NASA's $280M IT Services Contract for Ames Research Center Awarded to ASRC Research and Technology Solutions LLC
Contract Overview
Contract Amount: $280,208,673 ($280.2M)
Contractor: Asrc Research and Technology Solutions LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2013-09-01
End Date: 2020-10-31
Contract Duration: 2,617 days
Daily Burn Rate: $107.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF THE AMES RESEARCH CENTER (ARC) CONSOLIDATED INFORMATION TECHNOLOGY (IT) SERVICES (ACITS) 3 CONTRACT PROVIDES SERVICES IN THE CATEGORIES IT SYSTEMS&GOVERNANCE SUPPORT, IT SECURITY SUPPORT, NETWORK AND COMMUNICATION SYSTEMS&SUPPORT, APPLICATION MANAGEMENT&SUPPORT, SCIENTIFIC COMPUTING SYSTEMS&SUPPORT, INNOVATION AND EMERGING TECHNOLOGIES, AND OUTREACH/INFORMATIONAL SYSTEMS&SUPPORT
Place of Performance
Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $280.2 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC for work described as: IGF::OT::IGF THE AMES RESEARCH CENTER (ARC) CONSOLIDATED INFORMATION TECHNOLOGY (IT) SERVICES (ACITS) 3 CONTRACT PROVIDES SERVICES IN THE CATEGORIES IT SYSTEMS&GOVERNANCE SUPPORT, IT SECURITY SUPPORT, NETWORK AND COMMUNICATION SYSTEMS&SUPPORT, APPLICATION MANAGEMENT&SUPPORT, SCI… Key points: 1. The contract covers a broad range of IT services, including systems governance, security, networking, application management, and scientific computing. 2. It was awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration was substantial, spanning over 7 years. 4. The primary agency and the servicing agency are both NASA, indicating internal IT support needs. 5. The contract type is Cost Plus Fixed Fee, which can introduce cost-overrun risks if not managed carefully. 6. The contract was not set aside for small businesses, and there's no explicit mention of subcontracting goals.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not robust. Comparing it to similar large-scale IT service contracts for federal research centers would provide better context on whether the overall price reflects market rates for the breadth of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources might have been excluded based on specific criteria. There were 7 bidders, indicating a moderate level of competition. This level of competition is generally positive for price discovery, but the 'exclusion of sources' aspect warrants further investigation to understand its potential impact on the final price and the range of solutions considered.
Taxpayer Impact: A competitive bidding process with multiple bidders typically benefits taxpayers by driving down prices and encouraging innovative solutions. However, the exclusion of certain sources could potentially limit the most competitive offers from reaching the government.
Public Impact
Researchers and staff at NASA's Ames Research Center benefit from reliable and comprehensive IT support. Services delivered include essential IT infrastructure, cybersecurity, application development, and specialized scientific computing. The geographic impact is primarily focused on NASA's Ames Research Center in California. The contract supports a workforce involved in IT operations, maintenance, and specialized technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
- The 'Exclusion of Sources' in the competition process may have limited the full competitive landscape.
- Lack of explicit small business subcontracting goals could mean less direct benefit to the small business ecosystem.
Positive Signals
- Awarded through full and open competition, indicating a structured procurement process.
- Multiple bidders (7) suggest a degree of market interest and competition.
- The contract covers a wide array of critical IT services essential for NASA's operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on comprehensive support for a federal research center. The IT services market for government contracts is substantial, with agencies like NASA being significant spenders. This contract represents a large, consolidated IT services award, typical for agencies seeking to streamline IT support and achieve economies of scale. Comparable spending benchmarks would involve looking at other large, multi-faceted IT support contracts awarded to federal agencies or research institutions.
Small Business Impact
This contract was not awarded as a small business set-aside, nor is there an indication that it was specifically designed to encourage small business participation through subcontracting. The absence of explicit subcontracting requirements means that the direct impact on the small business ecosystem is likely limited, unless the prime contractor voluntarily engages small businesses. Further analysis would be needed to determine if any subcontracting opportunities were pursued.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA IT Services Contracts
- Federal IT Infrastructure Support
- Scientific Computing Services
- Aerospace Research IT Support
- IT Governance and Security Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Potential limitation of competition due to 'exclusion of sources' clause.
