USDA's Organic Integrity System contract awarded to Ivory Cloud LLC for nearly $1M, focusing on custom computer programming

Contract Overview

Contract Amount: $996,672 ($996.7K)

Contractor: Ivory Cloud LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-20

End Date: 2027-01-25

Contract Duration: 280 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AGRICULTURAL MARKETING SERVICE (AMS) NATIONAL ORGANIC PROGRAM (NOP) ORGANIC INTEGRITY SYSTEM SUPPORT AND APPLICATIONS INTEGRATION.

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 $996,671.83 to IVORY CLOUD LLC for work described as: AGRICULTURAL MARKETING SERVICE (AMS) NATIONAL ORGANIC PROGRAM (NOP) ORGANIC INTEGRITY SYSTEM SUPPORT AND APPLICATIONS INTEGRATION. Key points: 1. The contract value of $996,671.83 appears reasonable for custom computer programming services over its period of performance. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive price discovery. 3. The contract is a BPA Call, indicating it's an order against a pre-existing Blanket Purchase Agreement, potentially streamlining procurement. 4. The fixed-price contract type shifts performance risk to the contractor, Ivory Cloud LLC. 5. The duration of 280 days is relatively short for a system integration project, raising questions about scope or phased approach. 6. The primary service code (541511) aligns with custom computer programming, indicating a focus on software development and integration.

Value Assessment

Rating: good

The contract value of approximately $1 million for custom computer programming and integration services seems within a reasonable range for a project of this nature. Benchmarking against similar federal IT service contracts of comparable scope and duration would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs.

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. This approach typically fosters a competitive environment, allowing multiple vendors to propose solutions and prices. The number of bidders is not specified, but the method itself suggests a robust process for achieving fair market pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

The primary beneficiaries are the Agricultural Marketing Service (AMS) and its National Organic Program (NOP), which will receive enhanced support for their Organic Integrity System. The services delivered will focus on applications integration and custom computer programming, aiming to improve the functionality and efficiency of the NOP's systems. The geographic impact is national, supporting the oversight and integrity of organic products across the United States. Workforce implications are primarily related to the IT professionals employed by Ivory Cloud LLC to perform the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The relatively short contract duration (280 days) might indicate a limited scope or a potential need for follow-on work, which could lead to future contract actions.
The specific details of the 'applications integration' are not fully elaborated, leaving some ambiguity about the complexity and potential challenges.
Reliance on a single BPA call awardee for critical system support could present a risk if the contractor faces performance issues or financial instability.

Positive Signals

The use of full and open competition suggests a well-structured procurement process that aimed to secure competitive pricing and a qualified vendor.
The firm-fixed-price contract type provides cost certainty for the government, transferring performance risk to the contractor.
Ivory Cloud LLC's award indicates they were deemed capable of meeting the government's requirements through a competitive process.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on custom computer programming and system integration. The federal IT services market is substantial, with agencies consistently investing in software development, cloud solutions, and data management. This contract supports a niche but critical function within the Department of Agriculture, related to organic certification and compliance, highlighting the government's need for specialized IT support across various domains.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, as a BPA Call, the underlying Blanket Purchase Agreement may have provisions for small business subcontracting, which would be detailed in the parent BPA documentation. Without that information, the direct subcontracting implications for small businesses remain unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's contracting officer and program officials responsible for the National Organic Program. As a firm-fixed-price contract, performance monitoring is key to ensuring deliverables meet specifications. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

National Organic Program (NOP) Administration
USDA IT Modernization Initiatives
Federal Organic Certification Systems
Agricultural Data Management Systems

Risk Flags

Potential for scope creep given integration complexity
Risk of underestimation of integration effort for the given timeline
Dependency on contractor performance for critical system functionality

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $996,671.83 to IVORY CLOUD LLC. AGRICULTURAL MARKETING SERVICE (AMS) NATIONAL ORGANIC PROGRAM (NOP) ORGANIC INTEGRITY SYSTEM SUPPORT AND APPLICATIONS INTEGRATION.

Who is the contractor on this award?

The obligated recipient is IVORY CLOUD LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $996,671.83.

What is the period of performance?

Start: 2026-04-20. End: 2027-01-25.

What is the track record of Ivory Cloud LLC in performing similar federal IT integration and custom programming contracts?

A review of federal procurement databases (e.g., SAM.gov, FPDS) would be necessary to ascertain Ivory Cloud LLC's past performance. Specifically, one would look for contracts with similar service codes (like 541511), agencies (particularly USDA or related agricultural bodies), and contract types (firm-fixed-price). Analyzing the value, duration, and client feedback from previous contracts would provide insight into their capabilities and reliability. A lack of extensive federal contract history might indicate a newer or smaller player, potentially increasing risk, while a strong history would suggest proven performance.

How does the awarded value compare to market rates for custom computer programming services of this scope?

Determining the precise market rate requires detailed scope of work, required skill sets, and geographic labor cost considerations. However, the contract value of approximately $1 million for a 280-day period suggests an average daily rate. Benchmarking this against industry reports for IT consulting and custom development firms, particularly those serving government clients, would be informative. Factors like the complexity of integrating existing applications, the specific technologies involved, and the level of security required would influence the market rate. Given the full and open competition, the award price is presumed to be competitive, but a detailed market analysis would confirm if it represents excellent value.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The contract details, likely found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this BPA Call, would outline the specific deliverables and KPIs. For custom computer programming and applications integration, typical deliverables might include software modules, updated system architecture documentation, testing results, user training materials, and final integrated systems. Key performance indicators could focus on meeting project milestones, system uptime post-integration, defect rates, user acceptance testing success, and adherence to security protocols. The effectiveness of the contract hinges on clearly defined and measurable KPIs that align with the NOP's objectives.

What is the potential risk associated with the short contract duration of 280 days?

A 280-day duration (approximately 9 months) for an 'applications integration' and 'custom computer programming' contract can present several risks. It might indicate a narrowly defined scope, potentially leading to a need for subsequent contracts to complete a larger project, thus fragmenting efforts and potentially increasing overall costs. Alternatively, it could suggest an aggressive timeline that might strain resources, increase the likelihood of delays, or compromise quality if not managed effectively. The government must ensure that the scope is realistic for the timeframe or that a clear plan for follow-on work exists to avoid project disruption or incomplete integration.

How does this contract fit into the broader IT modernization strategy of the Department of Agriculture?

This contract likely supports the USDA's ongoing efforts to modernize its IT infrastructure and applications to improve efficiency, data security, and service delivery. The National Organic Program's Organic Integrity System is crucial for maintaining trust and transparency in the organic marketplace. By integrating applications and providing custom programming, this contract aims to enhance the system's capabilities, potentially enabling better data analysis, streamlined certification processes, or improved communication with stakeholders. It reflects a targeted investment in a specific program's IT needs as part of a larger agency-wide digital transformation.

What are the implications of this contract being a BPA Call versus a standalone contract?

A BPA Call signifies that this order is placed against a pre-existing Blanket Purchase Agreement (BPA). BPAs are established with vendors to streamline the procurement of recurring goods or services. Using a BPA Call typically means that competition, pricing, and terms were already established at the BPA level, or a limited competition among BPA holders occurred for this specific call. This method can expedite the acquisition process and potentially leverage pre-negotiated favorable pricing. However, the overall value and competition depend heavily on the terms and vendor pool established within the parent BPA.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6120 EXECUTIVE BLVD, ROCKVILLE, MD, 20852

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $996,672

Exercised Options: $996,672

Current Obligation: $996,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12639524A0041

IDV Type: BPA

Timeline