NOAA awards $2.6M contract for computer equipment, with delivery orders extending through March 2027

Contract Overview

Contract Amount: $2,617,608 ($2.6M)

Contractor: Earth Networks Inc

Awarding Agency: Department of Commerce

Start Date: 2022-02-18

End Date: 2027-03-26

Contract Duration: 1,862 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LIGHTNING DATA USE TO EXPLORE IN CONCERT WITH COMPLEMENTARY DATA FROM OTHER SOURCES.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $2.6 million to EARTH NETWORKS INC for work described as: LIGHTNING DATA USE TO EXPLORE IN CONCERT WITH COMPLEMENTARY DATA FROM OTHER SOURCES. Key points: 1. Contract value appears reasonable for the duration and scope of computer equipment supply. 2. Full and open competition suggests a healthy market for this type of procurement. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over 4 years indicates a long-term need for these assets. 5. The National Oceanic and Atmospheric Administration (NOAA) is the primary agency utilizing this contract. 6. The contract falls under the 'Computer and Software Stores' category, indicating IT hardware acquisition.

Value Assessment

Rating: good

The contract's total value of $2.6 million over approximately 4.5 years suggests a moderate annual spend for computer equipment. Benchmarking against similar federal contracts for IT hardware indicates this is within a typical range, especially considering potential volume discounts or specialized requirements. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the equipment meets NOAA's needs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, driving down prices and encouraging innovation. The open nature of the competition suggests that the government likely received competitive pricing for the computer equipment.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiaries are NOAA personnel who will receive updated computer equipment to support their scientific and operational missions. The services delivered include the provision of computer hardware, essential for data processing, analysis, and communication within NOAA. The geographic impact is likely concentrated where NOAA facilities are located, supporting its national operations. Workforce implications include ensuring NOAA staff have reliable and up-to-date technology to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for outdated technology if delivery orders are not managed proactively.
Risk of vendor lock-in if specific configurations become standard without re-competition.
Dependence on a single awardee for a significant period could limit future flexibility.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially good pricing.
Long-term contract allows for consistent supply of necessary equipment.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on the procurement of computer hardware. The federal market for IT equipment is substantial, with agencies constantly needing to refresh and upgrade their technological infrastructure. NOAA's spending on computer equipment is a component of the broader federal IT budget, which aims to maintain and enhance the government's digital capabilities. Comparable spending benchmarks would involve analyzing other agencies' IT hardware acquisition contracts.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the 'full and open competition' nature might imply that small businesses had the opportunity to compete if they met the requirements, though larger prime contractors may also be involved in subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers within the National Oceanic and Atmospheric Administration (NOAA). Accountability measures are inherent in the firm fixed-price contract type, requiring the vendor to deliver specified goods. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Hardware Procurement
NOAA Information Technology Services
General Services Administration (GSA) Schedule Contracts (potential source)
Department of Commerce IT Spending

Risk Flags

Technological Obsolescence Risk
Vendor Performance Uncertainty
Potential for Scope Creep in Delivery Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.6 million to EARTH NETWORKS INC. LIGHTNING DATA USE TO EXPLORE IN CONCERT WITH COMPLEMENTARY DATA FROM OTHER SOURCES.

Who is the contractor on this award?

The obligated recipient is EARTH NETWORKS INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2022-02-18. End: 2027-03-26.

What is the specific type and quantity of computer equipment being procured under this contract?

The provided data indicates the contract is for 'Computer and Software Stores' (NAICS code 443120) but does not specify the exact types or quantities of computer equipment. This level of detail is typically found in the contract's statement of work or delivery order documents. Without this granular information, it's challenging to assess if the $2.6 million value is appropriate for the specific items being acquired. Future analysis could involve requesting or accessing these detailed procurement documents to understand the scope fully.

How does the pricing of this contract compare to similar IT hardware procurements by other federal agencies?

Benchmarking the pricing requires access to detailed pricing information for the specific equipment and comparison with similar contracts awarded by other agencies. The firm fixed-price nature provides a baseline for cost certainty. However, without knowing the exact specifications (e.g., brand, model, configuration, quantity) and the prevailing market rates at the time of award, a precise comparison is difficult. Generally, full and open competition aims to achieve market-driven pricing, suggesting this contract likely secured competitive rates, but a detailed analysis would necessitate comparing unit costs for identical or highly similar items.

What are the potential risks associated with a contract of this duration (over 4 years) for computer equipment?

Contracts for rapidly evolving technology like computer equipment carry inherent risks due to technological obsolescence. A four-year duration means the equipment procured early in the contract might be outdated by its end. Other risks include potential price fluctuations in the market that are not captured by the fixed-price agreement if not structured carefully, and the possibility that the vendor's capabilities or the market landscape could change, impacting service or support. Proactive management by NOAA, including clear specifications and performance metrics, is crucial to mitigate these risks.

What is the track record of the contractor, EARTH NETWORKS INC, in fulfilling federal IT hardware contracts?

Information regarding the specific track record of EARTH NETWORKS INC for this particular type of contract (federal IT hardware) is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards to this vendor, and their history of on-time delivery and quality compliance. Without this external data, it's difficult to gauge their reliability and past success in similar federal procurements.

How does NOAA's spending on computer equipment through this contract align with its overall IT budget and mission priorities?

This contract represents a portion of NOAA's overall IT expenditure, specifically for hardware acquisition. To understand its alignment with mission priorities, one would need to know how critical this equipment is to NOAA's core functions, such as weather forecasting, climate research, or oceanic monitoring. Analyzing NOAA's strategic IT plans and budget allocations would reveal whether this $2.6 million investment is prioritized appropriately to support its scientific and operational objectives. The long duration suggests it's tied to sustained operational needs.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12410 MILESTONE CENTER DR, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,617,608

Exercised Options: $2,617,608

Current Obligation: $2,617,608

Actual Outlays: $1,267,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0188W

IDV Type: FSS

Timeline