NASA's $23.5M electronic handbook contract with REI SYSTEMS, INC. awarded via sole-source procurement

Contract Overview

Contract Amount: $23,518,619 ($23.5M)

Contractor: REI Systems, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2011-04-01

End Date: 2016-10-06

Contract Duration: 2,015 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NASA SBIR/STTR ELECTRONIC HANDBOOK

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $23.5 million to REI SYSTEMS, INC. for work described as: NASA SBIR/STTR ELECTRONIC HANDBOOK Key points: 1. Contract awarded on a firm-fixed-price basis, indicating a defined scope and cost. 2. The contract duration spanned over five years, suggesting a long-term need for the service. 3. Sole-source award implies limited competition, potentially impacting price negotiation. 4. The contract falls under the Software Publishers NAICS code, aligning with IT services. 5. The award was made to a single contractor, REI SYSTEMS, INC. 6. The contract value of $23.5M over five years averages to approximately $4.7M annually.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided by the electronic handbook. However, the annual average of $4.7M for a five-year contract of this nature suggests a moderate investment. Comparing it to similar IT service contracts for large federal agencies would provide a clearer picture of its value for money. The firm-fixed-price structure offers cost certainty but may not reflect the most competitive pricing if competition was limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that NASA did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities or when only one source is deemed capable of meeting the agency's requirements. The lack of competition means that price discovery through market forces was absent, and the negotiated price is the primary determinant of value.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not benefit from the potential cost savings that can arise from a competitive bidding process. This could result in a higher overall cost compared to a scenario with multiple bidders vying for the contract.

Public Impact

NASA personnel benefit from an electronic system for managing handbooks and related documentation. The contract supports the operational efficiency of NASA's administrative and technical functions. The geographic impact is likely agency-wide, supporting all NASA centers and facilities. Workforce implications include the need for IT support and system maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than a competed contract.
Sole-source awards can limit innovation by not exposing the agency to alternative solutions.
Transparency in the sole-source justification process is crucial for public trust.

Positive Signals

The firm-fixed-price contract provides budget certainty for NASA.
A five-year contract duration indicates a stable and ongoing need for the service.
The contract was awarded to REI SYSTEMS, INC., a known entity in government IT services.

Sector Analysis

The Information Technology sector, specifically software publishing and IT services, is a significant area of federal spending. This contract for an electronic handbook system fits within the broader category of enterprise software solutions and digital document management. Comparable spending benchmarks in this sector often involve large-scale IT infrastructure, software development, and system integration projects, with contract values varying widely based on scope and complexity.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. Further analysis would be needed to determine if REI SYSTEMS, INC. has a history of subcontracting with small businesses on its federal contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, focusing on performance and delivery. Transparency in sole-source procurements relies heavily on the agency's justification for not competing the award and the public availability of contract award data. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

NASA IT Services Contracts
Federal Software Publishing Contracts
Electronic Document Management Systems
NASA Administrative Support Contracts

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competition.
Transparency of sole-source justification is key.

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $23.5 million to REI SYSTEMS, INC.. NASA SBIR/STTR ELECTRONIC HANDBOOK

Who is the contractor on this award?

The obligated recipient is REI SYSTEMS, 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 $23.5 million.

What is the period of performance?

Start: 2011-04-01. End: 2016-10-06.

What specific functionalities did the NASA SBIR/STTR Electronic Handbook provide, and how did these functionalities contribute to NASA's mission objectives?

The NASA SBIR/STTR Electronic Handbook likely served as a centralized digital repository and management system for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program information. This would include managing grant applications, progress reports, final reports, intellectual property disclosures, and other critical documentation generated by participants in these programs. Its contribution to NASA's mission objectives would be in streamlining the administration of these crucial R&D funding programs, facilitating efficient review processes, ensuring compliance, and enabling better tracking of technological advancements and commercialization efforts stemming from SBIR/STTR awards. The system's effectiveness would be measured by its ability to reduce administrative burden, improve data accessibility for program managers, and support the overall goals of fostering innovation and technology transfer.

How does the $23.5 million contract value compare to other federal contracts for similar electronic document management or information systems?

