NSF's $63.3M contract with Synectics for IT services shows fair value, with strong competition and moderate risk

Contract Overview

Contract Amount: $63,324,877 ($63.3M)

Contractor: Synectics for Management Decisions, Inc.

Awarding Agency: National Science Foundation

Start Date: 2020-02-26

End Date: 2027-03-31

Contract Duration: 2,590 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: EDAS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $63.3 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC. for work described as: EDAS Key points: 1. Value for money appears reasonable given the scope and duration of the services. 2. The contract was awarded under full and open competition, indicating a healthy market. 3. Risk indicators are moderate, suggesting potential for performance issues but manageable. 4. Performance context is tied to essential IT support for the National Science Foundation. 5. This contract positions Synectics as a key IT service provider for a major federal agency.

Value Assessment

Rating: fair

The contract's total value of approximately $63.3 million over its period of performance suggests a moderate annual spend. Benchmarking against similar IT system design contracts for federal agencies of NSF's size indicates that the pricing is within an expected range. However, without detailed cost breakdowns or more specific performance metrics, a definitive assessment of 'excellent' value is difficult. The 'labor hours' pricing structure can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that multiple vendors were initially considered, but specific circumstances led to excluding some. Despite this nuance, the 'full and open' designation suggests a broad solicitation. The presence of two bidders indicates a degree of competition, which generally aids in price discovery and ensures the government receives competitive offers. However, the exclusion of sources warrants further investigation into why.

Taxpayer Impact: The competitive nature of this award, even with exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is not unduly constrained by a lack of vendor options.

Public Impact

The National Science Foundation (NSF) benefits directly through the provision of essential IT services. Services delivered include computer systems design and related support, crucial for NSF's operations. The geographic impact is primarily within the agency's operational centers, likely in Virginia. Workforce implications include the employment of IT professionals by the contractor, supporting federal IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'labor hours' pricing model if not rigorously monitored.
The 'exclusion of sources' clause in the competition type raises questions about the breadth of initial market research and vendor engagement.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Awarded through a competitive process, suggesting a baseline level of market validation.
The contract duration of over 5 years indicates a stable, long-term need for these services.
The contractor, Synectics for Management Decisions, Inc., has a track record with federal contracts.

Sector Analysis

The IT services sector for federal agencies is highly competitive and diverse. Contracts for computer systems design and related services are essential for agencies like the National Science Foundation to maintain and upgrade their technological infrastructure. The market size for such services is substantial, with numerous large and small businesses vying for federal IT dollars. This contract fits within the broader category of professional services, specifically IT consulting and support, which represents a significant portion of federal IT spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses within this data snippet. Therefore, the direct impact on the small business ecosystem is likely minimal unless Synectics voluntarily engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the National Science Foundation's contracting officers and program managers. Accountability measures are embedded in the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Support Services
Computer Systems Design
Professional Services Contracts
National Science Foundation IT Modernization

Risk Flags

Potential for cost overruns due to labor hour pricing.
Limited competition indicated by 'exclusion of sources'.
Contractor performance risk over a long duration.
Dependence on IT systems design for core agency functions.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $63.3 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC.. EDAS

Who is the contractor on this award?

The obligated recipient is SYNECTICS FOR MANAGEMENT DECISIONS, INC..

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $63.3 million.

What is the period of performance?

Start: 2020-02-26. End: 2027-03-31.

What is Synectics for Management Decisions, Inc.'s track record with federal contracts, particularly with the National Science Foundation?

Synectics for Management Decisions, Inc. has a history of receiving federal contracts across various agencies. While specific details on their performance with the National Science Foundation (NSF) for this particular $63.3 million contract require deeper analysis of performance reports and past evaluations, their ability to secure such a significant award suggests a level of established capability and past success. Federal procurement data often shows companies like Synectics performing a range of IT, management, and professional services. A comprehensive review would involve examining past performance questionnaires (PPQs), contract award histories, and any publicly available CPARS (Contractor Performance Assessment Reporting System) reports to gauge their reliability, technical expertise, and adherence to schedule and budget on previous engagements.

How does the $63.3 million total value compare to similar IT system design contracts awarded by the NSF or other agencies of comparable size?

The $63.3 million total contract value for IT system design services awarded to Synectics by the NSF is substantial, reflecting a significant investment in the agency's technological infrastructure over its multi-year period. To benchmark this value, one would compare it against IT services contracts awarded by agencies of similar size and mission scope, such as other science and research institutions or large civilian agencies. Factors like contract duration, specific services included (e.g., software development, network infrastructure, cybersecurity), and the labor categories involved heavily influence pricing. If comparable contracts for similar scope and duration are in the $50-$75 million range, then this award appears to be within a reasonable market band. Conversely, if similar contracts are significantly lower, it might suggest potential overpricing or a more extensive scope of work.

What are the primary risk indicators associated with this contract, and how are they being managed?

Primary risk indicators for this contract include the 'labor hours' pricing structure, which can lead to cost overruns if not meticulously managed and monitored by the government. The 'full and open competition after exclusion of sources' also presents a moderate risk, as it suggests potential limitations in the initial market research or vendor pool engagement, possibly impacting the final price or solution quality. Furthermore, reliance on a single contractor for critical IT systems design over an extended period carries inherent performance and continuity risks. Management of these risks would involve rigorous oversight by NSF's contracting officer and technical team, detailed tracking of labor hours and deliverables, regular performance reviews, and potentially contingency planning for contractor failure or performance degradation.

What is the expected effectiveness of the computer systems design services provided by Synectics in supporting the National Science Foundation's mission?

The effectiveness of Synectics' computer systems design services is crucial for the National Science Foundation's mission, which relies heavily on robust IT infrastructure for data management, research support, grant processing, and communication. Effective services should result in modernized, secure, and efficient IT systems that enable researchers to access resources, facilitate collaboration, and manage vast datasets. Improved system performance, enhanced cybersecurity posture, and streamlined user experiences are key indicators of success. The contract's duration suggests a long-term commitment to evolving these systems, implying that effectiveness will be measured not just by initial deployment but by sustained operational performance and adaptability to future technological advancements and NSF requirements.

How have historical spending patterns for IT services at the National Science Foundation evolved, and how does this contract fit within that trend?

Historical spending patterns for IT services at the National Science Foundation typically show a consistent need for system design, maintenance, and support to manage its complex research initiatives and grant programs. Over the years, federal agencies like NSF have increasingly focused on modernizing legacy systems, enhancing cybersecurity, and adopting cloud-based solutions. This $63.3 million contract, awarded in 2020, likely reflects NSF's ongoing investment in upgrading its IT capabilities to meet these evolving demands. It fits within a trend of agencies consolidating IT support services through larger, multi-year contracts to achieve economies of scale and better manage vendor relationships, rather than relying on numerous smaller, short-term engagements.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 49100419Q1067

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1101 WILSON BLVD STE 1500, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,632,272

Exercised Options: $80,337,513

Current Obligation: $63,324,877

Actual Outlays: $50,448,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200174W

IDV Type: GWAC

Timeline