Commerce Department's $39M Telecommunication Support Contract Awarded to 1st American IMTS LLC

Contract Overview

Contract Amount: $39,093,669 ($39.1M)

Contractor: 1ST American Imts LLC

Awarding Agency: Department of Commerce

Start Date: 2019-09-05

End Date: 2024-03-31

Contract Duration: 1,669 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TELECOMMUNICATION SUPPORT (TCO)

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $39.1 million to 1ST AMERICAN IMTS LLC for work described as: TELECOMMUNICATION SUPPORT (TCO) Key points: 1. Contract value of $39.1 million over approximately 5.6 years indicates significant investment in telecommunication support. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract type (Time and Materials) may present cost control challenges if not closely managed. 4. Performance is concentrated in Maryland, potentially impacting local IT support workforce. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 6. The contract duration of 1669 days suggests a long-term need for these services.

Value Assessment

Rating: fair

The total contract value of $39.1 million over nearly five years averages to approximately $6.9 million annually. Benchmarking this against similar telecommunication support contracts is difficult without more specific service details. However, the Time and Materials pricing structure, while common, can lead to higher costs if not managed diligently compared to fixed-price contracts. The award amount appears substantial, warranting scrutiny to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial process may have had some exclusions, the final award was made through a broad competitive solicitation. The presence of 8 bidders suggests a healthy level of competition for this telecommunication support requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The U.S. Census Bureau benefits from reliable telecommunication infrastructure and support services, crucial for data collection and dissemination. This contract ensures the continuity of essential IT and communication services for a key federal agency. The primary geographic impact is in Maryland, where the contractor is located and services are likely performed. The contract supports jobs within the IT and telecommunications sector, particularly in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly monitored for scope and efficiency.
The long duration of the contract (over 4.5 years) increases the risk of technology obsolescence or changing requirements.
Limited information on specific performance metrics makes it difficult to assess the contractor's effectiveness beyond basic service delivery.

Positive Signals

Awarded through full and open competition, indicating a fair and broad solicitation process.
The contract supports a critical function for the U.S. Census Bureau, ensuring operational continuity.
The contractor, 1st American IMTS LLC, has secured a significant contract, suggesting a level of established capability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on telecommunication support and computer systems design. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their communication networks and systems. This contract represents a portion of the Department of Commerce's overall IT spending, aimed at ensuring the operational readiness of the U.S. Census Bureau. Comparable spending benchmarks would depend on the specific scope of services, but $39 million over 5.6 years for comprehensive telecommunication support is a significant, though not unprecedented, investment.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contract's value and the nature of telecommunication support services, it is likely that larger, established firms were the primary bidders. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Telecommunications Services
IT Support Services
Computer Systems Design Services
U.S. Census Bureau Operations
Department of Commerce IT Procurement

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $39.1 million to 1ST AMERICAN IMTS LLC. TELECOMMUNICATION SUPPORT (TCO)

Who is the contractor on this award?

The obligated recipient is 1ST AMERICAN IMTS LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $39.1 million.

What is the period of performance?

Start: 2019-09-05. End: 2024-03-31.

What is the track record of 1st American IMTS LLC in performing similar federal contracts?

Information on 1st American IMTS LLC's track record with federal contracts is available through public databases like the Federal Procurement Data System (FPDS). A review of past awards and performance history would reveal their experience with telecommunication support, IT services, and contract values. Analyzing past performance ratings, any contract disputes, or modifications can provide insight into their reliability and capability. For instance, if they have a history of successfully completing large-scale IT support contracts on time and within budget, it suggests a lower risk for this current award. Conversely, a history of performance issues or significant contract changes might raise concerns.

How does the average annual cost of this contract compare to similar telecommunication support contracts?

The average annual cost for this contract is approximately $6.9 million ($39.1 million / 5.6 years). To benchmark this effectively, one would need to compare it with contracts for similar telecommunication support services awarded to agencies of comparable size and complexity, particularly within the IT services sector. Factors such as the specific services included (e.g., network management, help desk, hardware maintenance, cybersecurity), geographic location, and contract type (Time and Materials vs. Fixed Price) significantly influence costs. Without detailed service scope comparisons, a precise benchmark is challenging. However, this annual figure represents a substantial investment, suggesting a comprehensive service package is being procured.

What are the primary risks associated with a Time and Materials (T&M) contract for telecommunication support?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the labor hours and materials used rather than a fixed price. This structure can incentivize contractors to extend project timelines or use more resources than strictly necessary if not managed diligently. For telecommunication support, risks include inefficient labor deployment, inflated material costs, and scope creep where services expand beyond the initial intent without adequate cost controls. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value.

How does the level of competition (8 bidders) impact the value for money for taxpayers?

Having eight bidders for this contract is a positive indicator for value for money. A higher number of bidders generally leads to more competitive pricing as companies vie for the award. It also encourages innovation and a wider range of solutions. This level of competition suggests that the government likely received a fair price and that the chosen contractor, 1st American IMTS LLC, offered a compelling proposal. The competitive process helps ensure that taxpayer funds are not being spent unnecessarily due to a lack of market interest or vendor options.

What is the historical spending trend for telecommunication support at the U.S. Census Bureau?

Analyzing historical spending data for telecommunication support at the U.S. Census Bureau would provide context for the current $39.1 million award. If spending has been consistently high or increasing, it suggests a sustained need and potentially a stable market. Conversely, a sudden spike might warrant investigation into the reasons behind the increased expenditure. Understanding past contract values, durations, and awarded vendors can reveal trends in procurement strategies, vendor relationships, and the overall cost trajectory for these essential services. This historical perspective is vital for assessing whether the current contract represents a reasonable continuation or a significant shift in spending.

What are the potential implications of the contract's duration (1669 days) on technological relevance?

A contract duration of 1669 days (approximately 4.5 years) for telecommunication support carries implications for technological relevance. The rapid pace of technological advancement in telecommunications means that systems and services procured today could be outdated by the end of the contract term. This necessitates careful contract management, including provisions for technology refresh, upgrades, or flexibility to adapt to new standards and solutions. The government must ensure that the services procured remain effective and efficient throughout the contract's life, potentially requiring proactive engagement with the contractor to incorporate emerging technologies or face the risk of using suboptimal or legacy systems.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7609 LEONARD DR, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $42,464,924

Exercised Options: $39,595,507

Current Obligation: $39,093,669

Actual Outlays: $1,333,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200070W

IDV Type: GWAC

Timeline