NASA's $11.7M contract for National SEMAA Office operations awarded to PARAGON TEC, INC
Contract Overview
Contract Amount: $11,709,176 ($11.7M)
Contractor: Paragon TEC, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-01-23
End Date: 2013-03-31
Contract Duration: 2,259 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATION OF THE NATIONAL SEMAA OFFICE
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44135, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $11.7 million to PARAGON TEC, INC. for work described as: OPERATION OF THE NATIONAL SEMAA OFFICE Key points: 1. The contract's value of $11.7 million over its period of performance suggests a significant investment in administrative services. 2. Awarded under full and open competition, the contract indicates a competitive bidding process was utilized. 3. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns. 4. The contract duration of approximately 6 years provides a stable operational framework. 5. The North American Industry Classification System (NAICS) code 561110 points to the nature of the services as office administrative support. 6. The contract was awarded to PARAGON TEC, INC., with the agency and office of primary responsibility being NASA. 7. The contract was awarded in Ohio, indicating a specific geographic focus for the services.
Value Assessment
Rating: fair
The total award amount of $11.7 million for office administrative services over approximately six years appears to be within a reasonable range for such a contract. Benchmarking against similar contracts for administrative support services at NASA or other federal agencies would provide a more precise assessment of value for money. Without specific details on the scope of services and deliverables, it is challenging to definitively assess if the pricing is competitive or if it represents excellent value. The firm-fixed-price structure generally aligns with efforts to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the solicitation was made available to all responsible prospective contractors, and any restrictions on the source were justified. The fact that it was competed broadly suggests that multiple bidders likely participated, leading to a more competitive pricing environment and a greater likelihood of selecting the best value offer.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.
Public Impact
The primary beneficiaries of this contract are likely the National Science, Engineering, and Mathematics Applications (SEMAA) program and its participants, who receive administrative support services. The services delivered include essential office administrative functions that enable the smooth operation of the SEMAA program. The contract's geographic impact is centered in Ohio, where the services were performed. The contract supports administrative roles, potentially impacting the workforce involved in managing and supporting STEM education initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the effectiveness of the administrative services provided.
- The specific nature of 'office administrative services' is broad and could encompass a wide range of tasks, making precise value assessment challenging without further detail.
- The contract's duration of over six years, while providing stability, could also lead to potential complacency if not actively managed and reviewed.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair selection process.
- The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for budget predictability.
- The contract supports a program (SEMAA) aimed at promoting STEM education, which has positive societal implications.
Sector Analysis
This contract falls within the administrative and support services sector, specifically related to office operations. The market for such services is vast and highly competitive, with numerous firms offering a wide array of administrative support. Federal agencies frequently procure these services to manage day-to-day operations, allowing them to focus on core mission functions. Comparable spending benchmarks would typically involve analyzing the average cost of similar administrative support contracts across various federal agencies, considering factors like contract size, duration, and the specific services rendered.
Small Business Impact
The provided 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 small business set-aside. The competition was full and open, meaning large and small businesses could have potentially bid, but the award was not specifically targeted towards small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a firm-fixed-price contract, NASA's oversight would likely focus on ensuring that PARAGON TEC, INC. is meeting the contractual requirements and delivering the agreed-upon office administrative services. Accountability measures would be embedded in the contract terms and conditions, with performance reviews and payment milestones serving as key checkpoints. Transparency would be facilitated through contract databases like FPDS-NG (Federal Procurement Data System - Next Generation), which provides public access to contract award information.
Related Government Programs
- NASA Administrative Support Services
- Federal Office Operations Contracts
- STEM Education Program Support
- National SEMAA Program Funding
Risk Flags
- Contract duration exceeds 6 years, requiring sustained oversight.
- Scope of 'office administrative services' is broad and requires clear performance metrics.
- Lack of historical spending data for this specific operation makes current value assessment difficult.
Tags
nasa, paragon-tec-inc, office-administrative-services, full-and-open-competition, firm-fixed-price, ohio, stem-education, semaa, federal-contract, administrative-support, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $11.7 million to PARAGON TEC, INC.. OPERATION OF THE NATIONAL SEMAA OFFICE
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 $11.7 million.
