Education Department awards $3.6M contract for MSIX program oversight, with 2 bidders

Contract Overview

Contract Amount: $3,603,483 ($3.6M)

Contractor: E Source Technologies, Inc.

Awarding Agency: Department of Education

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE IV&V SERVICES TO BE USED TO MONITOR AND VALIDATE THE EFFECTIVENESS OF THE MSIX CONTRACT AND ENSURE THE CONTINUED SUCCESS OF THE MSIX PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $3.6 million to E SOURCE TECHNOLOGIES, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE IV&V SERVICES TO BE USED TO MONITOR AND VALIDATE THE EFFECTIVENESS OF THE MSIX CONTRACT AND ENSURE THE CONTINUED SUCCESS OF THE MSIX PROGRAM. Key points: 1. Contract provides crucial independent verification and validation (IV&V) for the MSIX program. 2. Focus on monitoring and validating effectiveness ensures program success and taxpayer value. 3. Competition level indicates potential for competitive pricing, though further analysis is needed. 4. Contract duration of five years suggests a long-term need for oversight services. 5. Firm Fixed Price contract type helps manage cost certainty for the government. 6. Contractor E SOURCE TECHNOLOGIES, INC. will provide specialized IV&V services.

Value Assessment

Rating: good

The contract's value of $3.6 million over five years for IV&V services appears reasonable given the critical nature of program oversight. Benchmarking against similar IV&V contracts for large IT programs would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a threshold below the full and open competition requirements. With two bidders, the competition level is moderate. While two bidders can lead to some price discovery, it is less robust than a full and open competition with a larger number of offerors. The limited competition might mean less pressure on pricing compared to a more widely competed contract.

Taxpayer Impact: The moderate competition suggests that taxpayers may not be receiving the absolute lowest possible price, but the presence of multiple bidders likely prevented significantly inflated costs.

Public Impact

The primary beneficiaries are the Department of Education and the MSIX program, which will receive independent oversight. Services delivered include monitoring and validation of the MSIX contract's effectiveness. The geographic impact is primarily within the District of Columbia, where the Department of Education is headquartered. Workforce implications include the need for specialized IV&V professionals employed by E SOURCE TECHNOLOGIES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs than a fully competed contract.
The five-year duration could lead to scope creep if not managed tightly.
Reliance on a single contractor for critical IV&V functions poses a potential risk if performance falters.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Independent Verification and Validation ensures program accountability.
Contract duration aligns with the long-term needs of the MSIX program.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and related services (NAICS 541511). The market for IT IV&V services is substantial, driven by the increasing complexity and investment in government IT programs. Comparable spending benchmarks for IV&V services can vary widely based on program scope, duration, and complexity, but this contract's value appears aligned with mid-sized IT oversight engagements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false) and does not explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor may engage small businesses as subcontractors, which would need to be tracked separately.

Oversight & Accountability

Oversight will likely be managed by the Department of Education's contracting officers and program managers. Accountability measures are inherent in the IV&V function itself, which is designed to ensure the MSIX contract meets its objectives. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MSIX Program
IT Program Management Support
Independent Verification and Validation Services
Department of Education IT Contracts

Risk Flags

Limited competition
Potential for cost overruns if scope is not managed
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $3.6 million to E SOURCE TECHNOLOGIES, INC.. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE IV&V SERVICES TO BE USED TO MONITOR AND VALIDATE THE EFFECTIVENESS OF THE MSIX CONTRACT AND ENSURE THE CONTINUED SUCCESS OF THE MSIX PROGRAM.

Who is the contractor on this award?

The obligated recipient is E SOURCE TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is the track record of E SOURCE TECHNOLOGIES, INC. with the Department of Education or similar federal agencies?

A thorough review of E SOURCE TECHNOLOGIES, INC.'s past performance is crucial for assessing their suitability for this IV&V contract. Information regarding their prior contracts with the Department of Education and other federal agencies, including contract values, durations, and performance evaluations, would provide insight into their reliability and expertise. Specifically, examining their history with similar IT oversight or validation projects would be highly relevant. A positive track record with successful project completion and positive past performance reviews would increase confidence in their ability to deliver on this MSIX IV&V contract. Conversely, any history of performance issues, contract disputes, or negative evaluations would raise concerns and warrant further investigation into the mitigation strategies in place.

How does the $3.6 million contract value compare to similar IV&V services for large federal IT programs?

The $3.6 million contract value over five years for IV&V services for the MSIX program needs to be benchmarked against comparable engagements. Large federal IT programs often require extensive IV&V, and costs can range significantly based on the program's complexity, scope, and the specific services required. For instance, contracts for IV&V on major system modernizations or enterprise-wide implementations can run into millions of dollars annually. Without specific details on the MSIX program's complexity and the exact scope of IV&V services, a precise comparison is challenging. However, if MSIX is a large-scale, critical system, this funding level appears within a reasonable range for dedicated, multi-year oversight. A more granular comparison would involve analyzing the number of full-time equivalents (FTEs) or the specific deliverables expected under this contract relative to industry standards.

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

Key risks for this contract include potential underperformance by the contractor, leading to inadequate oversight of the MSIX program, and the risk of the MSIX program itself facing challenges that impact the IV&V scope or effectiveness. Another risk is the limited competition, which could lead to suboptimal pricing. Mitigation strategies likely involve robust performance monitoring by the Department of Education, clearly defined deliverables and service level agreements (SLAs) within the contract, and regular performance reviews. The firm fixed-price nature of the contract also incentivizes the contractor to manage their costs and deliver effectively. For the limited competition risk, the Department would have had to justify the procurement approach, potentially indicating that only a limited number of qualified vendors existed or that the acquisition threshold necessitated simplified procedures.

What is the expected effectiveness of the MSIX program based on the need for this IV&V contract?

The existence of this IV&V contract strongly suggests that the Department of Education views the MSIX program as significant and complex, warranting dedicated oversight to ensure its effectiveness and success. IV&V services are typically procured for programs that involve substantial investment, critical functionality, or high risk. The purpose of this contract is explicitly to 'monitor and validate the effectiveness of the MSIX contract and ensure the continued success of the MSIX program.' This implies that the Department wants an independent assessment to confirm that MSIX is meeting its objectives, delivering intended benefits, and operating efficiently and securely. The IV&V function aims to identify potential issues early, provide recommendations for improvement, and ultimately increase the likelihood of the MSIX program achieving its strategic goals.

How has federal spending on IT IV&V services evolved, and where does this contract fit in?

Federal spending on IT Independent Verification and Validation (IV&V) services has generally increased over the years, driven by the growing complexity and criticality of government IT systems, as well as a greater emphasis on accountability and program success. Agencies are increasingly recognizing the value of independent oversight to mitigate risks associated with large IT investments, prevent cost overruns, and ensure that systems meet user needs and security requirements. This $3.6 million contract for the Department of Education's MSIX program fits within this trend. It represents a specific investment in ensuring the success of a particular IT program. While not a massive standalone contract, it is part of a broader federal effort to utilize specialized services to manage and validate IT projects, reflecting a mature approach to IT acquisition and program management.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 91990021R0018

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1107 ANDEAN GOOSE WAY, UPPER MARLBORO, MD, 20774

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,629,094

Exercised Options: $3,603,483

Current Obligation: $3,603,483

Actual Outlays: $3,319,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline