SMARTRONIX, LLC awarded $111M+ for DOI Enterprise Case Management Services, with 3 bidders

Contract Overview

Contract Amount: $111,126,615 ($111.1M)

Contractor: Smartronix, LLC

Awarding Agency: Department of the Interior

Start Date: 2018-09-28

End Date: 2025-10-29

Contract Duration: 2,588 days

Daily Burn Rate: $42.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF DOI ENTERPRISE CASE MANAGEMENT SERVICES (SAAS)

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $111.1 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF DOI ENTERPRISE CASE MANAGEMENT SERVICES (SAAS) Key points: 1. Value for money appears fair given the contract duration and scope, though detailed cost breakdowns are needed for precise assessment. 2. Competition dynamics indicate a healthy level of interest with three bidders participating in the full and open competition. 3. Risk indicators are moderate, with contract duration and time-and-materials pricing presenting potential for cost overruns if not managed closely. 4. Performance context is tied to essential enterprise case management services for the Department of the Interior. 5. Sector positioning is within IT services, specifically cloud-based solutions (SaaS) for government operations.

Value Assessment

Rating: fair

The total award amount of over $111 million for a period spanning from 2018 to 2025 suggests a significant investment in enterprise case management. Benchmarking against similar SaaS contracts for large federal agencies is challenging without more granular data on service levels and user counts. However, the duration and scope indicate a substantial, long-term need. The time and materials pricing model, while flexible, warrants close monitoring to ensure cost efficiency and prevent scope creep.

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 offers. The presence of three bidders suggests a reasonable level of competition for this type of specialized IT service. While three bidders is not exceptionally high, it does provide a basis for price discovery and ensures that the government is not solely reliant on a single provider.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, preventing potential price gouging associated with sole-source or limited competitions.

Public Impact

The Department of the Interior's various offices and personnel benefit from streamlined case management processes. Essential services include the digitization, tracking, and management of internal and external cases, improving operational efficiency. The geographic impact is nationwide, supporting DOI operations across all its bureaus and locations. Workforce implications include enabling federal employees to perform their duties more effectively with better tools and processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials (T&M) pricing structure if not rigorously managed.
Scope creep could increase the overall cost beyond initial projections without strict oversight.
Dependence on a single SaaS provider for critical case management functions could pose long-term vendor lock-in risks.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Long-term contract (2018-2025) suggests a stable and ongoing need for these services.
Contract supports essential government functions, contributing to operational efficiency within the Department of the Interior.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on Software as a Service (SaaS) solutions for enterprise case management. The market for government IT services, particularly cloud-based solutions, is substantial and growing. Comparable spending benchmarks for similar large-scale case management systems across federal agencies would typically range in the tens to hundreds of millions of dollars over several years, depending on the complexity and user base.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, SMARTRONIX, LLC, is likely a mid-to-large-sized business. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside means that opportunities for small business participation would depend on SMARTRONIX's own subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the contract's performance requirements and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Department of the Interior IT Modernization Efforts
Federal Case Management Systems
SaaS Procurement by Government Agencies
Enterprise Resource Planning (ERP) Systems

Risk Flags

Potential for cost overruns due to T&M pricing.
Scope creep risk in long-term IT service contracts.
Vendor lock-in risk with SaaS solutions.
Dependence on contractor performance for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $111.1 million to SMARTRONIX, LLC. IGF::OT::IGF DOI ENTERPRISE CASE MANAGEMENT SERVICES (SAAS)

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $111.1 million.

What is the period of performance?

Start: 2018-09-28. End: 2025-10-29.

What is the historical spending trend for Enterprise Case Management Services within the Department of the Interior prior to this contract?

Analyzing historical spending trends for Enterprise Case Management Services within the Department of the Interior (DOI) prior to the SMARTRONIX, LLC contract (awarded 2018) is crucial for context. While the provided data focuses on the current award, understanding past investments helps assess if this $111M+ contract represents a significant increase, a consolidation of services, or a continuation of existing spending levels. Without specific historical data, it's difficult to definitively state trends. However, federal agencies generally show a consistent need for case management solutions, often involving upgrades or replacements of legacy systems. Spending often fluctuates based on modernization initiatives, budget allocations, and the perceived effectiveness of existing solutions. A substantial contract like this could indicate a move towards a more unified, modern, and potentially cloud-based system across the DOI, suggesting a strategic shift rather than just incremental spending.

