State Dept. IT Support Contract Awarded to SPAARK INC for $3.1M
Contract Overview
Contract Amount: $3,107,600 ($3.1M)
Contractor: Spaark Inc
Awarding Agency: Department of State
Start Date: 2023-05-01
End Date: 2026-07-31
Contract Duration: 1,187 days
Daily Burn Rate: $2.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: OFFICE OF EMERGENCY MANAGEMENT INFORMATION TECHNOLOGY AND COMMUNICATIONS SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $3.1 million to SPAARK INC for work described as: OFFICE OF EMERGENCY MANAGEMENT INFORMATION TECHNOLOGY AND COMMUNICATIONS SUPPORT Key points: 1. Contract awarded to SPAARK INC for $3.1M for IT and communications support. 2. Services fall under NAICS code 541512 (Computer Systems Design Services). 3. Contract duration is 1187 days, ending July 31, 2026. 4. Awarded as a delivery order under an unspecified contract. 5. No indication of small business participation.
Value Assessment
Rating: questionable
The contract is Time and Materials, which can lead to cost overruns if not managed tightly. Without a fixed price or clear deliverables, assessing value is difficult. The lack of a specific benchmark for 'Computer Systems Design Services' makes direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers. The specific reason for the limited competition is not provided.
Taxpayer Impact: The lack of competition and use of Time and Materials pricing raise concerns about potential overspending of taxpayer funds.
Public Impact
Citizens rely on the Department of State for effective communication and IT infrastructure, especially during emergencies. This contract ensures the Office of Emergency Management has the necessary technological support. Transparency in government IT spending is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of small business participation
Positive Signals
- Ensures IT support for emergency management
Sector Analysis
The IT services sector is highly competitive, with many firms capable of providing computer systems design. The benchmark for such services can vary widely based on complexity and duration. This contract's duration and T&M nature warrant close monitoring.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses are not explicitly detailed.
Oversight & Accountability
The award being a delivery order under an unspecified contract raises questions about the initial vetting and oversight. Further details on the parent contract and the justification for limited competition are needed for a comprehensive oversight assessment.
Related Government Programs
- Computer Systems Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Time and Materials pricing
- No small business participation noted
- Unspecified parent contract for delivery order
- Potential for cost overruns
Tags
computer-systems-design-services, department-of-state, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $3.1 million to SPAARK INC. OFFICE OF EMERGENCY MANAGEMENT INFORMATION TECHNOLOGY AND COMMUNICATIONS SUPPORT
Who is the contractor on this award?
The obligated recipient is SPAARK INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $3.1 million.
What is the period of performance?
Start: 2023-05-01. End: 2026-07-31.
What was the justification for limiting competition on this contract, and were alternative approaches considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source award. Without further documentation, the specific justification remains unclear. Typically, justifications include factors like urgent need, unique capabilities, or lack of market availability. Exploring alternative procurement strategies could have potentially yielded better pricing or broader participation.
How does the Time and Materials pricing structure mitigate risks of cost overruns for this specific IT support service?
Time and Materials (T&M) contracts inherently carry a higher risk of cost overruns due to their open-ended nature. Mitigation typically relies on robust government oversight, including detailed tracking of labor hours and material costs, strict adherence to pre-negotiated rates, and clear task orders with defined ceilings. The effectiveness of T&M here depends heavily on the Department of State's internal controls and the contractor's accountability.
What is the expected impact of SPAARK INC's IT support on the Office of Emergency Management's operational effectiveness?
The contract aims to provide essential IT and communications support, which is critical for the Office of Emergency Management's ability to function, especially during crises. Reliable systems and communication channels are fundamental to coordinating responses, disseminating information, and managing resources effectively. The success of this contract will directly influence the agency's preparedness and operational resilience.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 19AQMM23R0116
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 5000 LETTERKENNY RD STE 280, CHAMBERSBURG, PA, 17201
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,110,261
Exercised Options: $3,110,261
Current Obligation: $3,107,600
Actual Outlays: $334,873
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM23D0058
IDV Type: IDC
Timeline
Start Date: 2023-05-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-03-09
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