Commerce Department's $21.6M NOAA maintenance contract awarded to Independent Technology, Inc. shows fair value

Contract Overview

Contract Amount: $21,631,643 ($21.6M)

Contractor: Independent Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2006-06-01

End Date: 2012-08-03

Contract Duration: 2,255 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE FOR NWR

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $21.6 million to INDEPENDENT TECHNOLOGY, INC. for work described as: MAINTENANCE FOR NWR Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. No immediate red flags regarding contractor performance or risk indicators. 4. This contract supported critical infrastructure maintenance for NOAA. 5. The IT services sector is highly competitive, with many providers. 6. Fixed-price contract type helps manage cost certainty.

Value Assessment

Rating: good

The contract's total value of $21.6 million over approximately 6 years (2255 days) suggests an average annual spend of around $3.6 million. This appears to be a fair valuation for comprehensive maintenance services for consumer electronics and related systems supporting the National Oceanic and Atmospheric Administration (NOAA). Benchmarking against similar large-scale IT maintenance contracts would provide a more precise value-for-money assessment, but the fixed-price nature and competitive award suggest a reasonable price was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders participating, the level of competition was moderate. This suggests that while multiple companies vied for the contract, the market may not be saturated with potential providers for this specific type of specialized maintenance. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific and operational missions, which rely on well-maintained equipment. Services delivered include maintenance for consumer electronics and related systems, ensuring operational continuity. The geographic impact is primarily within the United States, supporting NOAA facilities nationwide. The contract supported the workforce of Independent Technology, Inc., likely including skilled technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Contract duration of over 6 years suggests a stable requirement.
Contractor is Independent Technology, Inc., a known entity in the IT services space.

Sector Analysis

The Information Technology (IT) services sector is a vast and dynamic market. This contract falls under the IT maintenance and support sub-sector, which is crucial for ensuring the operational readiness of government agencies. The market for IT maintenance is characterized by a mix of large prime contractors and specialized small businesses. Spending benchmarks for similar IT maintenance contracts can vary widely based on the complexity of the systems, service level agreements, and geographic coverage. This contract represents a significant, albeit specific, investment within the broader federal IT spending landscape.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Independent Technology, Inc., a presumably larger entity, suggests that the primary focus was on technical capability and price rather than small business participation goals. This means the direct impact on the small business IT ecosystem for this specific contract is likely minimal, though larger prime contractors often engage small businesses for subcontracting on other awards.

Oversight & Accountability

The contract was awarded by the Department of Commerce, specifically the National Oceanic and Atmospheric Administration (NOAA). Oversight would typically involve contract officers, program managers within NOAA, and potentially the agency's Inspector General for significant issues. Transparency is generally maintained through contract award databases like FPDS. The firm-fixed-price nature of the contract simplifies some aspects of oversight by focusing on deliverables rather than cost reimbursement.

Related Government Programs

NOAA IT Support Services
Federal IT Maintenance Contracts
Consumer Electronics Repair and Maintenance Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $21.6 million to INDEPENDENT TECHNOLOGY, INC.. MAINTENANCE FOR NWR

Who is the contractor on this award?

The obligated recipient is INDEPENDENT TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2006-06-01. End: 2012-08-03.

What is the track record of Independent Technology, Inc. with federal contracts?

Independent Technology, Inc. has a history of receiving federal contracts, primarily within the IT services domain. While this specific contract with NOAA is substantial, a deeper dive into their contract portfolio would reveal their performance history across various agencies and contract types. Analyzing past performance evaluations, any contract disputes, or awards for exceptional performance would provide a more comprehensive understanding of their reliability and capabilities as a federal contractor. Their presence in the market suggests a capacity to meet federal requirements, but a detailed review of their past performance is essential for a complete assessment.

How does the per-unit cost of this contract compare to similar IT maintenance services?

Determining a precise per-unit cost for this contract is challenging without more granular data on the specific services rendered (e.g., per device, per hour, per site). The contract covers a broad range of maintenance for consumer electronics and related systems supporting NOAA. Benchmarking would require identifying comparable contracts with similar scopes of work, service level agreements, and geographic coverage. Given the $21.6 million total value over approximately 6 years, the average annual cost is around $3.6 million. Without specific unit metrics, a direct per-unit comparison is not feasible, but the overall value appears reasonable for the duration and scope.

What are the primary risks associated with this type of IT maintenance contract?

Key risks for this IT maintenance contract include potential obsolescence of maintained technology, leading to increased costs for parts or specialized labor. Service disruptions due to unforeseen equipment failures or inadequate maintenance response times could impact NOAA's critical operations. Contractor performance issues, such as failure to meet service level agreements or maintain adequate staffing, pose another significant risk. Furthermore, cybersecurity vulnerabilities associated with maintaining electronic systems could be a concern. The firm-fixed-price nature mitigates financial overrun risks for the government but places the cost risk on the contractor.

How effective has Independent Technology, Inc. been in fulfilling NOAA's IT maintenance needs under this contract?

Assessing the effectiveness of Independent Technology, Inc. in fulfilling NOAA's IT maintenance needs requires access to performance reports, customer satisfaction surveys, and any documented issues or successes during the contract period (2006-2012). As the contract has concluded, historical performance data would be the primary source. Without specific performance metrics or feedback from NOAA officials, a definitive judgment on effectiveness cannot be made. However, the fact that the contract was awarded and completed suggests a baseline level of acceptable performance, but it doesn't preclude areas for improvement or potential shortcomings.

What are the historical spending patterns for NOAA's IT maintenance and support?

Historical spending patterns for NOAA's IT maintenance and support would reveal trends in investment in this area over time. This $21.6 million contract represents a significant expenditure over its 6-year duration. To understand the broader pattern, one would need to examine spending on similar contracts in preceding and subsequent years, as well as the overall IT budget of NOAA. Factors like technological advancements, agency growth, and shifts in operational priorities influence these spending patterns. Analyzing this contract within the context of NOAA's total IT expenditure would provide a clearer picture of its relative importance and cost-effectiveness.

What is the potential impact of technology obsolescence on the long-term value of this contract?

Technology obsolescence poses a significant risk to the long-term value of IT maintenance contracts. As electronic devices age, manufacturers may discontinue support, making spare parts scarce and expensive. Specialized knowledge required to maintain older systems may also become harder to find. For a contract spanning over six years, the risk of components or entire systems becoming obsolete increases. This could lead to higher repair costs, longer downtime if parts are unavailable, or necessitate costly upgrades or replacements, potentially diminishing the cost-effectiveness of continued maintenance on outdated technology.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Consumer Electronics Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 39 MAIN ST, SCOTTSVILLE, NY, 14546

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $22,171,730

Exercised Options: $21,631,643

Current Obligation: $21,631,643

Contract Characteristics

Multi-Year Contract: Yes

Timeline