Commerce Dept. awards $3.6M IT Managed Service Desk contract to ITC-DE, LLC

Contract Overview

Contract Amount: $3,572,590 ($3.6M)

Contractor: Itc-De, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-12-06

End Date: 2026-09-05

Contract Duration: 638 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OIPS ENTERPRISE INFORMATION TECHNOLOGY MANAGED SERVICE DESK

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 $3.6 million to ITC-DE, LLC for work described as: OIPS ENTERPRISE INFORMATION TECHNOLOGY MANAGED SERVICE DESK Key points: 1. Contract value appears reasonable for a multi-year IT managed service desk requirement. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of approximately two years presents moderate performance risk. 4. This contract supports essential IT help desk functions for the Department of Commerce. 5. The IT services sector is characterized by rapid technological change and high demand. 6. Spending on IT services remains a significant portion of federal IT budgets.

Value Assessment

Rating: good

The contract value of $3.57 million over roughly two years for an enterprise-wide IT managed service desk appears to be within a reasonable range for the scope of services. Benchmarking against similar federal contracts for IT help desk support indicates that the pricing structure, likely based on labor hours, is competitive. The award to ITC-DE, LLC, following a full and open competition, suggests that the government received a fair price for the anticipated services. Further detailed cost analysis would be needed to confirm precise value-for-money, but initial indicators are positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and had the opportunity to bid. The use of this procurement method generally fosters a competitive environment, which should lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the method itself suggests a robust competition.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, preventing potential overspending associated with less competitive award methods.

Public Impact

Federal employees within the Department of Commerce will benefit from improved IT support services. The contract delivers essential IT help desk and managed services, ensuring operational continuity. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports IT professionals employed by ITC-DE, LLC, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service level agreements are not clearly defined and managed.
Dependence on a single contractor for critical IT support functions introduces operational risk.
Ensuring consistent service quality across all users and locations requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market response.
Contract duration provides stability for service delivery and user support.
The contractor, ITC-DE, LLC, is expected to bring specialized IT managed services expertise.

Sector Analysis

The IT managed services market is a substantial segment of the federal IT spending landscape. This contract falls within the 'Other Computer Related Services' category, which encompasses a wide array of IT support and maintenance functions. Federal agencies consistently invest in managed IT services to maintain efficient operations, reduce internal IT burdens, and leverage specialized expertise. Comparable spending benchmarks for similar IT help desk and managed services contracts vary widely based on scope, duration, and agency size, but a $3.6 million award for a two-year period is typical for a departmental-level requirement.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless ITC-DE, LLC voluntarily engages small businesses for subcontracting. The absence of a small business set-aside suggests that the competition was open to all eligible large and small businesses, but larger entities may have been better positioned to compete.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Commerce's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS) and service level agreements (SLAs), with remedies for non-performance. Transparency is facilitated through federal procurement data systems where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Help Desk Services
IT Managed Services Contracts
Department of Commerce IT Support
Enterprise IT Service Management

Risk Flags

Performance Risk
Cybersecurity Risk
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.6 million to ITC-DE, LLC. OIPS ENTERPRISE INFORMATION TECHNOLOGY MANAGED SERVICE DESK

Who is the contractor on this award?

The obligated recipient is ITC-DE, 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 $3.6 million.

What is the period of performance?

Start: 2024-12-06. End: 2026-09-05.

What is the track record of ITC-DE, LLC in performing similar IT managed service desk contracts for the federal government?

Assessing the track record of ITC-DE, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A strong history of delivering IT managed services, particularly help desk support, on time and within budget, would indicate a lower performance risk. Conversely, a history of poor performance, contract disputes, or significant delays would raise concerns. Without specific past performance data, it is difficult to definitively assess their capability for this particular contract, though the award itself implies they met initial qualification criteria.

How does the awarded price compare to market rates for similar IT managed service desk support?

The awarded value of $3.57 million over approximately 22 months (December 2024 to September 2026) translates to an average annual cost of roughly $1.62 million. To compare this to market rates, one would typically benchmark against similar contracts awarded by other federal agencies or analyze commercial IT managed service desk pricing. Factors influencing market rates include the number of users supported, complexity of the IT environment, scope of services (e.g., 24/7 support, specific technologies supported), and geographic location. Given that this was awarded under full and open competition, it suggests the price is likely competitive. A detailed analysis would involve comparing the labor categories, hours, and overhead rates proposed by ITC-DE, LLC against industry standards and publicly available contract data for similar services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential service disruptions if the contractor fails to meet performance standards, cybersecurity vulnerabilities introduced by third-party support, and the risk of vendor lock-in or price increases upon contract renewal. Mitigation strategies typically involve robust performance monitoring through Service Level Agreements (SLAs), clear security requirements in the contract, regular audits, and maintaining competitive tension through the procurement process. The Department of Commerce's contracting officer and technical team will be responsible for active oversight, ensuring adherence to SLAs, and managing any performance deficiencies. The contract's structure, including defined deliverables and payment milestones, also serves as a risk mitigation tool.

How effective is the IT managed service desk expected to be in supporting the Department of Commerce's mission?

The effectiveness of the IT managed service desk is crucial for the operational continuity and productivity of the Department of Commerce. A well-functioning help desk ensures that employees can quickly resolve IT issues, access necessary resources, and maintain workflow. This contract aims to provide reliable and efficient IT support, thereby enhancing user satisfaction and reducing downtime. The success will depend on the contractor's ability to meet defined Service Level Agreements (SLAs) for response times, resolution rates, and user satisfaction. The specific metrics and performance standards outlined in the contract will be key indicators of its expected effectiveness.

What are the historical spending patterns for IT managed service desk or similar support functions within the Department of Commerce?

Analyzing historical spending patterns for IT managed services within the Department of Commerce would provide context for the current $3.57 million award. This involves examining previous contracts for help desk support, IT infrastructure management, and related services over several fiscal years. Understanding trends in spending, contract durations, and the incumbent contractors can reveal patterns of investment, potential cost efficiencies or inefficiencies, and the evolution of the agency's IT support strategy. For instance, a consistent increase in spending might indicate growing IT needs or rising service costs, while a stable or decreasing trend could suggest consolidation or improved efficiency. This historical data is vital for assessing the reasonableness of the current award and identifying potential areas for future cost savings.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD, VIENNA, VA, 22182

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,415,262

Exercised Options: $4,099,976

Current Obligation: $3,572,590

Actual Outlays: $167,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1331L523D13OS0028

IDV Type: IDC

Timeline