State Dept Awards $4.7M for Platform Engineering Services to Centrifuge, LLC

Contract Overview

Contract Amount: $4,744,484 ($4.7M)

Contractor: Centrifuge, LLC

Awarding Agency: Department of State

Start Date: 2024-09-17

End Date: 2026-09-16

Contract Duration: 729 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS ACTION IS TO ISSUE A TASK ORDER FOR PLATFORM ENGINEERING SERVICES. CA/CST REQUIRES TECHNICAL EXPERTS TO OFFER DIGITAL SERVICE TECHNIQUES TO IDENTIFY AND SOLVE A CORE USER NEED THROUGH THE DEVELOPMENT AND RELEASE TO DEVELOPMENT TE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $4.7 million to CENTRIFUGE, LLC for work described as: THE PURPOSE OF THIS ACTION IS TO ISSUE A TASK ORDER FOR PLATFORM ENGINEERING SERVICES. CA/CST REQUIRES TECHNICAL EXPERTS TO OFFER DIGITAL SERVICE TECHNIQUES TO IDENTIFY AND SOLVE A CORE USER NEED THROUGH THE DEVELOPMENT AND RELEASE TO DEVELOPMENT TE Key points: 1. Contract awarded for specialized platform engineering and digital service techniques. 2. Centrifuge, LLC is the sole awardee, indicating a limited competition. 3. The contract value is substantial at $4.7 million. 4. Services focus on identifying and solving user needs through development and release.

Value Assessment

Rating: fair

The contract value of $4.7M for platform engineering services appears within a reasonable range for specialized IT expertise. However, without specific benchmarks for 'platform engineering services' and 'digital service techniques,' a precise comparison is difficult. The pricing is based on labor hours, which can introduce variability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs compared to a fully open and competitive process. The specific justification for this limitation is not provided.

Taxpayer Impact: Taxpayer funds are being used for specialized IT services. The lack of full competition may result in a less cost-effective outcome for taxpayers.

Public Impact

Enhances digital service capabilities within the Department of State. Supports the development and release of critical user-facing solutions. Potential for improved efficiency and effectiveness in government IT operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Lack of detailed justification for sole-source award.
Pricing based on labor hours can be unpredictable.

Positive Signals

Addresses a core user need with technical expertise.
Focus on digital service techniques for modern solutions.
Contract duration of two years provides stability for project execution.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512). Spending in this sector is significant across government, supporting IT modernization and digital transformation initiatives. Benchmarks vary widely based on service complexity and required expertise.

Small Business Impact

The contract was awarded to Centrifuge, LLC, and the data indicates 'sb': false, meaning it was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight will be managed by the Department of State. The 'VA' status suggests it might be related to Veterans Affairs, but the awarding agency is State. Accountability for performance and cost will rest with the contracting officer and program managers within the State Department.

Related Government Programs

Computer Systems Design Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to labor-hour pricing.
Lack of transparency regarding the justification for limited competition.
Risk of vendor lock-in if specialized knowledge is not transferred.
Unclear definition of 'platform engineering services' and 'digital service techniques'.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.7 million to CENTRIFUGE, LLC. THE PURPOSE OF THIS ACTION IS TO ISSUE A TASK ORDER FOR PLATFORM ENGINEERING SERVICES. CA/CST REQUIRES TECHNICAL EXPERTS TO OFFER DIGITAL SERVICE TECHNIQUES TO IDENTIFY AND SOLVE A CORE USER NEED THROUGH THE DEVELOPMENT AND RELEASE TO DEVELOPMENT TE

Who is the contractor on this award?

The obligated recipient is CENTRIFUGE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2024-09-17. End: 2026-09-16.

What specific 'digital service techniques' will be employed, and how do they align with industry best practices to ensure value for money?

The specific digital service techniques are not detailed in the provided data. A thorough review would require access to the task order's statement of work. To ensure value, the agency should verify that the chosen techniques are proven, efficient, and directly address the identified user need, potentially through independent technical reviews or by comparing proposed methodologies against established government IT frameworks like the FITARA guidelines.

What is the justification for awarding this contract on a limited or sole-source basis, and what steps were taken to mitigate potential cost overruns?

The data states 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source award. The justification for this is crucial for assessing risk. Agencies typically require detailed documentation explaining why full and open competition is not feasible (e.g., unique capabilities, urgent need). Mitigation of cost overruns would involve robust contract surveillance, clear performance metrics, and potentially negotiation of fixed-price elements if feasible, despite the labor-hour pricing structure.

How will the effectiveness of the platform engineering services be measured to ensure the 'core user need' is adequately met and taxpayer funds are used efficiently?

Effectiveness measurement should be tied to clearly defined Key Performance Indicators (KPIs) within the task order. These could include metrics related to system uptime, user satisfaction scores, reduction in support tickets, successful deployment of new features, or achievement of specific performance targets. Regular progress reviews and acceptance testing by the government will be critical to ensure the delivered services meet the intended objectives and provide tangible benefits.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM24R0186

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11921 FREEDOM DR STE 550, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $8,952,705

Exercised Options: $8,328,508

Current Obligation: $4,744,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline