Commerce awards $1.11M for Mississippi network services, but competition details are limited

Contract Overview

Contract Amount: $111,240 ($111.2K)

Contractor: THE University of Southern Mississippi

Awarding Agency: Department of Commerce

Start Date: 2024-06-17

End Date: 2027-06-16

Contract Duration: 1,094 days

Daily Burn Rate: $102/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK SERVICES AND CONNECTIVITY REQUIRED TO SUPPORT THE OFFICE OF MARINE AND AVIATION OPERATIONS AND N-WAVE LOCATED IN THE STATE OF MISSISSIPPI DETAILED IN THE ATTACHED STATEMENT OF NEED, FOR NETWORK CONNECTIVITY AND ADVANCED LAYER 2 SERVICE (AL2S

Place of Performance

Location: HATTIESBURG, FORREST County, MISSISSIPPI, 39406

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $111,240 to THE UNIVERSITY OF SOUTHERN MISSISSIPPI for work described as: NETWORK SERVICES AND CONNECTIVITY REQUIRED TO SUPPORT THE OFFICE OF MARINE AND AVIATION OPERATIONS AND N-WAVE LOCATED IN THE STATE OF MISSISSIPPI DETAILED IN THE ATTACHED STATEMENT OF NEED, FOR NETWORK CONNECTIVITY AND ADVANCED LAYER 2 SERVICE (AL2S Key points: 1. The contract's value appears reasonable for network services, but a lack of competitive bidding limits a definitive value-for-money assessment. 2. The sole-source nature of this award raises questions about potential price overruns and missed opportunities for cost savings. 3. Limited competition increases the risk of suboptimal service delivery or higher-than-market prices. 4. The contract supports critical NOAA operations in Mississippi, indicating a need for reliable network infrastructure. 5. This award falls within the IT services sector, specifically computer systems design. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: fair

The contract value of $1.11 million for 1094 days of network services is difficult to benchmark due to the lack of competitive bidding. Without comparable contract data or a competitive process, it's challenging to definitively assess if this represents good value for money. The fixed-price nature provides some cost certainty, but the absence of competition means the government may not have secured the most economical solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The provided data indicates a sole-source award, meaning only one vendor was solicited. This significantly limits price discovery and suggests potential reasons for non-competition, such as a unique capability or a lack of available vendors. The absence of multiple bidders means the government did not benefit from a competitive marketplace to drive down costs.

Taxpayer Impact: The sole-source nature means taxpayers may have paid a premium compared to what could have been achieved through a competitive process. Without competing the requirement, there's a reduced assurance that the selected vendor offered the best possible price for the required services.

Public Impact

The Office of Marine and Aviation Operations and N-WAVE in Mississippi will benefit from enhanced network connectivity. The contract ensures the delivery of essential network services and advanced layer 2 connectivity. The geographic impact is localized to Mississippi, supporting federal operations within the state. The contract supports the IT infrastructure necessary for NOAA's scientific and operational missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can indicate potential issues with market research or vendor lock-in.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Fixed-price contract type helps control costs.
Supports critical NOAA operations, ensuring mission continuity.
Contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a wide range of providers, from large system integrators to specialized firms. The market for network services and connectivity is robust, with numerous companies capable of delivering such solutions. The value of this contract, approximately $1.11 million, is relatively small within the broader federal IT spending landscape, but significant for the specific operational needs it addresses.

Small Business Impact

The contract was not competed under SAP and is listed as sole-source, with no indication of small business set-asides or subcontracting plans. The absence of competition and specific small business considerations suggests that small businesses were likely not actively involved in this procurement. This award does not appear to contribute to the government's small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's internal audit and program management functions, with potential review by the Inspector General for specific concerns. Transparency is limited due to the sole-source nature of the award, as the justification for not competing is not publicly detailed. Accountability rests with NOAA to ensure the contractor meets the terms of the purchase order.

Related Government Programs

NOAA Network Services
Federal IT Infrastructure Contracts
Computer Systems Design Services
Network Connectivity Solutions

Risk Flags

Sole-source award
Limited competition justification
Lack of performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $111,240 to THE UNIVERSITY OF SOUTHERN MISSISSIPPI. NETWORK SERVICES AND CONNECTIVITY REQUIRED TO SUPPORT THE OFFICE OF MARINE AND AVIATION OPERATIONS AND N-WAVE LOCATED IN THE STATE OF MISSISSIPPI DETAILED IN THE ATTACHED STATEMENT OF NEED, FOR NETWORK CONNECTIVITY AND ADVANCED LAYER 2 SERVICE (AL2S

Who is the contractor on this award?

The obligated recipient is THE UNIVERSITY OF SOUTHERN MISSISSIPPI.

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 $111,240.

What is the period of performance?

Start: 2024-06-17. End: 2027-06-16.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is effectively a sole-source award. Without further documentation or a detailed justification from the agency, the specific reasons for not pursuing a competitive bidding process remain unclear. Typically, sole-source awards are justified by factors such as unique technical capabilities, urgent and compelling needs where only one vendor can fulfill the requirement, or a lack of market availability. The agency (Department of Commerce, National Oceanic and Atmospheric Administration) would need to provide documentation outlining the specific circumstances that precluded competition to fully understand the rationale behind this procurement decision.

How does the per-day cost of this contract compare to industry benchmarks for similar network services?

The contract is valued at $1,112,400 over 1094 days, equating to approximately $1,016.82 per day. Benchmarking this against industry standards for network services and advanced layer 2 connectivity is challenging without specific details on the service level agreements (SLAs), bandwidth, equipment, and support included. However, for enterprise-level network services, this daily rate could be considered moderate to high, depending heavily on the scope and quality of services provided. The lack of competitive bidding prevents a direct comparison to what other vendors might offer for similar services, making it difficult to ascertain if this represents optimal market value.

What are the potential risks associated with awarding a sole-source contract for critical network infrastructure?

Awarding a sole-source contract for critical network infrastructure carries several risks. Firstly, there is a heightened risk of paying a premium price, as the absence of competition removes the downward pressure on costs that a bidding process provides. Secondly, the government may not receive the most innovative or best-suited solution available in the market, as only one vendor's offering is considered. Thirdly, it can lead to vendor lock-in, making it difficult and costly to switch providers in the future. Finally, a lack of transparency in the sole-source justification can raise concerns about fairness and efficiency in government spending.

What is the track record of The University of Southern Mississippi in providing federal IT services, particularly network connectivity?

Information regarding The University of Southern Mississippi's specific track record in providing federal IT services, especially network connectivity, is not detailed in the provided data. As an educational institution, its primary mission is research and education, though universities often have robust internal IT departments and may engage in federal contracts. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to assess their past performance, contract history, and client satisfaction ratings for similar federal IT service contracts. Without this external data, assessing their suitability and past performance for this specific NOAA requirement is speculative.

How does this contract's value compare to other federal spending on network services in Mississippi?

Comparing this $1.11 million contract for network services in Mississippi to other federal spending in the state requires access to broader federal procurement data specific to the region. Federal spending on IT and network services can vary significantly based on agency needs, project scope, and duration. Without a comprehensive analysis of other contracts awarded to federal agencies or military installations within Mississippi for similar network infrastructure and services, it is difficult to establish a precise benchmark. However, $1.11 million over three years for supporting specific NOAA operations suggests a targeted investment rather than a large-scale network overhaul.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M424Q0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 118 COLLEGE DRIVE, HATTIESBURG, MS, 39406

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $222,480

Exercised Options: $111,240

Current Obligation: $111,240

Actual Outlays: $74,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline