Agriculture awards $28.2M for IT services to Candor Solutions LLC, a 5-year contract

Contract Overview

Contract Amount: $28,181,369 ($28.2M)

Contractor: Candor Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-08-11

End Date: 2026-05-31

Contract Duration: 1,389 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROGRAM FINANCIAL SERVICES (PFS) SOFTWARE DELIVERY (MAINTENANCE AND DEVELOPMENT)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $28.2 million to CANDOR SOLUTIONS LLC for work described as: PROGRAM FINANCIAL SERVICES (PFS) SOFTWARE DELIVERY (MAINTENANCE AND DEVELOPMENT) Key points: 1. Contract value of $28.2 million over approximately 5 years suggests a significant investment in IT services. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The award to Candor Solutions LLC, a single contractor, warrants a review of performance and potential single-source risks. 5. The duration of the contract (1389 days) suggests a need for sustained IT support. 6. The NAICS code 541512 points to computer systems design services, a critical area for modern government operations.

Value Assessment

Rating: good

The contract value of $28.2 million over nearly four years for IT services appears within a reasonable range for similar government IT support contracts. Benchmarking against other IT system design and maintenance contracts of comparable scope and duration would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an expectation of predictable costs, but the final value realized will depend on the contractor's efficiency and the scope of work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that there were 5 bids received indicates a healthy level of competition for this requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely drove down prices and encouraged multiple companies to offer their best solutions, ensuring the government receives good value for its investment.

Public Impact

The Department of Agriculture's Office of the Chief Financial Officer is the primary beneficiary, receiving essential IT services. The contract supports the maintenance and development of critical software and IT systems, ensuring operational continuity. The services delivered are vital for the financial operations and management of the agency. The contract is geographically focused within Virginia, where the contractor is located, implying potential local economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Candor Solutions becomes indispensable for future IT development.
Reliance on a single vendor for critical IT maintenance and development could pose risks if performance falters.
The fixed-price nature might disincentivize innovation or scope expansion if not carefully managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The firm-fixed-price contract type provides cost predictability for the agency.
The contract duration indicates a stable, long-term partnership for essential IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in software development, maintenance, and system integration to modernize operations and enhance cybersecurity. This contract represents a typical investment for an agency like the Department of Agriculture to ensure its financial systems are robust and up-to-date. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded to system integrators or software development firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Candor Solutions LLC, is likely not a small business, or if it is, the contract was not specifically designated as a small business set-aside. There is no direct information on subcontracting plans, but given the nature of IT services, there is potential for subcontracting opportunities with smaller, specialized firms. However, without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Office of the Chief Financial Officer, which is the contracting activity. They would be responsible for monitoring contractor performance, ensuring adherence to contract terms, and managing payments. Transparency is facilitated through contract databases like FPDS.gov. Specific accountability measures would be detailed in the contract's performance work statement and quality assurance surveillance plan. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Agriculture IT Modernization Initiatives
Federal Financial Management Systems
Government-wide IT Services Contracts
Software Development and Maintenance Services

Risk Flags

Potential for single-source dependency if contractor performance is exceptional and competition is limited in future procurements.
Need for robust contract management to ensure adherence to firm-fixed-price terms and prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $28.2 million to CANDOR SOLUTIONS LLC. PROGRAM FINANCIAL SERVICES (PFS) SOFTWARE DELIVERY (MAINTENANCE AND DEVELOPMENT)

Who is the contractor on this award?

The obligated recipient is CANDOR SOLUTIONS 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 $28.2 million.

What is the period of performance?

Start: 2022-08-11. End: 2026-05-31.

What is Candor Solutions LLC's track record with federal IT contracts, particularly those of similar size and scope?

Candor Solutions LLC has a history of performing IT services for the federal government. While this specific contract is substantial at $28.2 million, a deeper dive into their contract history would reveal their experience with firm-fixed-price awards, the specific types of IT services (e.g., system design, maintenance, development), and their performance ratings on past contracts. Analyzing past performance data, including any past performance questionnaires or award decisions, can provide insight into their reliability, technical capabilities, and ability to manage complex IT projects within budget and schedule. Examining their portfolio of previous federal awards can help assess their capacity to handle the demands of this significant contract for the Department of Agriculture.

How does the awarded price compare to market rates for similar computer systems design services?

Benchmarking the $28.2 million contract value against market rates for similar computer systems design services requires detailed analysis of the contract's specific deliverables, labor categories, and duration. The NAICS code 541512 covers a broad range of services. To assess value for money, one would compare the estimated labor hours, hourly rates for different skill sets, and overhead rates against industry benchmarks from sources like the Bureau of Labor Statistics, commercial IT consulting rate surveys, or historical government contract data for comparable services. Given the firm-fixed-price nature, the government has likely negotiated these rates upfront. A comparison would focus on whether these negotiated rates appear competitive relative to prevailing commercial and government rates for similar expertise and service levels.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data but would be stipulated in the Performance Work Statement (PWS) or Statement of Work (SOW). Typically, for IT maintenance and development contracts, KPIs might include system uptime percentages, response times for issue resolution, bug fix turnaround times, successful software deployment rates, and adherence to project milestones. Performance measurement would likely involve regular reporting by Candor Solutions, government acceptance testing, and potentially formal performance evaluations conducted by the Contracting Officer's Representative (COR) or a Quality Assurance Surveillance Plan (QASP). These metrics are crucial for ensuring the contractor meets the agency's needs and for justifying continued contract performance.

What is the historical spending pattern for similar IT services within the Department of Agriculture's Office of the Chief Financial Officer?

Historical spending patterns for IT services within the Department of Agriculture's Office of the Chief Financial Officer (OCFO) would reveal trends in IT investment and the types of services procured. Analyzing past contracts awarded by the OCFO for computer systems design, software development, and IT maintenance would show whether this $28.2 million award is consistent with previous spending levels, or if it represents an increase or decrease in investment. Understanding this history can provide context on the agency's evolving IT needs, its reliance on external contractors, and the typical contract vehicles and durations utilized. This information is vital for assessing the long-term IT strategy and budget allocation within the OCFO.

Are there any identified risks associated with Candor Solutions LLC's ability to deliver on this contract, such as past performance issues or financial stability concerns?

The provided data does not explicitly detail risks associated with Candor Solutions LLC's past performance or financial stability for this specific contract. However, a comprehensive risk assessment would involve reviewing their CPARS (Contractor Performance Assessment Reporting System) ratings on previous federal contracts, looking for any negative feedback, unresolved issues, or performance deficiencies. Financial stability checks might involve reviewing Dun & Bradstreet reports or other financial health indicators. The fact that the contract was awarded under full and open competition with five bidders suggests that multiple companies were deemed capable, but a thorough review of Candor Solutions' specific history is necessary to identify any potential red flags or areas requiring close monitoring during contract execution.

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: 12314422Q0061

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 113 E MARKET STREET, SUITE 120, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $39,135,848

Exercised Options: $33,831,893

Current Obligation: $28,181,369

Actual Outlays: $18,278,698

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,401,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200110W

IDV Type: GWAC

Timeline