Commerce Department's $16.9M IT PMO contract awarded to ANSER SOLUTIONS LLC shows strong competition

Contract Overview

Contract Amount: $16,936,746 ($16.9M)

Contractor: Anser Solutions LLC

Awarding Agency: Department of Commerce

Start Date: 2020-06-03

End Date: 2025-04-17

Contract Duration: 1,779 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT PMO

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $16.9 million to ANSER SOLUTIONS LLC for work described as: IT PMO Key points: 1. The contract leverages a full and open competition, indicating a robust marketplace for these IT PMO services. 2. Awarded as a delivery order, this contract represents a specific task within a larger framework, suggesting flexibility in service acquisition. 3. The Time and Materials pricing structure warrants close monitoring to ensure cost efficiency and prevent scope creep. 4. With a duration of nearly five years, effective management and performance oversight are critical for sustained value. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services, highlighting the contract's potential scope. 6. The contract's value, while significant, needs to be benchmarked against similar IT PMO support contracts to fully assess value for money.

Value Assessment

Rating: good

The contract's value of $16.9 million over its period of performance appears reasonable for IT PMO services, especially given the full and open competition. Benchmarking against similar contracts for IT project management support would provide a more definitive assessment of value. The Time and Materials (T&M) pricing model, while common, requires diligent oversight to ensure costs remain aligned with the work performed and market rates. Without specific per-unit cost data, a precise comparison is difficult, but the overall contract value suggests a substantial engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a competitive environment, which typically drives better pricing and service quality. A higher number of bidders generally leads to more robust price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for achieving fair market value.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to participate, leading to potentially more competitive pricing and innovative solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The U.S. Census Bureau benefits from enhanced IT Project Management Office (PMO) support, crucial for its data collection and dissemination activities. This contract ensures the continued delivery of essential IT services that underpin the Bureau's operations. The services provided are likely to have a nationwide impact, supporting the infrastructure for federal statistical programs. The contract supports skilled IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not managed meticulously, as it directly ties costs to labor hours and material expenses.
The long duration of the contract (nearly 5 years) increases the risk of scope creep and potential for costs to escalate beyond initial projections if oversight is not consistently applied.
Lack of specific performance metrics or Service Level Agreements (SLAs) within the provided data makes it challenging to objectively assess contractor performance and value realization.
The broad NAICS code (541519) could encompass a wide array of services, potentially leading to ambiguity in service delivery expectations and oversight.

Positive Signals

Awarded through full and open competition, ensuring a competitive bidding process that typically yields better value and wider vendor participation.
The contract is a delivery order, suggesting it is part of a larger, potentially pre-competed Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which can streamline acquisition.
The contractor, ANSER SOLUTIONS LLC, has experience in government contracting, implying a degree of familiarity with federal procurement processes and requirements.
The contract is managed by the U.S. Census Bureau, an agency with significant IT needs and established oversight capabilities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT Project Management Office (PMO) support. The IT services market is vast and highly competitive, with significant government spending allocated to IT modernization, cybersecurity, and data management. Contracts like this are essential for agencies to effectively manage complex IT projects, ensure compliance, and leverage technology to achieve their missions. Comparable spending benchmarks for IT PMO services vary widely based on scope, duration, and specific services required, but this contract's value is substantial within its niche.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The focus appears to be on securing the best value through open competition, rather than specifically targeting small business participation. This means small businesses would likely need to compete directly or subcontract with the prime contractor if opportunities arise outside of set-aside requirements.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the U.S. Census Bureau, the awarding agency. As a delivery order under a larger contract vehicle, there may be additional layers of oversight from the contracting agency that issued the base IDIQ. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment clauses. The specific jurisdiction of an Inspector General would depend on the agency's structure and the nature of any potential issues investigated.

Related Government Programs

IT Project Management Support Services
Information Technology Consulting
Federal IT Acquisition
Census Bureau IT Modernization
Government IT Services Contracts

Risk Flags

Potential for cost overruns due to T&M pricing
Risk of scope creep given the long contract duration
Limited competition indicated by only two bids
Broad NAICS code requires precise SOW and oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $16.9 million to ANSER SOLUTIONS LLC. IT PMO

Who is the contractor on this award?

The obligated recipient is ANSER SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2020-06-03. End: 2025-04-17.

What is the track record of ANSER SOLUTIONS LLC in delivering IT PMO services to the federal government?

ANSER SOLUTIONS LLC has a history of performing government contracts, including those related to IT services. While specific details on their IT PMO delivery track record require deeper analysis of past performance evaluations and contract histories, their presence as a prime contractor suggests they possess the necessary qualifications and experience. Further investigation into their past performance ratings, any awards or penalties, and client feedback on similar projects would provide a more comprehensive understanding of their capabilities and reliability in delivering IT PMO support.

How does the $16.9 million contract value compare to similar IT PMO contracts awarded by the U.S. Census Bureau or other agencies?

The $16.9 million contract value for IT PMO services over approximately five years is a significant but not extraordinary figure within the federal IT landscape. To benchmark effectively, one would need to compare it against contracts with similar scopes of work, durations, and service levels. For instance, contracts for enterprise-wide IT project management support, cybersecurity PMO, or data analytics PMO could serve as comparators. Agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often award large IT support contracts. A detailed analysis would involve querying contract databases for similar NAICS codes and service descriptions to establish a range of typical costs and identify if this contract represents a particularly high or low investment relative to the market.

What are the primary risks associated with the Time and Materials (T&M) pricing structure in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This can incentivize longer project durations or increased labor hours if not rigorously monitored. For taxpayers, the risk is that the total cost could exceed initial estimates, especially if the scope of work is not clearly defined or if oversight is insufficient. Effective risk mitigation requires strong contract administration, detailed tracking of hours and materials, and clear performance expectations.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this IT PMO contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. It allows any qualified vendor to submit a bid, fostering a competitive environment that drives down prices and encourages innovation. For this IT PMO contract, it means the U.S. Census Bureau likely received proposals from a diverse range of companies, increasing the probability of selecting a contractor that offers the best combination of technical capability and cost-effectiveness. The fact that only two bids were received, however, warrants a closer look at market conditions and potential barriers to entry that might have limited participation.

What are the potential implications of the contract's long duration (nearly 5 years) on performance and cost management?

A contract duration of nearly five years, as seen in this IT PMO contract, presents both opportunities and challenges. On the positive side, it allows for long-term planning, stability for the contractor, and the development of deep institutional knowledge, which can be beneficial for complex IT projects. However, it also increases the risk of scope creep, potential for costs to escalate over time, and the possibility of the contractor's services becoming outdated if not actively managed. Effective performance and cost management require continuous oversight, regular performance reviews, and mechanisms to adapt to evolving technological needs and agency priorities throughout the contract's lifecycle.

How does the NAICS code 541519 ('Other Computer Related Services') influence the scope and oversight of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide array of IT services beyond traditional software development or hardware maintenance. This includes services like IT consulting, project management, data processing, and disaster recovery planning. For this IT PMO contract, it suggests the scope could be extensive, covering various aspects of IT project lifecycle management. The breadth of this code necessitates clear and detailed statements of work (SOWs) and robust oversight from the U.S. Census Bureau to ensure the contractor delivers precisely the required services and does not deviate into areas outside the contract's intent. It requires diligent monitoring to confirm that the services provided align with the specific needs of IT PMO functions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11325 RANDOM HILLS RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,936,746

Exercised Options: $16,936,746

Current Obligation: $16,936,746

Actual Outlays: $841,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F523GA

IDV Type: FSS

Timeline