Interior's IT Services Contract Awarded to NUAXIS LLC for Over $55.9 Million

Contract Overview

Contract Amount: $55,934,293 ($55.9M)

Contractor: Nuaxis LLC

Awarding Agency: Department of the Interior

Start Date: 2015-12-16

End Date: 2020-12-31

Contract Duration: 1,842 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: IGF::CT::IGF ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES (EITCS)

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $55.9 million to NUAXIS LLC for work described as: IGF::CT::IGF ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES (EITCS) Key points: 1. Contract value of $55.9 million over five years suggests significant IT support needs. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed Price Incentive contract type introduces performance-based financial incentives. 4. Delivery Order award type implies a specific task order under a larger contract vehicle. 5. Contract duration of 1842 days (approx. 5 years) allows for sustained IT service delivery. 6. The 'Other Computer Related Services' NAICS code covers a broad range of IT support.

Value Assessment

Rating: fair

The contract value of $55.9 million over five years averages to approximately $11.2 million annually. Benchmarking this against similar large-scale IT service contracts for federal agencies is challenging without more specific service details. However, the fixed-price incentive structure suggests an attempt to control costs while encouraging performance. The absence of a specific contract vehicle or broader program context makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This level of competition is generally positive for price discovery and ensuring a wide range of potential contractors could bid. The fact that six entities vied for this work suggests a healthy interest in the opportunity and potentially competitive pricing.

Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs and encouraging innovation from multiple vendors.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) within the Department of the Interior is the primary beneficiary, receiving essential IT services. Services likely include IT infrastructure management, software development, cybersecurity, and technical support to enable BSEE's mission. The contract's geographic impact is centered in Virginia, where the contractor is located, but IT services can support operations nationwide. The contract supports a workforce within NUAXIS LLC, contributing to the IT services sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess if the fixed-price incentive was effectively utilized.
The broad NAICS code 'Other Computer Related Services' could mask a wide range of service qualities and costs.
No information is available on whether small businesses were involved as subcontractors.

Positive Signals

Awarded under full and open competition with six bidders, indicating a robust selection process.
The fixed-price incentive contract type aims to align contractor performance with agency objectives.
The contract duration of five years allows for stability and continuity of critical IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in computer-related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are crucial for enabling agency operations, data management, and cybersecurity. Comparable spending benchmarks would depend on the specific IT services rendered, but multi-million dollar contracts for comprehensive IT support are common across federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or actual subcontracting performance. Therefore, the direct impact on the small business ecosystem is not evident from this data alone, and it's unclear if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Safety and Environmental Enforcement (BSEE) contracting officers and program managers. The fixed-price incentive structure implies performance monitoring to ensure milestones are met for incentive payments. Transparency is generally facilitated through contract databases like FPDS, where this award is recorded. Specific Inspector General jurisdiction would depend on the nature of any potential issues or audits.

Related Government Programs

Department of the Interior IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
IT Support Services for Environmental Agencies
Fixed-Price Incentive Contracts
Delivery Orders under Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Broad NAICS code may obscure specific service quality and cost.
Lack of detailed performance data makes assessing incentive effectiveness difficult.
No information on small business subcontracting impacts.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $55.9 million to NUAXIS LLC. IGF::CT::IGF ENTERPRISE INFORMATION TECHNOLOGY CORE SERVICES (EITCS)

Who is the contractor on this award?

The obligated recipient is NUAXIS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Safety and Environmental Enforcement).

What is the total obligated amount?

The obligated amount is $55.9 million.

What is the period of performance?

Start: 2015-12-16. End: 2020-12-31.

What specific IT services were included under this contract, and how did NUAXIS LLC's proposed services align with the agency's needs?

