Interior Department's $21.9M IT support contract awarded to Base Technologies, LLC

Contract Overview

Contract Amount: $21,902,853 ($21.9M)

Contractor: Base Technologies, LLC

Awarding Agency: Department of the Interior

Start Date: 2006-02-01

End Date: 2011-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PLANNING AND TECHNICAL SUPPORT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $21.9 million to BASE TECHNOLOGIES, LLC for work described as: PLANNING AND TECHNICAL SUPPORT Key points: 1. Contract value of $21.9 million over five years suggests a significant investment in IT planning and technical support. 2. The competitive delivery order indicates a structured procurement process, potentially leading to better pricing. 3. The 'Other Computer Related Services' NAICS code covers a broad range of IT support, requiring detailed performance metrics. 4. A Time and Materials contract type can pose cost control risks if not closely monitored. 5. The contract duration of 1825 days (5 years) allows for sustained support but necessitates long-term performance evaluation. 6. The award to Base Technologies, LLC, requires examination of their past performance and capacity for this scope of work.

Value Assessment

Rating: fair

The total contract value of $21.9 million over five years averages to approximately $4.38 million per year. Without specific benchmarks for 'Planning and Technical Support' within the Department of the Interior, a direct value-for-money assessment is challenging. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. Benchmarking against similar IT support contracts within federal agencies for comparable services would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' suggesting it was part of a larger competitive procurement vehicle, likely a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The presence of '3' in the 'no' field likely indicates three bids were received for this specific delivery order. A competitive process generally fosters price discovery and allows the government to select the best value offer, although the specifics of the competition (e.g., number of bidders, evaluation criteria) are crucial for a full understanding.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it is intended to drive down costs and ensure the government receives competitive pricing for services rendered.

Public Impact

Federal employees within the Department of the Interior benefit from enhanced IT planning and technical support, improving operational efficiency. The contract delivers essential IT services, likely encompassing system maintenance, network support, and strategic planning for the agency's technological infrastructure. The geographic impact is primarily within the Department of the Interior's operational areas, potentially nationwide depending on the agency's structure. Workforce implications include the potential for Base Technologies, LLC, to employ IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and monitored for labor hours and rates.
The broad NAICS code 'Other Computer Related Services' may obscure the specific deliverables and make performance monitoring more complex.
Lack of specific details on the competitive process (e.g., number of bidders on the parent IDIQ) limits a full assessment of price competition.
The contract's duration of five years requires sustained oversight to ensure continued value and alignment with evolving IT needs.

Positive Signals

Awarded via a competitive delivery order, indicating a structured procurement process and potential for favorable pricing.
The contract duration allows for stable, long-term IT support, fostering continuity and expertise development.
The award to a single contractor, Base Technologies, LLC, can streamline communication and project management for the Department of the Interior.

Sector Analysis

The IT services sector is a critical component of federal operations, with agencies spending billions annually on software, hardware, and support. This contract falls under 'Other Computer Related Services,' a broad category encompassing IT consulting, system integration, and technical support. The market for such services is highly competitive, with numerous large and small businesses vying for federal contracts. The $21.9 million value positions this as a mid-sized contract within the broader IT services landscape for the federal government.

Small Business Impact

The data indicates 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 if Base Technologies, LLC, chooses to engage them. Without explicit subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this particular award. Further investigation into subcontracting reports would be needed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Interior's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The contract's Time and Materials nature necessitates rigorous oversight of labor hours and rates to prevent cost creep. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and Inspector General involvement would depend on specific agency policies and any identified issues.

Related Government Programs

IT Planning Services
Technical Support Services
Computer Systems Design Services
IT Consulting Services
Federal IT Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Broad NAICS code may obscure specific performance metrics.
Need for robust oversight to manage T&M labor hours and rates.
Limited insight into the specific competitive landscape of the parent IDIQ.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $21.9 million to BASE TECHNOLOGIES, LLC. PLANNING AND TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is BASE TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2006-02-01. End: 2011-01-31.

