USDA awards $10.4M contract for 24/7 IT help desk services to WITS SOLUTIONS INC

Contract Overview

Contract Amount: $10,389,221 ($10.4M)

Contractor: Wits Solutions Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-24

End Date: 2029-11-30

Contract Duration: 2,016 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 24X7X365 SERVICE DESK CONTRACT

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.4 million to WITS SOLUTIONS INC. for work described as: 24X7X365 SERVICE DESK CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 5 years indicates a long-term need for these services. 3. The fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services, which includes IT support. 5. The contract is a delivery order under a larger contract vehicle, implying it's part of an existing framework. 6. The award amount of approximately $10.4 million over the period of performance warrants scrutiny for value.

Value Assessment

Rating: fair

Benchmarking the value of this $10.4 million contract requires more granular data on the scope of services and service levels. However, the duration of over five years suggests a significant investment. Comparing this to similar 24/7 IT help desk contracts across federal agencies would provide a clearer picture of whether the pricing is competitive. Without specific performance metrics or detailed service level agreements, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. With 14 bidders, this suggests a healthy level of competition for the requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential IT support services.

Public Impact

The primary beneficiaries are the employees and systems within the Department of Agriculture who rely on continuous IT support. The contract ensures the delivery of 24/7/365 IT help desk services, critical for maintaining operational continuity. The geographic impact is centered around the Department of Agriculture's operations, likely supporting personnel across various locations. The contract supports IT professionals, potentially creating or sustaining jobs within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'help desk services' is not strictly managed.
Reliance on a single contractor for critical 24/7 support could pose a risk if performance degrades.
Ensuring consistent service quality across the entire contract duration will be key.

Positive Signals

Awarded through full and open competition with multiple bidders indicates a competitive market.
The firm fixed-price contract type provides cost certainty for the government.
The long contract duration suggests a stable, ongoing need for these services.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on IT support and help desk operations. The federal government is a significant consumer of such services, with substantial annual spending on IT infrastructure and support. This contract represents a portion of the Department of Agriculture's investment in maintaining its IT operational capabilities, aligning with general trends of outsourcing IT support functions to specialized providers.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. However, the prime contractor, WITS SOLUTIONS INC., may engage small businesses as subcontractors, depending on their subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Agriculture's Office of the Chief Financial Officer. Performance monitoring against the contract's service level agreements and delivery terms would be crucial. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Help Desk Services
Administrative Management and General Management Consulting Services
IT Support Contracts
Federal IT Services

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for performance degradation over the contract period.
Need for clear Service Level Agreements (SLAs) to ensure quality.
Contract value warrants close monitoring of performance and cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.4 million to WITS SOLUTIONS INC.. 24X7X365 SERVICE DESK CONTRACT

Who is the contractor on this award?

The obligated recipient is WITS SOLUTIONS 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 $10.4 million.

What is the period of performance?

Start: 2024-05-24. End: 2029-11-30.

What is the track record of WITS SOLUTIONS INC. in delivering similar 24/7 IT help desk services to federal agencies?

Assessing the track record of WITS SOLUTIONS INC. requires a review of their past performance on federal contracts, particularly those involving IT help desk support and 24/7 operations. Information on past performance, including customer satisfaction ratings, adherence to service level agreements, and any documented issues or disputes, would be crucial. Publicly available contract databases and performance evaluation reports (if accessible) can provide insights. A history of successful, on-time, and within-budget delivery of similar services would indicate a lower performance risk for this new contract. Conversely, a history of performance issues or contract terminations would raise concerns about the contractor's capability to meet the demanding requirements of a 24/7 help desk.

How does the estimated value of this contract compare to similar federal IT help desk contracts?

To benchmark the value of this $10.4 million contract, we would need to compare it against similar federal IT help desk contracts awarded over the past few years. Key comparison points would include the contract duration, the scope of services (e.g., number of users supported, types of issues handled, hours of operation), and the service level agreements (SLAs) stipulated. For instance, a contract supporting a similar number of users with comparable 24/7 support levels and response times could serve as a benchmark. If this contract's per-user cost or cost per support hour is significantly higher than comparable contracts, it might indicate potential overpricing or a less competitive award. Conversely, if it's lower, it could suggest a good value or potentially a less comprehensive scope of services.

What are the primary risks associated with a long-term (over 5 years) contract for 24/7 IT help desk services?

A primary risk associated with a long-term contract for 24/7 IT help desk services is the potential for technological obsolescence. IT systems and support methodologies evolve rapidly, and a five-year contract might lock the agency into outdated technologies or support processes if not managed carefully. Another significant risk is contractor performance degradation over time; initial high performance can wane, leading to decreased service quality, longer response times, and user dissatisfaction. Furthermore, the agency's needs may change significantly over five years, and the contract's flexibility to adapt to these evolving requirements could be limited. Finally, there's a risk of vendor lock-in, making it difficult and costly to switch providers even if performance is unsatisfactory.

How effective are firm fixed-price contracts in managing costs for ongoing IT support services like a help desk?

Firm fixed-price (FFP) contracts are generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For an IT help desk, where the core services (e.g., password resets, basic troubleshooting, incident logging) are relatively predictable, an FFP contract provides cost certainty for the government. The contractor assumes the risk of cost overruns, incentivizing them to manage their resources efficiently. However, if the scope of services is highly variable or subject to frequent changes, an FFP contract can become problematic, potentially leading to costly change orders or the contractor cutting corners to maintain profitability. In such cases, other contract types like cost-plus or time-and-materials might be more appropriate, though they offer less cost certainty.

What is the typical spending pattern for IT help desk services within the Department of Agriculture?

Analyzing the typical spending pattern for IT help desk services within the Department of Agriculture (USDA) would involve examining historical contract data. This includes the total amount spent annually on help desk support, the number and value of contracts awarded, and the primary contractors utilized. Understanding these patterns can reveal trends in outsourcing, consolidation of services, and average contract values. For example, has USDA historically relied on a few large contracts or numerous smaller ones? Has spending increased or decreased over time? This context helps determine if the current $10.4 million award is consistent with past investments or represents a significant shift in strategy or scale.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44790 MAYNARD SQ STE 340, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,356,388

Exercised Options: $10,389,221

Current Obligation: $10,389,221

Actual Outlays: $6,640,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D003H

IDV Type: FSS

Timeline