Commerce Awards $4.1M for GenAI IT Services to PT78 LLC, Sole-Source
Contract Overview
Contract Amount: $4,134,169 ($4.1M)
Contractor: PT78 LLC
Awarding Agency: Department of Commerce
Start Date: 2024-09-03
End Date: 2026-07-24
Contract Duration: 689 days
Daily Burn Rate: $6.0K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ACCESS DME AND GENAI IT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $4.1 million to PT78 LLC for work described as: ACCESS DME AND GENAI IT SERVICES Key points: 1. Significant investment in IT services, including GenAI capabilities. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of nearly two years suggests ongoing service needs. 4. Focus on Computer Systems Design Services indicates a need for specialized IT support.
Value Assessment
Rating: questionable
The award of $4.1M for Computer Systems Design Services appears high given the 'NOT COMPETED UNDER SAP' status. Benchmarking against similar sole-source IT service contracts is difficult without more data, but the lack of competition suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, meaning it was not competed. This method limits price discovery and may lead to higher costs for taxpayers compared to a fully competed contract. The justification for sole-source is not provided.
Taxpayer Impact: The sole-source nature of this award limits competitive pressure, potentially resulting in higher costs for taxpayers than if the contract had been openly competed.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. Citizens rely on effective IT services for government operations, including those potentially enhanced by GenAI. Transparency in sole-source justifications is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Awarded to a specific company for needed IT services
- Includes advanced GenAI capabilities
Sector Analysis
The Department of Commerce is investing in IT services, specifically Computer Systems Design Services, which falls under the broader IT sector. This award's value is moderate within the context of federal IT spending, but the sole-source nature warrants scrutiny.
Small Business Impact
This contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses could have provided similar services or if this award impacts small business participation goals.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and effective service delivery. The Department of Commerce should provide a clear justification for bypassing competitive bidding processes.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated pricing due to no competition
- Limited opportunity for small business participation
- Need for detailed justification for sole-source procurement
Tags
computer-systems-design-services, department-of-commerce, dc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $4.1 million to PT78 LLC. ACCESS DME AND GENAI IT SERVICES
Who is the contractor on this award?
The obligated recipient is PT78 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 $4.1 million.
What is the period of performance?
Start: 2024-09-03. End: 2026-07-24.
What is the specific justification for awarding this contract sole-source?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one vendor can provide the required goods or services due to unique capabilities, urgent needs, or specific circumstances. A thorough review of the justification is essential to assess the validity of bypassing the competitive process and to understand potential impacts on cost and value.
How does the pricing compare to similar sole-source IT service contracts?
Benchmarking this contract's price is challenging without access to a database of comparable sole-source IT service awards. However, the lack of competition inherently limits price discovery. The government should have conducted a thorough price analysis to ensure the $4.1M award is fair and reasonable, especially given the absence of competitive bids to drive down costs.
What is the expected impact of GenAI services on the Department of Commerce's operations?
The data indicates the inclusion of GenAI IT services, suggesting an intent to leverage advanced artificial intelligence for improved operational efficiency, data analysis, or innovation within the Department of Commerce. The specific impact will depend on the services rendered, such as enhanced data processing, automated reporting, or improved decision-making capabilities.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5881 LEESBURG PIKE STE 400, FALLS CHURCH, VA, 22041
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,134,169
Exercised Options: $4,134,169
Current Obligation: $4,134,169
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-09-03
Current End Date: 2026-07-24
Potential End Date: 2026-07-24 00:00:00
Last Modified: 2026-03-04
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