USDA's $26.5M contract for Farm Loan Programs IT support aims to improve data integrity and reduce duplication

Contract Overview

Contract Amount: $26,527,015 ($26.5M)

Contractor: Creative Systems and Consulting L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2021-09-22

End Date: 2023-04-08

Contract Duration: 563 days

Daily Burn Rate: $47.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT SUSTAINS AND ENHANCES FARM LOAN PROGRAMS SYSTEMS AND SOFTWARE APPLICATIONS BY PROVIDING SUPPORT TO IMPROVE DATA INTEGRITY, DATA SHARED BETWEEN SYSTEMS AND APPLICATIONS, REDUCE DUPLICATIVE DATA ENTRY, AND BRING STRUCTURAL INTEGRITY TO TH

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $26.5 million to CREATIVE SYSTEMS AND CONSULTING L.L.C. for work described as: THIS CONTRACT SUSTAINS AND ENHANCES FARM LOAN PROGRAMS SYSTEMS AND SOFTWARE APPLICATIONS BY PROVIDING SUPPORT TO IMPROVE DATA INTEGRITY, DATA SHARED BETWEEN SYSTEMS AND APPLICATIONS, REDUCE DUPLICATIVE DATA ENTRY, AND BRING STRUCTURAL INTEGRITY TO TH Key points: 1. The contract focuses on enhancing critical IT systems for farm loan programs, addressing data integrity and efficiency. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 563 days indicates a medium-term engagement for system support. 4. The primary goal is to reduce duplicative data entry and improve data sharing between systems. 5. This initiative aligns with broader government efforts to modernize IT infrastructure and improve service delivery. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's value of approximately $26.5 million over 563 days appears reasonable for custom computer programming services supporting complex government systems. Benchmarking against similar IT support contracts for large federal agencies would provide a more precise assessment, but the scope of improving data integrity and system integration suggests a significant undertaking. The firm fixed-price structure incentivizes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of multiple bidders (3 indicated) suggests a healthy competitive landscape, which typically drives better pricing and service quality. This approach is generally favored for ensuring fair market value and preventing sole-source awards that might lead to inflated costs.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the best value for their money, ensuring that the selected contractor offers a compelling combination of price and technical capability.

Public Impact

Farmers and agricultural businesses will benefit from more efficient and reliable access to loan program information and services. The services delivered will enhance the operational efficiency of the USDA's Farm Loan Programs. The impact is national, supporting the administration of federal farm loans across the United States. The contract supports IT professionals and potentially other roles involved in maintaining and enhancing these critical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements are not clearly defined and managed.
Dependence on contractor expertise could pose challenges during transition or if key personnel depart.
Ensuring continued data security and privacy throughout the system enhancement process is critical.

Positive Signals

Focus on improving data integrity and reducing duplication directly addresses operational inefficiencies.
The use of a firm fixed-price contract aligns incentives for cost-effective delivery.
Full and open competition suggests a robust selection process and potential for strong vendor performance.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services industry supporting government operations. The market for federal IT services is vast, with agencies continually investing in modernizing systems to improve efficiency and data management. This contract's focus on agricultural loan systems is a specific application within this broader sector, aiming to enhance the delivery of essential government services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight is likely managed by the USDA's Office of the Chief Financial Officer, responsible for financial systems. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

USDA Farm Loan Programs
Federal IT Modernization Initiatives
Custom Computer Programming Services
Data Integrity and Management Systems

Risk Flags

Potential for vendor lock-in if custom solutions are highly proprietary.
Risk of data breaches due to the sensitive nature of financial and agricultural data.
Dependency on contractor's key personnel for institutional knowledge transfer.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.5 million to CREATIVE SYSTEMS AND CONSULTING L.L.C.. THIS CONTRACT SUSTAINS AND ENHANCES FARM LOAN PROGRAMS SYSTEMS AND SOFTWARE APPLICATIONS BY PROVIDING SUPPORT TO IMPROVE DATA INTEGRITY, DATA SHARED BETWEEN SYSTEMS AND APPLICATIONS, REDUCE DUPLICATIVE DATA ENTRY, AND BRING STRUCTURAL INTEGRITY TO TH

Who is the contractor on this award?

