Interior Department's $11.6M IT contract for custom programming services awarded to TERACORE INC

Contract Overview

Contract Amount: $11,610,872 ($11.6M)

Contractor: Teracore Inc.

Awarding Agency: Department of the Interior

Start Date: 2007-03-20

End Date: 2009-12-31

Contract Duration: 1,017 days

Daily Burn Rate: $11.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: US MILITARY ENTRANCE PROCESSING COMMAND

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of the Interior obligated $11.6 million to TERACORE INC. for work described as: US MILITARY ENTRANCE PROCESSING COMMAND Key points: 1. Value for money appears fair given the fixed-price nature of the contract and its duration. 2. Competition dynamics indicate a competitive delivery order, suggesting multiple bids were considered. 3. Risk indicators are moderate, with a fixed-price contract potentially mitigating cost overruns. 4. Performance context is for custom computer programming, a common IT service requirement. 5. Sector positioning is within IT services, specifically custom development for a government agency.

Value Assessment

Rating: fair

The contract's total value of $11.6 million over approximately 3 years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts is challenging without more specific service details. However, the firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the work was completed successfully within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed under a broader contract vehicle. The presence of 4 bids (no: 4) suggests a reasonable level of competition for this specific delivery order. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiary is the US MILITARY ENTRANCE PROCESSING COMMAND, which received custom computer programming services. Services delivered included custom software development and related IT support. The geographic impact is likely concentrated around the facilities or operations supported by the US MILITARY ENTRANCE PROCESSING COMMAND. Workforce implications would involve IT professionals employed by TERACORE INC. and potentially government IT staff overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom development projects if not managed tightly.
Dependence on a single contractor for critical custom programming services.

Positive Signals

Firm-fixed-price contract structure helps control costs.
Competitive award process suggests fair market pricing was sought.
Contract duration of over 3 years allowed for sustained development and support.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for custom software development for government agencies is substantial, driven by the need for tailored solutions that off-the-shelf software cannot meet. Comparable spending benchmarks would depend on the specific complexity and scale of the custom programming required, but government IT spending is consistently in the billions annually.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. As this was a competitive delivery order, it's possible that small businesses could have participated as prime contractors or subcontractors, depending on the specific solicitation requirements and the overall contract vehicle under which this order was placed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior, responsible for ensuring that TERACORE INC. met the terms and conditions of the contract. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is generally facilitated through contract databases like FPDS.

Related Government Programs

Custom Computer Programming Services
IT Services
Software Development
Department of Defense IT Contracts
Federal IT Procurement

Risk Flags

Potential for cost overruns if scope was not well-defined.
Risk of contractor performance issues in custom development.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.6 million to TERACORE INC.. US MILITARY ENTRANCE PROCESSING COMMAND

Who is the contractor on this award?

The obligated recipient is TERACORE INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2007-03-20. End: 2009-12-31.

What was the specific nature of the custom computer programming services provided to the US MILITARY ENTRANCE PROCESSING COMMAND?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511) awarded to TERACORE INC. for the US MILITARY ENTRANCE PROCESSING COMMAND. While the exact nature of the programming is not detailed, this category typically includes designing, developing, and testing custom software applications, databases, and integrated systems. This could range from developing new operational software to enhancing existing systems to meet specific military entrance processing requirements, ensuring data integrity, security, and efficient workflow management for personnel processing.

How does the $11.6 million contract value compare to similar custom programming contracts for military support functions?

Comparing the $11.6 million contract value requires context on the scope and duration. This contract spanned from March 2007 to December 2009 (approximately 33 months), averaging around $350,000 per month. For custom programming services supporting military functions, this value is moderate. Larger, more complex system development or integration projects can easily reach tens or hundreds of millions of dollars. However, for specific application development or enhancement, $11.6 million over nearly three years represents a significant but not exceptionally large investment, suggesting a focused scope of work.

What were the primary risks associated with this firm-fixed-price contract for custom programming?

The primary risk for the government in a firm-fixed-price (FFP) contract is that the contractor might cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or if the initial cost estimates were too low. For TERACORE INC., the risk was absorbing cost overruns if the project proved more complex or time-consuming than anticipated. Given it was a competitive award, the initial pricing was likely scrutinized, and the contractor assumed the risk of delivering the specified custom programming services within the agreed-upon price.

What does the number of bids (4) suggest about the competition for this specific delivery order?

Receiving 4 bids for this delivery order suggests a healthy level of competition. While 'full and open' competition aims for the maximum number of potential bidders, 4 bids indicate that the solicitation was accessible and that multiple companies were interested and capable of performing the custom programming services. This number is generally considered sufficient to foster price competition and allow the government to select a technically acceptable offer at a reasonable price, avoiding the potential pitfalls of limited or sole-source awards.

What is the historical spending pattern for custom computer programming services by the Department of the Interior or similar agencies?

The Department of the Interior, like most large federal agencies, consistently spends significant amounts on IT services, including custom computer programming. Historical data shows that agencies frequently procure these services to modernize legacy systems, develop new applications for specific missions, and enhance cybersecurity. While specific historical spending for this exact command or service type isn't detailed here, the overall trend for federal IT procurement, especially custom development, has been robust, reflecting the ongoing need for tailored technological solutions across government operations.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1ST CORSAIR DR STE 111, ATLANTA, GA, 90

Business Categories: 8(a) Program Participant, 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, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,692,072

Exercised Options: $11,610,872

Current Obligation: $11,610,872

Parent Contract

Parent Award PIID: GS35F0667P

IDV Type: FSS

Timeline