USDA's $19.5M IT support contract awarded to Client/Server Software Solutions Inc. for computer systems design

Contract Overview

Contract Amount: $19,448,915 ($19.4M)

Contractor: Client/Server Software Solutions Inc

Awarding Agency: Department of Agriculture

Start Date: 2012-06-28

End Date: 2018-09-30

Contract Duration: 2,285 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 36

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NITC COMPUTER OPERATIONS SUPPORT SERVICES

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.4 million to CLIENT/SERVER SOFTWARE SOLUTIONS INC for work described as: NITC COMPUTER OPERATIONS SUPPORT SERVICES Key points: 1. Value for money appears fair given the 6-year duration and scope of IT operations support. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a long contract duration potentially increasing performance risks. 4. Performance context involves ongoing IT operations support, critical for agency functions. 5. Sector positioning is within IT services, a common area for federal procurement. 6. The contract was awarded as a delivery order under a larger IDIQ, indicating a structured procurement process.

Value Assessment

Rating: fair

The contract's total value of approximately $19.5 million over six years suggests an average annual spend of around $3.25 million. Benchmarking this against similar IT operations support contracts is challenging without more specific service details. However, the duration implies a need for stable, long-term support. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Compared to market rates for IT systems design and support, the pricing would need to be evaluated against specific skill sets and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and evaluated. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive prices down and encourage innovation from offerors seeking to win the contract.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by considering all qualified sources, likely resulting in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiary is the Department of Agriculture, which receives essential IT operations support. Services delivered include computer systems design and ongoing IT support, crucial for agency operations. The geographic impact is primarily within the agency's operational locations, likely nationwide. Workforce implications include the potential for employment of IT professionals by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (6 years) may lead to vendor complacency or outdated technology if not managed proactively.
Reliance on labor hours can incentivize longer task completion times if not strictly monitored.
Scope creep is a potential risk in long-term IT support contracts if not clearly defined and managed.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing and quality environment.
The contract is a delivery order under an IDIQ, indicating a pre-competed and vetted contract vehicle.
The contractor, Client/Server Software Solutions Inc., has a track record of performing federal contracts.

Sector Analysis

The IT services sector is a significant component of federal spending, with agencies constantly seeking support for their complex digital infrastructure. This contract falls under computer systems design and related services, a sub-sector focused on the architecture, implementation, and maintenance of IT systems. Federal spending in this area is driven by the need to modernize legacy systems, enhance cybersecurity, and improve operational efficiency. Comparable spending benchmarks would typically be found within IT services categories, often aggregated by NAICS code 541512.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor is Client/Server Software Solutions Inc., which may or may not be a small business itself. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is unclear, though large IT service contracts often involve a tiered subcontracting structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS) and require adherence to defined service levels. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Operations and Support Services
Computer Systems Design
IT Professional Services
Department of Agriculture IT Contracts
General Services Administration (GSA) Schedules (if applicable IDIQ)

Risk Flags

Potential for technological obsolescence due to long contract duration.
Risk of cost overruns if labor hours are not closely managed.
Need for clear performance metrics to ensure value delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.4 million to CLIENT/SERVER SOFTWARE SOLUTIONS INC. NITC COMPUTER OPERATIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CLIENT/SERVER SOFTWARE SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2012-06-28. End: 2018-09-30.

What is the track record of Client/Server Software Solutions Inc. in performing similar federal IT support contracts?

Client/Server Software Solutions Inc. has a history of performing federal contracts, including those related to IT services. Analyzing their past performance on similar contracts, particularly those involving computer systems design and operations support, would provide insight into their reliability, quality of service, and ability to meet deadlines and technical requirements. Reviewing past contract awards, modifications, and any reported performance issues or successes would be crucial. Data on contract values, durations, and agencies served would help establish a pattern of experience. A deeper dive would involve looking at contract close-out data and any available past performance evaluations to gauge overall effectiveness and client satisfaction.

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

Determining the precise value for money requires a detailed comparison of the labor rates and overall contract cost against prevailing market rates for comparable IT systems design and support services. This involves benchmarking against industry salary surveys for specific IT roles (e.g., system architects, network engineers, IT support specialists) and analyzing the pricing structures of other federal and commercial contracts for similar scopes of work. Factors such as geographic location, required security clearances, and the complexity of the systems being supported influence market rates. Without access to the specific labor categories, hours, and rates within this contract, a definitive comparison is difficult, but the 'full and open' competition suggests the government aimed for competitive pricing.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key performance indicators (KPIs) and service level agreements (SLAs) are critical components of IT support contracts, defining the expected quality and timeliness of services. For this contract, typical KPIs might include system uptime percentages, response times for issue resolution, successful implementation of system upgrades, and adherence to security protocols. SLAs would quantify these metrics, setting specific targets (e.g., 99.9% system availability, resolution of critical issues within 4 hours). The effectiveness of oversight and the contractor's performance are directly measured against these defined metrics. A review of the contract's Performance Work Statement (PWS) would detail these specific requirements and how performance is evaluated and incentivized or penalized.

What is the historical spending trend for similar IT operations support services at the Department of Agriculture?

Analyzing historical spending trends for IT operations support services at the Department of Agriculture provides context for the $19.5 million awarded to Client/Server Software Solutions Inc. This involves examining procurement data over several fiscal years to identify patterns in contract values, durations, types of services procured (e.g., help desk, network management, system administration), and the contractors frequently awarded these types of agreements. Understanding these trends helps assess whether current spending is consistent with past investments, if there are increasing or decreasing demands for such services, and the typical cost ranges for similar procurements. Significant deviations from historical norms might warrant further investigation into the reasons behind the change.

How does the contract's duration impact the potential for technological obsolescence and vendor lock-in?

The contract's duration of approximately six years (from June 2012 to September 2018) presents a moderate risk of technological obsolescence. Over this period, IT standards and capabilities evolve rapidly. If the contract does not include provisions for technology refresh or adaptation, the systems and services provided could become outdated, diminishing their effectiveness and potentially increasing long-term costs. Vendor lock-in is also a consideration; a long-term relationship can make it difficult for the agency to switch providers or adopt new technologies if the incumbent contractor is not adaptable or if switching costs are prohibitively high. Robust contract management, including regular reviews and opportunities for modernization, is essential to mitigate these risks.

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: 36

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2677 PROSPERITY AVENUE, SUITE 650, FAIRFAX, VA, 22031

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $25,398,840

Exercised Options: $19,889,212

Current Obligation: $19,448,915

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,696,773

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0675Z

IDV Type: GWAC

Timeline