NASA's $26.4M IT Security Contract to Indus Corporation: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $26,357,936 ($26.4M)
Contractor: Indus Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-11-01
End Date: 2010-06-30
Contract Duration: 606 days
Daily Burn Rate: $43.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE CONTRACTOR IS RESPONSIBLE FOR THE INFORMATION TECHNOLOGY SECURITY REQUIREMENTS ON ALL HARDWARE, SYSTEM SOFTWARE, AND APPLICATIONS MAINTAINED, DEVELOPED, OR SUSTAINED UNDER THIS CONTRACT. THE SCOPE OF THIS EFFORT ENCOMPASSES THE FOLLOWING TYPES OF SUPPORT: - PROGRAM MANAGEMENT SERVICES - COMPUTER OPERATIONS SERVICES - BUSINESS INFRASTRUCTURE SUPPORT SERVICES - APPLICATIONS DEVELOPMENT AND SUSTAINING ENGINEERING SERVICES
Place of Performance
Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $26.4 million to INDUS CORPORATION for work described as: THE CONTRACTOR IS RESPONSIBLE FOR THE INFORMATION TECHNOLOGY SECURITY REQUIREMENTS ON ALL HARDWARE, SYSTEM SOFTWARE, AND APPLICATIONS MAINTAINED, DEVELOPED, OR SUSTAINED UNDER THIS CONTRACT. THE SCOPE OF THIS EFFORT ENCOMPASSES THE FOLLOWING TYPES OF SUPPORT: - PROGRAM MANAGEMENT… Key points: 1. Contract focused on comprehensive IT security for hardware, software, and applications. 2. Services include program management, computer operations, business infrastructure, and application development. 3. The contract was awarded on a Cost Plus Fixed Fee basis. 4. Duration of the contract was approximately 606 days. 5. The contractor, Indus Corporation, has a significant role in NASA's IT security posture. 6. The contract was not competed, raising questions about potential cost efficiencies. 7. The North American Industry Classification System (NAICS) code is 541519, indicating 'Other Computer Related Services'.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to higher costs if not managed rigorously, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without comparable contract data or a competitive process, it's difficult to definitively assess if NASA received optimal value for the $26.4 million spent. The absence of competition suggests potential risks of inflated pricing or less incentive for cost-saving innovations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach bypasses the standard procurement process designed to foster competition and identify the most cost-effective solution. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. It also raises questions about the justification for not seeking bids from other qualified IT security providers.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest price. This also reduces transparency in the procurement process.
Public Impact
NASA's IT infrastructure and sensitive data are protected by the services rendered. Ensures the continuity of critical IT operations and business infrastructure support for NASA. Supports the development and maintenance of essential applications used by the agency. The contract directly impacts NASA's ability to maintain its technological edge and operational security. Workforce implications are primarily within Indus Corporation's IT security and development teams.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have resulted in higher costs for taxpayers.
- Sole-source award limits transparency and potential for better pricing.
- CPFF contract type can incentivize cost overruns if not closely monitored.
Positive Signals
- Contract addresses critical IT security requirements for a major federal agency.
- Indus Corporation is responsible for a broad range of IT services.
- Contract duration provided a stable period for essential IT support.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT security and related support functions. The IT services market is highly competitive, with numerous firms offering specialized cybersecurity, software development, and infrastructure management. NASA, as a major government agency, represents a significant client for IT services, and contracts of this nature are crucial for maintaining its advanced technological operations. Comparable spending benchmarks in this area would typically involve analyzing other large federal IT security contracts, but the sole-source nature here makes direct comparison difficult.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have significant subcontracting implications for small businesses based on the provided details. The sole-source nature of the award further suggests that opportunities for small business participation through competitive bidding were not pursued. This contract likely did not contribute to the government's small business contracting goals.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve NASA's contracting officers and program managers responsible for monitoring performance, costs, and adherence to contract terms. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure that all reimbursed costs are allowable and reasonable. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA IT Support Services
- Federal Cybersecurity Contracts
- IT Services for Government Agencies
- Application Development and Maintenance Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee pricing structure
- Lack of competitive bidding
Tags
it-services, cybersecurity, nasa, national-aeronautics-and-space-administration, cost-plus-fixed-fee, sole-source, indus-corporation, computer-operations, application-development, program-management, maryland, other-computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $26.4 million to INDUS CORPORATION. THE CONTRACTOR IS RESPONSIBLE FOR THE INFORMATION TECHNOLOGY SECURITY REQUIREMENTS ON ALL HARDWARE, SYSTEM SOFTWARE, AND APPLICATIONS MAINTAINED, DEVELOPED, OR SUSTAINED UNDER THIS CONTRACT. THE SCOPE OF THIS EFFORT ENCOMPASSES THE FOLLOWING TYPES OF SUPPORT: - PROGRAM MANAGEMENT SERVICES - COMPUTER OPERATIONS SERVICES - BUSINESS INFRASTRUCTURE SUPPORT SERVICES - APPLICATIONS DEVELOPMENT AND SUSTAINING ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is INDUS CORPORATION.
