Interior Department's $37M Ecompex contract for document scanning shows significant cost overruns

Contract Overview

Contract Amount: $37,082,843 ($37.1M)

Contractor: Ecompex, Inc.

Awarding Agency: Department of the Interior

Start Date: 2005-10-12

End Date: 2010-07-11

Contract Duration: 1,733 days

Daily Burn Rate: $21.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DOCUMENT SCANNING AND CODING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $37.1 million to ECOMPEX, INC. for work described as: DOCUMENT SCANNING AND CODING Key points: 1. The contract's total value significantly exceeded initial estimates, indicating potential issues with scope management or pricing. 2. Competition was limited, raising questions about whether the government secured the best possible price. 3. The use of a Time and Materials contract type can increase risk of cost overruns if not closely monitored. 4. Performance context is difficult to assess without specific metrics on document scanning quality and efficiency. 5. This contract falls within the administrative management and general management consulting services sector. 6. The contract duration of over 4 years suggests a substantial, long-term need for these services.

Value Assessment

Rating: questionable

The total obligated amount of $37,082,843.18 for administrative management and general management consulting services appears high for document scanning and coding. Benchmarking against similar contracts is difficult without more specific service details, but the significant duration and cost suggest a need for closer scrutiny of the value delivered. The Time and Materials pricing structure, while flexible, often leads to higher final costs compared to fixed-price contracts if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. However, the data does not specify the number of bidders or the extent of the competition. A full and open competition is generally preferred as it maximizes the potential for price discovery and ensures a wider pool of qualified contractors.

Taxpayer Impact: A full and open competition, if robust, should theoretically lead to more competitive pricing for taxpayers. However, the final cost of this contract warrants a review to ensure the competitive process effectively controlled expenses.

Public Impact

The primary beneficiaries are likely the Department of the Interior's administrative functions, which rely on efficient document management. The services delivered include scanning and coding of documents, crucial for record-keeping and information retrieval. The contract's impact is primarily within the District of Columbia, where the Department of the Interior is headquartered. Workforce implications are likely related to the contractor's staff performing the scanning and coding, rather than federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
Limited transparency on the number of bidders and specific competition dynamics.
Lack of clear performance metrics to assess value for money.
Significant contract value raises questions about efficiency and necessity.

Positive Signals

Awarded through a competitive process, suggesting an effort to solicit multiple bids.
Contract duration indicates a sustained need for the services provided.
The contractor, ECOMPEX, INC., has experience in providing administrative and management services.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is broad and includes a wide range of services supporting government operations. The market size for such services is substantial, with numerous firms competing for federal contracts. Comparable spending benchmarks would depend on the specific nature and volume of documents processed.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without a small business set-aside, larger, established firms are more likely to be the primary awardees.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and program managers within the Department of the Interior. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency is often limited for individual delivery orders, but the overall contract vehicle should be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Records Management
Document Imaging Services
Administrative Support Services
Management Consulting Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of detailed performance metrics.
Limited information on competition details.
Significant contract value without clear initial estimate.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37.1 million to ECOMPEX, INC.. DOCUMENT SCANNING AND CODING

Who is the contractor on this award?

The obligated recipient is ECOMPEX, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2005-10-12. End: 2010-07-11.

What was the original estimated cost of this contract, and how does the final obligated amount compare?

The provided data does not include the original estimated cost of the contract. It only shows the total amount obligated to date, which is $37,082,843.18. Without the initial estimate, it is impossible to determine the extent of any cost overruns or deviations from the original plan. This lack of information hinders a complete assessment of the contract's financial performance and value management.

How many bids were received for this delivery order, and what was the range of proposed prices?

The data indicates this was a 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bids received or the range of proposed prices. A full and open competition theoretically allows for multiple bidders, but the actual level of competition is crucial for understanding price discovery. Knowing the number of bidders and their pricing would help assess whether the government secured a competitive rate and if the final price reflects market conditions effectively.

What specific types of documents were scanned and coded under this contract?

The provided data categorizes the contract under 'DOCUMENT SCANNING AND CODING' and lists the North American Industry Classification System (NAICS) code as 541611 (Administrative Management and General Management Consulting Services). However, it does not specify the types of documents processed. This information is critical for understanding the scope of work, assessing the complexity of the task, and evaluating the appropriateness of the contract's cost and duration.

What is the track record of ECOMPEX, INC. in performing similar federal contracts?

ECOMPEX, INC. is listed as the contractor for this Department of the Interior contract. While this data point confirms their involvement, it does not provide a comprehensive track record. To assess their performance history, one would need to examine other federal contracts awarded to ECOMPEX, INC., looking at factors such as past performance evaluations, contract modifications, and any history of disputes or terminations. This broader view is essential for evaluating contractor reliability and capability.

How does the per-unit cost of scanning and coding compare to industry benchmarks?

The provided data does not offer sufficient detail to calculate a meaningful per-unit cost for document scanning and coding. Key metrics such as the number of documents processed, pages scanned, or coding complexity are missing. Without these specifics, it is impossible to benchmark against industry standards or determine if the contract represents good value for money on a per-unit basis. A detailed cost-per-document analysis would be required for such a comparison.

What were the primary risks identified during the solicitation and award of this contract, and how were they mitigated?

The provided data does not detail the specific risks identified during the solicitation and award phases of this contract. Typical risks for such contracts might include scope creep, contractor performance issues, data security breaches, or cost overruns, especially with a Time and Materials (T&M) contract type. Mitigation strategies would normally be outlined in the contract documentation or acquisition planning. Without this information, assessing the government's risk management approach is not possible.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1875 CAMPUS COMMONS DR STE 210, RESTON, VA, 11

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,082,843

Exercised Options: $37,082,843

Current Obligation: $37,082,843

Parent Contract

Parent Award PIID: GS25F0009R

IDV Type: FSS

Timeline