Forest Service awarded $18.6M for IT support, with Network Specialty Group Inc. as prime

Contract Overview

Contract Amount: $18,617,407 ($18.6M)

Contractor: Network Specialty Group, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2007-03-29

End Date: 2010-05-13

Contract Duration: 1,141 days

Daily Burn Rate: $16.3K/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: DOMINO AND SYSTEM DEVELOPMENT AND SUPPORT, BLACKBERRY AND DESKTOP SUPPORT AND INFORMATION SECURITY AND TIVOLI (SMG) SUPPORT, INFORMATION RESOURCE MANAGEMENT WASHINGTON OFFICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20090

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.6 million to NETWORK SPECIALTY GROUP, INC. for work described as: DOMINO AND SYSTEM DEVELOPMENT AND SUPPORT, BLACKBERRY AND DESKTOP SUPPORT AND INFORMATION SECURITY AND TIVOLI (SMG) SUPPORT, INFORMATION RESOURCE MANAGEMENT WASHINGTON OFFICE Key points: 1. Contract value of $18.6M over approximately 3 years indicates a significant investment in IT infrastructure. 2. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. The fixed-price contract type suggests a defined scope and potential for cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract's duration of over 1100 days highlights the long-term nature of the IT support required. 6. The award to Network Specialty Group, Inc. represents a substantial contract for the company.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the duration. However, an average annual spend of approximately $6.2 million for comprehensive IT support, including security and system development, appears within a reasonable range for a federal agency of the Forest Service's size. Further analysis would require comparing the scope of services to similar contracts awarded by other agencies for comparable IT support functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, specific sources may have been excluded based on predefined criteria. The exact number of bidders and the rationale for excluding other potential sources are not detailed, making it difficult to fully assess the level of competition. This approach can sometimes limit price discovery compared to truly unrestricted full and open competition.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' clause suggests an effort to ensure a competitive process. Taxpayers benefit from the potential for competitive pricing, though the exclusion of certain sources might have limited the most aggressive price reductions.

Public Impact

The Forest Service benefits from continued IT support, ensuring the operational continuity of its information systems. Employees within the Forest Service will have access to necessary IT resources and technical assistance for their daily tasks. The contract supports the maintenance and security of critical data and systems essential for the agency's mission. The geographic impact is likely nationwide, given the Forest Service's broad operational footprint.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to assess if the $18.6M represents optimal value.
The 'exclusion of sources' clause in the competition type warrants further investigation into the rationale and impact on bidder pool.
Limited information on performance metrics makes it hard to gauge the effectiveness of the IT support provided.

Positive Signals

Awarded under a competitive process, indicating an effort to secure a qualified vendor.
The firm fixed-price contract type provides cost predictability for the government.
The contract duration suggests a stable, long-term IT support solution for the Forest Service.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support, system development, and information security. The IT services market is vast and highly competitive, with numerous companies offering a wide range of solutions. Federal spending in this area is substantial, driven by the need to maintain and modernize complex government IT infrastructures. Comparable spending benchmarks would typically involve analyzing IT support contracts of similar scope and duration awarded to other federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the contract was likely awarded to a large business or a joint venture. There is no explicit information regarding subcontracting plans for small businesses. Without this detail, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting opportunities that can benefit small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Forest Service's contracting officers and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where award details are recorded. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Agriculture IT Modernization initiatives
Forest Service IT Infrastructure Support
Cybersecurity and Information Assurance Services

Risk Flags

Limited transparency on source exclusion criteria.
Lack of detailed performance metrics.
Potential for reduced competition due to source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.6 million to NETWORK SPECIALTY GROUP, INC.. DOMINO AND SYSTEM DEVELOPMENT AND SUPPORT, BLACKBERRY AND DESKTOP SUPPORT AND INFORMATION SECURITY AND TIVOLI (SMG) SUPPORT, INFORMATION RESOURCE MANAGEMENT WASHINGTON OFFICE

Who is the contractor on this award?

The obligated recipient is NETWORK SPECIALTY GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2007-03-29. End: 2010-05-13.

What specific IT services were included under DOMINO AND SYSTEM DEVELOPMENT AND SUPPORT, BLACKBERRY AND DESKTOP SUPPORT AND INFORMATION SECURITY AND TIVOLI (SMG) SUPPORT, INFORMATION RESOURCE MANAGEME

The contract title suggests a broad scope of IT services. 'DOMINO AND SYSTEM DEVELOPMENT AND SUPPORT' likely refers to IBM Domino (formerly Lotus Notes) services, including development, maintenance, and support. 'BLACKBERRY AND DESKTOP SUPPORT' indicates end-user device support and management. 'INFORMATION SECURITY' points to services related to protecting agency data and systems. 'TIVOLI (SMG) SUPPORT' refers to support for IBM's Tivoli suite of management software. 'INFORMATION RESOURCE MANAGEMENT' encompasses the overall management of the agency's information assets. The exact deliverables and service level agreements would be detailed in the contract's Statement of Work (SOW).

How does the $18.6 million contract value compare to typical IT support spending for a federal agency like the Forest Service?

The $18.6 million contract value, spread over approximately three years, equates to an average annual spend of roughly $6.2 million. This figure is within a plausible range for a federal agency the size and scope of the Forest Service, which manages vast natural resources and requires robust IT infrastructure for operations, data management, and communication across numerous locations. To provide a more precise comparison, one would need to benchmark against IT support contracts of similar duration and scope awarded to agencies of comparable size and complexity, considering factors like the number of users supported and the criticality of the systems maintained.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award type?

The primary risk associated with 'full and open competition after exclusion of sources' is the potential for a reduced competitive landscape compared to unrestricted full and open competition. While the intent is to ensure a fair process, the exclusion of specific sources, even if justified, can limit the number of potential bidders. This reduction in competition might lead to less aggressive pricing than might be achieved in a completely open market. Additionally, if the criteria for exclusion are not transparent or are perceived as overly restrictive, it could raise questions about fairness and potentially limit access for qualified vendors who were not explicitly excluded but may not have met the specific, albeit limited, criteria.

What is the significance of the firm fixed-price contract type for this IT support service?

A firm fixed-price (FFP) contract type is significant because it places the majority of the risk and responsibility for cost control on the contractor, Network Specialty Group, Inc. Under an FFP agreement, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This provides the Forest Service with a high degree of cost predictability and certainty. It incentivizes the contractor to manage their resources efficiently to maintain profitability. For IT support services, where scope can sometimes be well-defined, FFP is often preferred to manage budget expectations and avoid cost overruns.

Can the performance of Network Specialty Group, Inc. on this contract be assessed based on the provided data?

The provided data does not include specific performance metrics or outcomes for Network Specialty Group, Inc. on this contract. We know the contract was awarded and its duration, but without access to performance reviews, customer satisfaction surveys, or objective measures of service delivery (e.g., uptime, response times, issue resolution rates), it is impossible to assess their performance. A thorough assessment would require reviewing contract performance reports, any award modifications, and potentially feedback from the Forest Service contracting officer or end-users.

What does the NAICS code 541519 ('Other Computer Related Services') imply about the scope of this contract?

The NAICS code 541519, 'Other Computer Related Services,' indicates a broad category for establishments primarily engaged in providing expertise in the field of computer information technology not elsewhere classified. This can encompass a wide array of services, including computer systems integration design consulting, computer facilities management, computer disaster recovery services, and computer virus protection services. For this specific contract, it suggests the services provided by Network Specialty Group, Inc. extend beyond basic IT support to potentially include more specialized or integrated IT solutions, system architecture, or advanced security measures, as also hinted at by the contract title.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 901 RUSSELL AVE, GAITHERSBURG, MD, 90

Business Categories: 8(a) Program Participant, Category Business, Educational Institution, Higher Education, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,617,407

Exercised Options: $18,617,407

Current Obligation: $18,617,407

Contract Characteristics

Cost or Pricing Data: NO

Timeline