Interior's USGS Awards $47.5M for Computer Systems Design Services to SIERRA7, Inc
Contract Overview
Contract Amount: $47,501,443 ($47.5M)
Contractor: Sierra7, Inc.
Awarding Agency: Department of the Interior
Start Date: 2017-06-13
End Date: 2022-12-31
Contract Duration: 2,027 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF CHS2
Place of Performance
Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25403
Plain-Language Summary
Department of the Interior obligated $47.5 million to SIERRA7, INC. for work described as: IGF::OT::IGF CHS2 Key points: 1. The contract value is substantial at $47.5 million. 2. SIERRA7, Inc. is the sole awardee. 3. The contract type is Time and Materials, which can pose cost risks. 4. The sector is IT services, specifically computer systems design.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, coupled with a significant duration, raises concerns about potential cost overruns compared to fixed-price contracts for similar IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The limited competition and Time and Materials pricing structure could lead to higher costs for taxpayers than a more competitive, fixed-price approach.
Public Impact
Taxpayers may be paying more than necessary due to limited competition. The long duration of the contract could lead to scope creep and increased costs. Lack of transparency in pricing due to Time and Materials could obscure true service costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Limited competition
- Long contract duration
Positive Signals
- Services provided to a key agency (USGS)
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is critical for government operations, but benchmarks vary widely based on service complexity and duration.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. This contract did not appear to prioritize small business engagement.
Oversight & Accountability
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a need for robust oversight to ensure fair pricing and prevent potential abuses within the limited competition framework.
Related Government Programs
- Computer Systems Design Services
- Department of the Interior Contracting
- U.S. Geological Survey Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition may have resulted in suboptimal pricing.
- Lack of transparency in cost build-up.
- Long contract duration increases risk of scope creep and inefficiency.
Tags
computer-systems-design-services, department-of-the-interior, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $47.5 million to SIERRA7, INC.. IGF::OT::IGF CHS2
Who is the contractor on this award?
The obligated recipient is SIERRA7, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (U.S. Geological Survey).
What is the total obligated amount?
The obligated amount is $47.5 million.
What is the period of performance?
Start: 2017-06-13. End: 2022-12-31.
What was the justification for excluding other sources in this full and open competition?
The justification for excluding other sources in this full and open competition is not provided in the data. Typically, such exclusions require a detailed rationale, such as specific technical requirements, proprietary technology, or urgent needs that only a particular vendor can meet. Without this information, it's difficult to assess if the exclusion was warranted or if it limited potential cost savings for the government.
How does the Time and Materials pricing compare to industry benchmarks for similar computer systems design services?
Comparing Time and Materials (T&M) pricing to industry benchmarks for computer systems design services is challenging without specific details on the labor categories, rates, and overhead applied. However, T&M contracts are generally considered riskier for the government as they offer less price certainty than fixed-price contracts. If SIERRA7's rates are not carefully managed and benchmarked against comparable IT service providers, taxpayers could face inflated costs.
What mechanisms are in place to ensure the effectiveness and efficiency of the services provided under this long-term contract?
The provided data does not detail the specific mechanisms for ensuring effectiveness and efficiency. For a contract spanning over five years (2017-2022), the Department of the Interior and the U.S. Geological Survey should have performance metrics, regular reviews, and clear deliverables outlined. Effective oversight is crucial to ensure the services meet the agency's needs and represent good value for taxpayer money throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Offers Received: 8
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sierra 7 Inc
Address: 3190 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $49,000,000
Exercised Options: $47,501,443
Current Obligation: $47,501,443
Actual Outlays: $39,526,003
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200196W
IDV Type: GWAC
Timeline
Start Date: 2017-06-13
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2023-02-16
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