USDA Awards $28.18M for Electronic Records Management System to Feith Systems

Contract Overview

Contract Amount: $28,177,500 ($28.2M)

Contractor: Feith Systems & Software, Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-09-26

End Date: 2027-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA, OFFICE OF INFORMATION AFFAIRS (OIA): ELECTRONIC RECORDS MANAGEMENT SYSTEM (ERMS)

Place of Performance

Location: FORT WASHINGTON, MONTGOMERY County, PENNSYLVANIA, 19034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $28.2 million to FEITH SYSTEMS & SOFTWARE, INC for work described as: USDA, OFFICE OF INFORMATION AFFAIRS (OIA): ELECTRONIC RECORDS MANAGEMENT SYSTEM (ERMS) Key points: 1. The contract is for Computer Systems Design Services, a common area for federal IT spending. 2. Feith Systems & Software, Inc. is the sole awardee under a full and open competition. 3. The contract duration is 5 years, indicating a long-term need for the ERMS. 4. The total award value is substantial, requiring careful monitoring of performance and cost.

Value Assessment

Rating: good

The total award of $28.18M over 5 years averages $5.63M annually. Benchmarking against similar large-scale records management system contracts requires detailed analysis of scope and features, but the pricing appears within a reasonable range for a comprehensive federal solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Improved efficiency in managing USDA's electronic records. Potential for enhanced data security and compliance. Impact on agency-wide workflows and employee productivity. Long-term cost savings through streamlined record-keeping.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the 5-year duration.
Dependence on a single vendor for a critical system.
Ensuring adequate training and adoption across the agency.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost overruns.
Clear delivery order structure for phased implementation.

Sector Analysis

The IT sector, particularly software and systems design, represents a significant portion of federal spending. This contract falls within the typical range for enterprise-level IT solutions aimed at improving operational efficiency and data management within large agencies like the USDA.

Small Business Impact

The data indicates this contract was not awarded to a small business. While the competition was full and open, there's no specific set-aside for small businesses in this award.

Oversight & Accountability

Oversight will be crucial to ensure the ERMS meets USDA's requirements, stays within budget, and is implemented effectively. The Office of the Chief Financial Officer's involvement suggests financial accountability is a priority.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration (5 years).
Sole awardee for a critical system.
No small business set-aside.
Potential for vendor lock-in.
Complexity of implementing an agency-wide system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $28.2 million to FEITH SYSTEMS & SOFTWARE, INC. USDA, OFFICE OF INFORMATION AFFAIRS (OIA): ELECTRONIC RECORDS MANAGEMENT SYSTEM (ERMS)

Who is the contractor on this award?

The obligated recipient is FEITH SYSTEMS & SOFTWARE, 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 $28.2 million.

What is the period of performance?

Start: 2022-09-26. End: 2027-09-25.

What specific features and functionalities are included in the ERMS to justify the $28.18M cost over five years?

The justification for the $28.18M cost over five years would likely detail the ERMS's capabilities in areas such as document capture, indexing, retrieval, version control, audit trails, security controls, and integration with other USDA systems. It would also account for software licensing, implementation services, training, and ongoing support, reflecting the complexity of managing vast amounts of electronic records for a large agency.

What are the primary risks associated with relying on Feith Systems & Software, Inc. for this critical electronic records management system?

Key risks include vendor lock-in, potential performance issues if the system doesn't scale adequately, security vulnerabilities within the software, and the possibility of the vendor discontinuing support or going out of business. There's also a risk of inadequate user adoption if the system is not intuitive or if training is insufficient, leading to workarounds and reduced effectiveness.

How will the effectiveness of the ERMS be measured to ensure it meets USDA's objectives and provides value for taxpayer money?

Effectiveness will likely be measured through key performance indicators (KPIs) such as reduced time for record retrieval, improved compliance rates with record retention policies, decreased storage costs, enhanced data security incident response times, and user satisfaction surveys. Regular performance reviews and milestone assessments tied to the contract's delivery orders will also gauge progress and overall system effectiveness.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422R0033

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 MARYLAND DR, FORT WASHINGTON, PA, 19034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,824,837

Exercised Options: $28,177,500

Current Obligation: $28,177,500

Actual Outlays: $28,177,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA19D08NH

IDV Type: FSS

Timeline