Treasury's $60M DevOps Contract with Octo Metric LLC Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $60,187,884 ($60.2M)
Contractor: Octo Metric LLC
Awarding Agency: Department of the Treasury
Start Date: 2020-06-24
End Date: 2025-12-31
Contract Duration: 2,016 days
Daily Burn Rate: $29.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: DEVOPS SOFTWARE DEVELOPMENT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $60.2 million to OCTO METRIC LLC for work described as: DEVOPS SOFTWARE DEVELOPMENT SERVICES Key points: 1. The contract awarded to OCTO METRIC LLC for DevOps software development services totals $60.2 million. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of market engagement. 3. The contract type is 'COST PLUS AWARD FEE', which can lead to cost overruns if not managed tightly. 4. The sector is IT services, specifically Computer Systems Design Services, a critical area for government operations.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure requires careful monitoring to ensure costs remain reasonable and performance targets are met. Benchmarking against similar IT service contracts is difficult without detailed performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were excluded, potentially limiting the pool of qualified bidders and impacting price discovery.
Taxpayer Impact: The total value of $60.2 million represents a significant taxpayer investment. Ensuring competitive pricing and efficient service delivery is crucial for maximizing taxpayer value.
Public Impact
Citizens rely on the Treasury's IT infrastructure for essential government functions, making the efficiency of DevOps services critical. The use of a Cost Plus Award Fee contract necessitates robust oversight to prevent unnecessary spending. The exclusion of sources in the competition process could limit innovation and potentially increase costs for taxpayers. The contract's duration extends to December 2025, meaning ongoing scrutiny is required.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources
- Cost Plus Award Fee contract type can incentivize higher costs
- Lack of clear per-unit cost benchmark
- Potential for cost overruns without strict oversight
Positive Signals
- Contract supports critical IT infrastructure for the Department of the Treasury
- Awarded to a single vendor, potentially streamlining management
- Long-term contract provides stability for service delivery
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Government spending in this area is substantial, with benchmarks varying widely based on complexity and service scope. The $60.2 million value is significant for a single contract.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a specific procurement strategy that warrants examination to ensure it maximized competition and achieved best value. Oversight is needed to manage the Cost Plus Award Fee structure effectively.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Limited competition
- Cost Plus Award Fee structure
- Potential for cost overruns
- Lack of transparency in award fee determination
- Unclear performance metrics
Tags
computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $60.2 million to OCTO METRIC LLC. DEVOPS SOFTWARE DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is OCTO METRIC LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $60.2 million.
What is the period of performance?
Start: 2020-06-24. End: 2025-12-31.
What specific criteria led to the exclusion of certain sources in the competition process, and how did this impact the final contract price?
The exclusion of sources suggests a pre-qualification or specific requirement that narrowed the competitive field. Understanding these criteria is vital to assess if the exclusion was justified and if it led to a suboptimal price. Without this information, it's difficult to determine if taxpayers received the best possible value for the $60.2 million investment.
How is the 'Award Fee' component of the Cost Plus Award Fee contract structured, and what metrics are used to determine the award amount?
The effectiveness of a Cost Plus Award Fee contract hinges on clearly defined performance metrics and objective evaluation criteria for the award fee. Without transparency into these elements, it's challenging to assess if the vendor is incentivized to achieve optimal performance and cost control. This lack of clarity poses a risk to taxpayer value.
What are the key performance indicators (KPIs) for this DevOps contract, and how is performance against these KPIs being measured and reported?
Measuring the effectiveness of DevOps services requires robust KPIs related to deployment frequency, lead time for changes, mean time to recovery, and change failure rate. Regular, transparent reporting on these KPIs is essential for the Bureau of the Fiscal Service to ensure the contractor is delivering value and meeting objectives. Without this, oversight is significantly hampered.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1175 PEACHTREE ST NE STE 1000 FL 10, ATLANTA, GA, 30361
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,222,812
Exercised Options: $61,464,230
Current Obligation: $60,187,884
Actual Outlays: $59,157,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 75N98119D00087
IDV Type: GWAC
Timeline
Start Date: 2020-06-24
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-09-19
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