Agriculture Department awards $18.86M for IT services, with a 3-year duration and firm fixed price contract

Contract Overview

Contract Amount: $18,862,240 ($18.9M)

Contractor: Wolftek Mission Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-03-31

End Date: 2026-04-02

Contract Duration: 1,098 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 23IT55-SOC-011, 23IT55-ECS-002 TANIUM RENEWAL POP: BASE YEAR: 4/3/2023 TO 4/2/2024 OPTION YEAR ONE: 4/3/2024 TO 4/2/2025 OPTION YEAR TWO: 4/3/2025 TO 4/2/2026 PRIME: SBA SUB: WOLFTEK MISSION GROUP, LLC ATTN: MARC OTTERBACK 13900 LINCOLN

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64131

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.9 million to WOLFTEK MISSION GROUP, LLC for work described as: 23IT55-SOC-011, 23IT55-ECS-002 TANIUM RENEWAL POP: BASE YEAR: 4/3/2023 TO 4/2/2024 OPTION YEAR ONE: 4/3/2024 TO 4/2/2025 OPTION YEAR TWO: 4/3/2025 TO 4/2/2026 PRIME: SBA SUB: WOLFTEK MISSION GROUP, LLC ATTN: MARC OTTERBACK 13900 LINCOLN Key points: 1. The contract's firm fixed price structure provides cost certainty for the government. 2. The 3-year duration allows for sustained service delivery and potential for relationship building. 3. The contract is not subject to open competition, raising questions about potential cost savings. 4. The IT services provided are crucial for the Office of the Chief Financial Officer's operations. 5. The prime contractor is a small business, potentially indicating a focus on supporting smaller enterprises. 6. The contract's value is significant, suggesting a substantial need for the IT services procured.

Value Assessment

Rating: fair

The contract's total value of $18.86 million over three years averages to approximately $6.29 million annually. Benchmarking this against similar IT service contracts is challenging without more specific service details. However, the firm fixed price nature suggests that the government has negotiated a set cost, which can be advantageous if the scope of work is well-defined and stable. Without comparative data on per-unit costs or specific service deliverables, a definitive value-for-money assessment is difficult, but the fixed price offers some predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the government's needs. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. The specific reasons for the sole-source award are not detailed in the provided data.

Taxpayer Impact: For taxpayers, a sole-source award means that the government may not have achieved the lowest possible price for these IT services, as there was no competitive pressure to reduce bids. This could potentially lead to higher overall spending compared to a competed contract.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture benefits from these IT services, likely improving financial management and operational efficiency. The services delivered are categorized under 'Other Computer Related Services,' indicating a broad range of IT support. The contract is managed by Wolftek Mission Group, LLC, a small business prime contractor. The contract's duration of three years ensures continuity of essential IT functions for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the sole-source justification could obscure potential alternatives.
The specific nature of 'Other Computer Related Services' is broad and may hide inefficiencies if not tightly managed.

Positive Signals

Firm fixed price contract provides budget certainty.
Prime contractor is a small business, potentially supporting small business goals.
Contract duration ensures stable IT support for a critical agency function.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically 'Other Computer Related Services.' The IT services market is highly dynamic and competitive, with a wide range of specialized providers. Contracts for IT support within federal agencies are common, often involving significant investment to maintain and upgrade complex systems. The annual value of approximately $6.29 million places this contract in the mid-to-large range for IT service procurements, depending on the specific scope and complexity of the services rendered.

Small Business Impact

The prime contractor, Wolftek Mission Group, LLC, is identified as a small business. This award may contribute to the government's small business contracting goals. However, the data does not specify if there are any subcontracting requirements or if this is a sole small business set-aside. If subcontracting is involved, it could provide opportunities for other small businesses. The sole-source nature, however, limits the broader impact on the small business ecosystem by not fostering wider competition among potential small business providers.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's Office of the Chief Financial Officer, the contracting agency. Accountability measures are inherent in the firm fixed price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is limited due to the sole-source award, as the justification and evaluation process are not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Managed Services
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Broad service category ('Other Computer Related Services') may obscure specific performance metrics.
Limited public information on the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.9 million to WOLFTEK MISSION GROUP, LLC. 23IT55-SOC-011, 23IT55-ECS-002 TANIUM RENEWAL POP: BASE YEAR: 4/3/2023 TO 4/2/2024 OPTION YEAR ONE: 4/3/2024 TO 4/2/2025 OPTION YEAR TWO: 4/3/2025 TO 4/2/2026 PRIME: SBA SUB: WOLFTEK MISSION GROUP, LLC ATTN: MARC OTTERBACK 13900 LINCOLN

Who is the contractor on this award?

The obligated recipient is WOLFTEK MISSION GROUP, 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 $18.9 million.

What is the period of performance?

Start: 2023-03-31. End: 2026-04-02.

What specific IT services are included under 'Other Computer Related Services' for the Office of the Chief Financial Officer?

The provided data categorizes this contract under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT support functions beyond core software development or hardware maintenance. For the Department of Agriculture's Office of the Chief Financial Officer (OCFO), these services could potentially include IT consulting, data management and analytics, system integration, IT infrastructure support, help desk services, cybersecurity consulting, or specialized financial IT system support. Without a more detailed statement of work or contract line item details, the precise nature of the services remains unspecified. Understanding the exact deliverables is crucial for assessing performance and value for money.

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

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations (like FAR Part 6) allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For this contract, the specific justification is not provided. It could be due to unique capabilities of Wolftek Mission Group, LLC, a proprietary technology requirement, or a situation where a competitive process was deemed impractical or not in the government's best interest. A detailed justification document, typically found in the contract file, would clarify the rationale.

How does the $18.86 million contract value compare to historical IT spending by the Department of Agriculture's OCFO?

To assess how the $18.86 million contract value compares to historical IT spending by the Department of Agriculture's Office of the Chief Financial Officer (OCFO), one would need access to historical procurement data for the OCFO. This would involve analyzing spending on similar IT services over previous fiscal years. Factors to consider would include the scope of services, contract duration, and inflation. If the OCFO has consistently spent similar amounts on IT services, this contract might represent a standard level of investment. However, if this amount is significantly higher or lower than previous expenditures for comparable services, it could indicate a change in needs, service levels, or potentially a deviation from cost-efficiency benchmarks. Without historical context, it's difficult to determine if this represents an increase, decrease, or stable spending pattern.

What are the potential risks associated with a sole-source IT services contract of this magnitude?

A sole-source IT services contract of this magnitude, valued at $18.86 million, carries several potential risks. Firstly, the lack of competition means the government may not be achieving the best possible price, potentially leading to overspending. Secondly, there's a risk of contractor complacency; without the threat of losing future business to competitors, the contractor might be less motivated to innovate or maintain high service levels. Thirdly, if the contractor's performance falters or they face financial instability, the government has limited immediate alternatives due to the sole-source nature, potentially disrupting critical OCFO operations. Finally, the absence of a competitive bidding process reduces transparency and makes it harder to benchmark the contract's value against market rates.

What is the track record of Wolftek Mission Group, LLC in performing federal IT contracts?

The provided data identifies Wolftek Mission Group, LLC as the prime contractor. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving IT services and similar scope. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to Wolftek Mission Group, LLC, reviewing contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any reported issues, disputes, or successes. As a small business, their experience might be more focused or specialized. A positive track record with successful past performance on comparable contracts would increase confidence in their ability to deliver on this current $18.86 million award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $19,465,120

Exercised Options: $18,862,240

Current Obligation: $18,862,240

Actual Outlays: $18,862,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline