USDA awards $25.5M for custom computer programming to MILVETS SYSTEMS TECHNOLOGY, INC

Contract Overview

Contract Amount: $25,509,290 ($25.5M)

Contractor: Milvets Systems Technology, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2013-06-25

End Date: 2018-11-23

Contract Duration: 1,977 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64133

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.5 million to MILVETS SYSTEMS TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. The contract value is $25.5 million over approximately 5 years. 2. MILVETS SYSTEMS TECHNOLOGY, INC. secured this contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The primary service is custom computer programming. 5. The contract was a delivery order under a larger contract.

Value Assessment

Rating: fair

The contract was awarded as a delivery order, making direct pricing comparisons difficult without the base contract details. The provided benchmark of $12,903 (likely a total value or similar metric) is too vague to assess per-unit cost effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition where some sources were excluded. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The $25.5 million awarded represents taxpayer funds allocated for essential IT services. The limited competition structure warrants scrutiny to ensure optimal value for money.

Public Impact

Farmers and agricultural stakeholders may benefit from improved IT systems and services. The contract supports the Farm Service Agency's mission through technology. The duration of the contract suggests a long-term need for these programming services. The award to a specific company impacts the IT services market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition structure
Lack of clear per-unit cost benchmark
Potential for price inflation due to source exclusion

Positive Signals

Awarded under a competitive process
Supports critical agricultural agency functions

Sector Analysis

The contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and contract type. This award represents a portion of the government's investment in IT infrastructure.

Small Business Impact

The data does not indicate whether MILVETS SYSTEMS TECHNOLOGY, INC. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The contract was awarded as a delivery order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would typically involve monitoring performance against the base contract and individual delivery orders to ensure compliance and value.

Related Government Programs

Custom Computer Programming Services
Department of Agriculture Contracting
Farm Service Agency Programs

Risk Flags

Limited competition may have inflated costs.
Lack of detailed pricing data hinders thorough value assessment.
Potential for vendor lock-in due to specialized programming.
Contract duration could lead to scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.5 million to MILVETS SYSTEMS TECHNOLOGY, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MILVETS SYSTEMS TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2013-06-25. End: 2018-11-23.

What was the specific rationale for excluding certain sources in the competition?

The rationale for excluding sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award typically involves specific justifications outlined in federal acquisition regulations. This could include technical capabilities, past performance, or unique requirements that only a limited number of vendors can meet. Understanding this rationale is crucial for assessing whether the exclusion was justified and if it potentially limited competitive pricing.

How does the labor hour pricing compare to industry benchmarks for custom computer programming?

Without specific hourly rates or the base contract details, it's challenging to benchmark the labor hour pricing effectively. Industry benchmarks for custom computer programming vary significantly based on skill set, location, and experience. A thorough analysis would require comparing the awarded rates against GSA schedules, other government contracts for similar services, and private sector data to determine if the pricing is competitive and represents good value.

What is the expected impact of these custom programming services on the Farm Service Agency's operational efficiency?

The custom computer programming services are expected to enhance the operational efficiency of the Farm Service Agency by modernizing systems, improving data management, or developing new functionalities. The $25.5 million investment suggests a significant scope of work aimed at addressing key challenges or opportunities within the agency's mission, ultimately supporting agricultural programs and services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N ALAFAYA TRL STE 400, ORLANDO, FL, 32826

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,509,290

Exercised Options: $25,509,290

Current Obligation: $25,509,290

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AG3151C130015

IDV Type: IDC

Timeline