State Department awards $19.17M for email and network services to Copper River Information Technology, LLC

Contract Overview

Contract Amount: $19,168,121 ($19.2M)

Contractor: Copper River Information Technology, LLC

Awarding Agency: Department of State

Start Date: 2010-05-18

End Date: 2012-09-25

Contract Duration: 861 days

Daily Burn Rate: $22.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: EMAIL AND NETWORK SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $19.2 million to COPPER RIVER INFORMATION TECHNOLOGY, LLC for work described as: EMAIL AND NETWORK SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services provided by Copper River Information Technology, LLC, a small business. 3. Contract duration of 861 days, indicating a medium-term engagement. 4. Services fall under 'Other Computer Related Services', a broad category. 5. Awarded by the Department of State, a major federal agency. 6. The contract type is 'Labor Hours', which can be less predictable in final cost. 7. No specific small business set-aside noted, but the awardee is an SMB.

Value Assessment

Rating: fair

The total award amount of $19.17 million for email and network services over approximately two years appears within a reasonable range for federal IT contracts of this nature. However, without specific details on the scope of services, labor rates, and the number of personnel supported, a precise value-for-money assessment is challenging. The 'Labor Hours' contract type introduces variability, and the absence of competitive bidding means there's no direct market comparison to ensure optimal pricing. Benchmarking against similar sole-source IT service contracts would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific contractor is deemed uniquely qualified or when only one source is available. The lack of competition limits the government's ability to solicit multiple bids and negotiate the best possible price. Consequently, the government may not achieve the most cost-effective outcome compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The Department of State benefits from essential email and network services, crucial for its operations. These services support the department's communication infrastructure, enabling secure and reliable data exchange. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications include the personnel at Copper River Information Technology, LLC, who are delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Labor hours contract type can lead to cost overruns if not managed closely.
Lack of detailed performance metrics makes it difficult to assess service quality objectively.

Positive Signals

Award to a small business (Copper River Information Technology, LLC) supports small business contracting goals.
The contractor has secured a significant federal contract, indicating a level of trust and capability.
Services are essential for the functioning of a major federal agency.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT services and support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their digital infrastructure. Contracts for email and network services are common across government, supporting core operational functions. Benchmarking this award against other sole-source IT service contracts awarded by agencies like the Department of State or other large civilian agencies would provide further context on pricing and scope.

Small Business Impact

Copper River Information Technology, LLC, the awardee, is identified as a small business. This award contributes to the government's small business contracting goals. While the contract itself was not a small business set-aside, the award to an SMB is a positive signal for that business. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, which could further benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by public contract databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific clauses and the nature of any potential investigations.

Related Government Programs

Federal IT Services
Network Infrastructure Support
Email Systems Management
Department of State IT Contracts
Sole-Source IT Awards

Risk Flags

Sole-source award
Labor hours contract type
Potential for cost overruns
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.2 million to COPPER RIVER INFORMATION TECHNOLOGY, LLC. EMAIL AND NETWORK SERVICES

Who is the contractor on this award?

The obligated recipient is COPPER RIVER INFORMATION TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2010-05-18. End: 2012-09-25.

What is the track record of Copper River Information Technology, LLC with the Department of State and other federal agencies?

Copper River Information Technology, LLC has a history of receiving federal contracts, primarily with the Department of State. Examining their past performance on similar IT service contracts, including contract values, durations, and any reported performance issues or commendations, would provide insight into their reliability and capability. A review of contract databases and agency performance evaluations, where available, is crucial. For instance, understanding if they have successfully managed similar sole-source awards or if this represents a significant expansion of their service scope would be informative. Their track record suggests they are a capable provider for the Department of State, having secured this sole-source award.

How does the $19.17 million award compare to similar email and network service contracts awarded by the Department of State?

Comparing the $19.17 million award requires context regarding the contract's scope, duration, and specific services. If this contract covers a two-year period for comprehensive email and network management for a significant portion of the Department of State's operations, the value might be considered reasonable. However, without detailed service level agreements and labor hour breakdowns, direct comparison is difficult. Similar contracts, especially those competed, could offer benchmarks. Sole-source awards, by nature, lack direct competitive pricing data, making value assessment more reliant on internal agency cost analysis and historical spending patterns for comparable services.

What are the primary risks associated with a sole-source award for critical IT services like email and network management?

The primary risks associated with a sole-source award for critical IT services include inflated pricing due to a lack of competition, potential for complacency from the contractor regarding service quality or innovation, and limited flexibility if the agency's needs change significantly. Without competitive pressure, the contractor may have less incentive to offer the most cost-effective solutions or to proactively identify and address potential issues. Furthermore, if the sole-source contractor experiences financial difficulties or operational failures, the agency has limited immediate alternatives for continuity of essential services, posing a significant operational risk.

How effective are labor hour contracts in managing IT service delivery and costs for the Department of State?

Labor hour contracts can be effective for IT service delivery when the scope of work is not precisely defined at the outset or is expected to evolve. They offer flexibility, allowing the agency to scale services up or down based on immediate needs. However, they also present challenges in cost control, as the final cost is directly tied to the hours worked and the agreed-upon labor rates. Effective management requires robust oversight, clear task orders, and diligent tracking of hours to prevent cost overruns and ensure that the work performed aligns with the agency's objectives. Without strong controls, labor hour contracts can become more expensive than fixed-price agreements.

What is the historical spending trend for email and network services at the Department of State?

Analyzing historical spending trends for email and network services at the Department of State would reveal patterns in investment and contract awards. This includes identifying the total annual expenditure on such services, the prevalence of sole-source versus competed contracts, and the average contract values over time. Understanding these trends can help contextualize the current $19.17 million award, indicating whether spending in this area is increasing, decreasing, or remaining stable. It also highlights the agency's reliance on specific contractors or contract types for these critical functions.

What are the implications of awarding IT services to a small business like Copper River Information Technology, LLC?

Awarding IT services to a small business like Copper River Information Technology, LLC has several implications. Positively, it supports the government's mandate to contract with small businesses, fostering economic growth and competition. It can also bring agility and specialized expertise that larger corporations might not offer. However, for the agency, there's a potential risk if the small business lacks the scale, resources, or robust infrastructure to handle large, complex, or mission-critical IT operations consistently. The Department of State's decision to award this contract solely suggests they assessed Copper River as capable of meeting their specific needs, despite its size.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1225 E INTERNATIONAL AIRPORT RD STE 220, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,168,121

Exercised Options: $19,168,121

Current Obligation: $19,168,121

Contract Characteristics

Cost or Pricing Data: NO

Timeline