State Department awards $5M IT support contract to Ho-Chunk Shared Services Company for one year

Contract Overview

Contract Amount: $5,032,594 ($5.0M)

Contractor: Ho-Chunk Shared Services Company

Awarding Agency: Department of State

Start Date: 2024-09-11

End Date: 2025-09-10

Contract Duration: 364 days

Daily Burn Rate: $13.8K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $5.0 million to HO-CHUNK SHARED SERVICES COMPANY for work described as: IT SUPPORT SERVICES Key points: 1. Contract value appears reasonable for a one-year IT support engagement. 2. Competition dynamics suggest a potentially favorable pricing environment. 3. Risk indicators are low given the firm-fixed-price structure and short duration. 4. Performance context is standard for IT support services. 5. Sector positioning is within IT support, a common government need.

Value Assessment

Rating: good

The contract value of approximately $5 million for a one-year IT support services delivery order seems within a reasonable range for the scope of work. Benchmarking against similar IT support contracts awarded by the Department of State or other federal agencies for comparable services and durations would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps control costs, but a detailed breakdown of labor categories and hours would be needed for a granular price assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process likely involving multiple bidders. The specific number of bids received is not provided, but the 'COMPETED UNDER SAP' designation generally implies a level of market research and outreach to ensure fair competition. This approach aims to leverage market forces to achieve competitive pricing and identify capable vendors.

Taxpayer Impact: A competed award under SAP suggests that taxpayers are likely benefiting from a competitive price discovery process, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The Department of State benefits from essential IT support services to maintain its operational infrastructure. End-users within the Department of State will receive continued technical assistance and system maintenance. The contract supports IT infrastructure stability and cybersecurity efforts within the agency. The geographic impact is primarily within the Department of State's operational locations, likely concentrated in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully, despite competitive award.
Dependence on a single vendor for critical IT functions could pose continuity risks.
Scope creep could increase costs if not rigorously managed under the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Short one-year duration allows for periodic re-evaluation of performance and market conditions.
Competitive award process suggests a potentially strong value proposition.
Award to a company with 'Shared Services' in its name may indicate a focus on efficient service delivery.

Sector Analysis

IT support services represent a significant and ongoing segment of federal spending. Agencies rely on these services for maintaining networks, hardware, software, and providing user support. The market is characterized by a mix of large system integrators and specialized IT service providers. This contract fits within the broader category of IT professional services, which is a mature market with established pricing benchmarks and a wide range of available vendors.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the awardee's size is not explicitly stated, the 'COMPETED UNDER SAP' designation can sometimes include small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award, which could contribute to 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. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
Computer Systems Design Services
IT Managed Services

Risk Flags

Potential for scope creep under firm-fixed-price.
Dependence on vendor performance for critical IT functions.
Need for robust quality assurance to ensure service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.0 million to HO-CHUNK SHARED SERVICES COMPANY. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HO-CHUNK SHARED SERVICES COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-09-11. End: 2025-09-10.

What is the track record of Ho-Chunk Shared Services Company in performing similar IT support contracts for the federal government?

Information regarding Ho-Chunk Shared Services Company's specific track record on federal IT support contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., CPARS reports), contract history, and any documented successes or challenges in delivering similar services. Understanding their experience with the Department of State or other agencies of similar size and complexity would be crucial. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific engagement.

How does the awarded amount of approximately $5 million compare to the average cost of similar IT support contracts for the Department of State?

To benchmark the $5 million award, one would need to compare it against the average cost of IT support contracts of similar scope, duration (one year), and service level agreements awarded by the Department of State or comparable agencies. Factors such as the number of users supported, types of systems managed (e.g., network infrastructure, end-user devices, specific applications), and required service hours would influence this comparison. If this contract represents a significant deviation (higher or lower) from historical averages for comparable services, it would warrant further investigation into the reasons behind the difference, such as unique requirements, market fluctuations, or exceptional vendor performance.

What are the primary risk indicators associated with this firm-fixed-price contract, and how are they being mitigated?

The primary risk indicator for a firm-fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or service to maintain profitability if costs exceed expectations. Another risk is scope creep, where the government requests additional work not covered by the original scope, potentially leading to disputes or cost overruns if not managed properly. Mitigation strategies include clear and detailed performance work statements (PWS), robust quality assurance surveillance plans (QASP), regular progress meetings to monitor performance and address issues proactively, and strict change control processes. The short one-year duration also mitigates risk by allowing for reassessment and potential recompete.

How effective is the 'COMPETED UNDER SAP' process in ensuring competitive pricing for IT support services at this value level?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) process is designed to streamline procurement for purchases below the simplified acquisition threshold (currently $250,000, though specific agency thresholds can vary, and this contract is significantly above that, suggesting it might have been competed under FAR Part 15 or another mechanism that resulted in this designation). Assuming it was competed appropriately under relevant regulations for its value, SAP aims to foster competition by encouraging outreach to multiple sources. Its effectiveness in ensuring competitive pricing depends on the number of qualified bidders, the clarity of the solicitation, and the government's negotiation strategy. For contracts of this size, it generally provides a reasonable balance between competition and administrative efficiency.

What are the historical spending patterns for IT support services at the Department of State, and how does this award fit within that trend?

Analyzing historical spending patterns for IT support services at the Department of State would involve examining annual outlays for similar contract vehicles and service categories over the past several fiscal years. This would reveal trends in contract values, types of services procured (e.g., help desk, network management, cybersecurity support), and the primary contractors utilized. This $5 million award for a one-year period needs to be viewed in the context of these historical expenditures. If spending in this category has been consistently high, this award may represent a continuation of established support levels. Conversely, a significant increase or decrease could signal a shift in IT strategy, budget priorities, or market dynamics.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Computer Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,032,594

Exercised Options: $5,032,594

Current Obligation: $5,032,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19FS1A21D0002

IDV Type: IDC

Timeline