What is the period of performance?
Start: 2007-01-23. End: 2013-03-31.
What specific administrative services were included under this contract?
The contract description 'OPERATION OF THE NATIONAL SEMAA OFFICE' and the NAICS code '561110' (Office Administrative Services) indicate that the services provided were primarily focused on supporting the administrative functions of the National Science, Engineering, and Mathematics Applications (SEMAA) program. While the exact scope is not detailed in the provided data, typical services under such a contract could include tasks such as managing correspondence, scheduling meetings, maintaining records, handling travel arrangements, providing clerical support, managing office supplies, and potentially basic financial administration related to office operations. The firm-fixed-price nature of the contract suggests that these services were defined with specific deliverables or a set scope of work for which PARAGON TEC, INC. was compensated a predetermined amount.
How does the $11.7 million award compare to similar administrative support contracts at NASA?
Comparing the $11.7 million award for PARAGON TEC, INC.'s services to similar administrative support contracts at NASA requires access to a broader dataset of federal procurement. However, as a general benchmark, an $11.7 million contract awarded over approximately six years (2259 days) averages to roughly $1.95 million per year. This figure for comprehensive office administrative services is not unusually high or low for a federal agency of NASA's size and scope, which often requires extensive support for its various programs and facilities. To provide a more precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 561110) and similar contract values awarded by NASA or other large federal agencies over comparable timeframes, considering the specific deliverables and complexity of the administrative functions.
What are the potential risks associated with a firm-fixed-price contract of this duration?
A firm-fixed-price (FFP) contract, while beneficial for budget certainty, carries inherent risks, especially over a longer duration like this 6-year contract. For the government, the primary risk is that the contractor may not be incentivized to find cost efficiencies beyond what is necessary to meet the minimum contract requirements, potentially leading to a less-than-optimal value if the initial price was set too high. Conversely, if the scope of work evolves significantly or unforeseen circumstances arise that increase the contractor's costs substantially, PARAGON TEC, INC. bears the full financial burden, which could strain their resources or lead to performance issues if they struggle to absorb unexpected expenses. For a long-duration FFP contract, robust contract management and clear change order procedures are crucial to mitigate risks related to scope creep and unforeseen cost increases.
What is the historical spending pattern for 'Operation of the National SEMAA Office'?
The provided data represents a single contract award for the 'OPERATION OF THE NATIONAL SEMAA OFFICE' totaling $11,709,176.04, awarded to PARAGON TEC, INC. This specific data point does not provide historical spending patterns. To understand historical spending, one would need to query federal procurement databases for all contracts awarded for this specific service or program over multiple fiscal years. This would involve looking for previous contracts with the same or similar descriptions, awarded to the same or different contractors, and analyzing the total amount spent annually or over several years. Without this broader historical context, it's impossible to determine if this $11.7 million award represents an increase, decrease, or consistent level of spending for the SEMAA office operations.
How does the 'full and open competition after exclusion of sources' classification impact contractor selection and pricing?
The classification 'full and open competition after exclusion of sources' signifies a competitive procurement process where the solicitation was broadly advertised, allowing all eligible responsible sources to submit an offer. The 'exclusion of sources' part implies that specific sources might have been excluded based on pre-defined criteria or justifications, but the overall intent remains to maximize competition. This approach typically leads to a wider pool of bidders, fostering price competition and allowing the government to select the offer that provides the best value, whether through the lowest price or a combination of price and technical merit. For taxpayers, this method is generally favorable as it increases the likelihood of obtaining services at competitive market rates, reducing the potential for inflated pricing that might occur in less competitive scenarios.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3740 CARNEGIE AVE STE 302, CLEVELAND, OH, 44115
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, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $11,727,167
Exercised Options: $11,727,167
Current Obligation: $11,709,176
Timeline
Start Date: 2007-01-23
Current End Date: 2013-03-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2015-07-11
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