Commerce Department's Census Bureau awarded $1.48B for IT integration, with T-REX SOLUTIONS LLC as prime

Contract Overview

Contract Amount: $1,480,169,956 ($1.5B)

Contractor: T-Rex Solutions LLC

Awarding Agency: Department of Commerce

Start Date: 2016-08-26

End Date: 2023-09-20

Contract Duration: 2,581 days

Daily Burn Rate: $573.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF ENTERPRISE SOLUTIONS FRAMEWORK (ESF) FOR MULTI-TIERED ACQUISITION FRAMEWORK FOR SYSTEMS ENGINEERING AND INTEGRATION - PROGRAM TIER WORK ORDER 003 - 2020 CENSUS TECHNICAL INTEGRATOR

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $1.48 billion to T-REX SOLUTIONS LLC for work described as: IGF::OT::IGF ENTERPRISE SOLUTIONS FRAMEWORK (ESF) FOR MULTI-TIERED ACQUISITION FRAMEWORK FOR SYSTEMS ENGINEERING AND INTEGRATION - PROGRAM TIER WORK ORDER 003 - 2020 CENSUS TECHNICAL INTEGRATOR Key points: 1. Contract value of $1.48B over its lifespan indicates significant investment in IT systems engineering. 2. The contract was competed under SAP, suggesting a potentially competitive process within certain procurement thresholds. 3. A duration of 2581 days (over 7 years) points to a long-term need for sustained technical support. 4. The use of a BPA Call (Blanket Purchase Agreement Call) implies a pre-negotiated framework for efficient task orders. 5. The primary NAICS code (541512) for Computer Systems Design Services highlights the focus on technical integration and support. 6. The contract's performance period spans a significant portion of the lead-up to and execution of the 2020 Census.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific comparable IT integration contracts for large-scale federal programs. The total award of $1.48B over more than seven years suggests a substantial investment. However, the Time and Materials (T&M) pricing model, while flexible, can sometimes lead to cost overruns if not managed tightly. Without detailed breakdowns of labor categories and rates, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for broader competition than sole-source awards but may have limitations on the number of bidders or contract value compared to full and open competition. The presence of 5 bidders indicates some level of competition. The specific details of the SAP competition (e.g., number of proposals received, evaluation criteria) would be needed for a more thorough assessment of its effectiveness in driving price discovery.

Taxpayer Impact: Competition under SAP generally aims to balance efficiency with fair market access. While it may not achieve the same level of price optimization as a large-scale full and open competition, it likely provided taxpayers with a reasonable price given the procurement method.

Public Impact

The U.S. Census Bureau is the primary beneficiary, receiving critical technical integration services for the 2020 Census. This contract supports the delivery of accurate and timely demographic data essential for national planning and resource allocation. The services provided are crucial for the operational success of the decennial census, impacting all geographic areas of the United States. The contract likely supports a workforce of IT professionals and systems engineers, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can pose cost control risks if not diligently managed.
The long duration of the contract (over 7 years) necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single prime contractor for such a critical function requires robust oversight to mitigate single points of failure.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing and vendor selection.
The award to T-REX SOLUTIONS LLC suggests they met the technical and performance requirements for complex IT integration.
The BPA Call mechanism allows for potentially streamlined ordering of services as needed, improving efficiency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector is characterized by high demand for specialized expertise in system integration, software development, and IT consulting. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems and enhancing data processing capabilities. This contract's focus on systems engineering and integration for a major federal program like the Census aligns with the trend of agencies outsourcing complex technical functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses arising from a set-aside. The prime contractor, T-REX SOLUTIONS LLC, is responsible for managing the overall effort, and any subcontracting would be at their discretion to meet program needs.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. The Department of Commerce's Office of Inspector General (OIG) would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse within this contract.

