USDA's NRCS awards $221K for Microsoft Office 365 tracking system to ILABS INC

Contract Overview

Contract Amount: $221,398 ($221.4K)

Contractor: Ilabs Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-08-29

End Date: 2026-02-28

Contract Duration: 183 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NRCS- STATE QA TRACKING SYS (MICROSOFT OFFICE 365) - NEW-SDOB-232 NEW TASK ORDER OFF IDIQ 12314423D0006

Place of Performance

Location: OVERLAND PARK, JOHNSON County, KANSAS, 66221

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $221,398.45 to ILABS INC for work described as: NRCS- STATE QA TRACKING SYS (MICROSOFT OFFICE 365) - NEW-SDOB-232 NEW TASK ORDER OFF IDIQ 12314423D0006 Key points: 1. The contract is for custom computer programming services, specifically a tracking system for NRCS. 2. ILABS INC is the contractor, and the award is a delivery order under an existing IDIQ. 3. The contract value is $221,398.45 with a duration of 183 days. 4. This appears to be a sole-source award, raising questions about competition and potential cost savings.

Value Assessment

Rating: questionable

Pricing is not benchmarked against similar contracts. The firm fixed price structure provides some cost certainty, but without competitive data, it's difficult to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $221K contract may lead to suboptimal pricing, impacting taxpayer funds.

Public Impact

Taxpayers may not be receiving the best value due to the absence of competitive bidding. The specific functionality of the 'STATE QA TRACKING SYS' is unclear, making it difficult to assess its necessity and impact. Reliance on a single vendor for critical IT systems can create long-term dependency and potential vendor lock-in.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited transparency on pricing benchmarks

Positive Signals

Firm fixed price contract
Delivery order under existing IDIQ

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The benchmark for IT services can vary widely, but competitive bidding typically drives costs down.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or excluded from this procurement.

Oversight & Accountability

The award is a delivery order under an existing IDIQ, suggesting some level of prior oversight. However, the sole-source nature warrants scrutiny regarding justification and fairness.

Related Government Programs

Custom Computer Programming Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Limited transparency on system requirements and necessity.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $221,398.45 to ILABS INC. NRCS- STATE QA TRACKING SYS (MICROSOFT OFFICE 365) - NEW-SDOB-232 NEW TASK ORDER OFF IDIQ 12314423D0006

Who is the contractor on this award?

The obligated recipient is ILABS 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 $221,398.45.

What is the period of performance?

Start: 2025-08-29. End: 2026-02-28.

What is the justification for awarding this contract as sole-source, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. A thorough review would require accessing the justification documentation to understand why competition was deemed impractical or impossible. Without this, it's difficult to assess if taxpayer funds are being used efficiently or if alternative, more competitive approaches were overlooked.

How does the $221,398.45 price compare to similar custom computer programming services for tracking systems in the federal market?

Benchmarking this price requires access to a database of similar federal contracts. Factors like system complexity, integration requirements, and vendor experience influence pricing. Without comparative data, it's challenging to definitively state if this price represents good value. However, the lack of competition suggests a potential for inflated costs compared to a competitive scenario.

What is the specific functionality and criticality of the 'NRCS- STATE QA TRACKING SYS (MICROSOFT OFFICE 365)' to the agency's operations?

The exact function of the tracking system is not detailed. Understanding its role in quality assurance for NRCS operations is crucial for assessing its necessity and the justification for its development. If it's a mission-critical system, the sole-source award might be more understandable, but still warrants scrutiny on pricing and long-term vendor strategy.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14401 BALLENTINE ST, OVERLAND PARK, KS, 66221

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

Financial Breakdown

Contract Ceiling: $221,398

Exercised Options: $221,398

Current Obligation: $221,398

Actual Outlays: $177,119

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12314423D0006

IDV Type: IDC

Timeline