Treasury's $3.2M IT support contract awarded to VTECH SOLUTION INC. for Microsoft Unified Support

Contract Overview

Contract Amount: $3,226,845 ($3.2M)

Contractor: Vtech Solution Inc.

Awarding Agency: Department of the Treasury

Start Date: 2024-12-31

End Date: 2026-12-30

Contract Duration: 729 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT UNIFIED SUPPORT SERVICES IN SUPPORT OF TREASURY, DEPARTMENTAL OFFICES (DO) IT OPERATIONS ENVIRONMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.2 million to VTECH SOLUTION INC. for work described as: MICROSOFT UNIFIED SUPPORT SERVICES IN SUPPORT OF TREASURY, DEPARTMENTAL OFFICES (DO) IT OPERATIONS ENVIRONMENT. Key points: 1. Contract provides essential IT support for Treasury's Departmental Offices. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Duration of 729 days suggests a medium-term need for these services. 4. Firm Fixed Price contract type helps manage cost certainty. 5. Focus on Microsoft Unified Support highlights reliance on a specific vendor ecosystem. 6. Geographic location is Washington D.C., indicating a concentration of federal IT operations.

Value Assessment

Rating: good

The contract value of approximately $3.2 million over two years for IT support services appears reasonable, especially considering the specialized nature of unified support for a large federal agency. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that this pricing is within expected ranges. The firm fixed-price structure provides cost predictability for the Department of the Treasury. Without specific details on the scope of services and service level agreements, a precise value-for-money assessment is challenging, but the competitive award process lends confidence to the pricing.

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,' which implies that while sources were initially excluded, the final award was made through a broad competitive process. The specific details of the exclusion and subsequent open competition are not provided, but the 'full and open' designation suggests multiple bidders were likely considered. A competitive process generally leads to better price discovery and a wider range of technical solutions.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as multiple vendors vied for the contract.

Public Impact

Federal employees within the Treasury Departmental Offices will benefit from reliable IT operations and support. Ensures the continuity of critical IT infrastructure and services supporting departmental functions. The services delivered are essential for maintaining the operational environment of the Treasury. Impact is concentrated within the District of Columbia, where the Treasury's main IT operations are likely housed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to reliance on 'Unified Support' for a specific vendor's products.
Scope creep could increase costs if not managed tightly under the fixed-price contract.
Dependence on a single contractor for critical IT support poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract provides cost certainty for the government.
Contract duration allows for stable IT support operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on IT systems design and integration services. The market for IT support and managed services for federal agencies is substantial, with significant spending allocated annually to maintain and upgrade complex government IT infrastructures. This contract represents a portion of that spending, aimed at ensuring the operational efficiency of the Treasury's IT environment. Comparable spending benchmarks for similar IT support contracts often range from hundreds of thousands to several million dollars annually, depending on the scope and complexity.

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 or specific benefits for small businesses stemming from this particular award. The focus is on larger-scale IT support, likely requiring specialized capabilities typically offered by larger prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the Department of the Treasury's IT division. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Treasury IT Modernization Initiatives
Federal Civilian Agency IT Support Contracts
Microsoft Enterprise Agreements
Departmental IT Operations Management

Risk Flags

Potential for vendor lock-in
Reliance on specific vendor technology
Contract performance monitoring critical

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.2 million to VTECH SOLUTION INC.. MICROSOFT UNIFIED SUPPORT SERVICES IN SUPPORT OF TREASURY, DEPARTMENTAL OFFICES (DO) IT OPERATIONS ENVIRONMENT.

Who is the contractor on this award?

The obligated recipient is VTECH SOLUTION INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-12-31. End: 2026-12-30.

What is the specific scope of 'Microsoft Unified Support Services' covered under this contract?

The contract specifies 'MICROSOFT UNIFIED SUPPORT SERVICES IN SUPPORT OF TREASURY, DEPARTMENTAL OFFICES (DO) IT OPERATIONS ENVIRONMENT.' While the exact deliverables are not detailed in the provided data, 'Unified Support' typically encompasses comprehensive technical support, proactive services, and strategic guidance for Microsoft products and services. This can include assistance with operating systems, cloud services (like Azure and Microsoft 365), databases, and other Microsoft software. For the Treasury's IT operations, this likely translates to ensuring the stability, security, and optimal performance of their Microsoft-based infrastructure, including troubleshooting, patching, performance tuning, and access to Microsoft experts for complex issues. The duration of the contract (729 days) suggests a sustained need for these services beyond basic break-fix support.

How does the awarded price of approximately $3.2 million compare to similar IT support contracts for federal agencies?

The awarded value of $3.2 million over two years (approximately $1.6 million per year) for comprehensive IT support services, specifically for Microsoft Unified Support, is generally considered within a reasonable range for a federal agency like the Department of the Treasury. Large federal agencies often have complex IT environments requiring significant investment in specialized support. Contracts for similar scope and scale, involving enterprise-level support for major software vendors, can easily reach or exceed this figure. Factors influencing price include the number of users supported, the breadth of Microsoft products covered, the required service levels (e.g., response times, availability), and the inclusion of proactive advisory services. Given the competitive award process, this price suggests good value for the services rendered.

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

A primary risk is vendor lock-in, as the contract focuses on 'Microsoft Unified Support,' potentially limiting flexibility to adopt alternative technologies or support models. Mitigation involves ensuring clear contract terms that allow for future flexibility and periodic re-evaluation of the market. Another risk is scope creep, where the services requested expand beyond the initial agreement, potentially increasing costs despite the firm fixed-price structure. This is mitigated through robust contract management, clear definition of deliverables, and change control processes. Dependence on a single contractor for critical IT support also poses a risk if performance degrades. Mitigation includes performance monitoring, defined service level agreements (SLAs), and remedies for non-performance outlined in the contract.

What is the track record of VTECH SOLUTION INC. in providing similar IT support services to the federal government?

Information regarding VTECH SOLUTION INC.'s specific track record in providing similar 'Microsoft Unified Support Services' to the federal government is not detailed in the provided data. However, the fact that they were awarded this contract through a full and open competition suggests they met the necessary qualifications and demonstrated capability to perform the required services. Federal procurement databases often contain past performance information, which would have been evaluated during the source selection process. Agencies typically assess a contractor's history of meeting contract requirements, quality of performance, and adherence to schedules and costs on previous federal contracts. Further investigation into VTECH SOLUTION INC.'s contract history would provide a more definitive assessment of their track record.

How does this contract align with the Treasury Department's broader IT strategy or modernization efforts?

This contract for Microsoft Unified Support Services directly supports the Treasury Department's ongoing need to maintain and optimize its existing IT infrastructure, which likely relies heavily on Microsoft technologies. While not explicitly a modernization contract, ensuring the stability and efficiency of current systems through robust support is a prerequisite for any successful modernization effort. It allows IT staff to focus on strategic initiatives rather than day-to-day operational issues. The contract's focus on unified support suggests an intent to leverage Microsoft's ecosystem effectively, potentially aligning with strategies to adopt or optimize cloud services (like Microsoft 365 or Azure) or to ensure the security and compliance of critical systems. Continued investment in vendor-specific support indicates a strategic decision to maintain and enhance the current technology stack.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 H STREET NW, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $3,990,610

Exercised Options: $3,596,934

Current Obligation: $3,226,845

Actual Outlays: $3,297,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0032

IDV Type: GWAC

Timeline