Commerce awards $3.9M for IT services to Electrosoft, highlighting a competitive procurement process

Contract Overview

Contract Amount: $3,926,537 ($3.9M)

Contractor: Electrosoft Services, LLC

Awarding Agency: Department of Commerce

Start Date: 2022-09-01

End Date: 2026-04-28

Contract Duration: 1,335 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $3.9 million to ELECTROSOFT SERVICES, LLC for work described as: ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES Key points: 1. The contract value of $3.9 million for IT services appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award falls within the broader IT services sector, a significant area of federal spending. 5. The contract's duration of over three years indicates a need for sustained support. 6. The absence of small business set-aside flags potential missed opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of $3.9 million over approximately 3.7 years (from Sept 2022 to April 2026) suggests an average annual spend of roughly $1.05 million. This is within a typical range for IT systems design and integration services, especially for a federal agency like the Department of Commerce. Without specific details on the deliverables, a direct per-unit cost comparison is difficult, but the firm-fixed-price nature of the award provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging vendors to offer their best pricing and technical solutions to win the contract. The fact that it was competed openly suggests that the agency did not encounter barriers to entry for potential bidders.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price due to the pressure of multiple competing offers.

Public Impact

The Department of Commerce benefits from enhanced computer systems design and integration services. Federal operations within the Office of the Secretary are supported by this IT infrastructure. The primary geographic impact is within the District of Columbia, where the agency is headquartered. The contract supports IT professionals and potentially other roles involved in system design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are implemented.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
Scope creep could occur if not managed tightly, potentially increasing costs beyond the initial estimate.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The contract duration indicates a stable, long-term need being met.
Award to an established entity like Electrosoft may imply a track record of successful performance.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, which is a substantial component of federal procurement. The specific category, NAICS 541512 (Computer Systems Design Services), encompasses a wide range of activities from designing and developing IT systems to integrating hardware and software. Federal spending in this area is consistently high, driven by the need to modernize infrastructure, enhance cybersecurity, and support agency operations. Comparable contracts often involve system integration, software development, and IT consulting.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements were mandated. This suggests that the primary award went to a larger entity, and opportunities for small businesses to participate in this specific contract may be limited unless Electrosoft voluntarily engages them as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

The contract is a firm-fixed-price delivery order, which typically has defined deliverables and payment schedules, aiding oversight. The Department of Commerce's internal procurement and program management offices are responsible for monitoring performance and ensuring compliance. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Professional Services
Computer Systems Design
Administrative Management and General Management Consulting Services
Department of Commerce IT Procurement

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical IT functions
Scope creep risk
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.9 million to ELECTROSOFT SERVICES, LLC. ADMINISTRATIVE MANAGEMENT AND GENERAL MANAGEMENT CONSULTING SERVICES

Who is the contractor on this award?

The obligated recipient is ELECTROSOFT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-04-28.

What is Electrosoft Services, LLC's track record with federal contracts, particularly within the Department of Commerce?

Electrosoft Services, LLC has a history of performing federal contracts, primarily within the IT services domain. A review of federal procurement data (e.g., FPDS) would reveal the number and value of contracts awarded to Electrosoft across various agencies. Specific to the Department of Commerce, this contract represents a direct award for computer systems design services. Analyzing past performance on similar contracts, including any performance evaluations or past performance questionnaires, would provide deeper insight into their reliability, technical capabilities, and adherence to contract terms. Understanding their experience with firm-fixed-price contracts and delivery orders is also crucial for assessing their suitability for this role.

How does the awarded amount compare to similar IT services contracts within the federal government?

The awarded amount of $3.9 million for computer systems design services over approximately 3.7 years, equating to an annual average of about $1.05 million, is a moderate figure within the federal IT services landscape. To benchmark effectively, one would compare this to contracts with similar scopes (e.g., system integration, software development, IT consulting) awarded by agencies of comparable size and complexity. Factors such as the specific technical requirements, security mandates, and geographic location of service delivery significantly influence pricing. Without detailed statements of work for comparison, it's challenging to provide a precise benchmark, but the value appears consistent with typical federal IT support contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues, scope creep, and vendor dependency. Performance risks are mitigated by the firm-fixed-price contract type, which incentivizes the contractor to deliver efficiently. The full and open competition process suggests a thorough vetting of bidders, potentially selecting a vendor with a strong track record. Scope creep is managed through clear contract definition and diligent oversight by the Department of Commerce. Vendor dependency is an inherent risk in IT services; however, the contract's defined duration and the possibility of future re-competition can limit long-term over-reliance. Robust contract management and clear communication channels are essential mitigation strategies.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered a highly effective method for ensuring value for money in federal procurement. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. For this $3.9 million contract, this approach likely drove down costs compared to a sole-source or limited competition scenario. The Department of Commerce benefits from a wider range of technical approaches and price points, allowing them to select the best overall value, not just the lowest price. This competitive pressure is a primary driver of cost efficiency for taxpayers.

What is the historical spending trend for Computer Systems Design Services (NAICS 541512) within the Department of Commerce?

Historical spending data for NAICS 541512 within the Department of Commerce would likely show a consistent and significant investment in IT services over the years. Federal agencies, including Commerce, rely heavily on IT modernization and support to conduct their operations. Spending in this category typically fluctuates based on major system upgrades, new technology adoption, and evolving cybersecurity needs. Analyzing multi-year spending patterns would reveal whether this $3.9 million award is in line with historical averages, represents an increase or decrease, and potentially identify key periods of heightened IT investment within the department. This context helps assess the current award's significance.

Are there any specific performance metrics or KPIs defined in the contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) embedded within the contract. However, for a firm-fixed-price contract of this nature, performance is typically measured against defined deliverables, service level agreements (SLAs), and adherence to project timelines. The Department of Commerce's contracting officer and technical representatives would be responsible for monitoring Electrosoft's performance against these criteria. A thorough review of the contract's statement of work and any associated performance work statements would be necessary to identify the specific metrics used to ensure successful execution and value delivery.

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 › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: BABC1321-22-00158

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Electrosoft Services LLC

Address: 1893 METRO CENTER DR, RESTON, VA, 20190

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: $4,940,422

Exercised Options: $4,832,231

Current Obligation: $3,926,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00L8

IDV Type: FSS

Timeline