What is the track record of Base Technologies, LLC, in performing similar IT planning and technical support contracts for the federal government?

Assessing the track record of Base Technologies, LLC, requires a review of their past federal contract performance. This includes examining prior awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A strong performance history on similar IT support contracts would indicate a lower risk for this new award. Conversely, a history of poor performance, cost overruns, or missed deadlines on comparable projects would raise concerns about their ability to successfully execute this $21.9 million contract. Specific details on their past projects, client agencies, and outcomes are crucial for a comprehensive assessment.

How does the average annual value of this contract ($4.38 million) compare to similar IT support contracts awarded by the Department of the Interior or other agencies?

Benchmarking the average annual value of $4.38 million requires comparing it against a portfolio of similar IT planning and technical support contracts. This comparison should ideally focus on contracts awarded by the Department of the Interior and other agencies of comparable size and mission. Factors to consider include the scope of services, contract type (e.g., T&M vs. Fixed Price), duration, and the specific IT domains covered. If similar contracts for comparable services are consistently valued higher or lower, it could indicate potential overpricing or underbidding, respectively. Without access to a detailed market analysis or a database of comparable contract values, a precise benchmark is difficult, but general industry knowledge suggests this is a substantial contract requiring significant resources.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific IT support requirement?

The primary risk with a Time and Materials (T&M) contract type, such as this one, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for actual material costs. This structure places the onus on the government to closely monitor and control the amount of labor expended and the rates charged. If oversight is insufficient, or if the scope of work is not well-defined and managed, the total cost can significantly exceed initial estimates. For IT planning and technical support, this could manifest as extended labor hours for tasks, inefficient work practices, or the use of higher-than-necessary labor categories, all contributing to increased costs for the Department of the Interior.

What specific IT services are encompassed within the 'Other Computer Related Services' NAICS code for this contract, and how will performance be measured?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can include a wide array of IT services beyond core software development or hardware maintenance. For this contract, it likely encompasses IT planning, strategy development, system analysis, technical consulting, project management support, and potentially specialized IT support functions. Effective performance measurement will depend heavily on the specific tasks and deliverables outlined in the contract's Statement of Work (SOW). Key performance indicators (KPIs) might include response times for technical issues, project completion rates, adherence to budget, client satisfaction surveys, and the successful implementation of IT plans. The Department of the Interior must establish clear, measurable, achievable, relevant, and time-bound (SMART) objectives within the SOW to effectively gauge contractor performance.

How does the $21.9 million total contract value compare to historical federal spending on IT planning and technical support services?

The $21.9 million total contract value represents a significant investment in IT planning and technical support. Federal spending on IT services is consistently in the tens of billions of dollars annually across all agencies. Within this vast landscape, a $21.9 million contract over five years is a mid-tier award. It signifies a substantial commitment by the Department of the Interior to outsource or supplement its internal IT capabilities. Historical spending patterns show a continuous demand for such services, driven by the need to maintain aging systems, adopt new technologies, enhance cybersecurity, and support agency missions. This contract aligns with the broader trend of federal agencies leveraging external expertise for complex IT requirements.

What are the potential implications of awarding this contract competitively versus a sole-source or limited competition approach?

Awarding this contract competitively, as indicated by the 'COMPETITIVE DELIVERY ORDER' status, generally implies that multiple vendors had the opportunity to bid. This process is designed to foster price competition, encourage innovation, and ensure the government selects the offer that provides the best value, considering both price and technical merit. Compared to a sole-source or limited competition approach, a full and open competition typically results in lower prices for the government and taxpayers due to market forces. It also provides a wider range of potential solutions and contractors. If this delivery order was competed under a broader IDIQ, the competition level within that IDIQ is also a factor in assessing overall price discovery and value.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1749 OLD MEADOW RD 500, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $21,902,853

Exercised Options: $21,902,853

Current Obligation: $21,902,853

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5451H

IDV Type: FSS

Timeline