Department of Energy awards $6.4M contract for large-scale scanning services to Salmon Group Inc

Contract Overview

Contract Amount: $6,401,757 ($6.4M)

Contractor: Salmon Group Inc

Awarding Agency: Department of Energy

Start Date: 2024-03-31

End Date: 2026-01-31

Contract Duration: 671 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACTOR TO PROVIDE LARGE SCALE SCANNING SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99354

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $6.4 million to SALMON GROUP INC for work described as: CONTRACTOR TO PROVIDE LARGE SCALE SCANNING SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK. Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. Service category is 'Other Computer Related Services', suggesting a focus on IT infrastructure support. 3. Contract duration of 671 days, ending January 31, 2026. 4. Awarded on a Time and Materials basis, which can pose cost control challenges. 5. No small business set-aside was utilized for this contract. 6. Geographic location of performance is Washington state.

Value Assessment

Rating: fair

The contract value of $6.4 million for large-scale scanning services over approximately two years appears to be within a reasonable range for such specialized IT support. However, without specific details on the scope of 'large scale scanning' (e.g., volume, complexity, types of documents), a precise value-for-money assessment is difficult. The Time and Materials pricing structure necessitates close monitoring to ensure costs do not escalate beyond initial expectations. Benchmarking against similar government contracts for document digitization and scanning services would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', suggesting that all responsible sources were permitted to submit offers. This typically leads to a more competitive bidding process. The specific number of bidders is not provided, but the full and open nature implies that the government sought the best possible offers from the market. This approach generally benefits price discovery and ensures a wider pool of potential contractors is considered.

Taxpayer Impact: A full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential offerors.

Public Impact

The Department of Energy benefits from enhanced digital record-keeping and information management capabilities. Services delivered include large-scale scanning, likely digitizing physical documents for improved accessibility and storage. Geographic impact is centered in Washington state, where the contractor will perform the services. Workforce implications may include employment opportunities for scanning operators, technicians, and project managers within Salmon Group Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics or deliverables in the provided data makes it hard to gauge efficiency.
The 'Other Computer Related Services' NAICS code is broad and could encompass a wide range of activities, requiring clarity on the exact scope.

Positive Signals

Awarded under 'Full and Open Competition', indicating a potentially competitive pricing environment.
The contractor, Salmon Group Inc., has secured a federal contract, suggesting some level of established capability.
The contract has a defined end date, providing a clear timeframe for service delivery.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which is broad but often includes specialized IT support, data management, and digitization services. Government spending in this area is substantial, driven by the need to modernize legacy systems, improve data accessibility, and enhance cybersecurity. Comparable spending benchmarks would depend heavily on the specific volume and complexity of scanning required, but multi-million dollar contracts for large-scale digitization projects are not uncommon.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting requirements based on the provided data (SB=false). This means that larger businesses were eligible to compete and potentially win the award without a specific mandate to engage small businesses. The absence of set-asides or explicit subcontracting goals may limit opportunities for small businesses to participate in this particular contract's execution, potentially impacting the broader small business ecosystem for this service category.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. The Time and Materials (T&M) nature of the award necessitates diligent monitoring of labor hours and material costs to ensure compliance with the contract terms and prevent cost overruns. Transparency would be enhanced through regular reporting requirements stipulated in the Statement of Work (SOW). Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Records Management Services
Document Digitization Contracts
IT Infrastructure Support Services
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific performance metrics in summary data.
Broad NAICS code requires detailed review of Statement of Work for precise service scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $6.4 million to SALMON GROUP INC. CONTRACTOR TO PROVIDE LARGE SCALE SCANNING SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is SALMON GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2024-03-31. End: 2026-01-31.

What is the specific volume and type of documents Salmon Group Inc. is contracted to scan?

The provided data does not specify the exact volume or types of documents Salmon Group Inc. is contracted to scan. The description only states 'large scale scanning services in accordance with the Statement of Work.' To fully assess the value and performance of this contract, understanding the scope of 'large scale' is crucial. This would include metrics such as the number of pages, file types (e.g., paper documents, blueprints, photographs), and any specific indexing or metadata requirements. Without this detail, it's difficult to benchmark the $6.4 million award against industry standards for digitization projects.

How does the $6.4 million contract value compare to similar government scanning contracts?

Benchmarking the $6.4 million contract value requires comparing it to similar government contracts for large-scale scanning services. Factors influencing cost include the volume of documents, complexity of scanning (e.g., color vs. black and white, resolution requirements), indexing needs, and turnaround time. Contracts for large-scale digitization projects can range significantly, from hundreds of thousands to tens of millions of dollars. A $6.4 million award over approximately two years suggests a substantial undertaking. Further analysis would involve examining the number of bidders, the specific services offered by competitors, and the unit costs (e.g., cost per page) to determine if this represents a competitive price point for the services rendered.

What are the primary risks associated with a Time and Materials (T&M) contract for scanning services?

The primary risk associated with a Time and Materials (T&M) contract for scanning services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements compensate the contractor based on the actual labor hours and material costs incurred. If not closely monitored and managed, this structure can incentivize longer project durations or less efficient work practices, leading to expenditures exceeding initial estimates. For the Department of Energy, this means diligent oversight is required to track hours, validate material charges, and ensure the contractor is performing efficiently to stay within the $6.4 million ceiling. Clear task definitions and performance metrics within the SOW are essential to mitigate these risks.

What is Salmon Group Inc.'s track record with federal contracts, particularly in IT services?

Information regarding Salmon Group Inc.'s specific track record with federal contracts, especially in IT services and large-scale scanning, is not detailed in the provided data. Federal procurement databases often contain contract history, past performance reviews, and award details for contractors. To assess their suitability for this $6.4 million contract, a review of their past performance ratings, any previous awards for similar services, and their experience with the Department of Energy or other agencies would be necessary. A strong track record in delivering IT services on time and within budget would increase confidence in their ability to execute this current contract successfully.

How does the 'Other Computer Related Services' NAICS code (541519) typically encompass large-scale scanning operations?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide array of IT services not specified elsewhere. Large-scale scanning operations often fall under this code when they involve significant data conversion, digitization, and potentially the associated IT infrastructure or software management required to handle the digitized data. This code is suitable because it covers services like data processing, hosting, and related computer infrastructure activities that are integral to managing large volumes of scanned information. However, its breadth means that the specific deliverables and scope of work defined in the contract's Statement of Work (SOW) are critical for understanding the precise nature of the services being procured.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 1331 PENNSYLVANIA AVE NW, WASHINGTON, DC, 20004

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

Financial Breakdown

Contract Ceiling: $10,928,272

Exercised Options: $6,401,757

Current Obligation: $6,401,757

Actual Outlays: $6,401,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303923AEM000023

IDV Type: BPA

Timeline