How does the per-unit cost or cost per user compare to industry benchmarks for similar SaaS case management solutions?

Determining the precise per-unit cost or cost per user for this $111M+ Department of the Interior (DOI) Enterprise Case Management Services contract is challenging with the provided data. The contract is awarded as 'Time and Materials' (T&M), which doesn't lend itself to simple per-unit pricing like a fixed-price-per-user model. The total cost is influenced by labor hours, specific services rendered, and potentially the number of users or modules deployed over its duration (2018-2025). To benchmark effectively, one would need access to the detailed contract line item details, including labor rates, estimated hours, and the specific functionalities being provided. Industry benchmarks for large-scale government SaaS solutions can vary widely, but typically, costs are analyzed based on factors like the number of active users, the complexity of workflows managed, and the level of support required. Without this granular information, a direct comparison to market rates or similar contracts is speculative, though the overall award size suggests a significant deployment.

What specific performance metrics or KPIs are associated with this contract, and how has SMARTRONIX, LLC performed against them?

The provided data snippet does not include specific performance metrics (Key Performance Indicators - KPIs) associated with the SMARTRONIX, LLC contract for DOI Enterprise Case Management Services. Typically, such metrics would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These KPIs often relate to system uptime, response times for support, data accuracy, user satisfaction, and the successful processing of cases within defined timeframes. Assessing SMARTRONIX's performance would require reviewing contract performance reports, past performance evaluations, and any documented instances of award fees or penalties. Without access to these performance records, it is impossible to definitively state how the contractor has performed against contractual obligations. However, the contract's duration extending to October 2025 suggests that performance has likely been satisfactory enough to warrant continued service.

What is the track record of SMARTRONIX, LLC in delivering similar large-scale IT services to federal agencies?

SMARTRONIX, LLC has a notable track record in providing IT services to federal agencies, including work within the Department of Defense and other civilian agencies. Their portfolio often includes cloud solutions, cybersecurity, and managed IT services. For large-scale IT service delivery, particularly SaaS implementations, their experience would be a key factor considered during the procurement process. The award of this significant $111M+ contract by the Department of the Interior suggests that SMARTRONIX demonstrated sufficient capability, past performance, and technical expertise to meet the demanding requirements of enterprise case management. Agencies typically evaluate a contractor's history of successful project completion, adherence to schedules and budgets, and overall client satisfaction when making such awards. While specific details of past projects are not in this snippet, the contract's existence implies a positive assessment of their capabilities by the DOI.

What are the potential risks associated with the Time and Materials (T&M) contract type for this service, and how are they mitigated?

The primary risk associated with a Time and Materials (T&M) contract, such as the one awarded to SMARTRONIX, LLC for DOI Enterprise Case Management Services, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to increased costs if the scope of work expands unexpectedly (scope creep) or if labor hours are not efficiently utilized. To mitigate these risks, the Department of the Interior would typically employ several strategies. These include establishing labor hour ceilings, requiring detailed reporting of hours and tasks, implementing robust project management oversight, conducting regular reviews of progress and expenditures, and potentially incorporating cost-control incentives or CLINs (Contract Line Item Numbers) that convert to fixed price elements as the project matures. Strong contract administration and vigilant monitoring by the Contracting Officer's Representative (COR) are essential for managing T&M contracts effectively.

How does this contract align with the broader IT modernization goals of the Department of the Interior?

This $111M+ contract for Enterprise Case Management Services awarded to SMARTRONIX, LLC likely aligns significantly with the Department of the Interior's (DOI) broader IT modernization goals. Modern federal IT strategies emphasize cloud adoption, data integration, improved user experience, and enhanced cybersecurity. Enterprise Case Management Systems, especially those delivered as SaaS, are foundational to achieving these goals by digitizing workflows, centralizing data, and providing accessible platforms for employees across bureaus. By investing in a comprehensive case management solution, the DOI aims to move away from potentially disparate or legacy systems, thereby increasing operational efficiency, improving data analytics capabilities for decision-making, and potentially reducing long-term IT infrastructure costs. The contract's duration (2018-2025) suggests a strategic, long-term commitment to modernizing these critical business processes.

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

Solicitation ID: 140D0418Q0431

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $112,630,711

Exercised Options: $111,126,615

Current Obligation: $111,126,615

Actual Outlays: $111,052,172

Subaward Activity

Number of Subawards: 75

Total Subaward Amount: $75,059,487

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND13PC00029

IDV Type: IDC

Timeline