainty once awarded.
Specific equipment purchase suggests a defined operational need being met.
Award to a single vendor can streamline acquisition for highly specialized items.

Sector Analysis

The procurement falls under the 'Other Communications Equipment Manufacturing' sector, a specialized segment within the broader manufacturing industry. This sector is characterized by innovation and specific technological requirements. The contract value of $42.7 million is substantial for a single procurement in this niche, suggesting a significant need for the specialized equipment. Comparable spending benchmarks would likely involve other government procurements of advanced communication systems or specialized electronic manufacturing services.

Small Business Impact

The contract details indicate that small business participation was not a primary consideration, as the 'sb' (small business) flag is false and there is no mention of set-aside provisions. This suggests that the procurement was not specifically targeted to encourage small business involvement. Consequently, the direct impact on the small business ecosystem may be minimal unless Ravenswood Solutions, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess any indirect benefits.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of the Interior's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified equipment. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process more challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Procurement
Communications Equipment Acquisition
Specialized Manufacturing Contracts
Federal Sole-Source Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement process.
Absence of small business set-aside considerations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $42.7 million to RAVENSWOOD SOLUTIONS, INC.. FLEXTRAIN EQUIPMENT PURCHASE NGB XCTC

Who is the contractor on this award?

The obligated recipient is RAVENSWOOD SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2016-02-08. End: 2017-08-27.

What specific capabilities does the 'FlexTrain Equipment' provide, and why was it deemed necessary for the Department of the Interior?

The provided data does not detail the specific capabilities of the 'FlexTrain Equipment.' However, given the NAICS code 'Other Communications Equipment Manufacturing,' it can be inferred that the equipment relates to advanced communication systems. The necessity for the Department of the Interior would likely stem from operational requirements, such as enhancing communication networks for field operations, data transmission, or command and control. Without further documentation or justification from the award, the precise 'why' remains speculative, but it points to a critical need for specialized communication technology within the agency's mission.

What was the justification for awarding this contract on a sole-source basis, and were any alternatives considered?

The justification for a sole-source award is not detailed in the provided data. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling circumstances. The government is required to document this justification thoroughly. Without access to the Justification and Approval (J&A) document, it is unknown if alternatives were considered or why they were deemed unsuitable. This lack of competitive bidding raises questions about whether the government fully explored options that could have yielded better value.

How does the contract's fixed-price structure benefit the government in terms of cost control?

A Firm Fixed Price (FFP) contract, like the one awarded here, benefits the government by establishing a ceiling on the total cost the contractor can claim. This structure shifts the risk of cost overruns to the contractor, providing the government with significant cost certainty. Once the price is agreed upon, the contractor is obligated to complete the work for that amount, regardless of their actual costs. This predictability is valuable for budgeting and financial planning, especially for procurements where the scope of work is well-defined, as it is with equipment purchases.

What is the typical market price range for similar 'Other Communications Equipment' to benchmark the $42.7 million contract value?

Determining a precise market price range for 'Other Communications Equipment' is difficult without knowing the specific type and specifications of the FlexTrain equipment. This NAICS code covers a broad spectrum of communication devices. However, government contract databases and industry reports can provide benchmarks for similar procurements. For a contract valued at $42.7 million, it suggests a substantial and potentially highly specialized system. Without competitive data or detailed specifications, a direct per-unit cost comparison is not feasible, but the overall value indicates a significant investment in advanced technology.

What is Ravenswood Solutions, Inc.'s track record with federal contracts, particularly sole-source awards?

Information on Ravenswood Solutions, Inc.'s specific track record with federal contracts, especially sole-source awards, is not provided in the given data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review their past performance, contract types, values, and agencies served. Understanding their history with sole-source awards would shed light on whether this is a common practice for them and how their performance has been evaluated in such instances. This context is crucial for assessing the reliability and value provided by the contractor.

What are the potential risks associated with a sole-source award of this magnitude, and what mitigation strategies are typically employed?

The primary risks associated with a sole-source award of $42.7 million include potential overpricing due to lack of competition, limited innovation if the sole provider is not incentivized to offer the best technology, and a lack of vendor accountability if there are no comparable alternatives. Mitigation strategies typically involve rigorous negotiation of terms and pricing, detailed performance specifications, and potentially independent cost analyses. The government might also require detailed justifications for the sole-source status and explore options for future competition or technology insertion to ensure long-term value and access to advancements.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: D15PS00265

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRI International

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,725,769

Exercised Options: $42,725,769

Current Obligation: $42,725,769

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline