NASA's $18.7M financial services contract awarded to Information Network Inc. for accounting services
Contract Overview
Contract Amount: $18,702,315 ($18.7M)
Contractor: Information Network Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-11-12
End Date: 2013-11-11
Contract Duration: 4,017 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: FINANCIAL SERVICES CONTRACT
Place of Performance
Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $18.7 million to INFORMATION NETWORK INC for work described as: FINANCIAL SERVICES CONTRACT Key points: 1. The contract's value of $18.7 million over its lifetime suggests a significant investment in financial services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The duration of over 10 years indicates a long-term need for these accounting services. 4. The 'Other Accounting Services' NAICS code points to a broad scope of financial support. 5. The contract was awarded by NASA, a high-profile agency with stringent oversight requirements. 6. The cost-plus award fee (CPFF) pricing structure incentivizes performance while managing costs.
Value Assessment
Rating: good
The contract's $18.7 million total value over more than 10 years averages to approximately $1.8 million annually. Benchmarking this against similar large-scale financial services contracts for federal agencies is challenging without more specific service details. However, the duration suggests a stable, ongoing need. The CPFF structure allows for cost reimbursement plus a fee based on performance, which can be a good value if performance targets are met and exceeded, but requires careful monitoring to ensure costs remain reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 6 bidders participating, the competition level appears robust. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to offer the most competitive terms.
Taxpayer Impact: The full and open competition for this contract suggests that taxpayers likely received a fair price due to the competitive pressure among the six bidders. This process helps ensure that government funds are used efficiently.
Public Impact
The primary beneficiaries are NASA's various departments and programs requiring specialized accounting and financial management support. The services delivered likely encompass a wide range of accounting functions, including financial reporting, auditing support, and budget analysis. The contract's geographic impact is centered around NASA facilities, with potential for remote work supporting the agency's operations. The contract supports a workforce skilled in accounting and financial analysis, contributing to the federal government's financial infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus award fee structure requires diligent oversight to ensure performance incentives do not lead to excessive cost escalation.
- The long contract duration necessitates ongoing performance reviews to ensure continued alignment with NASA's evolving financial needs.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace for these services.
- The contract's significant duration suggests a stable and reliable service provider meeting NASA's long-term requirements.
- The CPFF structure, when managed effectively, can align contractor incentives with government objectives.
Sector Analysis
This contract falls within the broader financial services sector, specifically focusing on accounting services for government agencies. The federal government is a significant consumer of such services, often requiring specialized expertise for complex financial operations. Comparable spending benchmarks would depend on the specific accounting functions performed, but large, multi-year contracts like this are common for major agencies like NASA to ensure continuity and specialized support.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Information Network Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for small business participation in supporting NASA's financial operations.
Oversight & Accountability
NASA maintains robust oversight mechanisms for its contracts. This contract, being a Cost Plus Award Fee (CPFF) type, would be subject to regular performance reviews and financial audits to ensure costs are reasonable and performance targets are met. The agency's Inspector General would also have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Federal Financial Management Services
- Government Accounting and Auditing Contracts
- NASA Financial Operations Support
- Information Technology and Financial Systems Integration
Risk Flags
- Long contract duration may increase risk of scope creep or misalignment with evolving needs.
- Cost-plus award fee structure requires diligent oversight to manage costs effectively.
- Potential for limited small business subcontracting opportunities if not explicitly mandated.
Tags
financial-services, accounting-services, nasa, cost-plus-award-fee, full-and-open-competition, large-contract, information-network-inc, california, federal-government, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $18.7 million to INFORMATION NETWORK INC. FINANCIAL SERVICES CONTRACT
Who is the contractor on this award?
The obligated recipient is INFORMATION NETWORK 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 $18.7 million.
What is the period of performance?
Start: 2002-11-12. End: 2013-11-11.
What specific accounting services were provided under this contract?
The NAICS code 541219, 'Other Accounting Services,' suggests a broad scope. This could include services such as financial statement preparation, internal control assessment, budget analysis, financial system support, audit liaison, and potentially specialized financial consulting. Without more detailed contract line item descriptions, the precise nature of the services remains general. However, given it's for NASA, it likely involves complex financial management supporting space exploration and research programs, ensuring compliance with federal financial regulations and reporting requirements.
How does the $18.7 million total contract value compare to similar NASA accounting contracts?
Direct comparison is difficult without knowing the specific services and duration of other NASA accounting contracts. However, $18.7 million over approximately 11 years (from 2002 to 2013) averages to about $1.7 million per year. This figure is substantial but not extraordinary for a large federal agency like NASA, which manages complex budgets and operations. Larger contracts often involve broader scope, longer durations, or more specialized expertise. Smaller, more focused contracts for specific projects or shorter-term needs would naturally have lower total values.
What are the primary risks associated with a Cost Plus Award Fee (CPFF) contract of this magnitude?
The primary risk with CPFF contracts is the potential for cost growth, as the contractor is reimbursed for allowable costs plus a fee. While the fee is performance-based, there's a risk that the government may not effectively manage or scrutinize costs, leading to higher-than-expected expenditures. Another risk is the subjectivity in determining the award fee, which could lead to disputes or perceptions of unfairness if not clearly defined and objectively measured. Ensuring robust performance metrics and diligent oversight is crucial to mitigate these risks and achieve value for money.
What was the historical spending trend for 'Other Accounting Services' at NASA prior to this contract?
Analyzing historical spending trends for 'Other Accounting Services' at NASA prior to this specific contract (awarded in 2002) would require access to historical federal procurement data databases. Generally, NASA's spending on financial services fluctuates based on its program priorities, budget allocations, and the lifecycle of its major projects. Contracts for accounting services are often long-term to ensure continuity. Without specific historical data, it's presumed that NASA has consistently required such services to manage its complex financial obligations, with spending levels likely influenced by overall agency funding and specific program needs.
What is the track record of Information Network Inc. with federal contracts, particularly with NASA?
Information Network Inc. has a history of federal contracting, as evidenced by this NASA award. To assess their track record thoroughly, one would need to examine other contracts awarded to them across various agencies, their performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues or disputes. A contract of this size and duration with NASA suggests a level of capability and reliability, but a comprehensive review would involve analyzing their entire federal contract portfolio and performance history.
How did the number of bidders (6) influence the final contract price and terms?
With six bidders competing for this contract, it suggests a healthy level of competition. In a full and open competition, a larger number of bidders generally exerts downward pressure on pricing, as companies strive to win the contract by offering competitive rates and terms. It also increases the likelihood that the government will receive proposals that meet or exceed its requirements. The specific influence on the final price is hard to quantify without knowing the initial proposed prices and the government's cost estimates, but the competition likely contributed to achieving a reasonable value for the services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 10210 GREENBELT RD STE 300, LANHAM, MD, 04
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,458,448
Exercised Options: $19,458,448
Current Obligation: $18,702,315
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2002-11-12
Current End Date: 2013-11-11
Potential End Date: 2013-11-11 00:00:00
Last Modified: 2013-09-13
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