NASA's $41.4M JOIST Contract with Rothe Development Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $41,401,365 ($41.4M)
Contractor: Rothe Development, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2017-08-02
End Date: 2022-09-30
Contract Duration: 1,885 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGFJOINT OPERATIONS AND INTEGRATED SYSTEMS TECHNOLOGY (JOIST)
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $41.4 million to ROTHE DEVELOPMENT, INC for work described as: IGF::OT::IGFJOINT OPERATIONS AND INTEGRATED SYSTEMS TECHNOLOGY (JOIST) Key points: 1. The contract awarded to Rothe Development, Inc. for Computer Systems Design Services totals $41.4 million. 2. Competition was 'Full and Open Competition After Exclusion of Sources', raising questions about the extent of market engagement. 3. The contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns if not managed tightly. 4. The sector is IT services, specifically Computer Systems Design, a common area for federal spending.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, combined with a significant contract value of $41.4M, warrants close examination. Benchmarking against similar IT system design contracts is crucial to determine if the pricing reflects fair market value and efficient resource utilization.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited pool of bidders, potentially impacting price discovery and overall value. This approach needs justification to ensure taxpayers received the best possible pricing.
Taxpayer Impact: The limited competition and cost-plus contract type may result in higher costs for taxpayers compared to a fully open and competitive bid process with fixed-price contracts.
Public Impact
Taxpayers may be paying more than necessary due to limited competition. The effectiveness of IT system design services provided under this contract needs to be assessed against project goals. NASA's procurement practices in this instance could set a precedent for future IT service contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Contract awarded to a single entity, potentially indicating specialized expertise.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal spending in this area is substantial, and efficient procurement is vital. Benchmarks for similar services often vary based on complexity and duration.
Small Business Impact
The contract data indicates that small business participation was not a factor (ss: false, sb: false). This suggests that opportunities for small businesses to contribute to this significant IT services contract were missed.
Oversight & Accountability
Oversight of this Cost Plus Fixed Fee contract is critical to ensure that costs remain reasonable and that the services delivered meet NASA's objectives. The 'Exclusion of Sources' aspect of the competition also requires thorough review.
Related Government Programs
- Computer Systems Design Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition may have inflated prices.
- Lack of small business participation.
- Need for clear justification for 'Exclusion of Sources'.
Tags
computer-systems-design-services, national-aeronautics-and-space-administr, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $41.4 million to ROTHE DEVELOPMENT, INC. IGF::OT::IGFJOINT OPERATIONS AND INTEGRATED SYSTEMS TECHNOLOGY (JOIST)
Who is the contractor on this award?
The obligated recipient is ROTHE DEVELOPMENT, INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $41.4 million.
What is the period of performance?
Start: 2017-08-02. End: 2022-09-30.
What specific factors led to the exclusion of other potential sources in the 'Full and Open Competition After Exclusion of Sources' process, and how was the pricing determined to be fair and reasonabl
The exclusion of sources typically occurs when specific technical requirements or prior work necessitate a limited vendor pool. For this contract, the justification for excluding other vendors needs to be documented. Price reasonableness would then be assessed against available cost data, historical pricing, or independent government cost estimates, ensuring that the final negotiated price reflects value despite the limited competition.
What are the key performance indicators (KPIs) for the JOIST contract, and how has Rothe Development, Inc. performed against these metrics to ensure effective delivery of computer systems design servi
Effective delivery would be measured by KPIs such as on-time project completion, adherence to budget (within the cost-plus framework), quality of system design documentation, successful integration of systems, and user satisfaction. Regular performance reviews by NASA would track these metrics, identifying any deviations and prompting corrective actions to ensure the services meet the intended objectives and provide value.
Given the Cost Plus Fixed Fee structure and the contract's duration, what mechanisms were in place to control costs and prevent potential overruns, and were these mechanisms effective?
Cost control mechanisms for CPFF contracts typically include detailed cost accounting standards, regular audits, negotiation of fee structures that incentivize efficiency, and clear limitations on allowable costs. NASA's oversight would involve scrutinizing invoices, verifying expenditures against the contract scope, and potentially implementing incentive fees for cost savings. The effectiveness would be judged by whether the final cost remained within reasonable bounds relative to the services delivered and the initial estimates.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNJ17580323R
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4614 SINCLAIR RD, SAN ANTONIO, TX, 78222
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $174,531,278
Exercised Options: $174,531,278
Current Obligation: $41,401,365
Actual Outlays: $26,403,413
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-02
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2023-05-24
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