NASA renews IT maintenance for 635 units with Concurrent Real-Time for $3.24M, raising value-for-money questions
Contract Overview
Contract Amount: $3,241,134 ($3.2M)
Contractor: Concurrent Real-Time, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-05-23
End Date: 2027-01-31
Contract Duration: 618 days
Daily Burn Rate: $5.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE CONCURRENT REAL-TIME ANNUAL IT MAINTENANCE/WARRANTY RENEWAL COVERS 635 EXISTING CONCURRENT IT UNITS OWNED BY NASA FOR 12 MONTHS.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $3.2 million to CONCURRENT REAL-TIME, INC. for work described as: THE CONCURRENT REAL-TIME ANNUAL IT MAINTENANCE/WARRANTY RENEWAL COVERS 635 EXISTING CONCURRENT IT UNITS OWNED BY NASA FOR 12 MONTHS. Key points: 1. The contract represents a significant investment in maintaining existing IT infrastructure. 2. Lack of competition suggests potential for inflated pricing and reduced value. 3. The firm fixed-price structure offers cost certainty but may limit flexibility. 4. The duration of the contract extends beyond a single fiscal year. 5. The renewal focuses on existing hardware, not new technology acquisition. 6. The geographic location of the contractor is noted, but its impact on service delivery is unclear.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without competitive benchmarks. Given that this is a sole-source renewal for IT maintenance, there is a risk that NASA is not achieving the best possible price. The firm fixed-price nature provides budget predictability, but the absence of competition means there's no market pressure to ensure cost-effectiveness. Further analysis would require comparing this renewal cost to similar maintenance contracts for comparable IT equipment or to the original acquisition cost of the units.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach bypasses the standard procurement process designed to foster competition and identify the most advantageous offer. Without a competitive bidding process, it is challenging to determine if NASA received the best possible pricing or terms. The lack of bidders means potential savings that could have been realized through market competition are likely foregone.
Taxpayer Impact: Taxpayers may be overpaying for IT maintenance services due to the absence of competitive pressure. Sole-source contracts can lead to higher costs compared to competed contracts, as there is no incentive for the contractor to offer the lowest possible price.
Public Impact
NASA's IT operations are supported, ensuring continued functionality of critical systems. The contract directly benefits Concurrent Real-Time, Inc. through revenue generation. The primary beneficiaries are NASA personnel who rely on the maintained IT equipment. The services delivered are essential for the day-to-day functioning of NASA's IT infrastructure. The geographic impact is concentrated where NASA utilizes the 635 IT units, likely within NASA facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
- Sole-source awards can limit transparency and accountability in the procurement process.
- The firm fixed-price contract might not adapt well to potential changes in IT needs or technology.
- Reliance on a single vendor for maintenance could create vendor lock-in and future dependency.
Positive Signals
- The contract ensures continuity of IT operations for NASA, which is critical for its mission.
- The firm fixed-price structure provides budget certainty for NASA's IT maintenance expenses.
- Concurrent Real-Time, Inc. is a known entity, potentially offering specialized knowledge of the existing IT units.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT maintenance and warranty services. The IT services market is vast and highly competitive, with numerous providers offering hardware maintenance. However, for specialized or legacy systems, the market can become more concentrated. Benchmarking this contract's value would involve comparing its per-unit maintenance cost against industry averages for similar hardware or against previous NASA contracts for comparable services.
Small Business Impact
This contract does not appear to include a small business set-aside. There is no indication of subcontracting requirements for small businesses. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem. The focus is on a large business prime contractor, and opportunities for small businesses to participate as subcontractors are not explicitly stated.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Aeronautics and Space Administration's contracting officers and program managers. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the pricing and justification more challenging. The Inspector General's office may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.
Related Government Programs
- NASA IT Support Services
- Information Technology Maintenance Contracts
- Hardware Warranty Renewals
- Federal IT Procurement
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Vendor Lock-in Risk
Tags
it-maintenance, warranty-renewal, nasa, national-aeronautics-and-space-administration, concurrent-real-time-inc, firm-fixed-price, definitive-contract, sole-source, it-services, alabama, existing-units
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $3.2 million to CONCURRENT REAL-TIME, INC.. THE CONCURRENT REAL-TIME ANNUAL IT MAINTENANCE/WARRANTY RENEWAL COVERS 635 EXISTING CONCURRENT IT UNITS OWNED BY NASA FOR 12 MONTHS.
Who is the contractor on this award?
The obligated recipient is CONCURRENT REAL-TIME, 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 $3.2 million.
What is the period of performance?
Start: 2025-05-23. End: 2027-01-31.
What is the track record of Concurrent Real-Time, Inc. with NASA and other federal agencies?
Concurrent Real-Time, Inc. has a history of receiving federal contracts, primarily with NASA. Their contract awards often relate to IT maintenance, support, and related services. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide insight into their reliability and capability. A review of contract databases and performance reports would be necessary to fully assess their track record. This includes examining the types of IT units they typically support and the duration and value of their previous agreements with government entities.
How does the per-unit maintenance cost compare to industry benchmarks for similar IT equipment?
Without specific details on the 635 IT units covered by this contract (e.g., servers, workstations, specialized hardware), a precise per-unit cost benchmark is difficult to establish. However, for standard IT hardware, annual maintenance costs typically range from 10-20% of the original acquisition cost. If these units are older or highly specialized, the percentage could be higher. The total contract value of $3.24 million for 635 units averages to approximately $5,104 per unit annually. This figure needs to be compared against the original cost and expected lifespan of the specific hardware to determine if it represents fair market value.
What are the risks associated with a sole-source IT maintenance renewal?
The primary risk of a sole-source IT maintenance renewal is the potential for inflated pricing due to the absence of competitive bidding. This can lead to a loss of value for taxpayer money. Another risk is vendor lock-in, where the agency becomes overly dependent on a single provider, potentially limiting future flexibility and negotiation power. Furthermore, without competition, there may be less incentive for the contractor to innovate or provide exceptional service beyond the contract's minimum requirements. Agencies may also miss out on opportunities to leverage new technologies or more cost-effective solutions available in the broader market.
What is the historical spending pattern for IT maintenance at NASA?
NASA's historical spending on IT maintenance likely fluctuates based on its infrastructure needs, technology refresh cycles, and budget allocations. Analyzing past IT maintenance contracts would reveal trends in spending, the types of services procured, and the average cost per unit or per contract. Significant increases or decreases in spending over time could indicate shifts in IT strategy, the aging of equipment, or changes in procurement approaches. Understanding these patterns is crucial for evaluating the current contract's value and for future budget planning and justification.
What is the potential impact of this contract on NASA's IT modernization efforts?
This contract focuses on maintaining existing IT units, which suggests it is part of NASA's ongoing operational support rather than a strategic initiative for IT modernization. While essential for current operations, a heavy reliance on maintaining legacy systems through long-term maintenance contracts can sometimes divert resources or attention from investing in newer, more efficient technologies. The agency must balance the need for stable operations with the imperative to modernize its IT infrastructure to enhance capabilities, improve security, and reduce long-term costs.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 80MSFC25R00160001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 NW 33RD ST, POMPANO BEACH, FL, 33064
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $3,241,134
Exercised Options: $3,241,134
Current Obligation: $3,241,134
Actual Outlays: $1,620,567
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-23
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-01-23
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