Department of State awards $17.1M for IT systems support, with 7 bidders vying for the contract

Contract Overview

Contract Amount: $17,129,070 ($17.1M)

Contractor: Gray Matters Technology Service, LLC

Awarding Agency: Department of State

Start Date: 2018-09-24

End Date: 2024-02-16

Contract Duration: 1,971 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUREAU OF CONSULAR AFFAIRS (CA) CONSULAR ADMINISTRATIVE MANAGEMENT SYSTEMS (AMS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $17.1 million to GRAY MATTERS TECHNOLOGY SERVICE, LLC for work described as: BUREAU OF CONSULAR AFFAIRS (CA) CONSULAR ADMINISTRATIVE MANAGEMENT SYSTEMS (AMS) Key points: 1. The contract value appears reasonable given the duration and scope of IT systems design services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract supports critical consular administrative functions for the Bureau of Consular Affairs. 5. The contractor has a track record in providing IT services to government agencies. 6. The contract duration of nearly 2000 days indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of approximately $17.1 million over its period of performance (nearly 2000 days) suggests a moderate annual spend for IT systems design services. Benchmarking against similar contracts for computer systems design services (NAICS 541512) would provide a clearer picture of value for money. However, the presence of 7 bidders in a full and open competition indicates a competitive environment, which typically drives more favorable pricing for the government.

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 solicited and allowed to bid. The participation of 7 bidders suggests a robust competitive landscape for these IT systems design services. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions being considered.

Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers as it likely resulted in a lower overall price than if the contract had been awarded on a sole-source or limited basis.

Public Impact

Citizens and foreign nationals interacting with consular services benefit from efficient and reliable administrative systems. The contract delivers essential IT systems design and support services for the Bureau of Consular Affairs. Services are primarily delivered within the District of Columbia, impacting the local IT workforce. The contract supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT systems could pose a risk if performance issues arise.
Ensuring continued relevance of technology solutions over the long contract duration requires proactive management.

Positive Signals

The firm-fixed-price contract type incentivizes the contractor to manage costs effectively.
Full and open competition suggests a competitive market, likely leading to better value.
The contractor's experience in IT services provides a degree of confidence in their ability to perform.

Sector Analysis

The IT services sector is vast and highly competitive, with government contracts often representing a significant portion of revenue for many firms. This contract falls under computer systems design services, a sub-sector focused on analyzing and designing IT systems to meet specific client needs. The market size for government IT services is substantial, with agencies continually seeking to modernize and maintain their technological infrastructure. This contract fits within the broader trend of agencies outsourcing IT support and development to specialized firms.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal unless the prime contractor engages in subcontracting with small businesses. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Consular Affairs IT Modernization Efforts
Department of State IT Infrastructure Support
Federal Civilian Agency IT Services Contracts
Computer Systems Design Services Contracts

Risk Flags

Potential for vendor lock-in due to long contract duration.
Need for continuous monitoring of system performance and security.
Ensuring alignment with evolving technological standards and agency needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.1 million to GRAY MATTERS TECHNOLOGY SERVICE, LLC. BUREAU OF CONSULAR AFFAIRS (CA) CONSULAR ADMINISTRATIVE MANAGEMENT SYSTEMS (AMS)

Who is the contractor on this award?

The obligated recipient is GRAY MATTERS TECHNOLOGY SERVICE, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2018-09-24. End: 2024-02-16.

What is the contractor's past performance record with the Department of State and other federal agencies, particularly on similar IT systems design contracts?

Assessing Gray Matters Technology Service, LLC's past performance is crucial for understanding their reliability and capability. While the data provided indicates they were awarded this contract, a deeper dive into their performance history on previous federal contracts, especially those involving complex IT systems design and management, is necessary. This would involve reviewing past performance evaluations (e.g., CPARS reports), any documented issues or successes, and their track record with the Department of State specifically. A history of successful project completion, on-time delivery, and within-budget performance would be positive indicators, while a pattern of performance issues or contract disputes would raise concerns about their suitability for this ongoing requirement.

How does the awarded price compare to industry benchmarks for similar IT systems design services, considering the contract's duration and scope?

To benchmark the value for money, the awarded price of approximately $17.1 million needs to be compared against industry standards for Computer Systems Design Services (NAICS 541512). This involves analyzing average hourly rates, project costs for similar scope and complexity, and the government's historical spending on comparable services. Given the contract's duration of nearly 2000 days (over 5 years), the annual average spend is roughly $3 million. The fact that this was a full and open competition with 7 bidders suggests market forces were at play, likely driving the price towards a competitive level. However, without access to detailed cost breakdowns or specific market research data used by the agency, a definitive assessment of whether this price represents excellent value is challenging.

What are the key performance indicators (KPIs) for this contract, and how is the contractor's performance being measured and monitored?

The specific Key Performance Indicators (KPIs) for the Consular Administrative Management Systems (AMS) contract are not detailed in the provided data. However, for IT systems design and support contracts, typical KPIs often include system uptime and availability, response times for issue resolution, successful implementation of system updates or new features, adherence to security protocols, and user satisfaction. The Department of State's program office and contracting officer are responsible for establishing these KPIs and actively monitoring the contractor's performance against them. This monitoring likely involves regular progress reports, performance reviews, and potentially site visits or audits to ensure the contractor is meeting the contractual obligations and delivering the required services effectively.

What is the historical spending trend for Consular Administrative Management Systems (AMS) support within the Bureau of Consular Affairs?

Understanding the historical spending on AMS support within the Bureau of Consular Affairs (CA) provides context for the current $17.1 million award. Analyzing past contract data for similar services, including previous contracts with Gray Matters Technology Service, LLC or other vendors for AMS or related IT systems, would reveal spending patterns. Significant increases or decreases in spending over time could indicate changes in program scope, technological needs, or efficiency initiatives. For instance, if historical spending was consistently lower, this award might represent an expansion of services or a price increase. Conversely, if spending has been higher, this award could reflect cost-saving measures or a reduction in scope. This trend analysis helps in assessing the long-term financial commitment and the sustainability of the current spending level.

Are there any identified risks associated with the contractor's technical capabilities or the complexity of the IT systems being managed under this contract?

The provided data does not explicitly detail risks associated with Gray Matters Technology Service, LLC's technical capabilities or the complexity of the Consular Administrative Management Systems (AMS). However, risks in IT systems design and management are common. Potential technical risks could include the contractor's ability to keep pace with evolving technologies, integrate disparate systems, ensure robust cybersecurity, and manage the complexity of legacy systems alongside modern ones. The Bureau of Consular Affairs likely conducted a thorough technical evaluation as part of the procurement process to mitigate these risks. Furthermore, the contract's duration necessitates ongoing vigilance to ensure the contractor maintains the necessary technical expertise and adapts to technological advancements throughout the performance period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gray Matters Technology Service LLC

Address: 11721 WOODMORE RD STE 140, BOWIE, MD, 20721

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $31,092,099

Exercised Options: $31,092,099

Current Obligation: $17,129,070

Actual Outlays: $5,398,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00Q17GWD2087

IDV Type: GWAC

Timeline