USDA's $21.7M Contract for Business Application Support Awarded to Directviz Solutions

Contract Overview

Contract Amount: $21,675,894 ($21.7M)

Contractor: Directviz Solutions, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-08-31

End Date: 2025-08-30

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST SHARING

Sector: IT

Official Description: CONSOLIDATED BUSINESS APPLICATION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $21.7 million to DIRECTVIZ SOLUTIONS, LLC for work described as: CONSOLIDATED BUSINESS APPLICATION SUPPORT Key points: 1. The contract value is $21.7 million over five years. 2. Directviz Solutions, LLC secured the award. 3. The contract falls under Computer Systems Design Services. 4. The award was made under full and open competition. 5. The contract type is cost sharing.

Value Assessment

Rating: good

The contract's cost-sharing nature suggests an effort to align costs with value. Benchmarking against similar IT support contracts is needed for a precise assessment, but the multi-year duration and scope indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Ensures continued operation of critical food safety and inspection systems. Supports the Department of Agriculture's mission to protect public health. Provides employment opportunities within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to cost-sharing model.
Dependency on a single vendor for critical application support.
Scope creep could increase the overall contract cost.

Positive Signals

Competitive award process likely secured a reasonable price.
Long-term contract provides stability for essential services.
Cost-sharing model aligns vendor incentives with agency goals.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, supporting a wide range of operational needs. Benchmarks for similar contracts vary widely based on complexity and duration.

Small Business Impact

While the award was made to Directviz Solutions, LLC, the data does not indicate if this is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract's duration and cost-sharing nature warrant ongoing oversight to ensure performance and cost control. Regular performance reviews and financial audits are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Food Safety and Inspection Service Programs

Risk Flags

Potential for cost overruns.
Vendor lock-in.
Performance degradation over time.
Cybersecurity vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21.7 million to DIRECTVIZ SOLUTIONS, LLC. CONSOLIDATED BUSINESS APPLICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is DIRECTVIZ SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2020-08-31. End: 2025-08-30.

What is the specific breakdown of services provided under this contract and how do they align with the agency's core mission?

The contract covers consolidated business application support, which likely includes maintenance, development, and operational assistance for various software systems critical to the Food Safety and Inspection Service's functions. This directly supports the agency's mission by ensuring the reliability and efficiency of systems used for tracking, inspecting, and regulating food products, thereby protecting public health.

What are the key performance indicators (KPIs) used to measure the success of Directviz Solutions, LLC in delivering these services?

Key performance indicators would typically include system uptime, response times for issue resolution, successful implementation of updates or new features, and user satisfaction ratings. The agency likely monitors these metrics closely to ensure the contractor meets or exceeds service level agreements (SLAs) outlined in the contract.

How does the cost-sharing model impact the overall value and risk for the government compared to a fixed-price contract?

A cost-sharing model can offer flexibility and ensure the contractor is incentivized to manage costs effectively, potentially leading to better value if managed well. However, it also introduces risk as the final cost is not fixed, requiring robust oversight to prevent overspending and ensure the government only pays for necessary and reasonable expenses.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123A9420Q0005

Offers Received: 5

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRING HILL RD STE 600, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,675,894

Exercised Options: $21,675,894

Current Obligation: $21,675,894

Actual Outlays: $21,675,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98118D00007

IDV Type: GWAC

Timeline