Interior Dept. Awards $38M for Internet Services to National Interest Security Company LLC

Contract Overview

Contract Amount: $38,035,338 ($38.0M)

Contractor: National Interest Security Company LLC

Awarding Agency: Department of the Interior

Start Date: 2005-03-19

End Date: 2007-09-18

Contract Duration: 913 days

Daily Burn Rate: $41.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: 41128-IMC

Place of Performance

Location: DISTRICT OF COLUMBIA

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $38.0 million to NATIONAL INTEREST SECURITY COMPANY LLC for work described as: 41128-IMC Key points: 1. Significant contract value of $38 million over two years. 2. Competition type is 'Competitive Delivery Order', suggesting some level of market engagement. 3. No small business participation noted, potentially limiting broader economic impact. 4. Sector is Internet Service Providers, a critical infrastructure component.

Value Assessment

Rating: fair

The award amount of $38 million for a two-year contract appears substantial for internet services. Benchmarking against similar contracts for ISP services of comparable scope and duration would be necessary to definitively assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a 'Competitive Delivery Order'. While competitive, the specific details of the competition and the number of bids received are not provided, making it difficult to fully assess price discovery.

Taxpayer Impact: The $38 million expenditure represents taxpayer funds allocated for essential internet services to a government agency.

Public Impact

Ensures critical internet connectivity for the Department of the Interior. Supports a private sector company providing essential digital infrastructure. The contract's duration impacts long-term planning for internet service needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Limited transparency on competitive bidding process.

Positive Signals

Ensures essential service delivery.
Competitive award mechanism used.

Sector Analysis

The Internet Service Providers sector is vital for government operations, providing connectivity for data, communication, and essential services. Spending benchmarks vary widely based on bandwidth, geographic coverage, and service level agreements.

Small Business Impact

This contract did not involve small businesses, as indicated by the 'sb' field being false. This represents a missed opportunity to engage smaller, potentially specialized, service providers and foster economic diversity.

Oversight & Accountability

Oversight would focus on ensuring service delivery meets contractual obligations and that the pricing remains competitive throughout the contract term. The 'Delivery Order' nature suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which would have its own oversight mechanisms.

Related Government Programs

Internet Service Providers
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for overpayment due to lack of detailed pricing comparison.
Risk of service disruption if vendor performance is inadequate.
Limited visibility into the competitive landscape for this specific award.
Missed opportunity for small business engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $38.0 million to NATIONAL INTEREST SECURITY COMPANY LLC. 41128-IMC

Who is the contractor on this award?

The obligated recipient is NATIONAL INTEREST SECURITY COMPANY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2005-03-19. End: 2007-09-18.

What was the specific competitive process for this delivery order, and how many bids were received?

The data indicates a 'Competitive Delivery Order' but lacks specifics on the bidding process. Understanding the number of bids and the evaluation criteria would clarify the extent of competition and whether the government secured the best possible pricing and terms for these internet services.

Are there any performance metrics or service level agreements (SLAs) associated with this contract to ensure service quality?

Performance metrics and SLAs are not detailed in the provided data. For a contract of this value and duration, robust SLAs are crucial to ensure the Department of the Interior receives reliable and high-quality internet service, with clear recourse for underperformance.

How does the $38 million cost compare to industry benchmarks for similar internet service contracts?

Without detailed specifications of the services (bandwidth, uptime, geographic reach, etc.), a direct cost comparison is difficult. However, $38 million over two years for internet services warrants a thorough review against industry standards for comparable government or enterprise-level contracts to ensure cost-effectiveness.

Industry Classification

NAICS: Information › Internet Service Providers and Web Search Portals › Internet Service Providers

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: COMBINATION (TWO OR MORE) (2)

Contractor Details

Parent Company: International Business Machines Corporation (UEI: 001368083)

Address: 310 STATE ROUTE 956, KEYSER, WV, 02

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,035,338

Exercised Options: $38,035,338

Current Obligation: $38,035,338

Parent Contract

Parent Award PIID: GS25F0032L

IDV Type: FSS

Timeline