NASA's $262M communications contract with INDYNE, INC. awarded in 2003 for services in Florida

Contract Overview

Contract Amount: $262,169,301 ($262.2M)

Contractor: Indyne, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-09-29

End Date: 2008-09-30

Contract Duration: 1,828 days

Daily Burn Rate: $143.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: PROVIDE COMMUNICATIONS SERVICES, TELEPHONE SERVICE REQUIREMENTS/PHOTO

Place of Performance

Location: ORLANDO, BREVARD County, FLORIDA, 32899

State: Florida Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $262.2 million to INDYNE, INC. for work described as: PROVIDE COMMUNICATIONS SERVICES, TELEPHONE SERVICE REQUIREMENTS/PHOTO Key points: 1. Contract value represents a significant investment in essential communications infrastructure. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a structured but potentially limited bidding process. 3. A Cost Plus Award Fee (CPA) contract type can incentivize performance but may lead to higher costs if not managed carefully. 4. The contract duration of over 5 years suggests a long-term need for these services. 5. The specific services provided, 'Communications Services, Telephone Service Requirements/Photo', are critical for operational continuity. 6. The award was made to INDYNE, INC., a single contractor for the duration. 7. The contract's base value was $14.3M, with significant potential for growth through award fees. 8. The North American Industry Classification System (NAICS) code 518210 points to a focus on computing infrastructure and data processing.

Value Assessment

Rating: fair

The contract's total value of $262M over five years for communications services is substantial. Benchmarking this against similar NASA contracts for telecommunications and IT infrastructure is challenging without more granular data on service specifics and performance metrics. The Cost Plus Award Fee (CPA) structure, while designed to reward performance, can sometimes lead to costs exceeding initial estimates if award criteria are broad or if contractor performance is consistently high, driving up the total expenditure. The base value of $14.3M compared to the final award suggests significant performance-based incentives were met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while a competitive process occurred, certain sources may have been excluded prior to the main competition, potentially limiting the pool of bidders. The presence of 5 bidders indicates some level of competition, but the exclusion of sources raises questions about the breadth of the initial outreach and whether the most competitive offers were fully considered.

Taxpayer Impact: The limited competition, even after an initial exclusion of sources, may have resulted in a higher price for taxpayers than a truly open and unrestricted competition would have yielded.

Public Impact

NASA personnel and operations across Florida benefit from reliable communications and telephone services. The contract ensures the continuity of critical communication infrastructure essential for space agency operations. The geographic impact is primarily focused on NASA facilities within Florida. The services likely support a range of NASA employees and contractors involved in various space exploration and research programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector, specifically focusing on computing infrastructure, data processing, and related services (NAICS 518210). The market for such services is highly competitive, with numerous providers offering cloud hosting, data management, and communication solutions. NASA, as a major government agency, requires robust and secure infrastructure, often leading to large, long-term contracts. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar IT and telecommunications services, considering factors like data volume, uptime requirements, and security protocols.

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 or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, INDYNE, INC., would have been responsible for fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would have been managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPA) contract, performance metrics and cost controls would be crucial oversight areas. NASA's contracting officers and program managers would be responsible for monitoring INDYNE, INC.'s performance against award criteria and ensuring costs remained reasonable and allocable. Transparency would be facilitated through contract reporting mechanisms, though specific details on public accessibility of performance reports are not provided. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

nasa, communications-services, telephone-service, cost-plus-award-fee, definitive-contract, full-and-open-competition, indyne-inc, florida, computing-infrastructure-providers, data-processing, web-hosting, it-services

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $262.2 million to INDYNE, INC.. PROVIDE COMMUNICATIONS SERVICES, TELEPHONE SERVICE REQUIREMENTS/PHOTO

Who is the contractor on this award?

The obligated recipient is INDYNE, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $262.2 million.

What is the period of performance?

Start: 2003-09-29. End: 2008-09-30.

What was the specific performance criteria used to determine the award fee for INDYNE, INC. under this contract?

