Interior's $3.7M Cloud Migration Support Contract Awarded to Simple Technology Solutions Inc

Contract Overview

Contract Amount: $3,710,057 ($3.7M)

Contractor: Simple Technology Solutions Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-09-26

End Date: 2026-04-02

Contract Duration: 1,284 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USTR CLOUD MIGRATION SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20502

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $3.7 million to SIMPLE TECHNOLOGY SOLUTIONS INC. for work described as: USTR CLOUD MIGRATION SUPPORT SERVICES Key points: 1. Contract value of $3.7M for cloud migration support services. 2. Sole-source award to Simple Technology Solutions Inc. 3. Potential risk due to lack of competition. 4. Services fall under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: questionable

The contract value of $3.7M for cloud migration support services is difficult to benchmark without specific details on the scope of work and duration. The lack of a stated average price or benchmark makes a direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The sole-source nature of this award raises concerns about whether the government secured the best possible price for these services, potentially impacting taxpayer value.

Public Impact

Citizens may question the justification for a sole-source award in a potentially competitive IT services market. Transparency regarding the specific cloud migration services and their necessity is important for public trust. The long contract duration (over 3 years) warrants scrutiny to ensure continued value and alignment with evolving government needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Clear contract end date
Firm Fixed Price contract type

Sector Analysis

The IT services sector is highly competitive, with numerous firms capable of providing cloud migration support. The benchmark for similar services can vary widely based on complexity, duration, and specific technologies involved. This award's value should be assessed against market rates for comparable sole-source engagements.

Small Business Impact

This contract was not awarded to a small business, as indicated by the 'sb' field being false. There is no indication of subcontracting opportunities for small businesses within this award, which could represent a missed opportunity for small business engagement.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering services as specified and that the pricing remains fair throughout the contract term. Regular performance reviews and justification for the sole-source approach are crucial.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of competition
Sole-source award justification unclear
No small business participation
Potential for inflated pricing due to sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.7 million to SIMPLE TECHNOLOGY SOLUTIONS INC.. USTR CLOUD MIGRATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SIMPLE TECHNOLOGY SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-04-02.

What specific factors justified the sole-source award for these cloud migration support services, and were alternative competitive strategies considered and rejected?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's unclear why competitive bidding was bypassed. Agencies must provide detailed rationale, demonstrating that competition was not feasible or would not result in the best value. This often involves market research and a clear explanation of why only one vendor could meet the requirement.

How does the $3.7M contract value compare to industry benchmarks for similar cloud migration support services, especially considering the sole-source nature of the award?

Benchmarking a sole-source award is challenging as it lacks direct price competition. However, comparisons can be made against publicly available data for similar government contracts or private sector projects, adjusting for scope, duration, and complexity. If the awarded price significantly exceeds market averages or historical data for comparable services, it raises concerns about value for money and potential overpayment.

What are the key performance indicators (KPIs) for this contract, and how will the Department of the Interior ensure effective service delivery and accountability over the contract's duration?

Effective oversight requires clearly defined KPIs tied to the cloud migration objectives, such as successful data transfer, system uptime, security compliance, and user adoption rates. The Department should implement regular performance reviews, track progress against milestones, and maintain open communication channels with the contractor. Accountability is ensured through contract clauses that allow for remedies if performance standards are not met.

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 - COMPUTE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1775 I ST NW SUITE 1150, WASHINGTON, DC, 20006

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,710,057

Exercised Options: $3,710,057

Current Obligation: $3,710,057

Actual Outlays: $3,600,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline