State Department awards $25.9M IT support contract to Eagle Harbor Solutions, citing IT operations, cybersecurity needs

Contract Overview

Contract Amount: $25,918,684 ($25.9M)

Contractor: Eagle Harbor Solutions LLC

Awarding Agency: Department of State

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $14.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS TO ASSIGN PERSONNEL TO PROVIDE SUPPORT IN THE AREAS OF INFORMATION TECHNOLOGY (IT) OPERATIONS AND MAINTENANCE, DATABASE/APPLICATIONS DEVELOPMENT, CYBER SECURITY COMPLIANCE.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $25.9 million to EAGLE HARBOR SOLUTIONS LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO ASSIGN PERSONNEL TO PROVIDE SUPPORT IN THE AREAS OF INFORMATION TECHNOLOGY (IT) OPERATIONS AND MAINTENANCE, DATABASE/APPLICATIONS DEVELOPMENT, CYBER SECURITY COMPLIANCE. Key points: 1. Contract focuses on critical IT operations, maintenance, and cybersecurity, aligning with agency digital transformation goals. 2. Sole-source award raises questions about potential for better pricing through broader competition. 3. Long-term contract duration (5 years) suggests a sustained need for these IT services. 4. Performance is tied to IT operations, database development, and cybersecurity compliance. 5. Contract value is significant, indicating a substantial investment in the agency's IT infrastructure. 6. Geographic location in Alaska may point to specific operational requirements or regional IT support needs.

Value Assessment

Rating: fair

The contract value of $25.9 million over five years for IT support services appears substantial. Without specific benchmarks for similar IT operations and cybersecurity support contracts within the State Department or across federal agencies, it is difficult to definitively assess value for money. The lack of competition, as indicated by the 'NOT COMPETED UNDER SAP' status, suggests that a thorough market analysis to ensure competitive pricing may not have been conducted, potentially leading to a higher-than-market cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis. The absence of a competitive bidding process means that multiple vendors did not have the opportunity to propose their services and pricing. This limits the government's ability to leverage market forces to secure the most cost-effective solution and potentially overlooks innovative approaches from other qualified contractors.

Taxpayer Impact: A sole-source award means taxpayers may not be receiving the best possible price for these essential IT services, as the benefits of competition in driving down costs were forgone.

Public Impact

The primary beneficiaries are the Department of State personnel who rely on robust IT infrastructure and cybersecurity for their daily operations. Services delivered include IT operations and maintenance, database/applications development, and cybersecurity compliance. The contract's geographic scope is Alaska (ST='AK', SN='ALASKA'), suggesting support for State Department operations within that region. Workforce implications include the potential for direct employment by Eagle Harbor Solutions and the utilization of specialized IT skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can reduce transparency and accountability in the procurement process.
Long contract duration without competitive re-evaluation could lead to complacency or reduced service quality over time.

Positive Signals

Contract addresses critical IT operations and cybersecurity needs, essential for agency functioning.
Eagle Harbor Solutions is awarded the contract, implying they possess the necessary qualifications and capabilities.
The contract duration suggests a stable, long-term partnership to ensure continuity of essential IT services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT operations, development, and cybersecurity. The IT services market is highly competitive, with numerous firms offering specialized solutions. Federal spending in this area is substantial, driven by the increasing digitization of government operations and the growing threat landscape in cybersecurity. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded by other federal agencies for similar scope and duration, considering factors like labor mix and service level agreements.

Small Business Impact

The data indicates that this contract was not awarded to a small business (SB=false) and does not appear to have a small business set-aside component. Furthermore, the contract type is 'NOT COMPETED UNDER SAP', which typically does not prioritize small business participation. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor, Eagle Harbor Solutions, will likely handle the majority of the work, potentially limiting opportunities for small businesses to participate in this significant federal contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officer and program managers. Accountability measures are typically defined within the contract's statement of work, including performance standards and deliverables. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State IT Modernization Efforts
Federal Cybersecurity Initiatives
IT Operations and Maintenance Contracts
Database and Application Development Services
Alaska Federal IT Support Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns due to lack of competition.
Limited transparency in the procurement process.
Long-term duration may reduce flexibility and innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $25.9 million to EAGLE HARBOR SOLUTIONS LLC. THE PURPOSE OF THIS CONTRACT IS TO ASSIGN PERSONNEL TO PROVIDE SUPPORT IN THE AREAS OF INFORMATION TECHNOLOGY (IT) OPERATIONS AND MAINTENANCE, DATABASE/APPLICATIONS DEVELOPMENT, CYBER SECURITY COMPLIANCE.

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What is the track record of Eagle Harbor Solutions in performing similar IT support contracts for the federal government?

Information regarding Eagle Harbor Solutions' specific track record on similar federal IT support contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Understanding their experience with IT operations, database development, and cybersecurity compliance, particularly within large, complex organizations like the Department of State, is crucial for evaluating their capability to fulfill this contract effectively. Further research into their contract awards, client feedback, and any debriefings from past solicitations would provide a clearer picture of their performance history and reliability.

How does the $25.9 million contract value compare to similar IT support contracts awarded by the Department of State or other federal agencies?

The $25.9 million contract value over five years represents a significant investment in IT support. To benchmark this value, one would need to compare it against similar contracts for IT operations, maintenance, and cybersecurity services awarded by the Department of State and other agencies of comparable size and mission. Factors such as the scope of services, labor categories, geographic location, and contract duration are critical for a meaningful comparison. Without access to a broader dataset of federal IT contracts, it's challenging to definitively state whether this value is high, low, or in line with market rates. However, the sole-source nature of this award raises concerns that the price may not have been optimized through competitive bidding.

What are the primary risks associated with awarding this IT support contract on a sole-source basis?

The primary risk associated with a sole-source award is the potential for inflated costs due to the lack of competition. When only one vendor is considered, there is less incentive for them to offer their most competitive pricing. This can lead to taxpayers paying more than necessary for the services rendered. Additionally, sole-source awards can limit innovation, as the government does not benefit from the diverse approaches and solutions that multiple bidders might offer. There's also a risk of reduced transparency and accountability, as the selection process is not as rigorously scrutinized as a fully competed procurement. This can potentially mask inefficiencies or suboptimal performance over the contract's lifecycle.

How effective are the IT operations, database development, and cybersecurity compliance services likely to be under this contract?

The effectiveness of the services hinges on Eagle Harbor Solutions' capabilities and the clarity of the contract's performance requirements. The contract specifies support in IT operations and maintenance, database/applications development, and cybersecurity compliance, which are critical functions. Success will depend on the contractor's technical expertise, adherence to service level agreements (SLAs), and the State Department's oversight. Given the sole-source nature, the government relied on pre-existing knowledge or justification for selecting Eagle Harbor Solutions. A thorough review of the contractor's past performance and the specific metrics defined in the contract are necessary to predict effectiveness. Without this, effectiveness remains an assumption based on the contractor's stated capabilities.

What has been the historical spending pattern for IT support services at the Department of State, and how does this contract fit within that pattern?

Analyzing the historical spending patterns for IT support services at the Department of State is crucial for contextualizing this $25.9 million award. This would involve examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding whether spending has been increasing, decreasing, or remaining stable provides insight into the agency's IT investment strategy. This current contract, being a five-year award for essential IT functions, suggests a continued and significant commitment to maintaining and developing the department's technological infrastructure. Its value should be compared against the agency's overall IT budget and spending trends to determine if it represents a typical investment or a notable deviation.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,448,495

Exercised Options: $31,291,495

Current Obligation: $25,918,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline