BEA Spends $9.88M on IT Support for Estimation System with Omnicom Consulting Group
Contract Overview
Contract Amount: $9,878,950 ($9.9M)
Contractor: Omnicom Consulting Group, Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-06-13
End Date: 2026-07-31
Contract Duration: 1,144 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BEA STATISTICAL PRODUCTION MODERNIZATION SUPPORT FOR THE BEA ESTIMATION INFORMATION TECHNOLOGY SYSTEM (BEA-EITS).
Place of Performance
Location: TARRYTOWN, WESTCHESTER County, NEW YORK, 10591
State: New York Government Spending
Plain-Language Summary
Department of the Interior obligated $9.9 million to OMNICOM CONSULTING GROUP, INC. for work described as: BEA STATISTICAL PRODUCTION MODERNIZATION SUPPORT FOR THE BEA ESTIMATION INFORMATION TECHNOLOGY SYSTEM (BEA-EITS). Key points: 1. The contract focuses on IT support for the BEA Estimation Information Technology System. 2. Omnicom Consulting Group, Inc. is the awardee for this definitive contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The total value is $9.88 million over approximately 3 years. 5. The sector is primarily IT services, specifically computer systems design.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. Benchmarking against similar IT support contracts is difficult without more detailed service descriptions.
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 a competitive process but with specific source exclusions. This method aims for fair pricing but the exclusions might limit the breadth of competition.
Taxpayer Impact: Taxpayer funds are being used for essential IT modernization and support, aiming to improve data estimation processes. The value appears reasonable for the scope, but T&M contracts require vigilant oversight to ensure cost-effectiveness.
Public Impact
Modernization of the BEA Estimation Information Technology System is crucial for accurate economic data. The contract supports critical IT infrastructure for a key government agency. Ensuring efficient use of taxpayer funds for IT services is a public interest. Transparency in IT spending helps build public trust in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost uncertainty.
- Potential for scope creep without strict management.
- Limited information on specific performance metrics.
Positive Signals
- Awarded under full and open competition.
- Supports modernization of a critical government system.
- Contract duration is defined.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and service level agreements. BEA's need for modernization suggests a strategic investment.
Small Business Impact
The awardee is Omnicom Consulting Group, Inc., which is not identified as a small business in the provided data. There is no indication that small businesses were subcontracted for this specific award.
Oversight & Accountability
The contract's Time and Materials nature necessitates robust oversight from the Department of the Interior to monitor hours, costs, and deliverables, ensuring accountability and preventing potential overspending.
Related Government Programs
- Computer Systems Design Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Time and Materials contract type.
- Potential for cost overruns.
- Limited detail on specific deliverables.
- Exclusion of sources in competition.
Tags
computer-systems-design-services, department-of-the-interior, ny, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $9.9 million to OMNICOM CONSULTING GROUP, INC.. BEA STATISTICAL PRODUCTION MODERNIZATION SUPPORT FOR THE BEA ESTIMATION INFORMATION TECHNOLOGY SYSTEM (BEA-EITS).
Who is the contractor on this award?
The obligated recipient is OMNICOM CONSULTING GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2023-06-13. End: 2026-07-31.
What specific IT modernization goals does this contract aim to achieve for the BEA Estimation Information Technology System?
This contract likely aims to upgrade, maintain, and enhance the BEA-EITS to improve data processing efficiency, accuracy, and security. Modernization could involve updating software, hardware, or system architecture to meet current technological standards and support evolving data analysis needs for economic statistics.
What are the primary risks associated with a Time and Materials contract for IT support, and how are they mitigated?
The primary risk is cost escalation due to undefined scope or inefficient labor. Mitigation involves strong contract management, detailed work breakdown structures, regular progress reviews, and clear performance metrics to ensure efficient resource utilization and prevent scope creep.
How does this IT modernization effort contribute to the overall effectiveness of the Bureau of Economic Analysis's statistical production?
Modernizing the BEA-EITS is fundamental to the agency's effectiveness. An updated system can lead to faster data processing, improved data quality, enhanced analytical capabilities, and better dissemination of economic statistics, ultimately supporting informed policy decisions and public understanding of the economy.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 140D0423R0022
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 145 W MAIN ST, TARRYTOWN, NY, 10591
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,917,784
Exercised Options: $10,917,784
Current Obligation: $9,878,950
Actual Outlays: $8,678,301
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-13
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-26
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