DOT awards $2.2M task order to Skyward IT Solutions for financial data management and systems development

Contract Overview

Contract Amount: $2,199,960 ($2.2M)

Contractor: Skyward IT Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $2.0K/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: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FINANCIAL DATA MANAGEMENT AND SYSTEMS DEVELOPMENT FOR THE DOT WORKING CAPITAL FUND (WCF).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.2 million to SKYWARD IT SOLUTIONS, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FINANCIAL DATA MANAGEMENT AND SYSTEMS DEVELOPMENT FOR THE DOT WORKING CAPITAL FUND (WCF). Key points: 1. Task order focuses on critical financial data management and systems development for the DOT Working Capital Fund. 2. Skyward IT Solutions, an LLC, is the sole contractor for this specific task order. 3. The contract duration is 1095 days, spanning from October 2023 to September 2026. 4. This award falls under computer systems design services, a key area for government IT infrastructure. 5. The contract type is Firm Fixed Price, indicating a defined cost for the services rendered. 6. The task order was awarded under full and open competition after exclusion of sources.

Value Assessment

Rating: good

The contract value of $2.2 million for three years of financial data management and systems development appears reasonable for a specialized IT service. Benchmarking against similar contracts for government financial systems modernization or data management services would provide a more precise value assessment. However, given the scope of systems development and ongoing management, the pricing is likely competitive within the federal IT services market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the initial solicitation may have had some exclusions, the final award was made through a competitive process open to all eligible sources. The number of bidders is not specified, but the 'full and open' nature suggests a robust competition was intended, which typically leads to better price discovery and value for the government.

Taxpayer Impact: A competitive award process, even with prior exclusions, generally benefits taxpayers by ensuring that the government receives services at a fair market price, reducing the risk of overpayment and encouraging innovation from contractors.

Public Impact

The Department of Transportation's Office of the Secretary will benefit from improved financial data management and systems. Services delivered include financial data management and systems development, crucial for operational efficiency. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications may involve IT specialists and financial analysts within the DOT and potentially at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if systems are highly proprietary and difficult to transition.
Dependence on a single contractor for critical financial systems could pose a risk if performance falters.
Scope creep could increase costs beyond the initial $2.2 million if not managed tightly.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive market influenced pricing.
Contract duration of three years allows for stable development and implementation of financial systems.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies continually investing in modernizing financial systems, data management, and cybersecurity. This task order aligns with the government's ongoing efforts to improve efficiency and transparency in financial operations through technological solutions. Comparable spending benchmarks would typically be found in IT services categories like NAICS 541512.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the 'sb' field is false. This suggests the primary award was not specifically targeted to small businesses. However, the prime contractor, Skyward IT Solutions, LLC, is a limited liability company, and its size status (small or large business) is not explicitly detailed here. Subcontracting opportunities for small businesses may exist depending on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this task order will likely be managed by the Department of Transportation's contracting officers and program managers within the Immediate Office of the Secretary. The Firm Fixed Price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency is generally maintained through contract databases like FPDS.gov. Specific Inspector General jurisdiction would depend on the DOT's IG mandate concerning financial systems and IT procurements.

Related Government Programs

DOT Working Capital Fund
Federal Financial Management Systems
Government IT Modernization Programs
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Dependence on single contractor
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.2 million to SKYWARD IT SOLUTIONS, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FINANCIAL DATA MANAGEMENT AND SYSTEMS DEVELOPMENT FOR THE DOT WORKING CAPITAL FUND (WCF).

Who is the contractor on this award?

The obligated recipient is SKYWARD IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Skyward IT Solutions, LLC with federal contracts, particularly in financial data management?

Skyward IT Solutions, LLC has been awarded federal contracts, with this task order representing a significant engagement. A deeper dive into their contract history would reveal their performance on previous projects, including timeliness, adherence to budget, and client satisfaction. Their experience specifically with financial data management and systems development for government entities like the DOT is crucial for assessing their capability to deliver on this $2.2 million task order. Analyzing past performance ratings and any past performance issues or commendations would provide a clearer picture of their reliability and expertise in this domain.

How does the $2.2 million value compare to similar federal contracts for financial data management systems?

The $2.2 million value for a three-year task order focused on financial data management and systems development for a federal agency like the DOT is within a typical range for specialized IT services. However, a precise comparison requires benchmarking against contracts with similar scopes, durations, and agency sizes. Factors such as the complexity of the existing systems, the specific functionalities required (e.g., integration with other financial platforms, data analytics capabilities), and the level of customization needed will influence cost. Without access to a detailed breakdown of the work required, it's challenging to definitively state if this represents excellent or fair value, but it does not appear to be an outlier for this type of federal IT work.

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

Key risks include potential technical challenges in developing or integrating financial systems, the possibility of scope creep leading to cost overruns (though mitigated by the FFP structure), and contractor performance issues. Mitigation strategies likely involve robust project management by the DOT, clear definition of deliverables and milestones, regular performance reviews, and the FFP contract type which incentivizes the contractor to manage costs effectively. Ensuring adequate technical expertise within the DOT oversight team is also critical. The contract's duration allows for phased implementation, which can help identify and address risks early.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

This procurement approach aims to balance the benefits of broad competition with specific agency needs or existing relationships. 'Full and open competition' generally drives down prices and encourages innovation by allowing any qualified vendor to bid. The 'exclusion of sources' clause suggests that certain vendors or types of solutions might have been pre-qualified or excluded based on specific criteria, perhaps related to existing infrastructure compatibility or security requirements. While this might limit the pool of bidders compared to pure full and open competition, it can ensure that the bidders are highly relevant and capable, potentially leading to a more efficient and effective outcome, thus benefiting taxpayers by securing appropriate expertise.

What is the historical spending pattern for financial data management and systems development within the DOT?

Analyzing historical spending patterns for financial data management and systems development within the DOT is essential for context. This includes examining previous contracts awarded for similar services, their values, durations, and the contractors involved. Understanding trends in DOT's IT investments, particularly in financial systems, can reveal whether this $2.2 million task order represents an increase, decrease, or stable level of spending. It also helps identify if the DOT frequently engages in such procurements or if this is a new initiative. Such historical data provides a baseline against which the current contract's value and necessity can be more accurately assessed.

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 - APLLICATIONS

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: 2000 TOWER OAKS BLVD STE 230, ROCKVILLE, MD, 20852

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,513,072

Exercised Options: $2,666,292

Current Obligation: $2,199,960

Actual Outlays: $2,054,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0160

IDV Type: GWAC

Timeline