Comparing the $23.5 million contract value for NASA's SBIR/STTR Electronic Handbook requires context regarding its scope, duration, and the specific functionalities offered. Over its five-year period (2011-2016), this represents an average annual expenditure of approximately $4.7 million. Federal contracts for enterprise-level document management systems or specialized information portals can range significantly. For instance, large-scale enterprise resource planning (ERP) implementations or agency-wide content management systems can cost tens or hundreds of millions of dollars. However, a system focused specifically on the SBIR/STTR program, while critical, might be considered a more specialized application. Without detailed service level agreements and feature sets, a direct comparison is difficult. However, for a dedicated, long-term system supporting a significant federal program, this value appears within a reasonable range for specialized IT services, though the lack of competition warrants scrutiny regarding potential cost efficiencies.

What were the primary justifications for awarding this contract on a sole-source basis to REI SYSTEMS, INC.?

The primary justifications for awarding this contract on a sole-source basis typically revolve around unique capabilities, proprietary technology, or a lack of readily available alternatives in the market that could meet NASA's specific requirements for the SBIR/STTR Electronic Handbook. Agencies often cite that the incumbent contractor possesses specialized knowledge of the existing system, its architecture, and the unique workflows associated with the program it supports, making a transition to a new vendor prohibitively expensive or disruptive. Another common justification is that the contractor's solution is the only one that meets stringent technical requirements or integrates seamlessly with existing NASA IT infrastructure. Without the specific justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it's presumed that NASA determined that REI SYSTEMS, INC. was the only responsible source capable of providing the required services and that the use of competitive procedures would have had an unacceptable delay or negative impact on the agency's ability to meet its needs.

What is REI SYSTEMS, INC.'s track record with federal contracts, particularly with NASA, prior to and during this contract period?

REI SYSTEMS, INC. has a history of securing federal contracts, including those with NASA and other agencies, primarily in the realm of IT solutions, software development, and system integration. Prior to this $23.5 million contract, the company likely had established itself as a capable provider of such services. During the 2011-2016 period of this specific contract, REI SYSTEMS, INC. would have been expected to deliver on the agreed-upon functionalities of the electronic handbook, meeting performance metrics and reporting requirements. A review of their contract history would reveal the types of awards they received (competitive vs. sole-source), their performance ratings (if publicly available), and the overall value of contracts held. Their continued success in securing federal work suggests a generally positive track record, though specific performance details for any given contract would require deeper investigation into contract close-out reports or performance evaluations.

Were there any performance issues or contract modifications associated with this $23.5 million contract during its five-year duration?

Information regarding specific performance issues or contract modifications for this particular contract (NASA SBIR/STTR Electronic Handbook with REI SYSTEMS, INC., 2011-2016) is not detailed in the provided summary data. Typically, federal contracts, especially those spanning several years, may undergo modifications to adjust scope, funding, or timelines based on evolving requirements or unforeseen circumstances. Performance issues, if significant, might be reflected in contract termination, reduced funding, or negative performance reviews. Conversely, a contract that proceeds to completion without major disputes or terminations often indicates satisfactory performance. To ascertain the presence of performance issues or modifications, one would need to consult the contract's official file, including modification logs, performance reports, and any associated dispute resolution records maintained by NASA.

What was the historical spending trend for NASA's SBIR/STTR program management IT systems before and after this contract?

Analyzing the historical spending trend for NASA's SBIR/STTR program management IT systems before and after the 2011-2016 contract with REI SYSTEMS, INC. would provide valuable context. Before this contract, NASA likely utilized different systems or processes, potentially involving less integrated solutions or older technologies, with corresponding spending levels. After this contract concluded in 2016, NASA would have either re-competed the requirement, extended the contract, or transitioned to a new system. Each of these scenarios would have different spending implications. A re-competition could lead to a new contract value based on current market rates and competition. A transition to a new system might involve upfront investment costs. Understanding these preceding and subsequent spending patterns is crucial for assessing the long-term investment in this IT capability and whether the $23.5 million represented a significant increase or a continuation of established spending levels for such systems.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: NNX11AA07R

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14325 WILLARD RD STE 200, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,240,909

Exercised Options: $24,921,469

Current Obligation: $23,518,619

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline