Evolver LLC's $20.87M contract for network operations shows fair value, with competition impacting pricing

Contract Overview

Contract Amount: $20,871,913 ($20.9M)

Contractor: Evolver LLC

Awarding Agency: Department of Commerce

Start Date: 2010-01-29

End Date: 2014-08-23

Contract Duration: 1,667 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO#07 NETWORK OPERATIONS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22313

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $20.9 million to EVOLVER LLC for work described as: TO#07 NETWORK OPERATIONS Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services. 2. Full and open competition likely contributed to competitive pricing. 3. Performance risk indicators are minimal, suggesting a stable service delivery. 4. This contract represents a standard IT infrastructure support service. 5. The spending aligns with typical federal IT network operations budgets. 6. Contract duration was substantial, indicating a long-term need for these services.

Value Assessment

Rating: good

The total award of $20.87 million over its period of performance suggests a moderate annual spend for network operations. Benchmarking against similar IT support contracts indicates that the pricing was competitive, likely influenced by the procurement method. The contract type (Time and Materials) can sometimes pose a risk for cost overruns, but the overall value achieved appears to be in line with market expectations for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a robust competitive process. While the specific number of bidders isn't provided, this method generally ensures a wide range of potential offerors can participate, leading to better price discovery and a wider selection of qualified vendors. The competitive nature of the award is a positive sign for achieving value.

Taxpayer Impact: The use of full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This approach maximizes the opportunity to secure the best possible services at the most competitive rates.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from reliable network operations, crucial for its intellectual property services. Essential IT infrastructure support was delivered, ensuring the continuity of government operations. The primary geographic impact is within Virginia, where the services were likely performed. The contract supported IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited details on specific performance metrics make it difficult to fully assess efficiency.
The long duration of the contract could indicate potential for vendor lock-in if not monitored.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
The contract was successfully completed, indicating fulfillment of requirements.
The agency (Department of Commerce) and specific office (USPTO) are clear, providing context for the service need.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network operations and computer facilities management. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their digital infrastructure. This contract represents a typical expenditure for ensuring the operational integrity of critical government IT systems, comparable to spending by other agencies on similar managed IT services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were likely the primary participants in the competition. There is no direct information on subcontracting plans or their impact on the small business ecosystem from the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office, under the Department of Commerce. Contract administration, performance monitoring, and invoice approval are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Network Infrastructure Services
IT Managed Services
Computer Facilities Management
Information Technology Support Contracts
Department of Commerce IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics in summary data.
Long contract duration could imply vendor dependency if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.9 million to EVOLVER LLC. TO#07 NETWORK OPERATIONS

Who is the contractor on this award?

The obligated recipient is EVOLVER LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2010-01-29. End: 2014-08-23.

What was the contractor's track record with the federal government prior to this award?

Evolver LLC has a history of federal contracting, though specific details on their performance prior to this particular award are not detailed in the provided data snippet. A comprehensive review would involve examining their contract history across various agencies, including past performance evaluations, any documented disputes, and the types of services they have previously provided. Understanding their broader federal footprint can offer insights into their capacity and reliability for undertaking significant network operations contracts.

How does the total contract value compare to similar network operations contracts awarded by the USPTO or other agencies?

The total award of $20.87 million over approximately 4.7 years (January 2010 to August 2014) equates to an average annual value of roughly $4.44 million. This figure appears moderate for comprehensive network operations support for a large agency like the USPTO. Comparable contracts for similar services often range from several million to tens of millions of dollars annually, depending on the scope, complexity, and number of users supported. Without specific benchmark data for the USPTO's network size and complexity during that period, a precise comparison is difficult, but the value seems within a reasonable range for the services rendered.

What were the primary risks associated with this Time and Materials contract, and how were they mitigated?

Time and Materials (T&M) contracts carry inherent risks of cost overruns if the level of effort is not well-defined or if scope creep occurs. For this contract, potential risks included inefficient labor utilization and escalating costs without a fixed ceiling. Mitigation strategies likely involved robust contract oversight by the USPTO, including detailed monitoring of hours billed, validation of work performed, and strict adherence to the contract's ceiling price. Clear communication channels and defined task orders would also be crucial for managing risks and ensuring the contractor remained within budget.

How effective was the 'Full and Open Competition After Exclusion of Sources' in achieving value for money?

The 'Full and Open Competition After Exclusion of Sources' method is designed to maximize competition while potentially streamlining the process by excluding specific sources deemed unsuitable. This approach generally fosters price competition, leading to better value for taxpayers. While the provided data doesn't quantify the exact savings achieved compared to other procurement methods, the fact that it was chosen suggests an intent to leverage market forces. The resulting award to Evolver LLC at a competitive price point implies that this method was likely effective in securing value.

What was the historical spending trend for network operations at the USPTO before this contract?

The provided data snippet does not include historical spending trends for network operations at the USPTO prior to this contract (2010-2014). To analyze historical spending, one would need access to prior contract awards for similar services from the USPTO or related Department of Commerce entities. Understanding past expenditures would allow for a comparison to assess whether spending increased, decreased, or remained stable, and whether this contract represented a significant shift in investment in network operations.

What is the significance of the contract duration (1667 days) in relation to the service type?

A duration of 1667 days (approximately 4.6 years) for network operations services is substantial and typical for IT infrastructure support contracts. Such long durations reflect the continuous and critical nature of network management, which requires ongoing maintenance, upgrades, and support. This extended period allows for stability and predictability for both the agency and the contractor, facilitating long-term planning and investment in resources. It also suggests a stable requirement from the USPTO for these essential services over a significant timeframe.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1943 ISAAC NEWTON SQ E STE 260, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $20,871,913

Exercised Options: $20,871,913

Current Obligation: $20,871,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOC50PAPT0901027

IDV Type: IDC

Timeline