Commerce Awards $27.9M for NOAA IT Project Management and Operations to Diversified Global Partners JV LLC

Contract Overview

Contract Amount: $27,901,309 ($27.9M)

Contractor: Diversified Global Partners JV LLC

Awarding Agency: Department of Commerce

Start Date: 2013-03-01

End Date: 2014-02-28

Contract Duration: 364 days

Daily Burn Rate: $76.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF TO PROVIDE PROJECT MANAGEMENT, DEVELOPMENT, EVOLUTION, SECURITY, OPERATIONS, AND SUSTAINMENT OF CLASS.

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $27.9 million to DIVERSIFIED GLOBAL PARTNERS JV LLC for work described as: IGF::OT::IGF TO PROVIDE PROJECT MANAGEMENT, DEVELOPMENT, EVOLUTION, SECURITY, OPERATIONS, AND SUSTAINMENT OF CLASS. Key points: 1. The contract focuses on comprehensive IT lifecycle management, including development, security, and sustainment. 2. Awarded via full and open competition after exclusion of sources, suggesting a specific justification for the method. 3. The cost-plus-fixed-fee structure requires careful monitoring to ensure cost efficiency. 4. The IT services sector is highly competitive, making performance and cost control critical.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar IT services is difficult without detailed scope and performance data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which is an unusual designation. This implies that while competition was sought, specific sources may have been excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The CPFF structure necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for the defined scope of work.

Public Impact

NOAA's critical IT infrastructure and services will be managed, impacting data collection and dissemination for weather, climate, and oceanic research. The project management and sustainment of these systems are vital for national weather forecasting and environmental monitoring. Potential for cost efficiencies or overruns directly impacts the agency's budget and, by extension, taxpayer investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual competition method ('after exclusion of sources')
Cost-plus-fixed-fee pricing requires diligent oversight
Short contract duration (364 days) may limit long-term strategic planning

Positive Signals

Awarded under full and open competition, indicating an attempt to solicit offers.
Focus on comprehensive IT lifecycle management suggests a structured approach to service delivery.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government operations. Spending in this sector is substantial, with agencies relying heavily on external expertise for IT infrastructure, software development, and cybersecurity.

Small Business Impact

The contract was not awarded to small businesses (ss: false, sb: false). This suggests that the prime contractor is likely a large business, and opportunities for small business subcontracting would depend on their procurement practices.

Oversight & Accountability

The CPFF contract type requires significant oversight to manage costs and ensure performance aligns with the fixed fee. The agency must actively monitor expenditures and contractor performance to prevent cost overruns and ensure value for money.

Related Government Programs

Computer Systems Design Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Ambiguity in competition method ('after exclusion of sources')
Limited duration may hinder long-term IT strategy
Lack of small business prime awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $27.9 million to DIVERSIFIED GLOBAL PARTNERS JV LLC. IGF::OT::IGF TO PROVIDE PROJECT MANAGEMENT, DEVELOPMENT, EVOLUTION, SECURITY, OPERATIONS, AND SUSTAINMENT OF CLASS.

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED GLOBAL PARTNERS JV LLC.

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 $27.9 million.

What is the period of performance?

Start: 2013-03-01. End: 2014-02-28.

What was the specific justification for excluding certain sources under the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The justification for excluding sources under this specific competition type is crucial for understanding the procurement's integrity and potential impact on price. Agencies typically use such methods when only a limited number of sources possess the required capabilities or when specific national security or technical requirements necessitate it. Without this justification, it's difficult to assess if the competition truly yielded the best possible price or if the exclusion inadvertently limited competitive pressure.

How effectively was the cost-plus-fixed-fee structure managed to control expenditures and ensure value for the $27.9 million awarded?

The effectiveness of managing a CPFF contract hinges on rigorous oversight of the contractor's costs and performance. For this $27.9 million award, the agency needed robust mechanisms to track direct costs, indirect costs, and the fixed fee. Regular audits, performance reviews, and clear communication channels are essential to ensure the contractor operates efficiently and that the final cost aligns with the value delivered, preventing unnecessary escalation of expenses.

What is the long-term impact of this contract's focus on project management and sustainment for NOAA's IT systems, given its one-year duration?

A one-year contract duration for project management and sustainment of critical IT systems may present challenges for long-term strategic planning and system evolution. While it ensures continuity for the period, it might not allow for deep integration or the development of comprehensive, multi-year roadmaps. The agency may need to consider follow-on contracts or a different procurement strategy to address the ongoing, evolving needs of NOAA's IT infrastructure beyond this initial term.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8403 COLESVILLE RD 10TH FL, SILVER SPRING, MD, 20910

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,245,929

Exercised Options: $28,086,211

Current Obligation: $27,901,309

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133E08CQ0020

IDV Type: IDC

Timeline