NOAA Awards $190M for IT Sustainment Support to Earth Resources Technology, LLC

Contract Overview

Contract Amount: $190,020,184 ($190.0M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2021-03-29

End Date: 2026-09-30

Contract Duration: 2,011 days

Daily Burn Rate: $94.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUSTAINMENT SUPPORT (TASK ORDER 3) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $190.0 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: SUSTAINMENT SUPPORT (TASK ORDER 3) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ Key points: 1. Significant contract value for IT sustainment services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk appears moderate given the contract type and duration. 4. The sector is IT services, specifically Other Computer Related Services.

Value Assessment

Rating: good

The contract value of $190M over approximately 5.5 years suggests a substantial investment. Benchmarking against similar IT sustainment contracts would be necessary for a precise pricing assessment, but the value is significant.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential IT sustainment, with competition aiming to ensure value for money.

Public Impact

Ensures continued operation of critical IT systems for NOAA. Supports scientific research and data collection by NOAA. Potential impact on technological advancements within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed carefully.
Long contract duration (over 5 years) may reduce flexibility.

Positive Signals

Awarded under full and open competition.
Supports critical NOAA operations.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is crucial for government operations, and benchmarks vary widely based on service type and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and subcontracting opportunities for small businesses are not explicitly detailed.

Oversight & Accountability

Oversight will be critical to manage the Time and Materials aspect of the contract and ensure performance aligns with NOAA's mission objectives. The contracting agency is the Department of Commerce.

Related Government Programs

Other Computer Related Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Time and Materials contract type.
Long contract duration.
Lack of small business participation noted.
Potential for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $190.0 million to EARTH RESOURCES TECHNOLOGY, LLC. SUSTAINMENT SUPPORT (TASK ORDER 3) UNDER THE OPERATIONS, MAINTENANCE, AND SUSTAINMENT (OMS) IDIQ

Who is the contractor on this award?

The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.

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 $190.0 million.

What is the period of performance?

Start: 2021-03-29. End: 2026-09-30.

What specific IT systems and services are covered under this sustainment contract, and how critical are they to NOAA's mission?

The contract covers sustainment support for unspecified IT systems. Given NOAA's mission involves weather forecasting, climate research, and oceanic monitoring, these IT systems are likely critical for data processing, storage, and dissemination. Understanding the specific systems would allow for a better assessment of the contract's direct impact and necessity.

How will NOAA ensure cost control and prevent potential overruns with a Time and Materials contract over a 5.5-year period?

NOAA will likely implement robust oversight mechanisms, including detailed performance monitoring, regular cost reviews, and potentially establishing cost ceilings or fixed-price components for specific tasks. Strong contract management and clear performance metrics are essential to mitigate risks associated with Time and Materials contracts and ensure efficient use of taxpayer funds.

What is the benchmarked cost for similar IT sustainment services, and how does this contract's value compare?

Benchmarking IT sustainment costs is complex due to varying service levels, system complexities, and vendor overhead. While specific benchmarks are not provided, the $190M value over 5.5 years indicates a significant investment. A detailed analysis comparing labor rates, overhead, and service scope against industry standards would be needed to definitively assess if this contract represents good value.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14401 SWEITZER LN STE 300, LAUREL, MD, 20707

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $193,927,261

Exercised Options: $193,927,261

Current Obligation: $190,020,184

Actual Outlays: $114,003,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1332KP21DNEEB0011

IDV Type: IDC

Timeline