The obligated recipient is CREATIVE SYSTEMS AND CONSULTING L.L.C..

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 $26.5 million.

What is the period of performance?

Start: 2021-09-22. End: 2023-04-08.

What is the track record of Creative Systems and Consulting, L.L.C. with USDA contracts?

Creative Systems and Consulting, L.L.C. has a history of performing work for the Department of Agriculture. While this specific contract focuses on Farm Loan Programs IT support, understanding their broader performance history with USDA, including past performance evaluations, contract modifications, and any past disputes or challenges, would provide a more comprehensive view of their reliability and capability. Reviewing their portfolio of completed USDA projects can indicate their experience with similar system complexities and government requirements. Information from contract databases and past performance questionnaires, if available, would be crucial for a thorough assessment.

How does the cost of this contract compare to similar IT modernization efforts within the USDA or other large federal agencies?

Benchmarking this $26.5 million contract against similar IT support and system modernization efforts requires detailed comparison of scope, duration, and complexity. Contracts focused on enhancing data integrity, integrating disparate systems, and reducing manual data entry across large federal programs can vary significantly in cost. For instance, IT modernization projects within agencies like the IRS or Social Security Administration, which handle vast amounts of sensitive data and complex legacy systems, might have comparable or higher price tags depending on the scale of the undertaking. The firm fixed-price nature here suggests a defined scope, which aids in comparison, but the specific technical challenges of the Farm Loan Programs systems are key differentiators.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technical challenges in integrating complex legacy systems, ensuring robust data security and privacy, and managing scope creep if requirements evolve. Mitigation strategies likely involve detailed technical specifications, phased implementation, rigorous testing protocols, and strong project management from both the contractor and the USDA. The firm fixed-price contract shifts financial risk to the contractor, incentivizing efficient delivery. However, risks related to contractor performance, personnel retention, and adherence to evolving cybersecurity standards remain critical areas for ongoing oversight.

How effective is the current IT infrastructure for the Farm Loan Programs in supporting USDA's mission?

The contract's objective to 'sustain and enhance' these systems suggests that the current infrastructure, while functional, requires significant improvements to meet modern data management and operational efficiency standards. The stated goals of improving data integrity, reducing duplication, and enhancing structural integrity point to existing deficiencies. The effectiveness of the current IT infrastructure is therefore considered to be in need of modernization to better support the USDA's mission of delivering timely and accurate farm loan services. This contract represents a strategic investment to address these needs.

What has been the historical spending trend for IT support related to USDA Farm Loan Programs?

Analyzing historical spending on IT support for USDA Farm Loan Programs is crucial for context. Without specific historical data, it's difficult to determine if this $26.5 million contract represents an increase, decrease, or stable level of investment. Trends might show increased spending due to aging infrastructure needing upgrades, or decreased spending if consolidation or efficiency gains were previously achieved. Understanding past investments helps assess whether this contract is part of a sustained modernization effort or a response to a specific, recent need. Comparing this award to previous contract values for similar services would reveal spending patterns.

What are the implications of the 'Custom Computer Programming Services' classification for the scope and nature of the work?

The NAICS code 541511, 'Custom Computer Programming Services,' indicates that the contract involves developing, modifying, or adapting software to meet specific user needs. This is distinct from off-the-shelf software acquisition or general IT support. For this USDA contract, it implies the work likely includes designing new software components, integrating existing systems through custom interfaces, modifying application code, and potentially developing new functionalities to improve data integrity and reduce duplication. This classification suggests a high degree of technical specialization and tailored solutions rather than standardized services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314421Q0099

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 8281 GREENSBORO DR, SUITE 200, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $32,641,738

Exercised Options: $26,527,015

Current Obligation: $26,527,015

Actual Outlays: $26,527,015

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,253,390

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0007

IDV Type: BPA

Timeline