NASA's $39.1M IT Management Contract Awarded to Arctic Slope Technical Services Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $39,120,031 ($39.1M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2016-02-01

End Date: 2021-01-31

Contract Duration: 1,826 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A COMPREHENSIVE GENERAL MANAGEMENT PROGRAM THAT COORDINATES AND INTEGRATES ALL OTHER TASK ORDERS ON THE CONTRACT; PROVIDES FOR A GENERAL MANAGEMENT PROGRAM AND FUNCTIONAL DIRECTION; AND PROVIDES FOR THE MANAGEMENT, SUSTAINMENT AND DELIVERY OF A COMPREHENSIVE INFORMATION TECHNOLOGY PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20546

State: District of Columbia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $39.1 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A COMPREHENSIVE GENERAL MANAGEMENT PROGRAM THAT COORDINATES AND INTEGRATES ALL OTHER TASK ORDERS ON THE CONTRACT; PROVIDES FOR A GENERAL MANAGEMENT PROGRAM AND FUNCTIONAL DIRECTION; AND PROVIDES FOR THE MANAGEMENT, SUSTAINMENT AND DELIVER… Key points: 1. The contract's broad scope for comprehensive IT program management suggests potential for cost efficiencies if well-executed. 2. Competition dynamics appear limited, with a 'full and open competition after exclusion of sources' designation requiring further analysis. 3. Risk indicators include the 'cost plus fixed fee' pricing structure, which can incentivize spending over cost control. 4. Performance context is crucial, as the success of this overarching IT management contract hinges on the effective coordination of numerous task orders. 5. Sector positioning places this contract within the IT services sector, a critical area for government operations. 6. The contract's duration of five years indicates a significant, long-term commitment by NASA. 7. The absence of small business set-aside flags raises questions about opportunities for smaller firms in this large contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task order details and performance metrics. The 'cost plus fixed fee' (CPFF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed diligently. Comparing it to similar broad IT management contracts across federal agencies would be necessary to assess if the $39.1 million expenditure represents a reasonable investment for the services rendered. The lack of detailed performance data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific designation suggests that while the competition was intended to be open, certain sources may have been excluded based on predefined criteria, potentially limiting the pool of bidders. The number of bidders is not provided, making it difficult to fully assess the level of competition. A limited competition, even if initially open, can impact price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the most aggressive pricing that a broader, more inclusive competition might have yielded. This could translate to a higher overall cost for the services provided.

Public Impact

The primary beneficiary is NASA, which receives integrated IT program management services to support its operations. Services delivered include comprehensive general management, coordination of task orders, and functional direction for IT programs. The geographic impact is primarily within NASA's operational centers, likely concentrated in areas where NASA has a significant presence. Workforce implications may involve the contractor's personnel supporting NASA's IT infrastructure and management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure can lead to cost overruns if not tightly managed.
  • Limited competition may result in suboptimal pricing for taxpayers.
  • Broad scope of IT management could lead to inefficiencies if not clearly defined and overseen.
  • Lack of specific performance metrics makes value assessment difficult.

Positive Signals

  • Contractor provides comprehensive IT management, potentially leading to better integration and efficiency.
  • Long-term contract (5 years) suggests a stable and ongoing need for these services.
  • Awarded by NASA, a reputable agency with established procurement processes.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT program management and general administrative services. The IT services market for the federal government is substantial, with agencies heavily reliant on contractors for managing complex systems and infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT support and management contracts awarded by agencies like NASA, DoD, or GSA, considering the scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that large businesses were likely the primary bidders and recipients. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they might be involved as subcontractors if the prime contractor engages in subcontracting. The impact on the small business ecosystem is neutral to negative in terms of direct contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). Specific oversight mechanisms would include contract officers, technical monitors, and potentially NASA's Inspector General's office, especially if performance issues or financial irregularities arise. Transparency is dependent on NASA's reporting practices regarding contract performance and expenditures. The Inspector General's jurisdiction would cover audits and investigations into fraud, waste, and abuse.