- Lack of explicit small business subcontracting goals.
Tags
it-services, nasa, california, definitive-contract, large-contract, full-and-open-competition, cost-plus-fixed-fee, research-and-development, computer-systems-design-services, information-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $280.2 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC. IGF::OT::IGF THE AMES RESEARCH CENTER (ARC) CONSOLIDATED INFORMATION TECHNOLOGY (IT) SERVICES (ACITS) 3 CONTRACT PROVIDES SERVICES IN THE CATEGORIES IT SYSTEMS&GOVERNANCE SUPPORT, IT SECURITY SUPPORT, NETWORK AND COMMUNICATION SYSTEMS&SUPPORT, APPLICATION MANAGEMENT&SUPPORT, SCIENTIFIC COMPUTING SYSTEMS&SUPPORT, INNOVATION AND EMERGING TECHNOLOGIES, AND OUTREACH/INFORMATIONAL SYSTEMS&SUPPORT
Who is the contractor on this award?
The obligated recipient is ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC.
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 $280.2 million.
What is the period of performance?
Start: 2013-09-01. End: 2020-10-31.
What was the contractor's performance history prior to this award?
ASRC Research and Technology Solutions LLC (ASRC) has a history of performing government contracts, primarily with agencies like NASA and the Department of Defense. Their prior experience would have been a key factor in the evaluation process for the ACITS 3 contract. While specific performance metrics from previous contracts are not detailed here, agencies typically review past performance ratings, any contract disputes, and the successful completion of similar scope work. ASRC's ability to secure this significant IT services contract suggests a generally positive or at least acceptable past performance record with NASA, as agencies often prioritize contractors with proven track records for complex, long-term engagements.
How does the total contract value compare to similar IT service contracts for federal research centers?
The total value of $280.2 million over approximately 7 years (2617 days) for the ACITS 3 contract averages to roughly $40 million per year. This figure is substantial but falls within the expected range for large, consolidated IT service contracts supporting major federal research facilities. For instance, similar contracts at other NASA centers or national laboratories often range from tens to hundreds of millions of dollars, depending on the scope of services, number of users, and complexity of the IT environment. Without specific details on the IT infrastructure and user base at Ames compared to other centers, a precise benchmark is difficult, but the value appears commensurate with the broad scope of services outlined.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates, even though the fee is fixed. While the contractor is incentivized to control costs to protect their fee, there's less direct incentive to minimize costs compared to fixed-price contracts. This structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common in IT services. Effective oversight by the government is crucial to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. The fixed fee itself is negotiated and represents the contractor's profit and indirect costs, which should be reasonable for the services rendered.
How effective was the competition in driving down costs for this contract?
With 7 bidders participating in the full and open competition, there was a moderate level of competition, which generally aids in price discovery. However, the 'after exclusion of sources' clause indicates that not all potential bidders may have been considered, potentially limiting the full competitive pressure. The CPFF structure also means that the 'winning' price isn't a fixed ceiling but rather a cost base plus a fixed fee. To assess cost-effectiveness, one would need to analyze the negotiated fee, the actual costs incurred versus estimates, and compare the overall value proposition against the services delivered. Without detailed cost data and performance outcomes, it's difficult to definitively state how effectively competition drove down costs in this specific instance.
What is the historical spending trend for IT services at NASA's Ames Research Center?
Historical spending data for IT services at NASA's Ames Research Center prior to this $280 million ACITS 3 contract would provide valuable context. If previous contracts were smaller, fragmented, or awarded differently (e.g., multiple smaller contracts instead of one consolidated one), this award might represent a strategic shift towards consolidation and potentially long-term cost savings or efficiencies. Conversely, if past spending was similar in scale, it indicates a consistent level of investment in IT infrastructure and support. Analyzing trends would involve looking at the number and value of IT contracts awarded to Ames over several preceding years to understand if this $280 million award is an anomaly or part of a sustained investment pattern.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $403,400,000
Exercised Options: $403,400,000
Current Obligation: $280,208,673
Actual Outlays: $50,724,160
Subaward Activity
Number of Subawards: 249
Total Subaward Amount: $225,284,034
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-01
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 00:00:00
Last Modified: 2023-07-11
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