Department of State IT support contract awarded to Magnum Opus, LLC for over $13.2 million

Contract Overview

Contract Amount: $13,272,161 ($13.3M)

Contractor: Magnum Opus, LLC

Awarding Agency: General Services Administration

Start Date: 2023-09-30

End Date: 2026-03-14

Contract Duration: 896 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: COE DEPARTMENT OF STATE BUREAU OF CONSULAR AFFAIRS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $13.3 million to MAGNUM OPUS, LLC for work described as: COE DEPARTMENT OF STATE BUREAU OF CONSULAR AFFAIRS SUPPORT Key points: 1. Contract value appears reasonable for IT support services of this duration and scope. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risk indicators include the contract's duration and the specific IT services required. 4. Performance context is within the Bureau of Consular Affairs, supporting critical functions. 5. This contract positions Magnum Opus, LLC as a key IT service provider for the State Department. 6. The contract's reliance on labor hours may present challenges in cost control if not managed effectively.

Value Assessment

Rating: good

The contract value of approximately $13.2 million over its period of performance (roughly 2.5 years) suggests a moderate annual spend for IT support services. Benchmarking against similar IT support contracts for federal agencies of comparable size and complexity would be necessary for a definitive value-for-money assessment. However, the pricing structure, likely based on labor hours, requires careful monitoring to ensure it remains competitive and efficient throughout the contract lifecycle. The General Services Administration (GSA) often facilitates competitive pricing through its contracting vehicles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically involves a robust solicitation process managed by the GSA. The presence of 4 bidders, as suggested by the 'no' field, points to a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It also increases the likelihood of selecting a contractor offering the best value, not just the lowest price.

Public Impact

The primary beneficiaries are the Department of State's Bureau of Consular Affairs, which will receive essential IT support. Services delivered include IT support, likely encompassing help desk, system maintenance, and potentially network administration. The geographic impact is centered in Washington D.C., the primary location for the Bureau of Consular Affairs. Workforce implications may include the direct employment of IT professionals by Magnum Opus, LLC, and potential indirect impacts on State Department IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour based contracts if not tightly managed.
Reliance on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring adequate security protocols are maintained for sensitive government data is paramount.

Positive Signals

Awarded through a full and open competition, indicating a fair and transparent process.
Contract managed by the General Services Administration, a reputable agency for federal procurement.
The contractor, Magnum Opus, LLC, is providing services to a critical government function (Consular Affairs).

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on 'Other Computer Related Services' (NAICS code 541519). This sector is characterized by a high demand for specialized skills in areas such as system integration, IT support, and cybersecurity. The market size for federal IT services is substantial, with agencies continually investing in modernizing their technological infrastructure. This contract represents a typical expenditure for a large federal agency requiring ongoing IT operational support.

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 for small businesses stemming from a set-aside provision. However, the prime contractor, Magnum Opus, LLC, may choose to subcontract portions of the work to small businesses as part of its own business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officers and program managers within the Department of State's Bureau of Consular Affairs, in conjunction with the General Services Administration (GSA) as the contracting agency. Accountability measures would be defined in the contract's performance work statement (PWS) and subject to regular performance reviews. Transparency is generally maintained through contract award databases like FPDS-NG, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Department of State IT Modernization Programs
GSA IT Schedule Contracts
Federal Civilian Agency IT Support Services
Bureau of Consular Affairs Operations Support

Risk Flags

Potential for cost overruns due to labor-hour pricing model.
Dependency on contractor performance for critical IT functions.
Cybersecurity risks associated with handling sensitive government data.
Need for robust oversight to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13.3 million to MAGNUM OPUS, LLC. COE DEPARTMENT OF STATE BUREAU OF CONSULAR AFFAIRS SUPPORT

Who is the contractor on this award?

The obligated recipient is MAGNUM OPUS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-03-14.

What is the track record of Magnum Opus, LLC in performing similar federal IT support contracts?

Assessing the track record of Magnum Opus, LLC requires a review of their past performance on federal contracts, particularly those involving IT support services for agencies of similar size and complexity. Information on past performance, including any awards, past performance evaluations (e.g., CPARS), and any instances of contract disputes or terminations, would be crucial. A history of successful contract completion, positive performance reviews, and timely delivery of services would indicate a lower risk associated with this current award. Conversely, a history of performance issues or unresolved disputes could raise concerns about the contractor's ability to meet the requirements of this new contract effectively.

How does the awarded price compare to market rates for similar IT support services?

To benchmark the value for money, the awarded price of approximately $13.2 million needs to be compared against prevailing market rates for comparable IT support services. This involves analyzing the contract's labor categories, estimated hours, and any material costs against industry data, GSA schedules, or pricing from recently awarded federal contracts for similar services. Factors such as the specific technical skills required, the geographic location of service delivery, and the level of service (e.g., 24/7 support vs. standard business hours) will influence market rates. If the awarded price is significantly higher than comparable contracts or market benchmarks, it could indicate potential overpricing or a less competitive bid process than initially suggested.

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

Key risks for this IT support contract include potential scope creep, contractor performance issues, cybersecurity vulnerabilities, and reliance on key personnel. Scope creep is a risk in labor-hour contracts if requirements are not clearly defined and managed. Contractor performance issues could arise if the company lacks the necessary expertise or resources. Cybersecurity is a constant concern for IT contracts handling sensitive data. Mitigation strategies typically involve robust contract management, clear performance metrics, regular progress reviews, strong cybersecurity protocols, and contingency planning. The GSA's oversight and the State Department's program management are critical in identifying and addressing these risks throughout the contract lifecycle.

How effective has the Bureau of Consular Affairs been in managing its IT support contracts historically?

Evaluating the historical effectiveness of the Bureau of Consular Affairs (BCA) in managing IT support contracts requires an analysis of past contract performance data, audit reports from the Inspector General (IG), and any documented challenges or successes. Factors to consider include the timeliness of contract awards, the stability of IT systems supported, user satisfaction with IT services, and the efficiency of spending. If the BCA has a strong track record of effective contract management, including proactive risk mitigation and successful delivery of IT services, it suggests a higher likelihood of success for this current contract. Conversely, a history of issues could indicate systemic challenges that may impact this award.

What has been the historical spending trend for IT support services within the Bureau of Consular Affairs?

Analyzing historical spending trends for IT support within the Bureau of Consular Affairs (BCA) provides context for the current $13.2 million award. This involves examining expenditure data over the past several fiscal years to identify patterns, fluctuations, and the overall trajectory of IT support investments. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate changes in IT needs, modernization efforts, or efficiency initiatives. Significant deviations from historical spending patterns might warrant further investigation into the underlying reasons, such as new system implementations, increased user demand, or changes in contracting strategies.

What is the potential impact of this contract on the overall IT infrastructure modernization efforts of the Department of State?

This contract for IT support services plays a crucial role in enabling the Department of State's broader IT infrastructure modernization efforts. By ensuring the stable operation and maintenance of existing systems, it frees up resources and allows the department to focus on implementing new technologies and upgrading infrastructure. The effectiveness of Magnum Opus, LLC in providing reliable support will directly influence the success of modernization projects, as a solid operational foundation is essential for introducing new capabilities. The contract's scope and performance will need to align with the department's strategic IT goals to maximize its contribution to modernization.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QPCB23Q0007

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2425 E CAMELBACK RD STE 150, PHOENIX, AZ, 85016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,263,306

Exercised Options: $14,263,306

Current Obligation: $13,272,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00J8

IDV Type: FSS

Timeline