DOI Spends $4.6M on Other Computer Services via Delivery Order to SMARTRONIX, LLC

Contract Overview

Contract Amount: $4,601,949 ($4.6M)

Contractor: Smartronix, LLC

Awarding Agency: Department of the Interior

Start Date: 2015-09-24

End Date: 2023-09-23

Contract Duration: 2,921 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DOI CDN IGF::OT::IGF

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $4.6 million to SMARTRONIX, LLC for work described as: DOI CDN IGF::OT::IGF Key points: 1. Spending of $4.6M on 'Other Computer Related Services' (NAICS 541519). 2. Contract awarded to SMARTRONIX, LLC under full and open competition. 3. Contract duration is 2921 days, ending September 23, 2023. 4. The contract type is Time and Materials, indicating potential for cost overruns. 5. This spending falls under the Department of the Interior's Departmental Offices.

Value Assessment

Rating: fair

The $4.6M spend over nearly 8 years for 'Other Computer Related Services' is difficult to benchmark without specific service details. Time and Materials contracts can lead to higher costs if not managed closely, potentially exceeding fixed-price equivalents.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and could lead to costs exceeding initial estimates if not carefully monitored.

Taxpayer Impact: Taxpayer funds are utilized for these computer-related services. The effectiveness of competition and the Time and Materials structure will determine the ultimate value for money.

Public Impact

Federal agencies rely on IT services for operational efficiency. The use of Time and Materials contracts requires diligent oversight to control costs. Transparency in service delivery and cost justification is crucial for public trust. SMARTRONIX, LLC is a private sector entity providing these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector is vast, encompassing a wide range of support functions. Spending benchmarks for 'Other Computer Related Services' are highly variable and depend on the specific nature of the services provided, making direct comparison challenging.

Small Business Impact

This contract was awarded to SMARTRONIX, LLC, a single entity. Analysis does not indicate if small businesses were involved as subcontractors or if this award was specifically aimed at small business participation.

Oversight & Accountability

The long duration and Time and Materials nature of this contract necessitate robust oversight from the Department of the Interior to ensure services are necessary, costs are reasonable, and performance meets expectations.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-the-interior, md, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.6 million to SMARTRONIX, LLC. DOI CDN IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2015-09-24. End: 2023-09-23.

What specific 'Other Computer Related Services' were provided under this contract, and how did their necessity and cost align with the agency's mission?

The provided data lacks specifics on the 'Other Computer Related Services'. To assess value, a detailed breakdown of tasks performed, hours billed, and rates charged by SMARTRONIX, LLC is required. This would allow comparison against industry standards and ensure the services directly contributed to the Department of the Interior's objectives without unnecessary expenditure.

What mechanisms were in place to mitigate cost risks associated with the Time and Materials contract structure over its nearly 8-year duration?

Given the Time and Materials (T&M) pricing, effective risk mitigation would involve stringent contract surveillance, regular performance reviews, and detailed cost analysis by the contracting officer. Establishing clear labor categories, pre-negotiated rates, and requiring detailed justifications for hours worked are crucial to prevent cost overruns and ensure fair pricing.

How effectively did the full and open competition ensure competitive pricing and optimal service delivery for these computer-related services?

While 'full and open competition' suggests a broad solicitation, the T&M structure can obscure true price competitiveness over time. The initial award price might have been competitive, but the final cost depends heavily on service delivery and hours expended. Further analysis would require comparing the final invoiced amounts against benchmarks for similar services procured through different contract types.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,601,949

Exercised Options: $4,601,949

Current Obligation: $4,601,949

Actual Outlays: $3,128,581

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $727,767

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND13PC00029

IDV Type: IDC

Timeline

Start Date: 2015-09-24

Current End Date: 2023-09-23

Potential End Date: 2023-09-23 00:00:00

Last Modified: 2026-02-04

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