NOAA's $99M NCEP Scientific Support Services contract awarded to LYNKER CORPORATION

Contract Overview

Contract Amount: $99,034,436 ($99.0M)

Contractor: Lynker Corporation

Awarding Agency: Department of Commerce

Start Date: 2022-09-01

End Date: 2027-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION (NCEP) SCIENTIFIC SUPPORT SERVICES

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $99.0 million to LYNKER CORPORATION for work described as: NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION (NCEP) SCIENTIFIC SUPPORT SERVICES Key points: 1. Contract provides essential scientific support services to NCEP, a critical component of NOAA's weather and climate forecasting capabilities. 2. LYNKER CORPORATION, a small business, secured this contract through full and open competition. 3. The contract duration is 5 years, aligning with long-term strategic planning for environmental prediction. 4. Services are delivered on a Time and Materials basis, which can pose cost control challenges. 5. The contract is managed by the National Oceanic and Atmospheric Administration (NOAA). 6. This award represents a significant investment in maintaining and enhancing national weather and climate prediction infrastructure.

Value Assessment

Rating: good

The contract value of approximately $99 million over five years for scientific support services appears reasonable given the critical nature of NCEP's mission. Benchmarking against similar large-scale scientific support contracts within NOAA or other federal agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, warrants close monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. The number of bids received (5) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Five offers were received, suggesting a healthy level of interest and competition for this requirement. The competitive process is expected to have driven a fair market price and encouraged innovative solutions from the bidders. The agency's decision to use full and open competition demonstrates a commitment to maximizing value and ensuring the best possible contractor is selected for these vital services.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it helps ensure that the government is not overpaying for essential scientific support services. The presence of multiple bidders typically leads to more favorable pricing and a wider array of technical approaches, ultimately optimizing the use of public funds.

Public Impact

The primary beneficiaries are the National Centers for Environmental Prediction (NCEP) and, by extension, the public who rely on accurate weather, water, and climate forecasts. Services delivered include crucial scientific and technical support essential for the operation and advancement of NCEP's forecasting models and systems. The geographic impact is national, as NCEP's products inform disaster preparedness, resource management, and economic activities across the United States. Workforce implications include the potential for skilled scientific and technical professionals to be employed by LYNKER CORPORATION to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it doesn't have a fixed ceiling on labor hours or material costs.
Reliance on a single small business prime contractor for such a critical and large-value service could present a risk if the contractor faces financial or operational challenges.
The specific technical expertise required for advanced scientific support may be highly specialized, potentially limiting the pool of qualified personnel and increasing labor costs.

Positive Signals

The contract was awarded through full and open competition, indicating a robust selection process that likely identified a capable and competitive offeror.
LYNKER CORPORATION is a small business, and awarding contracts of this magnitude to small businesses supports federal small business goals and fosters growth in the sector.
The 5-year duration provides stability for both the contractor and the agency, allowing for long-term planning and continuity of essential services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the critical mission of environmental prediction. The market for scientific and technical support services to government agencies, particularly those involved in weather, climate, and environmental monitoring, is substantial. Agencies like NOAA often require specialized expertise that goes beyond internal capabilities, leading to contracts like this. Comparable spending benchmarks would involve looking at other large, multi-year scientific support contracts awarded by agencies such as NASA, NSF, or other components of the Department of Commerce.

Small Business Impact

LYNKER CORPORATION, the prime contractor, is identified as a small business. This award represents a significant opportunity for the company to deliver critical services and potentially expand its capabilities and footprint within the federal contracting landscape. While the contract itself is not explicitly a small business set-aside, the award to a small business prime demonstrates the agency's commitment to supporting small business participation in federal procurement. Further analysis would be needed to determine if subcontracting opportunities exist for other small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Oceanic and Atmospheric Administration (NOAA), likely through a designated Contracting Officer's Representative (COR) and program managers within NCEP. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to specific technical and delivery standards. Transparency is generally facilitated through contract award databases and public reporting, although detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Weather and Climate Services
National Environmental Satellite, Data, and Information Service (NESDIS)
National Weather Service (NWS)
Climate Prediction Program for the Americas (CPPA)
Environmental Observation and Prediction Systems

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Potential for contractor performance issues on a large, long-term contract.
Dependence on a single small business prime for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $99.0 million to LYNKER CORPORATION. NATIONAL CENTERS FOR ENVIRONMENTAL PREDICTION (NCEP) SCIENTIFIC SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LYNKER CORPORATION.

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 $99.0 million.

What is the period of performance?

Start: 2022-09-01. End: 2027-08-31.

What is the track record of LYNKER CORPORATION in performing similar scientific support services for federal agencies?

A thorough review of LYNKER CORPORATION's past performance is crucial. While specific details are not provided in the abbreviated data, federal procurement databases (like SAM.gov or FPDS) would typically contain information on past contracts awarded to LYNKER, including their size, duration, scope, and customer satisfaction ratings. Agencies often conduct past performance evaluations as a key part of the source selection process for new contracts. For this specific $99 million contract, NOAA would have evaluated LYNKER's demonstrated ability to successfully manage and execute complex scientific support tasks, ensuring they possess the necessary technical expertise, project management skills, and financial stability to meet NCEP's requirements over the 5-year period.

How does the awarded value of $99 million compare to historical spending on NCEP scientific support services?

To assess the value comparison, one would need to examine historical spending data for NCEP's scientific support services over previous contract periods. If previous contracts for similar services were significantly lower, it might indicate an increase in scope, complexity, or market rates. Conversely, if the value is consistent with or lower than previous awards adjusted for inflation, it suggests the current pricing is in line with historical trends. The abbreviated data does not provide this historical context, but a full analysis would involve comparing the total contract value and annual spending rates against prior agreements to determine if this award represents an increase, decrease, or stable level of investment in these critical services.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure provides flexibility but lacks a definitive ceiling on the total cost unless a ceiling price is established and closely monitored. For NCEP's scientific support services, risks include the contractor potentially billing for excessive labor hours, inefficient work practices, or inflated material costs. Effective oversight by NOAA, including detailed review of timesheets, justification of labor categories, and monitoring of material expenses, is essential to mitigate these risks and ensure the contract remains within budget and delivers good value.

How effective are the current oversight mechanisms in ensuring the successful delivery of scientific support services by LYNKER CORPORATION?

The effectiveness of oversight mechanisms hinges on the diligence and resources allocated by NOAA. Key oversight components include the Contracting Officer's Representative (COR) responsible for day-to-day monitoring, regular performance reviews against the PWS, and potentially independent technical assessments. For a contract of this magnitude and criticality, NOAA should have robust processes for tracking progress, managing scope changes, ensuring quality control, and verifying contractor performance. The success of these mechanisms depends on clear communication channels, timely issue resolution, and the COR's expertise in the scientific domain supported. Without specific details on NOAA's oversight protocols, it's difficult to definitively assess effectiveness, but the 5-year duration necessitates sustained and rigorous oversight.

What is the potential impact of this contract on the small business ecosystem within the federal IT and scientific services sector?

The award to LYNKER CORPORATION, a small business, is a positive signal for the small business ecosystem. It demonstrates that small businesses can compete and win significant federal contracts, potentially enhancing LYNKER's growth, reputation, and capacity. This success can inspire other small businesses and encourage them to pursue similar opportunities. Furthermore, if LYNKER engages in subcontracting, it could create further opportunities for other small businesses, fostering a broader positive impact. However, the concentration of a large contract with a single small business also carries inherent risks, as mentioned previously, highlighting the importance of robust performance and financial management by the prime contractor.

Are there any known performance issues or concerns with LYNKER CORPORATION from previous government contracts?

Assessing LYNKER CORPORATION's performance history is critical. While the provided data does not include specific past performance details, government contract databases and performance evaluations would typically reveal any significant issues. Agencies like NOAA conduct thorough past performance reviews during the source selection process. If LYNKER has a history of performance problems, such as missed deadlines, quality deficiencies, or cost overruns on previous contracts, it would have been a significant factor in NOAA's decision-making. Conversely, a positive past performance record would strengthen confidence in their ability to execute this new contract successfully. A comprehensive review would involve examining CPARS (Contractor Performance Assessment Reporting System) reports if available.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1305M321QNWWX0061

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 5485 CONESTOGA CT STE 220, BOULDER, CO, 80301

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $136,901,061

Exercised Options: $108,523,082

Current Obligation: $99,034,436

Actual Outlays: $60,431,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M420DNWWA0063

IDV Type: IDC

Timeline