Related Government Programs

2020 Census IT Support Contracts
Federal Civilian Agency IT Modernization Programs
Systems Engineering and Integration Services
Blanket Purchase Agreements (BPAs)
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns due to T&M pricing model.
Long contract duration requires sustained oversight.
Reliance on a single prime contractor for critical functions.
Effectiveness of SAP competition in ensuring optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $1.48 billion to T-REX SOLUTIONS LLC. IGF::OT::IGF ENTERPRISE SOLUTIONS FRAMEWORK (ESF) FOR MULTI-TIERED ACQUISITION FRAMEWORK FOR SYSTEMS ENGINEERING AND INTEGRATION - PROGRAM TIER WORK ORDER 003 - 2020 CENSUS TECHNICAL INTEGRATOR

Who is the contractor on this award?

The obligated recipient is T-REX SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $1.48 billion.

What is the period of performance?

Start: 2016-08-26. End: 2023-09-20.

What is the specific breakdown of labor rates and categories within the Time and Materials (T&M) pricing structure for this contract?

The provided data does not include a detailed breakdown of labor rates and categories for the Time and Materials (T&M) pricing structure. T&M contracts typically involve billing based on the actual hours worked by different labor categories (e.g., senior engineer, junior analyst, project manager) at pre-negotiated hourly rates, plus the cost of materials. Without access to the contract's CLINs (Contract Line Item Numbers) and associated rate tables, it is impossible to assess the specific costs associated with different personnel or the overall cost-effectiveness of the labor employed. This level of detail is crucial for a thorough value-for-money analysis and for identifying potential areas of cost escalation.

How does the awarded value of $1.48 billion compare to similar IT systems engineering and integration contracts for large-scale federal programs?

Comparing the $1.48 billion award to similar contracts requires identifying IT systems engineering and integration efforts for other major federal programs, such as those supporting the IRS, Social Security Administration, or other large-scale data collection and processing initiatives. The Census Bureau's decennial census is a unique and massive undertaking, often requiring significant IT investment. While $1.48 billion over seven years is substantial, it may be within the expected range for such a critical, long-term program. However, without specific benchmarks for comparable programs (e.g., IT support for other large data initiatives, major system overhauls), it's difficult to definitively state whether this represents high, low, or average spending. The complexity and criticality of the 2020 Census likely drove a significant portion of this cost.

What were the key performance indicators (KPIs) established for T-REX SOLUTIONS LLC under this contract, and how was performance measured?

The provided summary data does not specify the Key Performance Indicators (KPIs) established for T-REX SOLUTIONS LLC or the methods used for performance measurement. For a contract of this magnitude and duration, particularly one supporting the 2020 Census, KPIs would typically focus on system uptime, data accuracy, successful integration of new components, adherence to security protocols, timely delivery of milestones, and overall project management effectiveness. Performance would likely be assessed through regular progress reports, technical reviews, user feedback, and potentially independent quality assurance assessments conducted by the Census Bureau. The effectiveness of the oversight mechanisms directly impacts the realization of value from this contract.

What is the historical spending pattern for IT systems engineering and integration services at the U.S. Census Bureau, and how does this contract fit within that trend?

Historical spending data for IT systems engineering and integration at the U.S. Census Bureau, particularly leading up to and during the 2020 Census, would provide context for this $1.48 billion award. Federal agencies often increase IT spending significantly for major program initiatives like a decennial census. This contract, valued at over $1.48 billion and spanning more than seven years, represents a substantial, long-term investment. It is likely indicative of a concentrated effort to ensure the technological backbone of the 2020 Census was robust and capable. Without specific historical figures, it's hard to quantify the trend, but such large-scale IT procurements are typical for major federal data collection efforts.

What are the potential risks associated with the Time and Materials (T&M) contract type for a project of this scale and duration?

The primary risk associated with the Time and Materials (T&M) contract type for a project of this scale and duration is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours expended and materials used. If not managed rigorously, this can lead to costs exceeding initial estimates. Key risks include scope creep (where the project expands without formal change orders), inefficient labor utilization, and difficulty in accurately forecasting the total expenditure. Robust oversight, clear task definitions, and strong project management are essential to mitigate these risks and ensure the government receives good value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7338 BALTIMORE AVE STE 112, COLLEGE PARK, MD, 20740

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,599,653,420

Exercised Options: $1,597,328,104

Current Obligation: $1,480,169,956

Actual Outlays: $17,247,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCYA132315BU0033

IDV Type: BPA

Timeline