HUD awards $2.1M IT support contract to Nelson Enterprise Technology Services for geocoding services

Contract Overview

Contract Amount: $2,101,762 ($2.1M)

Contractor: Nelson Enterprise Technology Services LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-03-26

End Date: 2027-03-25

Contract Duration: 1,460 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES FOR GEOCODING SERVICE CENTER (GSC) OPERATIONS AND MAINTENANCE (O&M) TO MEET THE BUSINESS NEEDS OF THE PROGRAM OFFICE.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $2.1 million to NELSON ENTERPRISE TECHNOLOGY SERVICES LLC for work described as: IT SUPPORT SERVICES FOR GEOCODING SERVICE CENTER (GSC) OPERATIONS AND MAINTENANCE (O&M) TO MEET THE BUSINESS NEEDS OF THE PROGRAM OFFICE. Key points: 1. Contract focuses on essential IT support for geocoding operations, crucial for program office needs. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of approximately four years indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award is a delivery order under a larger contract vehicle, implying a streamlined procurement process. 6. Services are critical for the Program Office's business needs, highlighting their importance.

Value Assessment

Rating: good

The contract value of $2.1 million over approximately four years for IT support services appears reasonable given the scope of geocoding operations and maintenance. Benchmarking against similar IT support contracts for specialized services suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability. Further analysis would require detailed service level agreements and performance metrics to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of a single award suggests that while competition was open, only one offeror met the requirements or was deemed the best value. The level of competition, even with one award, indicates an attempt to solicit a broad range of potential providers.

Taxpayer Impact: A full and open competition, even with a single award, generally benefits taxpayers by ensuring that the government explored the market broadly and sought the best possible price and technical solution available.

Public Impact

The Program Office of the Department of Housing and Urban Development (HUD) benefits directly from enhanced geocoding services. Essential IT support for geocoding operations and maintenance ensures the continuity and efficiency of critical business functions. The services provided likely support various HUD programs that rely on geographic data analysis. Workforce implications are minimal as this is an IT support contract, likely not directly creating new jobs but maintaining existing IT infrastructure and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific geocoding technology is proprietary.
Reliance on a single vendor for critical IT support could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a structured procurement process.
Long-term contract duration allows for stable service provision.

Sector Analysis

This contract falls within the IT Services sector, specifically focusing on computer systems design and related services. The market for IT support and geocoding services is robust, with numerous providers offering specialized solutions. HUD's spending on such services is consistent with the needs of federal agencies that manage large datasets and require sophisticated mapping and location-based analysis capabilities. Comparable spending benchmarks would typically be found within IT services categories for government agencies.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Nelson Enterprise Technology Services LLC, is not explicitly identified as a small business in this data. This suggests that small businesses were either not primary bidders or did not meet the specific requirements for this particular IT support service. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is currently unknown.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. Performance will be monitored against the terms of the delivery order and the underlying contract vehicle. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Support Services
Computer Systems Design Services
Geographic Information Systems (GIS) Support
Federal IT Modernization Programs
HUD IT Operations

Risk Flags

Potential for limited competition despite open solicitation
Reliance on a single vendor for critical IT operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $2.1 million to NELSON ENTERPRISE TECHNOLOGY SERVICES LLC. IT SUPPORT SERVICES FOR GEOCODING SERVICE CENTER (GSC) OPERATIONS AND MAINTENANCE (O&M) TO MEET THE BUSINESS NEEDS OF THE PROGRAM OFFICE.

Who is the contractor on this award?

The obligated recipient is NELSON ENTERPRISE TECHNOLOGY SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2023-03-26. End: 2027-03-25.

What is the specific nature of the geocoding services provided and how do they support HUD's mission?

The contract specifies IT support services for Geocoding Service Center (GSC) Operations and Maintenance (O&M). Geocoding is the process of converting addresses or place names into geographic coordinates (latitude and longitude). This is crucial for HUD's mission as it enables the agency to map, analyze, and visualize data related to housing, community development, and economic indicators. For instance, it can help in identifying areas with specific housing needs, tracking the impact of federal programs geographically, or optimizing resource allocation based on location. The O&M aspect ensures the continuous functioning and upkeep of the systems that perform these vital tasks, supporting data-driven decision-making within HUD's program offices.

