Commerce Department awards $11M IT support contract to CONVISO-V LLC, highlighting need for specialized computer systems design

Contract Overview

Contract Amount: $10,966,200 ($11.0M)

Contractor: Conviso-V LLC

Awarding Agency: Department of Commerce

Start Date: 2023-03-16

End Date: 2025-03-15

Contract Duration: 730 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT 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 $11.0 million to CONVISO-V LLC for work described as: IT SUPPORT SERVICES Key points: 1. Contract value of $10.97 million for IT support services indicates a significant investment in maintaining critical digital infrastructure. 2. The award to CONVISO-V LLC, a single vendor, suggests a focused approach to acquiring specific expertise in computer systems design. 3. A firm-fixed-price contract type aims to control costs and provide predictability for the Department of Commerce. 4. The duration of 730 days (2 years) allows for sustained support and project continuity. 5. This contract falls under the 'Computer Systems Design Services' NAICS code, pointing to a need for advanced IT solutions. 6. The contract's location in Washington D.C. suggests it supports federal operations within the capital region.

Value Assessment

Rating: good

The contract value of approximately $11 million for two years of IT support services appears reasonable for specialized computer systems design. Benchmarking against similar contracts for IT support in the federal sector would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests an effort to manage costs effectively. Without specific details on the scope of services, a direct comparison of per-unit costs is challenging, but the overall award size is within the expected range for such procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The number of bids received (5) is a moderate number, which can still lead to competitive pricing, but the exclusion of sources might have impacted the breadth of price discovery.

Taxpayer Impact: The limited competition, while potentially justified by specific requirements, may mean taxpayers did not benefit from the widest possible range of pricing options available in the market.

Public Impact

Federal agencies, specifically the Department of Commerce, will benefit from enhanced IT support and computer systems design. The services delivered are crucial for the operational efficiency and technological advancement of the Office of the Secretary. The geographic impact is primarily within Washington D.C., supporting federal government functions. The contract supports a specialized IT workforce, potentially creating or sustaining jobs in computer systems design and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool due to 'exclusion of sources' in competition.
Reliance on a single vendor for critical IT support could pose a risk if performance issues arise.
The specific nature of 'Computer Systems Design Services' may require specialized and potentially costly expertise.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
The award duration of two years allows for stable and consistent IT support.
The contract falls under a standard NAICS code for IT services, indicating a recognized market need.

Sector Analysis

This contract operates within the Information Technology (IT) sector, specifically focusing on computer systems design and integration services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for the Department of Commerce aligns with broader government trends of outsourcing specialized IT functions to private sector vendors to leverage expertise and manage costs. Comparable spending benchmarks for IT support services vary widely based on scope, but an $11 million award over two years for a specific agency office is a significant, yet not unusual, investment.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary focus appears to be on acquiring the necessary IT support services through a competitive process, with the potential for small businesses to participate if they were among the bidders or if the prime contractor engages them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal procurement databases where contract awards are reported. While specific Inspector General jurisdiction is not detailed here, the Office of Inspector General for the Department of Commerce would likely have oversight authority over potential fraud, waste, or abuse related to this spending.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Procurement
Department of Commerce IT Spending
Information Technology Support

Risk Flags

Limited competition due to exclusion of sources.
Potential for vendor dependency.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.0 million to CONVISO-V LLC. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CONVISO-V 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 $11.0 million.

What is the period of performance?

Start: 2023-03-16. End: 2025-03-15.

What is the track record of CONVISO-V LLC in performing similar federal IT support contracts?

Assessing CONVISO-V LLC's track record requires examining their past performance on federal contracts, particularly those involving computer systems design and IT support services. Information on contract history, past performance evaluations, and any reported issues or successes would be crucial. A review of federal procurement databases (like SAM.gov or FPDS) could reveal previous awards, contract types, and agencies served. Understanding their experience with firm-fixed-price contracts and the specific technical requirements outlined in this award would provide insight into their capability to successfully execute this $11 million contract over its two-year duration. A positive history of on-time, within-budget delivery and client satisfaction would be a strong indicator of reliability.

How does the awarded amount of $10.97 million compare to similar IT support contracts within the Department of Commerce or other federal agencies?

To benchmark the $10.97 million award, we would compare it against IT support and computer systems design contracts of similar scope, duration, and complexity awarded by the Department of Commerce and other federal agencies. Factors such as the number of users supported, the criticality of the systems, and the specific services included (e.g., help desk, network management, software development) are key comparison points. For a two-year contract, this value suggests a substantial level of support. If similar contracts for comparable services are consistently awarded in the $5-7 million range annually, this $11 million award over two years might be considered at the higher end, warranting a closer look at the specific deliverables and market rates for the specialized skills required.

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

Primary risks include potential vendor performance issues, cost overruns (though mitigated by firm-fixed-price), and the risk of vendor lock-in or dependency. The 'exclusion of sources' in the competition might also indicate a risk of not achieving the best possible price or solution due to a limited vendor pool. Mitigation strategies likely involve robust performance monitoring by the contracting officer, clear service level agreements (SLAs) within the contract, and contingency planning for service disruptions. The firm-fixed-price structure itself is a key mitigation against cost overruns. The agency's oversight and the contractor's own quality control processes are critical for managing performance risks.

What is the expected effectiveness of the IT support services provided by CONVISO-V LLC in enhancing the Department of Commerce's operational capabilities?

The effectiveness hinges on the specific services CONVISO-V LLC will provide under the 'Computer Systems Design Services' NAICS code. If these services include modernizing infrastructure, improving cybersecurity posture, enhancing user support, or developing new IT solutions, the potential for increased operational efficiency and effectiveness is high. The contract's success will be measured against defined performance metrics and SLAs. A well-executed contract should lead to more reliable IT systems, faster issue resolution, and better support for the Department's mission-critical functions, ultimately boosting overall productivity and responsiveness.

How does this contract's spending pattern compare to historical IT support expenditures by the Department of Commerce?

Analyzing historical spending requires access to data on previous IT support contracts awarded by the Department of Commerce. If the Department has consistently awarded similar-sized contracts for IT support over the years, this $11 million award represents a continuation of that spending trend. However, if this award is significantly larger or smaller than historical averages, it might indicate a shift in strategy, an expansion of IT needs, or a change in procurement approach. Understanding the trend helps contextualize the current investment and assess whether it aligns with the agency's long-term IT strategy and budget allocations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1204 E MAIN ST STE 300, LURAY, VA, 22835

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

Financial Breakdown

Contract Ceiling: $11,148,780

Exercised Options: $11,148,780

Current Obligation: $10,966,200

Actual Outlays: $876,388

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $5,374,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00130

IDV Type: GWAC

Timeline