DOI's $72.8M IT Core Services Contract Awarded to NUAXIS LLC Under Full and Open Competition

Contract Overview

Contract Amount: $72,858,562 ($72.9M)

Contractor: Nuaxis LLC

Awarding Agency: Department of the Interior

Start Date: 2020-12-01

End Date: 2026-11-30

Contract Duration: 2,190 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $72.9 million to NUAXIS LLC for work described as: ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES Key points: 1. Contract value of $72.8 million over approximately 6 years indicates significant investment in IT infrastructure. 2. Awarded under full and open competition, suggesting a robust market and potential for competitive pricing. 3. The contract's duration and scope suggest a critical role in supporting the Bureau of Safety and Environmental Enforcement's mission. 4. Fixed-price contract type may offer cost certainty for the government, but requires careful scope management. 5. The 'Other Computer Related Services' NAICS code points to a broad range of IT support functions. 6. The contract is not set aside for small businesses, implying larger prime contractors are expected to perform the work.

Value Assessment

Rating: good

The contract value of $72.8 million over six years averages to approximately $12.1 million annually. Benchmarking this against similar enterprise IT core services contracts is challenging without more specific service details. However, the fixed-price nature suggests the government has negotiated a defined scope at a set price, which can be a good value if the scope is well-defined and efficiently executed by the contractor. The number of bids received (4) is moderate, which could indicate reasonable pricing, but a deeper dive into the specific services and performance metrics would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Four bids were received, indicating a moderate level of competition for this requirement. While four bidders suggest some market interest, it is not an exceptionally high number for a contract of this size and scope. The level of competition is generally positive for price discovery, as it incentivizes bidders to offer competitive terms to win the award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. The presence of multiple bidders suggests that taxpayer funds are being used efficiently, as the agency likely secured a favorable price through the bidding process.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) is the primary beneficiary, receiving essential IT core services to support its regulatory and operational functions. The contract delivers a range of IT services critical for the agency's day-to-day operations, including network management, system maintenance, and potentially cybersecurity. Services are likely concentrated in Virginia, where the agency has a significant presence, impacting the local IT workforce. The contract supports the operational efficiency and effectiveness of a key federal agency responsible for environmental and safety oversight in offshore energy activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a broad 'core services' contract if not meticulously managed.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance falters.
The fixed-price nature requires careful monitoring to ensure the contractor remains within budget while meeting all service level agreements.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace and likely fair pricing.
Fixed-price contract type provides cost predictability for the government.
Long-term contract (approx. 6 years) allows for stable IT support and potential for contractor expertise development.

Sector Analysis

This contract falls within the Enterprise Information Technology (IT) Services sector, specifically focusing on core IT support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. Contracts for core IT services are common across all federal agencies, supporting everything from basic network operations to complex system integration. The value of this contract, at $72.8 million over six years, is substantial but within the typical range for large-scale enterprise IT support agreements. Comparable spending benchmarks would depend on the specific services included, but it represents a significant investment in the operational backbone of the BSEE.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' (small business set-aside) field being false. The prime contractor, NUAXIS LLC, is likely a mid-to-large-sized business. There is no explicit information on subcontracting plans for small businesses within the provided data. However, for contracts of this nature and size, it is common for prime contractors to engage small businesses for specialized IT services or support functions, contributing to the small business ecosystem. Further review of the contract's subcontracting goals would be necessary to fully assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Safety and Environmental Enforcement (BSEE) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The Department of the Interior's Office of Inspector General (OIG) may also conduct audits or investigations related to this contract to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, which provide public access to contract details, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

Department of the Interior Enterprise Infrastructure Services
Federal Civilian IT Modernization Programs
Bureau of Safety and Environmental Enforcement IT Support Contracts
IT Services for Regulatory Agencies
Core IT Infrastructure Management Contracts

Risk Flags

Potential for vendor lock-in due to the long-term nature of the contract.
Risk of service level degradation if contractor performance is not rigorously monitored.
Dependency on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $72.9 million to NUAXIS LLC. ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES

Who is the contractor on this award?

The obligated recipient is NUAXIS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Safety and Environmental Enforcement).