How does the $2.1 million contract value compare to similar IT support contracts for geocoding services within the federal government?

Benchmarking the $2.1 million contract value requires comparing it against similar IT support and geocoding services contracts awarded by federal agencies. While specific comparable data is not provided, IT support contracts for specialized services like geocoding, especially those involving operations and maintenance over a multi-year period (1460 days/approx. 4 years), can range significantly. Factors influencing cost include the complexity of the systems, the volume of data processed, the required uptime and service levels, and the specific technologies employed. A preliminary assessment suggests that $2.1 million for four years of support for a dedicated service center is within a reasonable range, assuming the scope is well-defined and the vendor is providing essential maintenance and operational support. However, a more precise comparison would necessitate analyzing the specific deliverables, service level agreements (SLAs), and the number of users or systems supported.

What are the potential risks associated with a firm fixed-price contract for IT support services?

Firm fixed-price (FFP) contracts are designed to provide cost certainty to the government. However, for IT support services, there are potential risks. If the scope of work is not precisely defined or if unforeseen technical challenges arise, the contractor may face financial strain trying to meet the fixed price, potentially impacting service quality or leading to change order requests. Conversely, if the contractor significantly underestimates the effort required, they might cut corners on service delivery to maintain profitability. For the government, the risk lies in potentially paying a premium for the contractor's assumption of risk, or in receiving suboptimal service if the contractor prioritizes profit over performance within the fixed-price constraint. Effective contract management, clear performance metrics, and robust communication are crucial to mitigate these risks.

Given the 'Full and Open Competition after Exclusion of Sources' award type, what does this imply about the competition landscape for these services?

The award type 'Full and Open Competition after Exclusion of Sources' indicates that the government broadly advertised the requirement and allowed all responsible sources to submit proposals. However, the fact that only one award was made suggests that either only one offeror met all the mandatory requirements, or one offeror was significantly superior in terms of technical approach, past performance, or price, making it the clear best value. This could imply a highly specialized niche market where few companies possess the necessary capabilities, or it might suggest that the solicitation requirements were very stringent. While the competition was open, the single award limits the direct price negotiation leverage that multiple competing bids would typically provide, potentially impacting the final price achieved for taxpayers.

What is Nelson Enterprise Technology Services LLC's track record with similar federal IT support contracts?

Information regarding Nelson Enterprise Technology Services LLC's specific track record with similar federal IT support contracts, particularly those involving geocoding operations and maintenance, is not detailed in the provided data. To assess their suitability and past performance, a review of their contract history, including past performance evaluations, client references, and any documented issues or successes on previous government contracts, would be necessary. This would help determine their experience in managing complex IT systems, delivering reliable support, and meeting performance expectations within budget and schedule constraints.

How does the duration of this contract (1460 days) impact the overall value and potential for service improvement?

The contract duration of 1460 days, approximately four years, provides a stable period for Nelson Enterprise Technology Services LLC to deliver IT support for geocoding services. This extended timeframe allows the contractor to gain in-depth knowledge of HUD's specific systems and requirements, potentially leading to more efficient and effective service delivery over time. It also offers the agency continuity of operations, reducing the disruption associated with frequent vendor changes. From a value perspective, a longer-term contract can sometimes lead to better pricing as the contractor can amortize startup costs over a longer period. However, it also means the government is committed to this vendor for an extended duration, necessitating robust performance monitoring to ensure continued value and to identify opportunities for service improvement or adaptation to evolving technological needs.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86615323Q00006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45921 MARIES RD STE 140, STERLING, VA, 20166

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,804,195

Exercised Options: $2,534,559

Current Obligation: $2,101,762

Actual Outlays: $1,719,778

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0184

IDV Type: GWAC

Timeline