Related Government Programs

  • NASA IT Support Services
  • General Management and Administrative Services
  • Information Technology Professional Services
  • IT Program Management Support

Risk Flags

  • Cost Plus Fixed Fee pricing structure
  • Limited competition designation
  • Broad and potentially complex scope of work
  • Lack of specific performance metrics in award data

Tags

it-services, nasa, district-of-columbia, cost-plus-fixed-fee, delivery-order, full-and-open-competition-after-exclusion-of-sources, large-business, program-management, administrative-services

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $39.1 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE A COMPREHENSIVE GENERAL MANAGEMENT PROGRAM THAT COORDINATES AND INTEGRATES ALL OTHER TASK ORDERS ON THE CONTRACT; PROVIDES FOR A GENERAL MANAGEMENT PROGRAM AND FUNCTIONAL DIRECTION; AND PROVIDES FOR THE MANAGEMENT, SUSTAINMENT AND DELIVERY OF A COMPREHENSIVE INFORMATION TECHNOLOGY PROGRAM.

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, 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 $39.1 million.

What is the period of performance?

Start: 2016-02-01. End: 2021-01-31.

What is the track record of Arctic Slope Technical Services, Inc. with federal contracts, particularly those involving IT management?

Arctic Slope Technical Services, Inc. (ASTS) has a history of federal contracting, primarily with agencies like NASA and the Department of Defense. Their contract portfolio often includes IT services, logistics, and base operations support. For IT management contracts specifically, ASTS has been awarded various task orders and contracts that involve system administration, network support, and IT program coordination. A detailed review of their past performance ratings, any past performance issues or disputes, and the scale of previous IT management contracts would be necessary to fully assess their track record. Information from sources like the Federal Procurement Data System (FPDS) and contract award databases can provide insights into their performance history and client agencies.

How does the $39.1 million contract value compare to similar IT management contracts awarded by NASA or other federal agencies?

Comparing the $39.1 million value requires context regarding the contract's scope, duration, and specific services. This contract, spanning five years (February 2016 - January 2021), averages approximately $7.8 million per year. NASA and other large federal agencies frequently award IT support and management contracts ranging from a few million to hundreds of millions of dollars annually. Contracts with similar broad IT program management responsibilities, especially those involving integration and coordination across multiple task orders, can fall within this range. However, without detailed task order breakdowns and performance metrics, a precise value-for-money comparison is difficult. Benchmarking against contracts for similar services, considering the complexity and criticality of NASA's IT needs, would be essential.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT management services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total cost. For IT management, this could lead to less stringent cost control measures if not actively managed by the government. Risks include potential cost overruns, scope creep without adequate adjustments to the fee or timeline, and a reduced incentive for the contractor to find the most cost-effective solutions. Robust oversight, clear performance metrics, and diligent cost monitoring by the agency are crucial to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT services?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific agency needs. It allows for open competition among all responsible sources, but permits the exclusion of specific sources based on documented justifications (e.g., national security, unique capabilities). While intended to be competitive, the exclusion of sources inherently limits the bidder pool compared to unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on the justification for exclusion and the number of remaining responsible bidders. If the exclusion significantly reduces the number of capable bidders, it could lead to less aggressive pricing and potentially higher costs for the government compared to a scenario with broader participation.

What are the implications of this contract's broad scope for NASA's overall IT infrastructure management?

The broad scope of this contract, encompassing comprehensive general management and coordination of all other task orders on the contract, implies a significant role in NASA's IT ecosystem. It suggests that the contractor is responsible for the overarching strategy, integration, and sustainment of a substantial portion of NASA's IT program. The implication is that effective execution by the contractor could lead to better synergy between different IT functions, improved efficiency, and a more cohesive IT strategy. Conversely, poor management or coordination could result in fragmented services, inefficiencies, and increased risks to NASA's IT infrastructure. The success hinges on the contractor's ability to manage complexity and integrate diverse IT functions effectively.

What is the historical spending pattern for similar IT management services at NASA over the past decade?

Historical spending patterns for similar IT management services at NASA over the past decade show a consistent and significant investment in IT infrastructure and support. NASA, like other major federal agencies, relies heavily on contractors to manage its complex IT systems, networks, and data. Spending in this area typically fluctuates based on agency priorities, major system upgrades, and evolving technological needs. While specific figures for 'IT management' as a distinct category can vary, overall IT spending by NASA has been in the billions of dollars annually. Contracts for IT services, including program management, system integration, cybersecurity, and cloud services, represent a substantial portion of this budget. Trends indicate a move towards more cloud-based solutions and advanced analytics, requiring adaptable IT management strategies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOffice Administrative ServicesOffice Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,940,952

Exercised Options: $41,940,952

Current Obligation: $39,120,031

Actual Outlays: $13,176,804

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $906,534

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNH16CO92B

IDV Type: IDC

Timeline

Start Date: 2016-02-01

Current End Date: 2021-01-31

Potential End Date: 2021-01-31 00:00:00

Last Modified: 2025-09-26

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