Interior's $12.5M IT support contract awarded to Nexgen Technologies Inc. with no competition

Contract Overview

Contract Amount: $12,504,922 ($12.5M)

Contractor: Nexgen Technologies Inc.

Awarding Agency: Department of the Interior

Start Date: 2004-07-01

End Date: 2009-12-31

Contract Duration: 2,009 days

Daily Burn Rate: $6.2K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: L&RPO IT TECHNICAL SUPPORT

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80227

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $12.5 million to NEXGEN TECHNOLOGIES INC. for work described as: L&RPO IT TECHNICAL SUPPORT Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential overpayment and lack of market-driven pricing. 2. The firm fixed-price contract type suggests cost certainty but doesn't guarantee value without competitive pressure. 3. Limited competition indicates a potential risk of vendor lock-in and reduced incentive for innovation. 4. The contract duration spans over five years, suggesting a long-term reliance on this specific vendor. 5. The IT technical support services are crucial for the Bureau of Land Management's operations. 6. The contract's value is significant within the context of IT services for land management agencies.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value for money on this $12.5 million contract. The firm fixed-price structure provides some cost predictability, but the absence of competition means taxpayers may not be receiving the most advantageous pricing. Comparing this to similar IT technical support contracts awarded competitively would be necessary to assess if Nexgen Technologies Inc.'s pricing is reasonable. The lack of a competitive process inherently limits the ability to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating that only one vendor, Nexgen Technologies Inc., was considered. The specific reasons for this sole-source award are not detailed in the provided data, but it suggests that either no other vendors were identified as capable or willing to bid, or there were specific circumstances justifying a direct award. This lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding processes, potentially leading to higher overall expenditure for these IT services.

Public Impact

The Bureau of Land Management benefits from continuous IT technical support, ensuring the smooth operation of its land management systems. Federal employees within the Bureau of Land Management rely on these IT services for their daily tasks and access to critical data. The contract supports IT infrastructure and services essential for managing vast public lands across the United States. The workforce implications are primarily within Nexgen Technologies Inc., which provides the technical expertise for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price scrutiny and potential savings.
Lack of competition may reduce vendor incentive to offer innovative solutions or cost efficiencies.
Long contract duration without competition could lead to vendor lock-in.
Absence of performance metrics or detailed outcomes makes it hard to assess effectiveness.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Nexgen Technologies Inc. is the sole provider, ensuring continuity of service.
The contract addresses a critical need for IT technical support within the Bureau of Land Management.

Sector Analysis

This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. The IT services market is highly competitive, with numerous firms offering technical support and programming. However, the government procurement process, especially for specialized or long-term needs, can sometimes lead to non-competitive awards. Benchmarking this contract's value would require comparing it to similar IT support contracts awarded to firms of comparable size and capability, ideally within the federal government or large enterprise sectors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to Nexgen Technologies Inc., a single entity, does not inherently create opportunities for small business subcontractors unless Nexgen voluntarily engages them. The overall impact on the small business ecosystem is neutral in this specific instance, as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Land Management's contracting officers and program managers. Accountability measures would be defined by the contract terms, including performance standards and payment schedules. Transparency is limited due to the non-competitive nature of the award; details regarding the justification for the sole-source award and any performance reviews are not publicly available in this dataset. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Services Contracts
Custom Computer Programming Services
Bureau of Land Management IT Support
Department of the Interior IT Procurement
Sole-Source IT Contracts

Risk Flags

Non-competitive award
Lack of performance data
Potential for overpricing
Limited market research evident

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.5 million to NEXGEN TECHNOLOGIES INC.. L&RPO IT TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is NEXGEN TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2004-07-01. End: 2009-12-31.

What is the track record of Nexgen Technologies Inc. in performing similar federal IT contracts?

The provided data does not include specific details on Nexgen Technologies Inc.'s past performance or track record with federal contracts beyond this single award. To assess their reliability and capability, a review of their contract history, including past performance evaluations, any awards or penalties, and the types of services they have previously delivered to government agencies, would be necessary. Without this information, it is difficult to gauge their experience and success rate in fulfilling complex IT technical support requirements.

How does the pricing of this contract compare to market rates for similar IT technical support services?

Directly comparing the pricing of this $12.5 million contract to market rates is challenging without more specific data on the services rendered and the labor categories involved. Since this was a non-competitive award, there is no benchmark from competing bids. A thorough analysis would involve identifying comparable IT technical support contracts, ideally those awarded competitively, and examining their total value, duration, and scope of work. Additionally, researching industry salary data for IT professionals with similar skill sets in the relevant geographic locations could provide a partial benchmark for labor costs, which often constitute a significant portion of IT service contracts.

What are the primary risks associated with awarding a large IT contract on a sole-source basis?

The primary risks associated with sole-source IT contracts include lack of price competition, which can lead to inflated costs for taxpayers. There is also a reduced incentive for the contractor to innovate or improve efficiency, as they face no threat of losing the business to a competitor. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future. This lack of competition can also limit the government's access to a wider range of technological solutions and expertise available in the market.

How effective has Nexgen Technologies Inc. been in delivering IT technical support to the Bureau of Land Management under this contract?

The provided data does not contain information on the effectiveness of Nexgen Technologies Inc.'s performance. Assessing effectiveness would require access to performance metrics, user satisfaction surveys, system uptime reports, and feedback from the Bureau of Land Management's program managers. Without these qualitative and quantitative measures, it is impossible to determine how well the contractor has met the IT technical support needs of the agency or whether the services delivered have been satisfactory and aligned with the contract's objectives.

What has been the historical spending pattern for IT technical support by the Bureau of Land Management over the years?

The provided data only includes information for this specific contract awarded to Nexgen Technologies Inc. To understand the historical spending patterns for IT technical support by the Bureau of Land Management, one would need to analyze spending data across multiple fiscal years and various contracts. This would involve identifying all contracts related to IT technical support, their values, durations, and award types (competitive vs. non-competitive). Such an analysis would reveal trends in overall IT spending, the proportion allocated to technical support, and the prevalence of competitive versus sole-source procurements over time.

What specific IT technical support services are included under this contract?

The contract is categorized under 'Custom Computer Programming Services' (NAICS code 541511), suggesting a broad scope of IT technical support. This likely includes services such as software development, system integration, network support, database management, IT infrastructure maintenance, troubleshooting, and potentially help desk support. The exact deliverables and service level agreements would be detailed in the full contract document, but the classification indicates a focus on specialized programming and technical assistance rather than just off-the-shelf software provision.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1490 W 121ST AVE STE 202, DENVER, CO, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,504,922

Exercised Options: $12,504,922

Current Obligation: $12,504,922

Parent Contract

Parent Award PIID: GS35F0044N

IDV Type: FSS

Timeline