The specific performance criteria for determining the award fee under NASA's contract with INDYNE, INC. (Contract Number [Not Provided]) are not detailed in the publicly available award data. Cost Plus Award Fee (CPA) contracts typically outline objective and subjective metrics related to service quality, timeliness, cost control, and customer satisfaction. For a communications services contract, these might include network uptime, call completion rates, response times for service requests, and adherence to security protocols. NASA contracting officers would have evaluated INDYNE's performance against these pre-defined criteria to determine the amount of award fee paid, up to the maximum allowable. Without access to the contract's Performance Work Statement (PWS) or award fee plan, the precise metrics remain unknown.

How did the final awarded amount of $262M compare to the initial estimated value or ceiling of the contract?

The provided data indicates a total award amount of $262,169,301.26. The base value of the contract is listed as $14,341,900. While the 'aw' field denotes 'DEFINITIVE CONTRACT', it doesn't explicitly state an initial ceiling or estimate separate from the total award. However, the significant difference between the base value and the total award ($247,827,401.26) strongly suggests that the contract operated with a substantial potential for growth through award fees and/or contract modifications over its duration. This implies that INDYNE, INC. likely met or exceeded performance expectations, triggering significant award fee payments, or that the scope of services expanded considerably beyond the initial base commitment.

What was the rationale for excluding certain sources prior to the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The rationale for excluding specific sources prior to the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOCI) process is not detailed in the provided summary data. This contract type is typically used when there's a belief that a limited number of responsible sources can meet the government's needs, or when specific technical requirements necessitate specialized capabilities. Reasons for exclusion could include prior performance issues, lack of specific certifications, inability to meet security requirements, or a strategic decision to focus on a particular segment of the market. The agency (NASA) would have documented the justification for exclusion, often related to technical qualifications, past performance, or specific program requirements, to ensure fairness and compliance with procurement regulations.

Can the value of this contract be benchmarked against current market rates for similar communications services?

Benchmarking the $262M value of this 2003-2008 NASA contract against current market rates for similar communications services is difficult due to several factors. Firstly, technology and market prices have evolved significantly since the contract's inception. Secondly, the contract's specific details (e.g., dedicated lines, bandwidth, service level agreements, geographic coverage within Florida) are not fully elaborated. Thirdly, the Cost Plus Award Fee (CPA) structure means the final price was influenced by performance, not just fixed rates. However, generally, large-scale government telecommunications and data hosting contracts are substantial. Current market analysis would require comparing specific service level agreements, security requirements, and volume commitments with contemporary enterprise or government contracts, which is beyond the scope of the provided data.

What was INDYNE, INC.'s track record with NASA or other federal agencies prior to or during this contract?

Information regarding INDYNE, INC.'s specific track record with NASA or other federal agencies prior to or during this particular contract (2003-2008) is not included in the provided summary data. Federal procurement systems often track past performance, which is a key evaluation factor in awarding contracts. A comprehensive assessment would involve reviewing INDYNE's contract history, including any awards, terminations, or performance reviews from agencies like NASA, the Department of Defense, or others. Without access to these records, it's impossible to definitively state their prior track record. However, being awarded a large, multi-year contract by NASA suggests they likely had relevant experience and a satisfactory performance history at the time of award.

What were the primary risks associated with this Cost Plus Award Fee (CPA) contract, and how were they managed?

The primary risks associated with this Cost Plus Award Fee (CPA) contract included potential cost overruns and the contractor potentially focusing on maximizing award fees rather than strict cost control. CPA contracts incentivize performance, but if the award criteria are not tightly defined or if the government's oversight is lax, costs can escalate beyond initial projections. Risks also include the government paying for performance that is merely adequate, or the contractor 'gold-plating' services to achieve higher award fees. Management of these risks would have involved NASA's rigorous oversight of INDYNE's performance against clearly defined metrics, regular audits of costs, and careful negotiation of the award fee structure. Effective program management and clear communication channels were essential to mitigate these inherent risks.

Industry Classification

NAICS: InformationComputing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesComputing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6862 ELM ST STE 700, MC LEAN, VA, 22101

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $272,223,048

Exercised Options: $272,223,048

Current Obligation: $262,169,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2003-09-29

Current End Date: 2008-09-30

Potential End Date: 2008-09-30 00:00:00

Last Modified: 2022-02-10

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