Smithsonian Institution awards $14.2M for network management, a 10-year contract for IT services

Contract Overview

Contract Amount: $14,196,614 ($14.2M)

Contractor: Amentum National Security Programs, Inc

Awarding Agency: Smithsonian Institution

Start Date: 2005-09-20

End Date: 2015-09-30

Contract Duration: 3,662 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NETWORK MANAGEMENT AND OPERATIONS SUPPORT, OCIO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $14.2 million to AMENTUM NATIONAL SECURITY PROGRAMS, INC for work described as: NETWORK MANAGEMENT AND OPERATIONS SUPPORT, OCIO Key points: 1. Contract provides essential network management and operations support for the Smithsonian's Office of the Chief Information Officer (OCIO). 2. The contract spans a decade, indicating a long-term need for these critical IT services. 3. Services include computer systems design, aligning with the Smithsonian's digital infrastructure requirements. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contractor, Amentum National Security Programs, Inc., has a significant role in supporting federal IT operations. 6. The contract's duration and scope suggest a substantial impact on the Smithsonian's operational efficiency and data security.

Value Assessment

Rating: good

The contract value of $14.2 million over 10 years averages to $1.42 million annually, which appears reasonable for comprehensive network management and operations support for a large institution like the Smithsonian. Benchmarking against similar large-scale IT support contracts for federal agencies of comparable size and complexity would provide a more precise value-for-money assessment. However, the long-term nature of the contract suggests the Smithsonian found the pricing competitive and the services essential.

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 that multiple vendors were likely invited to bid. This competitive process is designed to ensure fair pricing and access to the best available services. The fact that it was competed openly suggests that the Smithsonian sought to maximize value and innovation by allowing a broad range of qualified contractors to participate.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically drives down costs and ensures the government receives high-quality services at a fair market price.

Public Impact

The Smithsonian Institution benefits directly through enhanced network stability, security, and operational efficiency. Users of Smithsonian facilities and digital resources, including researchers, staff, and the public, will experience improved IT services. The contract supports IT infrastructure across the District of Columbia, where the Smithsonian is headquartered. The contract likely supports a workforce of IT professionals, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to vendor lock-in if not managed carefully.
Dependence on a single contractor for critical network operations poses a risk if performance degrades.
Scope creep could increase costs beyond the initial $14.2 million if not strictly managed.

Positive Signals

Full and open competition suggests a strong market evaluation and potential for competitive pricing.
The 10-year duration indicates a stable, long-term partnership, potentially leading to deep institutional knowledge and efficiency.
The contract's focus on network management and operations is critical for the Smithsonian's core functions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and network management services. The IT services market for federal agencies is substantial, with significant spending on infrastructure, software, and support. The Smithsonian, as a large cultural and research institution, relies heavily on robust IT systems for its operations, collections management, and public outreach. This contract represents a significant investment in maintaining and enhancing that critical infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Amentum National Security Programs, Inc., is a large entity, and while they may engage small businesses as subcontractors in their broader operations, this specific contract award does not mandate it. The impact on the small business ecosystem is therefore indirect, relying on the prime contractor's own subcontracting policies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and program managers within the OCIO. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. While specific IG jurisdiction isn't detailed here, the Smithsonian has its own Office of Inspector General that could investigate potential fraud, waste, or abuse related to its contracts.

Related Government Programs

Federal IT Infrastructure Modernization Programs
Government-wide IT Services Contracts
Network Operations and Security Support
Computer Systems Design Services

Risk Flags

Long-term contract duration
Critical IT infrastructure reliance
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $14.2 million to AMENTUM NATIONAL SECURITY PROGRAMS, INC. NETWORK MANAGEMENT AND OPERATIONS SUPPORT, OCIO

Who is the contractor on this award?

The obligated recipient is AMENTUM NATIONAL SECURITY PROGRAMS, INC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2005-09-20. End: 2015-09-30.

What is the track record of Amentum National Security Programs, Inc. in performing similar network management and operations support contracts for federal agencies?

Amentum National Security Programs, Inc. has a history of performing complex IT and security-related services for various government agencies. While specific details on their performance for the Smithsonian Institution under this particular contract (awarded in 2005) would require deeper analysis of historical performance reports and contract modifications, the company's general profile suggests experience in large-scale IT operations. Benchmarking their past performance on similar contracts, including client satisfaction, adherence to schedules, and budget management, would provide a clearer picture of their reliability. It's important to note that contract performance can vary significantly based on the specific requirements, team assigned, and the duration of the engagement.

How does the $1.42 million annual average cost compare to similar network management contracts for institutions of the Smithsonian's size and scope?

The average annual cost of approximately $1.42 million for network management and operations support appears to be within a reasonable range for an institution as large and complex as the Smithsonian. Federal agencies often spend millions annually on IT infrastructure and support. To provide a precise comparison, one would need to benchmark against contracts for other large federal agencies or major cultural/research institutions with similar IT footprints, user bases, and data management needs. Factors such as the scope of services (e.g., cybersecurity, cloud integration, user support), the number of endpoints managed, and the criticality of the systems supported heavily influence cost. Without direct comparable data, this figure suggests a significant but potentially justifiable investment.

What are the primary risks associated with a 10-year contract for critical IT network operations?

A primary risk associated with a 10-year contract for critical IT network operations is technological obsolescence. Technology evolves rapidly, and a 10-year commitment could lock the Smithsonian into outdated systems or processes if the contract doesn't include mechanisms for regular technology refresh or adaptation. Another significant risk is vendor lock-in, where the contractor becomes so integrated into the Smithsonian's systems that switching providers becomes prohibitively expensive or disruptive. Performance degradation over such a long period is also a concern; maintaining consistent high performance requires diligent oversight and performance management. Finally, security vulnerabilities could be exploited over an extended period if not continuously addressed and updated.

How effective has the Smithsonian Institution been in managing long-term IT service contracts to ensure value and performance?

Assessing the overall effectiveness of the Smithsonian's management of long-term IT service contracts requires a review of their procurement policies, contract oversight mechanisms, and historical performance data across multiple contracts. The fact that they awarded a 10-year contract suggests a degree of confidence in their ability to manage such agreements. Effective management typically involves clear performance metrics (SLAs), regular performance reviews, proactive risk management, and mechanisms for adapting to changing technological landscapes and institutional needs. Without specific case studies or audits related to this contract or similar long-term agreements, it's difficult to definitively gauge effectiveness, but the duration itself implies a level of successful partnership and service delivery.

What has been the historical spending trend for network management and operations support at the Smithsonian Institution prior to and during this contract period?

Historical spending data for network management and operations support at the Smithsonian Institution prior to and during this contract period (2005-2015) would reveal trends in IT investment. This contract, valued at $14.2 million over 10 years, averages $1.42 million annually. Analyzing spending in the years leading up to 2005 would indicate if this represented an increase, decrease, or stable level of investment. Examining spending patterns throughout the contract's life could also show if the budget remained consistent or fluctuated due to scope changes, upgrades, or economic conditions. Such analysis is crucial for understanding the long-term financial commitment to IT infrastructure and its evolution within the institution.

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

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 6564 LOISDALE CT STE 900, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,196,614

Exercised Options: $14,196,614

Current Obligation: $14,196,614

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F0536CC10213

IDV Type: BOA

Timeline