HUD OCIO awards $99.6M for IT O&M to Pyramid Systems, Inc. under GSA BPA Call

Contract Overview

Contract Amount: $99,620,802 ($99.6M)

Contractor: Pyramid Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-11-25

End Date: 2026-03-23

Contract Duration: 1,944 days

Daily Burn Rate: $51.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)- OPERATIONS AND MAINTENANCE (O&M).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $99.6 million to PYRAMID SYSTEMS, INC. for work described as: DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)- OPERATIONS AND MAINTENANCE (O&M). Key points: 1. Contract awarded to Pyramid Systems, Inc. for IT Operations and Maintenance. 2. Competition method was 'COMPETED UNDER SAP', indicating a competitive process within specific guidelines. 3. Contract type is Time and Materials, which can pose cost control risks. 4. The contract duration is 1944 days, ending March 2026. 5. The award value is substantial at $99.6 million.

Value Assessment

Rating: fair

The contract is Time and Materials, which generally offers less price certainty than fixed-price contracts. Benchmarking against similar IT O&M contracts for Computer Systems Design Services is needed to assess if the $99.6M value is reasonable for the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), suggesting competition occurred but potentially with fewer bidders than a full and open competition. This method aims for efficiency but may limit price discovery compared to broader solicitations.

Taxpayer Impact: The $99.6M award represents a significant taxpayer investment in IT infrastructure maintenance for HUD.

Public Impact

Ensures continued IT operations and maintenance for HUD's critical systems. Supports the agency's digital infrastructure and services to the public. Potential for cost overruns due to Time and Materials contract type. Impact on small businesses is not explicitly detailed, but the contract is not set-aside for small businesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases cost risk.
Limited competition under SAP may not yield the best possible price.
No explicit small business participation noted.

Positive Signals

Awarded under a GSA BPA Call, suggesting pre-competed services.
Contract duration provides stability for IT O&M services.
Competitive bidding under SAP indicates some level of price evaluation.

Sector Analysis

This contract falls under IT services, specifically Computer Systems Design Services. IT O&M spending is crucial for government agencies to maintain aging infrastructure and support modern digital services. Benchmarks for similar contracts would typically consider the scope of services, system complexity, and contract duration.

Small Business Impact

The contract was not set-aside for small businesses (sb: false). While Pyramid Systems, Inc. may be a small business, the award itself does not indicate specific goals or participation targets for other small businesses within this contract's scope.

Oversight & Accountability

The contract was awarded by GSA's Federal Acquisition Service, leveraging existing contract vehicles. Oversight will be critical to manage the Time and Materials aspects and ensure efficient use of funds throughout the contract's duration.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Time and Materials contract type.
Potential for cost overruns.
Limited competition under SAP.
Lack of explicit small business participation goals.
Significant contract value requires close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $99.6 million to PYRAMID SYSTEMS, INC.. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)- OPERATIONS AND MAINTENANCE (O&M).

Who is the contractor on this award?

The obligated recipient is PYRAMID SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $99.6 million.

What is the period of performance?

Start: 2020-11-25. End: 2026-03-23.

What specific IT systems and services are covered under this Operations and Maintenance contract, and how do they align with HUD's mission objectives?

The contract covers the operations and maintenance of HUD's IT infrastructure, managed by the OCIO. This likely includes maintaining servers, networks, software applications, and providing technical support essential for HUD's housing and community development programs. Understanding the specific systems ensures taxpayer funds are directed towards critical functions supporting HUD's mission delivery and public services.

How will HUD mitigate the cost risks associated with a Time and Materials contract, especially given its significant value and duration?

HUD will need robust oversight mechanisms, including detailed monitoring of labor hours, material costs, and task completion. Establishing clear ceiling prices for specific tasks or phases, implementing performance metrics, and conducting regular reviews of expenditures against projected costs are crucial. Proactive management and clear communication with Pyramid Systems, Inc. are essential to control spending.

What was the competitive landscape under the SAP solicitation, and how was the price determined to be fair and reasonable?

The 'COMPETED UNDER SAP' designation implies that the solicitation was open to a limited number of vendors or followed specific simplified procedures. Price reasonableness was likely determined through comparison of offers received, potentially against GSA schedule pricing or historical data for similar services. Further analysis would reveal the number of bids received and the specific evaluation criteria used.

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 - NETWORK

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pyramid Systems Inc.

Address: 2677 PROSPERITY AVE STE 700, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $103,627,463

Exercised Options: $103,627,463

Current Obligation: $99,620,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QFDA20A0037

IDV Type: BPA

Timeline