Department of State awards $33.5M IT end-user support contract to Directviz Solutions, LLC

Contract Overview

Contract Amount: $33,539,110 ($33.5M)

Contractor: Directviz Solutions, LLC

Awarding Agency: Department of State

Start Date: 2020-09-01

End Date: 2021-11-30

Contract Duration: 455 days

Daily Burn Rate: $73.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THI IS A TASK ORDER FOR DEPARTMENT-WIDE INFORMATION TECHNOLOGT END-USER SUPPORT SERVICES (ITESS).

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $33.5 million to DIRECTVIZ SOLUTIONS, LLC for work described as: THI IS A TASK ORDER FOR DEPARTMENT-WIDE INFORMATION TECHNOLOGT END-USER SUPPORT SERVICES (ITESS). Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract value of $33.5 million over 15 months indicates a significant investment in IT support. 3. Fixed-price contract type may incentivize contractor efficiency. 4. The primary NAICS code (541511) points to custom computer programming services, a core IT function. 5. The contract duration of 455 days (approximately 15 months) is a standard term for task orders. 6. The award to Directviz Solutions, LLC, a single entity, highlights the concentration of large IT service providers.

Value Assessment

Rating: good

The contract value of $33.5 million for 15 months of IT end-user support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor can manage their expenses effectively. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 11 bidders vying for the opportunity. This level of competition is a positive indicator, suggesting that multiple capable vendors were available to provide the required IT end-user support services. A larger number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, increasing the likelihood of selecting the best value solution for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in more favorable pricing for taxpayers. It also ensures that the Department of State had access to a broad range of IT support capabilities.

Public Impact

Federal employees within the Department of State benefit from enhanced IT end-user support, improving productivity and operational efficiency. The contract ensures the delivery of critical IT services, including help desk support, hardware/software maintenance, and network assistance. Services are likely delivered across various Department of State facilities, potentially with a concentration in Virginia where the awardee is located. The contract supports IT professionals employed by Directviz Solutions, LLC, contributing to the federal IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service quality is exceptionally high and switching costs are significant.
Reliance on a single contractor for critical IT support could pose risks if the contractor experiences financial instability or operational disruptions.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Firm-fixed-price contract type aligns incentives for efficient service delivery.
The contractor, Directviz Solutions, LLC, is likely experienced in providing IT services to government agencies.

Sector Analysis

The IT services sector is a vast and competitive market within the federal government. This contract falls under IT Professional Services, specifically focusing on end-user support, which is a critical component for any large organization. The federal government spends billions annually on IT services, with a significant portion dedicated to maintaining and supporting existing infrastructure and user needs. This contract represents a typical task order within a larger IT services vehicle, reflecting the ongoing demand for reliable and efficient IT support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Directviz Solutions, LLC, may choose to subcontract portions of the work to small businesses as part of their own business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT End-User Support Services
IT Professional Services
Department of State IT Contracts
Federal IT Task Orders

Risk Flags

Potential for service disruption if contractor performance falters.
Cybersecurity risks associated with supporting end-user IT systems.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $33.5 million to DIRECTVIZ SOLUTIONS, LLC. THI IS A TASK ORDER FOR DEPARTMENT-WIDE INFORMATION TECHNOLOGT END-USER SUPPORT SERVICES (ITESS).

Who is the contractor on this award?

The obligated recipient is DIRECTVIZ 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 $33.5 million.

What is the period of performance?

Start: 2020-09-01. End: 2021-11-30.

What is the track record of Directviz Solutions, LLC in performing similar IT support contracts for the federal government?

Directviz Solutions, LLC has a history of performing IT services for federal agencies. While specific details on past performance for similar end-user support contracts would require deeper analysis of contract databases, their presence as a prime awardee on this significant Department of State contract suggests they possess the necessary experience and qualifications. Further investigation into their past performance ratings, contract values, and client agencies would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT support solutions.

How does the awarded price of $33.5 million compare to the estimated value or market rates for similar IT end-user support services?

The awarded price of $33.5 million for approximately 15 months of service appears to be within a reasonable range for large-scale federal IT end-user support. The fact that it was awarded under full and open competition with 11 bidders suggests that the pricing was competitive. To provide a more precise comparison, one would need to benchmark against similar contracts awarded by other agencies for comparable services, considering factors like the number of users supported, service level agreements, and geographic scope. However, the competitive nature of the award process generally indicates that the price achieved was favorable.

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

Key risks include potential service disruptions if the contractor underperforms, cybersecurity vulnerabilities in the IT systems supported, and the possibility of cost overruns if the firm-fixed-price model is not managed effectively by the contractor. Mitigation strategies likely involve robust performance monitoring by the Department of State, adherence to strict cybersecurity protocols, and clear contract terms that define responsibilities and remedies. The competitive award process also mitigates the risk of selecting an unqualified vendor. Regular performance reviews and defined escalation procedures are crucial for ongoing risk management.

How effective is the IT end-user support likely to be for the Department of State based on this contract?

The effectiveness of the IT end-user support will depend heavily on the contractor's execution and the Department of State's oversight. The contract's focus on end-user support suggests a direct impact on the daily productivity of State Department employees. A well-executed contract should lead to reduced downtime, faster issue resolution, and improved user satisfaction with IT services. The competitive award and firm-fixed-price structure are designed to encourage efficient and effective service delivery. Continuous performance monitoring and feedback mechanisms will be essential to ensure ongoing effectiveness.

What are the historical spending patterns for IT end-user support services at the Department of State?

Historical spending on IT end-user support at the Department of State likely shows a consistent and significant investment in maintaining its technological infrastructure and supporting its workforce. Agencies of this size and scope typically allocate substantial budgets to IT services, including help desk, device management, and network support. This $33.5 million award represents a portion of that ongoing expenditure. Analyzing past contracts for similar services would reveal trends in spending, potential increases or decreases in demand, and the evolution of IT support strategies within the Department.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM19R0014

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRING HILL RD STE 600, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $152,427,685

Exercised Options: $35,756,454

Current Obligation: $33,539,110

Actual Outlays: $14,703,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D002W

IDV Type: FSS

Timeline