Commerce Dept Awards $2.2M for EMRS Support to ITEGRITY INC, Lacking Competition

Contract Overview

Contract Amount: $2,228,910 ($2.2M)

Contractor: Itegrity Inc

Awarding Agency: Department of Commerce

Start Date: 2024-02-18

End Date: 2027-02-03

Contract Duration: 1,081 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENGINEERING MANAGEMENT REPORTING SYSTEM (EMRS) SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $2.2 million to ITEGRITY INC for work described as: ENGINEERING MANAGEMENT REPORTING SYSTEM (EMRS) SUPPORT Key points: 1. Contract Value: $2.23 million over approximately 3 years. 2. Competition: Awarded on a sole-source basis, limiting price discovery. 3. Risk: Potential for overpayment due to lack of competitive bidding. 4. Sector: Engineering Services (NAICS 541330).

Value Assessment

Rating: questionable

The contract is a definitive contract with a firm fixed price, which is generally good for cost control. However, without competitive bidding, it's difficult to assess if the $2.23 million price is reasonable compared to market rates for similar engineering support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ITEGRITY INC, was considered. This significantly limits competition and the government's ability to achieve the best possible price through market forces.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium without the benefit of competitive pressure to drive down costs.

Public Impact

Citizens may not receive the best value for their tax dollars due to the sole-source award. The absence of competition could stifle innovation and efficiency in the provision of engineering support services. Transparency in government spending is reduced when contracts are not openly competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price benchmark
Limited transparency

Positive Signals

Firm fixed price contract type

Sector Analysis

Engineering Services (NAICS 541330) is a broad category. Without more specific details on the EMRS system, it's hard to benchmark against similar contracts. However, sole-source awards in specialized technical fields often carry higher price tags.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award likely precluded small business participation.

Oversight & Accountability

The award process for this sole-source contract needs scrutiny to ensure proper justification was documented and that all avenues for competition were exhausted. Oversight is crucial to prevent potential misuse of sole-source authority.

Related Government Programs

Engineering Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Potential for overpayment due to absence of market competition.
Limited insight into the specific services provided under EMRS support.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.2 million to ITEGRITY INC. ENGINEERING MANAGEMENT REPORTING SYSTEM (EMRS) SUPPORT

Who is the contractor on this award?

The obligated recipient is ITEGRITY 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 $2.2 million.

What is the period of performance?

Start: 2024-02-18. End: 2027-02-03.

What is the justification for the sole-source award of the EMRS support contract?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of other responsible sources. Without access to the specific justification documentation, it's impossible to determine the validity of the sole-source determination for the EMRS support contract. This information is critical for assessing the necessity of avoiding competition.

How does the $2.23 million price compare to industry benchmarks for similar engineering support services?

Benchmarking this contract's price is challenging without detailed scope of work and specific service levels. However, the absence of competition inherently makes it difficult to ascertain if the price reflects fair market value. A competitive process would typically yield a price closer to market rates, whereas sole-source awards may deviate significantly without robust justification.

What are the potential risks associated with a sole-source contract for critical systems like EMRS?

Sole-source contracts for critical systems like EMRS carry risks of inflated costs, reduced service quality, and vendor lock-in. Without competitive pressure, the contractor may have less incentive to innovate or maintain high standards. Furthermore, the government becomes heavily reliant on a single vendor, potentially facing challenges if that vendor's performance declines or if pricing increases significantly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8380 COLESVILLE RD, SILVER SPRING, MD, 20910

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,973,890

Exercised Options: $2,906,572

Current Obligation: $2,228,910

Actual Outlays: $1,890,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline