Interior's $23.2M IT Support Contract with Terrapin Systems Raises Questions on Value and Competition
Contract Overview
Contract Amount: $23,197,121 ($23.2M)
Contractor: Terrapin Systems LLC
Awarding Agency: Department of the Interior
Start Date: 2004-01-13
End Date: 2009-09-17
Contract Duration: 2,074 days
Daily Burn Rate: $11.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SYSTEMS AND APPLICATIN SUPPORT
Place of Performance
Location: LAS CRUCES, DOÑA ANA County, NEW MEXICO, 88012
Plain-Language Summary
Department of the Interior obligated $23.2 million to TERRAPIN SYSTEMS LLC for work described as: SYSTEMS AND APPLICATIN SUPPORT Key points: 1. The contract awarded to Terrapin Systems LLC for $23.2 million focuses on IT application support. 2. Competition was competitive, but the Time and Materials pricing model warrants scrutiny for cost control. 3. Potential risks include cost overruns due to the T&M structure and the long duration of the contract. 4. The IT sector, particularly computer systems design services, is a significant area of federal spending.
Value Assessment
Rating: questionable
The Time and Materials pricing structure, while common for IT services, can lead to unpredictable costs. Benchmarking against similar Computer Systems Design Services contracts is difficult without detailed labor rates and hours, but the overall value is questionable given the potential for cost escalation over the contract's lifespan.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, indicating multiple bids were considered. However, the Time and Materials pricing model may limit price discovery and incentivize longer project durations rather than efficient completion.
Taxpayer Impact: Taxpayer funds are utilized for IT support services. The effectiveness of competition and the pricing model will ultimately determine the value for money received.
Public Impact
Citizens rely on government IT systems for essential services, making reliable application support crucial. The use of taxpayer dollars for IT contracts necessitates transparency and accountability in spending. Long-term IT support contracts can impact the government's ability to adopt newer, more cost-effective technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration (2004-2009)
- Lack of specific performance metrics in provided data
Positive Signals
- Competitive award process
- Essential IT support function
Sector Analysis
This contract falls under Computer Systems Design Services, a key component of the federal IT sector. Spending in this area is substantial, and efficient contracting is vital for delivering government services.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight of Time and Materials contracts is critical to ensure costs remain reasonable and that the work performed aligns with contract objectives. The Department of the Interior is responsible for monitoring this contract's performance.
Related Government Programs
- Computer Systems Design Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may indicate lack of flexibility or innovation.
- Limited insight into specific deliverables and performance metrics.
- Need for robust oversight to manage T&M costs effectively.
Tags
computer-systems-design-services, department-of-the-interior, nm, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $23.2 million to TERRAPIN SYSTEMS LLC. SYSTEMS AND APPLICATIN SUPPORT
Who is the contractor on this award?
The obligated recipient is TERRAPIN SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $23.2 million.
What is the period of performance?
Start: 2004-01-13. End: 2009-09-17.
What specific IT application support services were rendered under this contract, and how did they align with the Department of the Interior's mission objectives?
The contract was for 'Computer Systems Design Services' (NAICS 541512), implying a broad range of IT support. Without detailed task orders or deliverables, it's difficult to ascertain the precise services. These likely included system maintenance, troubleshooting, and potentially minor enhancements to existing applications critical for the Department's operations.
How effectively did the competitive bidding process ensure a fair price for Time and Materials services, given the inherent variability?
While the award was competitive, the Time and Materials (T&M) pricing structure inherently limits price certainty. Effective competition in T&M relies on robust evaluation of proposed labor rates, indirect cost structures, and the contractor's historical performance. The Department would need strong oversight to ensure rates were fair and work was efficient.
What was the overall return on investment for this $23.2 million contract, considering the IT support provided over its duration?
Calculating the precise ROI is challenging without detailed performance metrics and cost breakdowns. The value hinges on the criticality of the supported applications and the efficiency of Terrapin Systems' service delivery. A T&M contract's ROI is often realized through sustained system uptime and functionality, but potential cost overruns can diminish it.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 6903 ROCKLEDGE DR STE 920, BETHESDA, MD, 08
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $23,197,121
Exercised Options: $23,197,121
Current Obligation: $23,197,121
Parent Contract
Parent Award PIID: GS35F0562L
IDV Type: FSS
Timeline
Start Date: 2004-01-13
Current End Date: 2009-09-17
Potential End Date: 2009-09-17 00:00:00
Last Modified: 2012-06-27
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