NASA's $20M contract for National SEMAA Office operations awarded to Paragon Tec, Inc
Contract Overview
Contract Amount: $20,012,293 ($20.0M)
Contractor: Paragon TEC, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-02-15
End Date: 2008-01-15
Contract Duration: 2,160 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MANAGEMENT & OPERATION OF THE NATIONAL SEMAA OFFICE NOTE: ADJUSTED ALL DOLLAR AMOUNTS ON MOD. #22 SO CUMULATIVE TOTALS WOULD BE CORRECT
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44115
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $20.0 million to PARAGON TEC, INC. for work described as: MANAGEMENT & OPERATION OF THE NATIONAL SEMAA OFFICE NOTE: ADJUSTED ALL DOLLAR AMOUNTS ON MOD. #22 SO CUMULATIVE TOTALS WOULD BE CORRECT Key points: 1. Contract value of $20M over its period of performance suggests a significant investment in administrative services. 2. The firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 4. The contract duration of 2160 days (6 years) points to a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 561110 (Office Administrative Services) clarifies the nature of the services provided. 6. The contract was awarded by the National Aeronautics and Space Administration (NASA), indicating a federal focus on administrative support for a specific program.
Value Assessment
Rating: fair
The contract's total value of approximately $20 million over six years averages to about $3.33 million per year. Without specific details on the scope of services for the National SEMAA Office, it's challenging to benchmark this against similar contracts. However, for office administrative services, this annual figure appears moderate, suggesting a potentially fair price if the services are comprehensive and effectively delivered. Further analysis would require understanding the specific deliverables and the operational complexity of the SEMAA office.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a robust solicitation process designed to encourage a wide range of proposals. The number of bidders is not specified, but the 'full and open' designation suggests that multiple entities likely participated, fostering price discovery and potentially leading to a more competitive outcome.
Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a competitive environment that can drive down costs and improve the quality of services received.
Public Impact
The primary beneficiaries are likely the National SEMAA (Science, Engineering, Mathematics, Aerospace) program and its participants, who receive administrative support enabling program operations. The services delivered include essential office administrative functions crucial for the management and operation of the National SEMAA Office. The geographic impact is centered around the operations of the National SEMAA Office, likely supporting educational and outreach initiatives across the nation. Workforce implications may include employment opportunities for administrative staff within Paragon Tec, Inc. and potentially indirect support for SEMAA program personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the administrative services provided.
- The broad NAICS code for office administrative services could encompass a wide range of tasks, making it hard to pinpoint specific value without further detail.
- The contract's duration of six years might lead to complacency if not actively managed and reviewed for continued relevance and efficiency.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
- The firm fixed-price contract type shifts cost overrun risk to the contractor, Paragon Tec, Inc.
- The contract's long duration indicates a stable and ongoing need for these administrative services by NASA.
Sector Analysis
The contract falls within the professional, scientific, and technical services sector, specifically focusing on office administrative services. This sector is characterized by a wide range of support functions for government and private entities. The market size for such services is substantial, with numerous companies offering administrative support. This contract represents a specific instance of federal spending within this broad category, supporting a specialized program office.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Paragon Tec, Inc., is likely a larger entity capable of handling the full scope of services without specific small business participation mandates.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within NASA responsible for the National SEMAA Office. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver services as specified. Transparency is generally facilitated through federal contract databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA Education Programs
- STEM Outreach Initiatives
- Federal Administrative Support Services
- Office Management Contracts
Risk Flags
- Potential for service scope creep without clear definition.
- Risk of contractor performance degradation over a long contract duration.
- Lack of detailed performance metrics in summary data.
Tags
nasa, national-semaa-office, administrative-services, office-administrative-services, paragon-tec-inc, firm-fixed-price, full-and-open-competition, federal-contract, ohio, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $20.0 million to PARAGON TEC, INC.. MANAGEMENT & OPERATION OF THE NATIONAL SEMAA OFFICE NOTE: ADJUSTED ALL DOLLAR AMOUNTS ON MOD. #22 SO CUMULATIVE TOTALS WOULD BE CORRECT
Who is the contractor on this award?
The obligated recipient is PARAGON TEC, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2002-02-15. End: 2008-01-15.
What specific administrative services were included under this contract?
The contract, identified by NAICS code 561110, pertains to 'Office Administrative Services.' While the specific details are not fully elaborated in the provided data, this typically encompasses a range of support functions such as general office management, record keeping, scheduling, communication management, mail processing, and potentially human resources or financial administrative support. For the National SEMAA Office, these services would be tailored to facilitate the program's operational needs, including managing correspondence, coordinating meetings, maintaining databases, and supporting program staff in their administrative duties. The exact scope would be detailed in the contract's statement of work.
How does the $20 million contract value compare to similar administrative service contracts awarded by NASA or other federal agencies?
Benchmarking this $20 million contract requires comparing it to similar 'Office Administrative Services' contracts (NAICS 561110) awarded by NASA or other agencies over a comparable period (approximately six years). Without access to a comprehensive database of contract values and scopes, a precise comparison is difficult. However, for a national-level office requiring sustained administrative support, $20 million over six years (averaging ~$3.33 million annually) appears to be within a moderate range. Larger agencies or programs with more extensive administrative needs might award higher-value contracts, while smaller, localized support could be significantly less. The key differentiator would be the scope and complexity of the SEMAA office's operations.
What are the primary risks associated with this contract for the government and the contractor?
For the government (NASA), the primary risks include the contractor (Paragon Tec, Inc.) failing to deliver the required administrative services adequately, leading to disruptions in the National SEMAA Office's operations. There's also a risk of the services becoming outdated or inefficient over the six-year period if not actively managed. For the contractor, the main risk lies in cost overruns, as this is a 'FIRM FIXED PRICE' contract. If the actual costs of providing the services exceed the contract price, Paragon Tec, Inc. will absorb the loss. Performance issues could also lead to reputational damage and affect future contract opportunities.
What is the historical spending pattern for the National SEMAA Office's administrative support?
The provided data focuses on a single contract awarded to Paragon Tec, Inc. from 2002 to 2008 for the management and operation of the National SEMAA Office. To understand historical spending patterns, one would need to examine contracts preceding and following this period, as well as any other contracts awarded for similar functions. This would involve searching federal procurement databases for 'National SEMAA Office' or related keywords and analyzing the award dates, values, contractors, and contract types. Without this broader historical context, it's impossible to discern trends, identify significant shifts in spending, or assess if this $20 million contract represents an increase, decrease, or consistent level of investment.
How effective has Paragon Tec, Inc. been in fulfilling similar administrative service contracts?
Assessing the effectiveness of Paragon Tec, Inc. in fulfilling similar contracts requires reviewing their past performance records, any past performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any contract modifications or disputes. The provided data indicates this was a significant contract for them, spanning six years. However, without access to performance metrics, client feedback, or documented issues from this specific contract or others they've held, it's not possible to definitively state their effectiveness. A thorough review would involve looking for indicators of successful delivery, timely completion, and adherence to quality standards across their contract history.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 3740 CARNEGIE AVENUE, CLEVELAND, OH, 90
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $20,012,299
Exercised Options: $20,012,299
Current Obligation: $20,012,293
Timeline
Start Date: 2002-02-15
Current End Date: 2008-01-15
Potential End Date: 2008-01-15 00:00:00
Last Modified: 2009-04-22
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- Operation of the National Semaa Office — $11.7M (National Aeronautics and Space Administration)
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