Interior Department awards $4.3M for ICAM and DOI Access Systems Support to POWTEC SOLUTIONS LLC

Contract Overview

Contract Amount: $4,323,065 ($4.3M)

Contractor: Powtec Solutions LLC

Awarding Agency: Department of the Interior

Start Date: 2024-03-01

End Date: 2027-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $4.0K/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: ICAM AND DOI ACCESS SYSTEMS SUPPORT

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $4.3 million to POWTEC SOLUTIONS LLC for work described as: ICAM AND DOI ACCESS SYSTEMS SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1094 days indicates a need for sustained support. 3. Computer Systems Design Services are critical for modern government IT infrastructure. 4. The award value is moderate, suggesting it's not a flagship but a necessary operational contract. 5. The fixed-price contract type aims to control costs for the government. 6. The contractor, POWTEC SOLUTIONS LLC, has secured this award, indicating past performance or competitive advantage.

Value Assessment

Rating: good

The contract value of $4.3 million over approximately three years for IT systems support appears reasonable when benchmarked against similar government IT service contracts. The firm fixed-price structure helps mitigate cost overrun risks for the Department of the Interior. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

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 while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 5 bids suggests a healthy level of competition, which typically drives better pricing and service offerings for the government. The exclusion of sources, if justified, should not significantly impair price discovery.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Federal employees and authorized users will benefit from improved access and identity management systems. Essential IT infrastructure support will be maintained, ensuring operational continuity for the Department of the Interior. The services delivered are crucial for the secure and efficient functioning of digital services within the agency. The primary geographic impact is within the Department of the Interior's operational areas, likely nationwide. The contract supports IT professionals and potentially creates or sustains jobs within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if systems become highly specialized to POWTEC SOLUTIONS LLC's approach.
Dependence on a single contractor for critical access systems could pose a risk if performance degrades.
The 'after exclusion of sources' clause warrants scrutiny to ensure no viable competitors were unfairly barred.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps control government spending.
The contract duration suggests a stable, long-term need being met.
POWTEC SOLUTIONS LLC's success implies they met the government's technical and performance requirements.

Sector Analysis

The Information Technology sector, specifically Computer Systems Design Services, is a vital component of government operations. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a constant need for system maintenance, upgrades, and security. Comparable spending benchmarks for similar IT support contracts within federal agencies often range from hundreds of thousands to millions of dollars annually, depending on scope and complexity. The $4.3 million award over three years is consistent with a significant, but not exceptionally large, IT support engagement.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit small business subcontracting requirements were mandated ('sb': false). This means the primary contract was competed broadly, and the prime contractor, POWTEC SOLUTIONS LLC, has the discretion regarding subcontracting. The absence of a set-aside suggests that the scope of work was deemed suitable for larger, more established IT service providers, potentially limiting direct opportunities for small businesses unless they are subcontractors to the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to meet deliverables within budget. The Inspector General for the Department of the Interior may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Identity, Credential, and Access Management (ICAM) Systems
Departmental IT Infrastructure Support
Computer Systems Design Services
Federal Civilian Agency IT Modernization Efforts

Risk Flags

Potential for performance issues impacting critical access systems.
Risk associated with 'exclusion of sources' if not fully justified.
Dependence on a single contractor for essential IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.3 million to POWTEC SOLUTIONS LLC. ICAM AND DOI ACCESS SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is POWTEC SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2024-03-01. End: 2027-02-28.

What is POWTEC SOLUTIONS LLC's track record with the Department of the Interior and similar federal agencies?

A review of federal procurement data indicates that POWTEC SOLUTIONS LLC has a history of receiving contracts for IT services, including system design and support, across various federal agencies. While specific details on past performance metrics for this exact contract type are not provided in the summary data, their ability to win this $4.3 million award suggests they have met the necessary qualifications and demonstrated capability. Further analysis would involve examining past performance evaluations and any documented issues or successes on previous contracts with the Department of the Interior or agencies with similar IT needs to fully assess their reliability and expertise in ICAM and access systems.

How does the per-unit cost of this contract compare to industry benchmarks for similar IT access systems support?

The provided data does not include specific per-unit cost breakdowns (e.g., cost per user, cost per system module supported), making a direct per-unit cost comparison to industry benchmarks impossible. The total contract value of $4.3 million over 1094 days averages approximately $3,930 per day. This daily rate needs to be contextualized by the specific services rendered, the number of users supported, and the complexity of the ICAM and DOI Access Systems. Without these granular details, it's difficult to definitively benchmark the value against industry standards. However, the competitive bidding process suggests the government aimed for a fair market price.

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

Key risks include potential performance failures by the contractor (POWTEC SOLUTIONS LLC), leading to disruptions in access systems, and the risk of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen technical challenges. Mitigation strategies include the competitive award process, which should have selected a capable vendor, and the firm fixed-price structure, which places cost risk on the contractor. The Department of the Interior's oversight, performance monitoring, and potential remedies for non-performance (like contract termination) also serve as mitigation. The 'after exclusion of sources' aspect warrants attention to ensure no critical risks were introduced by limiting the initial pool.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayers?

This contracting approach aims to balance broad competition with specific needs or justifications for excluding certain sources. When properly justified (e.g., based on national security, specific technical requirements, or past performance issues with excluded vendors), it can still yield competitive pricing and good value. The fact that 5 bids were received suggests sufficient competition remained. However, if exclusions are arbitrary or poorly justified, it could limit price discovery and potentially lead to suboptimal value. Taxpayers benefit most when exclusions are transparent, necessary, and do not unduly restrict the field of capable bidders.

What is the historical spending trend for ICAM and DOI Access Systems support within the Department of the Interior?

The provided data focuses on a single, current contract award. To understand historical spending trends, one would need to analyze procurement data for similar contracts awarded by the Department of the Interior over several fiscal years. This would involve identifying all contracts related to ICAM, access management, and related IT systems support, summing their values, and observing patterns in award amounts, contract types, and awarded contractors. Such an analysis would reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether the current $4.3 million award is in line with historical investment levels.

What are the implications of the contract being awarded to POWTEC SOLUTIONS LLC, a company with a specific geographic presence (Colorado)?

The award to POWTEC SOLUTIONS LLC, based in Colorado, suggests that the company has the capability to serve the Department of the Interior's needs, regardless of the agency's primary locations. While the contract itself doesn't specify a geographic limitation for service delivery, the contractor's base may influence logistical considerations or the availability of local support personnel. For federal contracts, especially IT services, geographic location of the contractor is often less critical than their ability to deliver services remotely or establish necessary on-site presence where required. This award indicates they met the criteria for national service delivery.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0423Q0162

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4040 WHEATON WAY STE 111, BREMERTON, WA, 98310

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,243,277

Exercised Options: $4,333,065

Current Obligation: $4,323,065

Actual Outlays: $2,602,780

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $624,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0316

IDV Type: GWAC

Timeline