The provided data classifies the contract under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions, including IT management consulting, custom software development, IT support services, and potentially cybersecurity. Without access to the specific Statement of Work (SOW) or the proposal details, it's impossible to ascertain the precise services rendered. However, given the agency (Bureau of Safety and Environmental Enforcement - BSEE) and the contract value, it's reasonable to infer that the services were critical to BSEE's operational IT infrastructure, data management, and potentially its mission-specific applications. NUAXIS LLC's alignment would have been assessed during the full and open competition phase, where their technical capabilities, past performance, and pricing were evaluated against the solicitation requirements.

How does the $55.9 million contract value compare to historical IT spending by the Bureau of Safety and Environmental Enforcement?

To accurately compare this $55.9 million contract value to historical spending, one would need to analyze BSEE's IT budget and contract awards over the period preceding and during this contract's performance (2015-2020). This specific contract represents a significant investment, averaging over $11 million annually. If BSEE's total IT budget was, for example, $50 million annually during that period, this single contract would represent a substantial portion (over 20%) of their IT expenditure. Conversely, if their total IT budget was $200 million, this contract would be a smaller, albeit still significant, component. Analyzing historical FPDS data for BSEE's IT procurements would reveal trends in spending, average contract values, and the types of IT services most frequently procured, providing context for whether this award was typical, higher, or lower than previous investments.

What were the key performance indicators (KPIs) tied to the 'Fixed Price Incentive' (FPI) contract type, and how did NUAXIS LLC perform against them?

The Fixed Price Incentive (FPI) contract type is designed to share the risks and rewards between the government and the contractor. Typically, an FPI contract establishes a target cost, a target profit, and an incentive fee. It also includes a price ceiling (the maximum the government will pay) and a sharing arrangement (e.g., 80/20) where cost savings or overruns between the final cost and the target cost are shared. Key performance indicators (KPIs) would have been defined in the contract's SOW, likely relating to service availability, response times for IT issues, project completion deadlines, system uptime, and potentially security compliance metrics. Without access to the contract's specific clauses and performance reports, it's impossible to detail the exact KPIs or NUAXIS LLC's performance. However, the 'incentive' aspect suggests that achieving or exceeding certain performance targets would have resulted in a higher final price (up to the ceiling), while failing to meet them could have capped the profit or even reduced the final price paid.

Given the 'full and open competition' and six bidders, what was the likely impact on pricing and innovation for this IT services contract?

Full and open competition, especially with six bidders, generally fosters a competitive environment that benefits the government. For this IT services contract, it likely led to more competitive pricing as NUAXIS LLC and the other bidders would have strived to offer compelling financial proposals to win the award. The presence of multiple bidders also increases the likelihood that innovative solutions or approaches to delivering IT services were presented. Agencies often use competitive solicitations to encourage contractors to propose novel methods or technologies that can improve efficiency, reduce costs, or enhance service delivery. The fact that six companies participated suggests that the market had sufficient capacity and interest, and the agency likely received a range of technical and cost proposals, allowing for a thorough evaluation and selection of the best value.

What are the potential risks associated with a broad 'Other Computer Related Services' NAICS code for a contract of this magnitude?

A broad NAICS code like 'Other Computer Related Services' (541519) presents several potential risks for a contract valued at over $55.9 million. Firstly, it can lead to a lack of specificity in the Statement of Work (SOW), making it difficult to precisely define the scope of services required and to accurately measure contractor performance. This ambiguity can create challenges in oversight and potentially lead to scope creep or disputes over deliverables. Secondly, it might allow contractors to bid on a wide range of services, potentially including areas where they lack deep expertise, relying instead on less experienced personnel or subcontractors. This could impact the quality and reliability of the IT services provided. Thirdly, comparing pricing and value becomes more complex, as 'other computer related services' can vary significantly in complexity and cost. Benchmarking against similar contracts is harder when the service definitions are not granular.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: E15PS00145

Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 8605 WESTWOOD CENTER DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $55,934,293

Exercised Options: $55,934,293

Current Obligation: $55,934,293

Actual Outlays: $15,495,155

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0361T

IDV Type: FSS

Timeline