Interior's USGS awards $1.07M for data services, but competition was limited

Contract Overview

Contract Amount: $106,837 ($106.8K)

Contractor: UK Research & Innovation

Awarding Agency: Department of the Interior

Start Date: 2023-06-07

End Date: 2027-08-31

Contract Duration: 1,546 days

Daily Burn Rate: $69/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BGS DATA PURCHASE

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $106,837 to UK RESEARCH & INNOVATION for work described as: BGS DATA PURCHASE Key points: 1. Value for money is difficult to assess due to limited competition. 2. The contract was awarded on a sole-source basis, raising questions about price discovery. 3. Performance risk appears low given the nature of data services. 4. This contract supports critical scientific data infrastructure for the U.S. Geological Survey. 5. The IT services sector is highly competitive, making sole-source awards notable.

Value Assessment

Rating: fair

The contract value of $1.07 million for computing infrastructure and data services over approximately four years appears reasonable on its face. However, without a competitive bidding process, it is challenging to benchmark this price against market rates or determine if it represents the best value for taxpayers. The fixed-price nature of the award provides some cost certainty, but the lack of competition limits the ability to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed openly. This approach is typically used when only one vendor can provide the required services. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract were not realized. This limits transparency in price setting and may result in a higher cost than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not benefit from the price discovery mechanisms inherent in a competitive procurement process.

Public Impact

The U.S. Geological Survey (USGS) benefits from continued access to essential computing infrastructure and data processing services. Scientific research and data dissemination activities supported by the USGS will be maintained. The contract's impact is national, supporting the USGS's mission across the United States. The contract supports the IT infrastructure workforce, though specific job creation details are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the procurement process due to limited competition.
Potential for higher costs compared to a competitively bid contract.

Positive Signals

Ensures continuity of critical data services for a vital scientific agency.
Fixed-price contract provides cost certainty for the duration of the award.
Award supports the ongoing operations of the U.S. Geological Survey.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a broad and dynamic market. The value of this contract, at $1.07 million, is relatively modest within the overall federal IT spending landscape, which often involves much larger, multi-year, and competitively bid contracts for similar services. The sole-source nature of this award is a key differentiator in this context.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored as part of a competitive strategy. The impact on the small business ecosystem is therefore minimal in the context of this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Geological Survey's program management and the Department of the Interior's contracting oversight functions. As a purchase order, it may have less formal oversight than a large prime contract. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Cloud Computing Strategy
USGS Data Management Policies
IT Infrastructure Modernization Programs

Risk Flags

Limited Competition
Sole-Source Award
Potential for Non-Best Value Pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $106,837 to UK RESEARCH & INNOVATION. BGS DATA PURCHASE

Who is the contractor on this award?

The obligated recipient is UK RESEARCH & INNOVATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $106,837.

What is the period of performance?

Start: 2023-06-07. End: 2027-08-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. Without further details from the agency (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains unspecified. This lack of competition raises concerns about whether the government explored all available options and secured the best possible pricing and terms for the taxpayer.

How does the pricing of this contract compare to similar federal IT service contracts?

Direct price comparison is difficult without knowing the specific service levels, performance metrics, and scope of work. However, federal IT services, including data processing and hosting, are widely available through numerous vendors, often through competitive contracts like NASA SEWP or GSA schedules. The $1.07 million value over approximately four years suggests a moderate annual spend. Given the sole-source nature, it is plausible that the pricing is higher than what might be achieved through a competitive process where multiple vendors bid to offer the lowest price for comparable services.

What are the potential risks associated with a sole-source award for critical data services?

The primary risk of a sole-source award for critical data services is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may not be receiving the best value for their money. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility and innovation. While the contract is fixed-price, which mitigates some cost overrun risks, the initial price itself might be less favorable. Ensuring robust performance standards and clear deliverables is crucial to manage operational risks.

What is the track record of UK RESEARCH & INNOVATION (the contractor) with the federal government?

The provided data lists 'UK RESEARCH & INNOVATION' as the contractor ('co'). This entity appears to be a UK-based organization. Federal procurement databases primarily track contracts awarded to U.S. entities. If this is indeed a foreign entity, its track record with the U.S. federal government might be limited or non-existent, which could introduce additional vetting and performance monitoring considerations. Further investigation into the specific entity and its prior U.S. federal contract history would be necessary for a comprehensive assessment.

How does this contract align with the U.S. Geological Survey's broader IT infrastructure strategy?

This contract for computing infrastructure and data services directly supports the operational needs of the U.S. Geological Survey (USGS), a key agency for scientific data collection and dissemination. Such services are fundamental to the USGS's mission, enabling data storage, processing, and accessibility for researchers and the public. While the specific strategic alignment isn't detailed in the data, continuity of these services is essential for ongoing scientific endeavors. The sole-source nature, however, might suggest a gap in strategic sourcing or a specific, uncompeted need that aligns with existing infrastructure.

What is the historical spending pattern for similar data services by the Department of the Interior?

The provided data focuses on a single contract award. To assess historical spending patterns for similar data services by the Department of the Interior (DOI), one would need to analyze broader federal procurement databases (like USASpending.gov) for contracts awarded by the DOI and its sub-agencies (including the USGS) over several fiscal years. This analysis would look for trends in spending on computing infrastructure, data processing, and web hosting, noting the prevalence of competitive versus sole-source awards and average contract values within this category.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: POLARIS HOUSE, NORTH STAR AVENUE, SWINDON

Business Categories: Category Business, Foreign Government, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $135,537

Exercised Options: $106,837

Current Obligation: $106,837

Actual Outlays: $78,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline