Interior Department's $62.5M IT support contract awarded to RNSOLUTIONS, LLC shows potential value concerns

Contract Overview

Contract Amount: $62,491,095 ($62.5M)

Contractor: Rnsolutions, LLC

Awarding Agency: Department of the Interior

Start Date: 2008-09-24

End Date: 2012-09-30

Contract Duration: 1,467 days

Daily Burn Rate: $42.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $62.5 million to RNSOLUTIONS, LLC for work described as: INFORMATION TECHNOLOGY SUPPORT Key points: 1. Contract awarded via competitive delivery order, suggesting some level of market vetting. 2. Pricing structure is Time and Materials, which can pose cost control challenges. 3. The contract duration of nearly four years (1467 days) warrants close performance monitoring. 4. Awarded to a single contractor, RNSOLUTIONS, LLC, for custom computer programming. 5. Geographic concentration in Washington D.C. may limit broader federal IT support reach. 6. The contract's value of over $62 million indicates a significant investment in IT services.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure presents a risk for cost overruns compared to fixed-price contracts. Benchmarking against similar custom computer programming services (NAICS 541511) is crucial to determine if the $62.5 million expenditure represents good value. Without detailed task orders and performance metrics, a definitive value assessment is challenging. The contract's substantial value suggests a need for rigorous oversight to ensure efficient use of taxpayer funds.

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. However, the specifics of the competition, such as the number of bids received and the evaluation process, are not detailed here. A competitive award is generally positive, but the level of competition can vary significantly, impacting price discovery and potentially leading to higher costs if competition was limited.

Taxpayer Impact: A competitive award suggests that the government sought multiple offers, which can lead to better pricing for taxpayers. However, the effectiveness of this competition in driving down costs depends on the number and quality of bids received.

Public Impact

Federal agencies, particularly within the Department of the Interior, benefit from custom computer programming services. The contract supports the delivery of IT services essential for departmental operations. Services are geographically concentrated in Washington D.C., impacting the local IT workforce. The contract likely supports various IT functions, from software development to system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to uncontrolled cost escalation if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services rendered.
The significant contract value necessitates robust oversight to prevent waste, fraud, and abuse.

Positive Signals

Awarded through a competitive process, suggesting potential for market-driven pricing.
The contract addresses critical IT support needs for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is highly competitive, with numerous vendors offering a wide range of solutions. Federal spending in this area is substantial, supporting everything from cybersecurity to software development. Comparable spending benchmarks for similar IT support contracts within federal agencies can provide context for the $62.5 million award, but specific service scope is key.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the impact on the small business ecosystem. Typically, large IT contracts offer opportunities for small businesses through subcontracting, but this depends on the prime contractor's strategy and the contract's specific requirements.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially an Inspector General's office within the Department of the Interior. Transparency would be enhanced through regular reporting requirements and performance reviews. The effectiveness of oversight depends on the diligence of these parties in monitoring performance, costs, and compliance with contract terms.

Related Government Programs

IT Professional Services
Custom Computer Programming
Department of the Interior IT Contracts
Time and Materials Contracts
Federal IT Support Services

Risk Flags

Time and Materials contract type can lead to cost overruns.
Lack of detailed performance metrics makes value assessment difficult.
Contract duration is substantial, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $62.5 million to RNSOLUTIONS, LLC. INFORMATION TECHNOLOGY SUPPORT

Who is the contractor on this award?

The obligated recipient is RNSOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $62.5 million.

What is the period of performance?

Start: 2008-09-24. End: 2012-09-30.

What was the specific nature of the custom computer programming services provided under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511). However, the specific nature of these services is not detailed. This could range from developing new software applications, modifying existing systems, database programming, or providing specialized IT consulting. Understanding the precise tasks performed is crucial for evaluating the contract's value and effectiveness. Without a detailed statement of work or task orders, it's difficult to ascertain the full scope of work and whether it aligned with the agency's evolving IT needs over the contract's nearly four-year duration.

How did RNSOLUTIONS, LLC's pricing compare to market rates for similar custom computer programming services at the time of award?

The data indicates the contract utilized a Time and Materials (T&M) pricing structure. To assess RNSOLUTIONS, LLC's pricing against market rates, one would need to compare the hourly or daily rates for various labor categories (e.g., programmers, analysts, project managers) against industry benchmarks for similar skill sets and experience levels in the Washington D.C. area. T&M contracts are inherently variable, making direct price comparisons difficult without knowing the total hours worked and the specific labor mix. A thorough analysis would involve reviewing the contract's ceiling price, negotiated labor rates, and any indirect cost markups to determine if the overall expenditure of $62.5 million was reasonable for the services rendered.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of this IT support contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate the success of this IT support contract. For a contract of this magnitude and duration, effective oversight would typically involve clearly defined performance standards related to software development timelines, bug resolution rates, system uptime, user satisfaction, and adherence to project milestones. Without these metrics, it is challenging to objectively assess whether RNSOLUTIONS, LLC met the Department of the Interior's requirements and delivered value for money. A review of contract performance reports or award-fee documentation would be necessary to understand how performance was measured and incentivized.

Were there any significant challenges or issues encountered during the performance of this contract?

The provided data does not contain information regarding specific challenges or issues encountered during the performance of this IT support contract. Contracts, especially those involving custom development and spanning several years, can face various hurdles such as scope creep, technical difficulties, changes in agency requirements, or contractor performance issues. Investigating contract modification history, performance reviews, or any associated task orders could reveal if there were significant deviations from the original plan, cost overruns, or delays. Understanding these potential issues is vital for a comprehensive assessment of the contract's overall success and the contractor's reliability.

How does the total spending on custom computer programming services by the Department of the Interior compare to other federal agencies?

To compare the Department of the Interior's spending on custom computer programming services ($62.5 million for this contract) to other federal agencies, one would need access to broader federal procurement data. This would involve analyzing spending patterns across agencies for the same NAICS code (541511) over similar timeframes. Factors influencing spending include agency size, mission complexity, and existing IT infrastructure. Some agencies, like the Department of Defense or Health and Human Services, might have significantly higher IT expenditures due to their scale and technological needs. A comparative analysis would help contextualize the Interior Department's investment and identify potential outliers or best practices in IT procurement.

Industry Classification

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

Solicitation ID: 21009

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3206 TOWER OAKS BLVD # 100, ROCKVILLE, MD, 20852

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $62,491,095

Exercised Options: $62,491,095

Current Obligation: $62,491,095

Parent Contract

Parent Award PIID: GS35F0239K

IDV Type: FSS

Timeline