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 $26.4 million.
What is the period of performance?
Start: 2008-11-01. End: 2010-06-30.
What is the track record of Indus Corporation with NASA and other federal agencies?
Without specific data on Indus Corporation's past performance with NASA or other federal agencies beyond this contract, a comprehensive track record assessment is not possible. However, the award of a $26.4 million contract suggests a level of capability and trust from NASA. To fully assess their track record, one would need to examine past performance reviews, any documented issues or commendations on previous contracts, and their overall history of delivering IT security and related services. A deeper dive would involve searching federal procurement databases for other contracts awarded to Indus Corporation and analyzing their performance metrics and client feedback.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for IT security services?
The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, as is common in complex IT development and security projects. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns if not managed effectively. FFP contracts provide greater cost certainty for the government but may require a more detailed initial scope. Other types like Cost-Plus-Incentive-Fee (CPIF) tie the fee to performance targets, encouraging efficiency. For IT security, the choice of contract type depends heavily on the predictability of the requirements and the government's risk tolerance.
What are the potential risks associated with a sole-source IT security contract of this magnitude?
A sole-source IT security contract of this magnitude carries several potential risks. Primarily, the lack of competition means NASA may not have secured the most cost-effective solution available in the market, potentially leading to higher expenditures than necessary. There's also a reduced incentive for the contractor to innovate or optimize performance aggressively, as they face no direct competitive pressure. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. Without competitive proposals, it's harder to validate that the chosen contractor's technical approach and pricing are truly superior or even competitive.
How effective was this contract in meeting NASA's IT security requirements?
Assessing the effectiveness of this contract requires access to NASA's internal performance evaluations, acceptance criteria, and any post-award reviews conducted for Indus Corporation. The provided data outlines the scope of services, including program management, computer operations, business infrastructure support, and application development/sustaining engineering, all under the umbrella of IT security. Without specific metrics on system uptime, security incident reduction, vulnerability management, or successful application deployments, a definitive judgment on effectiveness cannot be made. The duration of the contract (over 1.5 years) suggests a sustained effort to meet ongoing security needs.
What is the historical spending trend for similar IT security services at NASA?
Analyzing historical spending trends for similar IT security services at NASA would require access to NASA's procurement data over multiple fiscal years, looking specifically at contracts with similar NAICS codes (like 541519) and service descriptions related to IT security, operations, and development. This contract, awarded in late 2008 and ending mid-2010, represents a snapshot of spending during that period. To understand trends, one would need to compare this contract's value and scope against other IT security contracts awarded before and after this period, considering factors like inflation, evolving technology, and changes in agency needs. The sole-source nature of this specific award might skew comparisons with competitively bid contracts.
What are the implications of the 'Other Computer Related Services' NAICS code for this contract?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically classified under other codes. For this contract, it indicates that the services provided by Indus Corporation likely extended beyond standard IT support or software development, potentially including specialized consulting, IT security assessments, system integration, or managed IT services that don't fit neatly into more specific categories. This broad classification can sometimes make it challenging to benchmark spending against more narrowly defined IT service contracts, as the specific activities within 'Other Computer Related Services' can vary significantly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1951 KIDWELL DR 8TH FL, VIENNA, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,300,000
Exercised Options: $27,159,596
Current Obligation: $26,357,936
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-01
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2010-10-28
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