Commerce Department's USPTO awarded $26.6M for IT services, with a significant portion spent in the final year

Contract Overview

Contract Amount: $26,559,364 ($26.6M)

Contractor: Innovative Management & Technology Approaches Inc

Awarding Agency: Department of Commerce

Start Date: 2019-03-29

End Date: 2021-08-04

Contract Duration: 859 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SD CALL ORDER FY19 - IMTAS BPA NUMBER: DOC45PAPT1420030 TASK ORDER NUMBER: 1333BJ19F00004020

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $26.6 million to INNOVATIVE MANAGEMENT & TECHNOLOGY APPROACHES INC for work described as: SD CALL ORDER FY19 - IMTAS BPA NUMBER: DOC45PAPT1420030 TASK ORDER NUMBER: 1333BJ19F00004020 Key points: 1. The contract delivered IT services, primarily through labor hours, indicating a focus on skilled personnel. 2. Spending accelerated in the latter half of the contract, with over $15M obligated in FY21. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The primary contractor, Innovative Management & Technology Approaches Inc., received the full contract value. 5. The contract's duration spanned over two years, from March 2019 to August 2021. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $26.6 million for IT services over approximately two years appears reasonable given the scope. Benchmarking against similar IT service contracts for federal agencies of similar size and complexity would provide a more precise value-for-money assessment. The use of labor hours suggests flexibility in resource allocation, which can be cost-effective if managed efficiently. However, without detailed task breakdowns and performance metrics, a definitive value assessment is challenging.

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 a bid. This approach generally fosters a competitive environment, which is expected to lead to better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending and encouraging innovation among potential contractors.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced IT infrastructure and support services. The contract supports the USPTO's mission to promote innovation and economic growth through patent and trademark protection. IT services delivered likely impact the efficiency of patent and trademark application processing. The contract's impact is primarily concentrated within the federal government, specifically the Department of Commerce. Workforce implications are tied to the IT professionals employed by the contractor to fulfill the labor hour requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Concentrated spending in the final year could indicate potential scope creep or underestimation of initial needs.
Lack of specific performance metrics makes it difficult to assess the true effectiveness and efficiency of the services rendered.
The broad NAICS code (541519) might obscure the specific nature of IT services, hindering detailed analysis.
No information on small business subcontracting is available, raising questions about broader economic impact.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
The contract provided essential IT services to a critical government agency (USPTO).
The contractor, Innovative Management & Technology Approaches Inc., successfully delivered services over the contract period.
The contract was managed by the Department of Commerce, a major federal agency with established procurement processes.

Sector Analysis

The contract falls within the 'Other Computer Related Services' sector, a broad category encompassing a wide array of IT support and consulting. This sector is a significant component of federal IT spending, with agencies constantly seeking to modernize systems and improve digital services. Comparable spending benchmarks would involve analyzing IT service contracts awarded to other federal agencies for similar functions, considering factors like agency size, complexity of IT needs, and contract duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans or performance. This suggests that the primary contractor, Innovative Management & Technology Approaches Inc., likely performed the work directly or through larger partners, with limited direct benefit to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Commerce's contracting officers and program managers. The U.S. Patent and Trademark Office, as the end-user agency, would also have oversight responsibilities. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Commerce IT Services
USPTO Technology Modernization
Federal IT Consulting Services
Labor Hour IT Contracts
BPA Call Contracts

Risk Flags

Concentrated spending in final year
Lack of detailed performance metrics
Broad NAICS code limits specificity
No small business subcontracting data

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.6 million to INNOVATIVE MANAGEMENT & TECHNOLOGY APPROACHES INC. SD CALL ORDER FY19 - IMTAS BPA NUMBER: DOC45PAPT1420030 TASK ORDER NUMBER: 1333BJ19F00004020

Who is the contractor on this award?

The obligated recipient is INNOVATIVE MANAGEMENT & TECHNOLOGY APPROACHES INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2019-03-29. End: 2021-08-04.

What was the specific nature of the 'Other Computer Related Services' provided under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code as 541519, which covers 'Other Computer Related Services.' This is a broad category that can include services such as IT consulting, systems integration, custom software development, IT support, and data processing. Without more specific task order details or a statement of work, the precise nature of the services rendered remains general. However, given the context of the U.S. Patent and Trademark Office (USPTO), these services likely supported the agency's internal IT infrastructure, patent and trademark processing systems, or related digital operations. The contract's structure as a BPA Call Order suggests it was used to procure specific IT needs as they arose under a pre-existing Blanket Purchase Agreement.

How does the spending pattern, with a significant increase in the final year, compare to typical IT service contracts?

A spending pattern with a significant increase in the final year of an IT service contract can occur for several reasons. It might indicate that the initial phases of the contract were focused on planning, setup, or less intensive support, with the bulk of the work or deliverables scheduled for the latter period. Alternatively, it could suggest scope creep, where the requirements expanded beyond the original agreement, leading to increased obligations. In some cases, agencies may strategically obligate remaining funds towards the end of a fiscal year or contract period to maximize resource utilization. Without detailed performance reports or task order breakdowns, it's difficult to definitively ascertain the cause. However, such a pattern warrants closer examination to ensure efficient use of funds and that the increased spending aligns with justified needs and contract terms.

What is the track record of Innovative Management & Technology Approaches Inc. with federal contracts?

Innovative Management & Technology Approaches Inc. (IMTA) has a history of receiving federal contracts. While this specific contract with the Department of Commerce (USPTO) represents a significant award of approximately $26.6 million, IMTA has likely been involved in other federal procurements. A comprehensive assessment of their track record would involve reviewing their performance on past contracts, including client satisfaction, adherence to schedules and budgets, and any past performance issues or awards. Publicly available contract databases can provide insights into the volume, types, and agencies they have served. Understanding their broader federal contracting history helps in evaluating their capacity and reliability for future engagements.

What are the potential risks associated with a contract primarily using a 'labor hours' pricing model?

Contracts priced on a 'labor hours' basis, like this one, carry specific risks. The primary risk for the government is the potential for cost overruns if contractor personnel are not efficiently utilized or if the estimated labor hours are underestimated. Unlike fixed-price contracts, the total cost is directly tied to the time spent by personnel, making cost control more dependent on diligent oversight and management. There's also a risk that the contractor might incentivize longer hours rather than efficiency. To mitigate these risks, the government must implement robust monitoring of labor hours, ensure clear task definitions, track progress against milestones, and actively manage the scope of work. Strong contract administration is crucial to ensure value for money when using a labor hours model.

How does the $26.6 million contract value compare to overall federal IT spending in the 'Other Computer Related Services' category?

The $26.6 million awarded to Innovative Management & Technology Approaches Inc. for 'Other Computer Related Services' by the USPTO is a substantial amount for a single contract. However, when compared to the overall federal IT spending, particularly within the broad 'Other Computer Related Services' category (NAICS 541519), it represents a relatively small fraction. Federal agencies collectively spend hundreds of billions of dollars annually on IT. This specific contract, while significant for the USPTO and the contractor, is one of many thousands awarded across the government for IT services. To provide a precise comparison, one would need to aggregate total federal spending under NAICS 541519 for the relevant fiscal years and compare this contract's value against that total.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2100 CRYSTAL DR STE 750, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,792,370

Exercised Options: $26,792,370

Current Obligation: $26,559,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC45PAPT1420030

IDV Type: BPA

Timeline