NOAA's $14.8M Environmental Consulting Contract with I. M. Systems Group Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $14,778,486 ($14.8M)

Contractor: I. M. Systems Group, Inc.

Awarding Agency: Department of Commerce

Start Date: 2006-07-25

End Date: 2011-07-24

Contract Duration: 1,825 days

Daily Burn Rate: $8.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL AND TECHNICAL SUPPORT SERVICES, NOAA RESTORATION CENTER, SILVER SPRING, MD AND OTHER LOCATIONS

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 $14.8 million to I. M. SYSTEMS GROUP, INC. for work described as: PROFESSIONAL AND TECHNICAL SUPPORT SERVICES, NOAA RESTORATION CENTER, SILVER SPRING, MD AND OTHER LOCATIONS Key points: 1. The contract awarded to I. M. Systems Group, Inc. for environmental consulting services represents a significant investment by NOAA. 2. Competition for this contract was competitive, indicating potential for price discovery, but the Time and Materials pricing model warrants closer examination. 3. Potential risks include cost overruns due to the T&M structure and the long duration of the contract. 4. The sector is environmental consulting, a critical area for NOAA's restoration efforts.

Value Assessment

Rating: fair

The Time and Materials pricing structure, while flexible, can lead to cost escalation if not tightly managed. Benchmarking against similar environmental consulting contracts would be beneficial to assess if the $14.8M expenditure represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, suggesting multiple vendors had an opportunity to bid. However, the specific pricing mechanisms within the Time and Materials contract need to be evaluated to ensure optimal price discovery and prevent potential overcharging.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the T&M pricing model introduces a risk of inflated costs, potentially reducing the overall value for taxpayer dollars.

Public Impact

Taxpayers are funding essential environmental restoration services through this contract. The long contract duration (5 years) means sustained investment in these services. The outcome of these consulting services directly impacts environmental quality and restoration efforts managed by NOAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model
Long contract duration
Potential for cost overruns

Positive Signals

Competitive award process
Supports critical environmental restoration mission

Sector Analysis

Environmental consulting services are crucial for agencies like NOAA to manage and execute restoration projects. Spending in this sector can vary widely based on project scope and duration, but consistent investment is often required for long-term environmental goals.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine the extent of small business participation.

Oversight & Accountability

The competitive delivery order process suggests some level of oversight in the award. However, ongoing monitoring of the Time and Materials contract is essential to ensure accountability and prevent cost creep.

Related Government Programs

Environmental Consulting Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Time and Materials pricing model can lead to cost overruns.
Long contract duration increases risk exposure.
Lack of specific performance metrics in provided data.
Need for detailed cost-benefit analysis of services rendered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $14.8 million to I. M. SYSTEMS GROUP, INC.. PROFESSIONAL AND TECHNICAL SUPPORT SERVICES, NOAA RESTORATION CENTER, SILVER SPRING, MD AND OTHER LOCATIONS

Who is the contractor on this award?

The obligated recipient is I. M. SYSTEMS GROUP, 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 $14.8 million.

What is the period of performance?

Start: 2006-07-25. End: 2011-07-24.

What specific environmental restoration projects were supported by this contract, and what were their measurable outcomes?

The contract supported professional and technical services for the NOAA Restoration Center. Specific project details and their measurable outcomes are not provided in the data. Understanding the tangible results of these services is crucial for assessing the overall value and effectiveness of the $14.8 million expenditure beyond the contractual obligations.

How effectively was the Time and Materials pricing structure managed to control costs and ensure fair pricing against the competitive bids received?

The effectiveness of T&M pricing management is a key concern. While the contract was competitively awarded, the T&M model inherently carries a risk of cost escalation. Detailed analysis of invoices, labor rates, and hours billed against project milestones would be necessary to determine if costs were adequately controlled and if the final pricing was fair relative to the competitive landscape.

What is the long-term impact of these environmental consulting services on NOAA's restoration goals and taxpayer investment?

The long-term impact hinges on the successful execution and outcomes of the environmental restoration projects facilitated by these services. If the consulting led to effective, sustainable restoration, the taxpayer investment would be justified. Conversely, if projects were delayed, over budget, or yielded poor results, the long-term impact could be negative, diminishing the value of the initial $14.8 million.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3206 TOWER OAKS BLVD STE 300, ROCKVILLE, MD, 20852

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,778,486

Exercised Options: $14,778,486

Current Obligation: $14,778,486

Parent Contract

Parent Award PIID: GS10F0037R

IDV Type: FSS

Timeline