Department of the Interior awarded $10.2M for Computer Systems Design Services to Number Six Software, Inc

Contract Overview

Contract Amount: $10,219,597 ($10.2M)

Contractor: Number SIX Software, Inc.

Awarding Agency: Department of the Interior

Start Date: 2004-02-18

End Date: 2008-09-15

Contract Duration: 1,671 days

Daily Burn Rate: $6.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NUMBER SIX SOFTWARE, INC.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $10.2 million to NUMBER SIX SOFTWARE, INC. for work described as: NUMBER SIX SOFTWARE, INC. Key points: 1. Analysis indicates a fair value for money, with pricing appearing reasonable within the context of similar IT services. 2. The contract was competed, suggesting a degree of market engagement and potential for price discovery. 3. Risk indicators are moderate, with a long performance period and a single awardee potentially posing challenges. 4. Performance context shows a firm fixed-price contract, which can offer cost certainty but may limit flexibility. 5. This contract falls within the IT services sector, specifically computer systems design, a common area for federal procurement.

Value Assessment

Rating: fair

The contract's total value of $10.2 million over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar IT services contracts for computer systems design indicates that the pricing is within an acceptable range, though a detailed cost breakdown would be necessary for a definitive assessment. The firm fixed-price structure provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. While the specific number of bidders is not detailed, a competitive process generally leads to better price discovery and a wider selection of qualified vendors. The 'COMPETITIVE DELIVERY ORDER' designation suggests it was part of a larger competitive vehicle.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a marketplace where vendors offer their best pricing and services.

Public Impact

The primary beneficiary is the Department of the Interior, which receives essential computer systems design services. Services delivered likely include the design, development, and implementation of IT systems to support departmental operations. The geographic impact is primarily within the operational areas of the Department of the Interior, likely nationwide. Workforce implications may include the employment of IT professionals by Number Six Software, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) could lead to potential scope creep or evolving technology needs not fully addressed.
Single awardee for a significant dollar amount may limit future competition and innovation if not managed effectively.

Positive Signals

Firm Fixed Price contract type provides cost certainty and incentivizes the contractor to manage costs efficiently.
Competitive award process suggests that the initial pricing was vetted against market alternatives.

Sector Analysis

The IT services sector is a significant component of federal spending, with computer systems design services being a critical area for modernizing and maintaining government IT infrastructure. This contract represents a portion of the Department of the Interior's investment in its technological capabilities. Comparable spending benchmarks for similar IT design services can vary widely based on complexity and scope, but this contract's value is within a typical range for a multi-year engagement.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As a competitive award, it is possible that small businesses could have participated as subcontractors to the prime contractor, Number Six Software, Inc. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Departmental IT Modernization
Software Development Services

Risk Flags

Long contract duration
Single awardee
Potential for evolving IT requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.2 million to NUMBER SIX SOFTWARE, INC.. NUMBER SIX SOFTWARE, INC.

Who is the contractor on this award?

The obligated recipient is NUMBER SIX SOFTWARE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2004-02-18. End: 2008-09-15.

What is the track record of Number Six Software, Inc. with federal contracts, particularly in computer systems design?

A review of federal procurement data indicates that Number Six Software, Inc. has been awarded contracts primarily for IT services, including computer systems design. The provided data shows this specific contract with the Department of the Interior as a significant award. Further investigation into their contract history would reveal the number of awards, total value, performance ratings on past contracts, and any history of contract disputes or terminations. Understanding their past performance is crucial for assessing their capability and reliability in delivering on this current contract.

How does the pricing of this contract compare to similar IT services contracts awarded by the Department of the Interior or other agencies?

Benchmarking this contract's pricing against similar Computer Systems Design Services (NAICS 541512) awarded by the Department of the Interior and other federal agencies is essential for value assessment. While the firm fixed-price nature provides cost certainty, the overall value depends on the efficiency and market competitiveness of the rates. Without detailed cost breakdowns or access to a comprehensive database of comparable contract pricing, a precise comparison is difficult. However, the $10.2 million award over approximately 4.5 years suggests an average annual value of roughly $2.27 million, which appears within a reasonable range for specialized IT services, assuming the scope of work is substantial.

What are the primary risks associated with a single awardee for a contract of this duration and value?

A single awardee for a contract of this duration (over 4 years) and value ($10.2 million) presents several risks. Firstly, there's a potential for vendor lock-in, where the government becomes heavily reliant on one provider, potentially reducing leverage in future negotiations. Secondly, if the contractor underperforms or faces financial difficulties, it could lead to significant disruptions in service delivery. Thirdly, the lack of ongoing competition throughout the contract period might disincentivize the contractor from achieving peak performance or cost efficiencies. Finally, the government may miss out on innovations or better solutions that could be offered by competing vendors.

How effective are firm fixed-price contracts in ensuring the delivery of quality computer systems design services?

Firm fixed-price (FFP) contracts are generally effective in ensuring the delivery of quality services when the scope of work is well-defined and unlikely to change significantly. For computer systems design, FFP contracts incentivize the contractor to manage costs and resources efficiently to maximize profit. This can lead to timely delivery and adherence to budget. However, if the project requirements evolve, as they often do in IT, an FFP contract can become rigid, potentially leading to change order negotiations that can be costly and time-consuming. The quality of the delivered system is ultimately dependent on the contractor's expertise and the clarity of the initial requirements and performance standards.

What is the historical spending trend for Computer Systems Design Services within the Department of the Interior?

Analyzing historical spending trends for Computer Systems Design Services (NAICS 541512) within the Department of the Interior provides context for this $10.2 million award. While specific historical data for this exact contract is not provided, the Department of the Interior, like many federal agencies, relies heavily on IT services to manage its vast operations. Spending in this category typically fluctuates based on modernization initiatives, system upgrades, and ongoing maintenance needs. A deeper dive into past fiscal years would reveal whether this award represents an increase, decrease, or stable level of investment in computer systems design compared to previous periods.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1655 FORT MYER DR, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,219,597

Exercised Options: $10,219,597

Current Obligation: $10,219,597

Parent Contract

Parent Award PIID: GS35F0607M

IDV Type: FSS

Timeline