What is the total obligated amount?

The obligated amount is $72.9 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-11-30.

What is the track record of NUAXIS LLC in performing similar federal IT core services contracts?

NUAXIS LLC has a history of performing IT services for the federal government, including contracts with agencies like the Department of the Interior and others. While specific details on past performance for large-scale 'core services' contracts are not fully detailed in the provided summary, their award of this significant contract suggests they have met the necessary qualifications and demonstrated capability. A deeper analysis would involve reviewing their past performance evaluations (e.g., CPARS reports) for similar contracts to assess their reliability, quality of service, and adherence to schedules and budgets. Their ability to win this full and open competition award indicates a competitive standing among IT service providers.

How does the per-unit cost or pricing structure of this contract compare to market rates for similar IT core services?

The provided data does not include specific per-unit costs or detailed pricing breakdowns, making a direct comparison to market rates difficult. The contract is a Firm Fixed Price (FFP) award, meaning the price is set regardless of the actual costs incurred by the contractor. To benchmark value, one would need to analyze the specific services, Service Level Agreements (SLAs), and labor categories included in the contract against industry benchmarks for IT core services. Factors such as geographic location, security requirements, and the complexity of the IT environment would influence these comparisons. The moderate number of bidders (4) in a full and open competition suggests the pricing is likely competitive, but without granular data, a definitive assessment of value-for-money against market rates is not possible.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential scope creep, as 'core services' can be broadly defined, leading to cost overruns if not managed tightly. Performance degradation by the contractor is another risk, potentially disrupting critical BSEE operations. Given the fixed-price nature, there's a risk that the contractor might cut corners on quality to maintain profitability, impacting service levels. Mitigation strategies typically involve robust contract management by the BSEE, including clear performance metrics, regular progress reviews, and strong oversight. The fixed-price structure itself is a risk mitigation tool for the government, shifting cost overrun risk to the contractor, provided the scope is well-defined and enforced.

How effective is the Bureau of Safety and Environmental Enforcement (BSEE) in managing its IT contracts to ensure optimal performance and value?

Assessing the overall effectiveness of BSEE's IT contract management requires a broader review of their contracting history and performance metrics across multiple contracts. However, the award of this significant contract through full and open competition suggests a structured procurement process. The presence of defined performance periods (December 1, 2020, to November 30, 2026) and a fixed-price structure indicates an intent to manage performance and cost. Effective management would be demonstrated through consistent achievement of Service Level Agreements (SLAs), timely issue resolution, and successful delivery of IT services that support BSEE's mission without significant cost overruns or performance failures. Publicly available contract performance reports (CPARS) would offer more insight.

What has been the historical spending trend for IT core services at the Bureau of Safety and Environmental Enforcement?

The provided data focuses on a single contract award of $72.8 million from December 2020 to November 2026. To understand historical spending trends, one would need to examine BSEE's IT expenditures over several preceding fiscal years. This would involve looking at prior contracts for similar IT core services, their values, durations, and the contractors involved. Analyzing these past expenditures would reveal whether spending on IT core services has been increasing, decreasing, or remaining stable, and whether this contract represents a significant shift or continuation of previous investment levels. Without access to historical spending data for BSEE's IT services, it's impossible to establish a trend.

What is the potential impact of this contract on the IT workforce within the Department of the Interior?

This contract, valued at $72.8 million over six years for enterprise IT core services, will likely sustain or create IT jobs primarily within NUAXIS LLC and potentially its subcontractors. The specific impact on the DOI's internal IT workforce is less direct; this contract likely outsources functions previously performed by government employees or supplements existing government IT staff. It could lead to a shift in the types of IT roles needed within DOI, focusing more on contract oversight and management rather than direct service delivery. Depending on the scope, it might reduce the need for certain in-house technical specialists while increasing demand for IT program managers and contracting officers within BSEE.

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: 140E0120Q0018

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1919 GALLOWS RD STE 610, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,858,562

Exercised Options: $72,858,562

Current Obligation: $72,858,562

Actual Outlays: $62,827,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0361T

IDV Type: FSS

Timeline