Agriculture awards $17.7M for enterprise monitoring, with limited competition and a high benchmarked unit cost

Contract Overview

Contract Amount: $17,715,201 ($17.7M)

Contractor: Seneca Strategic Partners, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-10-01

End Date: 2027-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE MONITORING SUPPORT SERVICE

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.7 million to SENECA STRATEGIC PARTNERS, LLC for work described as: ENTERPRISE MONITORING SUPPORT SERVICE Key points: 1. The contract's firm-fixed-price structure aims to control costs, but the limited competition raises concerns about optimal pricing. 2. A high per-unit cost suggests potential for overspending or a lack of competitive pressure driving down prices. 3. The sole-source nature of this award limits opportunities for diverse vendors and potentially reduces innovation. 4. Performance is tied to a 5-year period, indicating a long-term need for these enterprise monitoring services. 5. The contract falls within the IT sector, specifically supporting computer storage device manufacturing functions. 6. Oversight will be crucial given the limited competition and the significant financial commitment.

Value Assessment

Rating: questionable

The per-unit cost of $9,707 appears high when benchmarked against similar enterprise monitoring services, suggesting that the lack of competition may have led to a less favorable price for the government. While the firm-fixed-price contract type provides cost certainty, the overall value proposition is questionable due to the elevated unit price and limited vendor pool. Further analysis of the specific services rendered for this unit cost is needed to fully assess value.

Cost Per Unit: $9,707

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the number of potential bidders and reduces the government's ability to leverage market forces to achieve the best possible pricing and terms. The justification for a sole-source award, if provided, would be critical to understanding why other vendors were not considered.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available in the market, potentially leading to higher overall spending for essential services.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture is the primary beneficiary, receiving essential enterprise monitoring support. The services delivered are critical for maintaining the operational integrity and security of the department's IT infrastructure. The contract's geographic impact is national, supporting the Department of Agriculture's widespread operations. Workforce implications are likely internal, focusing on IT personnel who will utilize or manage the monitored systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost raises concerns about value for money.
Sole-source award limits competitive pricing and vendor diversity.
Lack of competition may stifle innovation and service improvement.
Long contract duration (5 years) could lock in potentially suboptimal pricing.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration.
Award supports critical enterprise monitoring functions for a key federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to IT infrastructure management and monitoring. The market for enterprise monitoring solutions is competitive, with numerous vendors offering a range of products and services. However, the specific nature of this sole-source award suggests a unique requirement or a pre-existing relationship that precluded broader competition. Comparable spending benchmarks for enterprise monitoring services vary widely based on scope and scale, but the reported per-unit cost here appears to be at the higher end.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit information regarding subcontracting plans for small businesses. Given the sole-source nature of the award, opportunities for small businesses to participate as prime contractors were eliminated. The impact on the small business ecosystem is therefore minimal in terms of direct prime contracting, and any subcontracting would depend on the prime contractor's independent decisions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting and financial management offices. As a sole-source award, the justification and procurement process would be subject to review by agency oversight bodies. Transparency is limited due to the lack of public competition. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal IT Infrastructure Management Contracts
Enterprise Software and Services Procurement
Department of Agriculture IT Spending
Sole-Source IT Contract Awards

Risk Flags

Sole-source award
High per-unit cost
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.7 million to SENECA STRATEGIC PARTNERS, LLC. ENTERPRISE MONITORING SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is SENECA STRATEGIC PARTNERS, LLC.

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 $17.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2027-09-30.

What specific enterprise monitoring capabilities are being procured under this contract?

The provided data does not detail the specific capabilities of the enterprise monitoring support services. However, based on the contract type (definitive contract) and the North American Industry Classification System (NAICS) code 334112 (Computer Storage Device Manufacturing), it can be inferred that the services likely relate to monitoring the performance, security, and availability of computer storage systems and related infrastructure. This could include functions such as performance analysis, fault detection, capacity planning, security monitoring, and data integrity checks for the Department of Agriculture's storage solutions. A more detailed statement of work would be required for a precise understanding.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further documentation from the Department of Agriculture, the specific justification for this sole-source award remains unknown. This lack of competition is a significant factor in assessing the contract's value and potential risks.

How does the per-unit cost of $9,707 compare to industry benchmarks for similar services?

The per-unit cost of $9,707 is derived from the total contract value ($17,715,201.29) divided by the number of contract units (1825 days, assuming 'dur' represents duration in days). Benchmarking this figure requires a precise understanding of what constitutes a 'unit' of service. If a 'unit' represents a day of monitoring support, then $9,707 per day is a substantial cost. Industry benchmarks for enterprise monitoring services vary greatly depending on the complexity, scope, and technology involved. However, for standard monitoring services, this figure appears to be on the higher end, especially considering the limited competition, which typically drives prices down. A more granular comparison would necessitate detailed service level agreements and market research data.

What are the potential risks associated with a sole-source award for enterprise monitoring services?

Sole-source awards carry several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it limits the government's access to potentially superior technologies or innovative solutions offered by other vendors. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future. For critical services like enterprise monitoring, this can impact operational efficiency and security if the chosen vendor's performance or technology becomes outdated or inadequate. Finally, it reduces transparency and accountability in the procurement process.

What is the track record of SENECA STRATEGIC PARTNERS, LLC with federal contracts, particularly in IT services?

The provided data identifies SENECA STRATEGIC PARTNERS, LLC as the contractor. To assess their track record, a review of their past federal contract awards, performance evaluations, and any reported issues would be necessary. Without access to a comprehensive federal procurement database or specific performance reviews for this contractor, it is difficult to provide a detailed assessment of their track record. However, the fact that they were awarded this significant sole-source contract suggests they may have specific capabilities or a prior relationship with the Department of Agriculture that led to this non-competitive selection.

How does this contract fit into the broader IT spending landscape of the Department of Agriculture?

This contract represents a specific investment in enterprise monitoring, which is a crucial component of IT infrastructure management. The Department of Agriculture, like any large federal agency, has substantial IT spending across various categories, including hardware, software, cybersecurity, cloud services, and personnel. This $17.7 million contract for monitoring services over five years is a significant allocation for a specialized function. To understand its broader context, one would need to compare it against the department's total IT budget, spending on similar infrastructure support services, and overall IT modernization initiatives. Its sole-source nature might indicate a specialized need not easily met by broader IT contracts.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Storage Device Manufacturing

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12314422Q0152

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 OHI YO WAY, SALAMANCA, NY, 14779

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,999,972

Exercised Options: $17,715,201

Current Obligation: $17,715,201

Actual Outlays: $14,993,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline