NASA's $85.8M Research Facilities Contract with Inuteq Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $85,837,401 ($85.8M)
Contractor: Inuteq, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2014-11-01
End Date: 2021-01-03
Contract Duration: 2,255 days
Daily Burn Rate: $38.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::CT::IGF RESEARCH FACILITIES AND ENGINEERING SUPPORT SERVICES
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $85.8 million to INUTEQ, LLC for work described as: IGF::CT::IGF RESEARCH FACILITIES AND ENGINEERING SUPPORT SERVICES Key points: 1. The contract value of $85.8M for IT facilities management is significant. 2. Competition was full and open after exclusion of sources, suggesting potential limitations. 3. The cost-plus award fee structure introduces risk for taxpayer dollars. 4. The sector is IT, specifically Computer Facilities Management Services.
Value Assessment
Rating: questionable
The contract's cost-plus award fee structure makes direct pricing assessment difficult without detailed performance data. Benchmarking against similar IT facilities management contracts is challenging due to the specific nature of research facilities support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard procurement process that may have limited the pool of eligible bidders and potentially impacted price discovery.
Taxpayer Impact: The cost-plus award fee structure, combined with limited competition, raises concerns about maximizing taxpayer value and ensuring the most competitive pricing was achieved.
Public Impact
Taxpayers may not have received the best possible price due to the procurement method. The duration of the contract (over 6 years) means potential cost overruns could be substantial. Lack of transparency in award fee components can obscure true service costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure
- Limited competition method
- Lack of small business participation
Positive Signals
- Contract awarded to a single entity
- Clear definition of services provided
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for similar services can vary widely based on complexity and scale, but the $85.8M value over its term is substantial.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities and potentially foster innovation within the sector.
Oversight & Accountability
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further oversight to ensure the exclusion of sources was justified and did not unduly restrict competition. The cost-plus award fee mechanism requires diligent monitoring of performance and costs.
Related Government Programs
- Computer Facilities Management Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for inflated costs due to CPAF structure.
- Limited competition may have reduced price competitiveness.
- Lack of small business participation.
- Long contract duration increases exposure to cost overruns.
- Ambiguity in 'exclusion of sources' justification.
Tags
computer-facilities-management-services, national-aeronautics-and-space-administr, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $85.8 million to INUTEQ, LLC. IGF::CT::IGF RESEARCH FACILITIES AND ENGINEERING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is INUTEQ, 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 $85.8 million.
What is the period of performance?
Start: 2014-11-01. End: 2021-01-03.
What was the justification for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method, and how did this impact the final contract price?
The justification for excluding sources is critical to understanding the competitive landscape. If the exclusion was based on specific technical requirements or unique capabilities, it might be justifiable. However, if it arbitrarily limited the bidder pool, it could have led to higher prices than a truly open competition would have yielded. A thorough review of the procurement documentation is needed to assess the validity of the exclusion and its financial implications for taxpayers.
How effectively were the award fee criteria structured and monitored to ensure optimal performance and cost control under the Cost Plus Award Fee (CPAF) structure?
The effectiveness of the CPAF structure hinges on well-defined, objective, and measurable award fee criteria. NASA's oversight team must have rigorously evaluated Inuteq's performance against these criteria. Without transparency into the specific metrics and the awarded fees, it's difficult to ascertain if the structure truly incentivized efficiency or simply added costs. Regular audits and performance reviews are essential to validate the value received for the award fees paid.
What is the benchmark cost per unit for Computer Facilities Management Services of this nature, and how does Inuteq's pricing compare, considering the contract's specific research facility context?
Establishing a precise benchmark for 'Computer Facilities Management Services' in a specialized research facility context is complex. Standard industry benchmarks may not fully capture the unique demands, security protocols, and specialized equipment involved. A detailed analysis comparing Inuteq's costs against similar, albeit potentially less specialized, contracts, while accounting for the added complexities of research facilities, is necessary to determine if the pricing is reasonable and reflects fair market value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NND12374119R
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $95,552,722
Exercised Options: $95,552,722
Current Obligation: $85,837,401
Actual Outlays: $20,653,582
Subaward Activity
Number of Subawards: 66
Total Subaward Amount: $21,517,776
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-11-01
Current End Date: 2021-01-03
Potential End Date: 2021-01-03 00:00:00
Last Modified: 2024-08-21
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