NRC Awards $2.7M Contract for Print Services to Cube Root Corporation, Limited Competition

Contract Overview

Contract Amount: $2,719,180 ($2.7M)

Contractor: Cube Root Corporation

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2023-03-31

End Date: 2027-03-31

Contract Duration: 1,461 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MANAGEMENT AND MAINTENANCE PRINT SERVICES (MMPS) FOR NRC HQ, REGIONS & TTC

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $2.7 million to CUBE ROOT CORPORATION for work described as: MANAGEMENT AND MAINTENANCE PRINT SERVICES (MMPS) FOR NRC HQ, REGIONS & TTC Key points: 1. Contract value of $2.7M for print management and maintenance services. 2. Limited competition raises questions about price discovery and potential overspending. 3. Risk of vendor lock-in and potential for higher costs due to lack of robust competition. 4. Services fall under IT and administrative support sectors, crucial for agency operations.

Value Assessment

Rating: questionable

The contract value is $2.7M over approximately 4 years. Without a clear benchmark or competitive pricing, it's difficult to assess if this represents fair value. The lack of available pricing data for comparison further hinders this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source approach. This significantly restricts price discovery and may lead to less favorable terms for the government compared to a fully competitive process.

Taxpayer Impact: Taxpayer funds may be impacted by potentially higher costs due to the limited competition, as the government may not have secured the best possible price.

Public Impact

Essential print services for NRC headquarters and regional offices are secured. Potential for increased costs for taxpayers due to limited competitive bidding. Ensures continuity of operations for critical NRC functions reliant on print management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of pricing data
Potential for overpayment

Positive Signals

Essential service provision
Long-term contract

Sector Analysis

This contract falls under IT and administrative support services, specifically focusing on print management. Benchmarking against similar government contracts for managed print services is difficult without more detailed service scope and pricing information.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.

Oversight & Accountability

Oversight will be crucial to ensure Cube Root Corporation delivers services as per the contract terms and to monitor costs, especially given the limited competition. The Nuclear Regulatory Commission is responsible for ensuring accountability.

Related Government Programs

Computer Facilities Management Services
Nuclear Regulatory Commission Contracting
Nuclear Regulatory Commission Programs

Risk Flags

Limited competition may lead to inflated costs.
Lack of transparency in pricing benchmarks.
Potential for vendor lock-in and reduced negotiation leverage.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $2.7 million to CUBE ROOT CORPORATION. MANAGEMENT AND MAINTENANCE PRINT SERVICES (MMPS) FOR NRC HQ, REGIONS & TTC

Who is the contractor on this award?

The obligated recipient is CUBE ROOT CORPORATION.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2023-03-31. End: 2027-03-31.

What is the estimated cost savings or premium associated with this limited competition contract compared to a fully open solicitation?

Without a competitive baseline, quantifying the exact cost premium is challenging. However, studies consistently show that competitive solicitations yield lower prices. A limited competition could potentially result in a 10-30% higher cost compared to an open market scenario, depending on the specific services and market dynamics.

What are the specific risks associated with relying on a single vendor for critical print management services, especially in a regulatory environment?

Key risks include vendor lock-in, reduced flexibility in adapting to changing technological needs, and potential price escalations upon contract renewal. In a regulatory environment like the NRC, service disruptions or data security breaches related to print management could have significant operational and compliance implications.

How effectively does this contract ensure the continuity and efficiency of NRC's essential print operations?

The contract aims to ensure continuity by providing dedicated management and maintenance. However, the effectiveness in terms of efficiency is questionable due to the limited competition. Without performance metrics and competitive pressure, it's harder to guarantee optimal efficiency and cost-effectiveness over the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cube Root RK&K JV LLC

Address: 1100 H ST NW STE 805, WASHINGTON, DC, 20005

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,678,295

Exercised Options: $2,844,352

Current Obligation: $2,719,180

Actual Outlays: $1,737,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline