Agriculture awards $273M for enterprise application services to Synergy Business Innovation & Solutions Inc

Contract Overview

Contract Amount: $273,493,506 ($273.5M)

Contractor: Synergy Business Innovation & Solutions Inc.

Awarding Agency: Department of Agriculture

Start Date: 2021-04-23

End Date: 2026-05-03

Contract Duration: 1,836 days

Daily Burn Rate: $149.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE APPLICATION SERVICES

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $273.5 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC. for work described as: ENTERPRISE APPLICATION SERVICES Key points: 1. Contract value of $273.5M over 5 years suggests significant investment in enterprise application services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 4. The duration of 1836 days (approx. 5 years) points to a long-term strategic partnership. 5. The North American Industry Classification System (NAICS) code 541512 categorizes this as Computer Systems Design Services. 6. The award was a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

Benchmarking the value of this $273.5 million contract requires comparison to similar large-scale enterprise application service procurements. Given the 5-year duration, the annual value is approximately $54.7 million. This figure should be assessed against industry standards for IT services of this scope and complexity. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award suggests a reasonable market price was achieved.

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,' which typically means the solicitation was broadly advertised, but specific sources were excluded based on predefined criteria. With 8 bidders, the competition level appears robust, suggesting that multiple vendors had the opportunity to propose solutions. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation from vendors.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's internal operations and its various programs, which rely on efficient enterprise applications. Services delivered include computer systems design and related support for enterprise applications. The geographic impact is primarily within the Department of Agriculture's operational footprint, likely nationwide. Workforce implications may include the need for skilled IT professionals to manage and develop these applications, both within the government and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract.
Risk of cost overruns if the scope of work expands beyond initial projections.
Dependence on a single contractor for critical enterprise application services.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm Fixed Price contract type provides cost predictability.
Long contract duration suggests a stable, long-term solution for the agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise application development and management. The market for such services is substantial, with government agencies increasingly relying on sophisticated software solutions to manage complex operations. Comparable spending benchmarks would involve looking at other large federal IT service contracts, particularly those focused on custom application development and system integration for large departments.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's possible that small businesses could have bid directly or participated as subcontractors. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or through subcontracting plans, and its impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) at the Department of Agriculture, who monitors performance and ensures compliance with contract terms. The contract's fixed-price nature provides some financial oversight. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Enterprise Resource Planning (ERP) Systems
Custom Software Development Services
IT Modernization Programs
Cloud Computing Services
IT Consulting Services

Risk Flags

Potential for scope creep in long-term IT contracts.
Risk of technological obsolescence over a 5-year period.
Dependence on a single vendor for critical systems.
Need for clear performance metrics to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $273.5 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC.. ENTERPRISE APPLICATION SERVICES

Who is the contractor on this award?

The obligated recipient is SYNERGY BUSINESS INNOVATION & SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $273.5 million.

What is the period of performance?

Start: 2021-04-23. End: 2026-05-03.

What is the track record of Synergy Business Innovation & Solutions Inc. with federal contracts, particularly in enterprise application services?

Synergy Business Innovation & Solutions Inc. has a history of federal contracting. To assess their track record specifically for enterprise application services, a detailed review of their past performance on similar contracts is necessary. This would involve examining contract values, performance evaluations (if available), and any past performance issues or commendations. Understanding their experience with large-scale, long-term IT projects similar to this $273.5 million award is crucial for evaluating their capability to deliver successfully. Their history with the Department of Agriculture or other agencies in providing complex IT solutions would be a key indicator of their suitability.

How does the $273.5 million contract value compare to similar enterprise application service contracts awarded by the Department of Agriculture or other large federal agencies?

The $273.5 million contract value over approximately five years places this award in the category of significant federal IT procurements. To benchmark its value, comparisons should be made with other large-scale enterprise application development and management contracts awarded by agencies of similar size and complexity, such as the Department of Defense, Health and Human Services, or Treasury. Annual spending figures (around $54.7 million per year) can be compared against industry reports and government spending databases for IT services. A higher or lower value relative to comparable contracts, adjusted for scope and duration, could indicate potential overpricing or exceptional value.

What are the primary risks associated with a 5-year firm-fixed-price contract for enterprise application services?

A significant risk with a 5-year firm-fixed-price contract for enterprise application services is the potential for scope creep. If the agency's requirements evolve significantly over the contract period, the fixed price may not adequately cover the increased work, leading to potential disputes or the contractor seeking change orders. Conversely, if the contractor underestimates the effort required, they may incur losses. Another risk is technological obsolescence; applications developed today might be outdated by the end of the 5-year term, requiring costly updates or replacements not fully accounted for in the original fixed price. The agency also faces the risk of vendor lock-in, making it difficult and expensive to switch providers if performance is unsatisfactory.

How effective are the chosen competition levels ('Full and Open Competition After Exclusion of Sources') in ensuring optimal price discovery and innovation for enterprise application services?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad market access with specific agency needs. By excluding certain sources, the agency might be targeting vendors with particular expertise or capabilities relevant to enterprise application services. With 8 bidders, the competition appears robust, which generally supports optimal price discovery by encouraging multiple vendors to offer their best pricing. However, the exclusion of specific sources could potentially limit the pool of innovative solutions if those excluded possess unique approaches. The effectiveness hinges on whether the exclusions were justified and if the remaining pool truly represented the best available options for the agency's complex IT needs.

What are the historical spending patterns for enterprise application services within the Department of Agriculture, and how does this contract fit into that trend?

Analyzing historical spending patterns for enterprise application services within the Department of Agriculture is crucial to contextualize this $273.5 million award. This involves examining the agency's IT budget allocations over the past several years, specifically for application development, maintenance, and support. Understanding whether this contract represents an increase, decrease, or stable level of investment in enterprise applications is important. It could indicate a strategic shift towards modernizing systems, consolidating services, or addressing long-standing IT infrastructure needs. Comparing this award to previous contracts for similar services will reveal trends in contract size, duration, and vendor selection.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314421Q0006

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1902 CAMPUS COMMONS DRIVE, SUITE 600, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $302,690,981

Exercised Options: $273,493,506

Current Obligation: $273,493,506

Actual Outlays: $252,121,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98119D00005

IDV Type: GWAC

Timeline