USDA's $20.3M IT contract with Acentra Health LLC for custom programming services awarded under full and open competition

Contract Overview

Contract Amount: $20,357,780 ($20.4M)

Contractor: Acentra Health LLC

Awarding Agency: Department of Agriculture

Start Date: 2011-04-07

End Date: 2016-03-28

Contract Duration: 1,817 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT 11 115 CNSI

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22302

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.4 million to ACENTRA HEALTH LLC for work described as: IT 11 115 CNSI Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT solutions. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. Acentra Health LLC, the contractor, has a track record with federal agencies. 4. The contract duration of 1817 days (approximately 5 years) suggests a long-term need for these services. 5. The contract type, Labor Hours, implies flexibility in resource allocation for programming tasks. 6. The BPA Call award mechanism suggests this was a task order under a pre-existing agreement.

Value Assessment

Rating: fair

The contract's total value of $20.3 million over nearly five years averages to approximately $4.1 million annually. Benchmarking this against similar custom computer programming services contracts is challenging without more specific service details. However, the award was made under a BPA Call, which typically implies pre-negotiated rates. Further analysis would require comparing the labor rates to market data for similar skill sets and experience levels in the IT sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was a BPA Call suggests that multiple vendors may have been on the underlying Blanket Purchase Agreement, and this specific task order was competed among them or awarded based on best value principles. The number of bidders for this specific call is not provided, but the 'full and open' designation generally promotes competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Agriculture's Food and Nutrition Service, which receives custom IT programming support. The services delivered are custom computer programming, likely supporting the development, maintenance, or enhancement of IT systems crucial for FNS operations. The geographic impact is primarily within the United States, supporting federal IT infrastructure. Workforce implications include the employment of IT professionals by Acentra Health LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the programming services delivered.
The 'Labor Hours' contract type can sometimes lead to cost overruns if not managed tightly, though it offers flexibility.
Limited information on the specific nature of the 'custom computer programming' makes it hard to benchmark against industry standards or identify potential risks.
The BPA Call award mechanism, while efficient, might limit the visibility into the specific competition dynamics for this individual task order.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive bidding process.
The contract duration of nearly five years indicates a stable, long-term need for the services, providing continuity.
The contractor, Acentra Health LLC, has experience with federal contracts, suggesting a level of familiarity with government requirements.
The contract supports a critical function within the Department of Agriculture (Food and Nutrition Service).

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending allocated to software development, system integration, and IT support. Comparable spending benchmarks would depend on the specific complexity and scope of the custom programming required, but federal IT spending often runs into billions annually across various agencies for similar services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if Acentra Health LLC chooses to engage them, which is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Agriculture's Food and Nutrition Service contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Services
Custom Software Development
Blanket Purchase Agreements (BPAs)
Department of Agriculture IT Contracts
Food and Nutrition Service IT Modernization

Risk Flags

Potential for cost creep due to 'Labor Hours' contract type if not closely managed.
Lack of specific performance metrics makes objective assessment of value difficult.
Limited transparency into the specific competition details for this BPA Call task order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.4 million to ACENTRA HEALTH LLC. IT 11 115 CNSI

Who is the contractor on this award?

The obligated recipient is ACENTRA HEALTH LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2011-04-07. End: 2016-03-28.

What specific custom computer programming services were delivered under this contract, and how did they align with the Food and Nutrition Service's mission?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511) awarded to Acentra Health LLC by the Department of Agriculture's Food and Nutrition Service (FNS). While the exact nature of the programming is not detailed, FNS is responsible for administering federal nutrition assistance programs like SNAP. Therefore, the custom programming likely supported the development, enhancement, or maintenance of IT systems critical to managing these programs, such as data processing, beneficiary management, reporting, or internal operational systems. The services would directly align with FNS's mission by ensuring the efficient and effective operation of its technology infrastructure, which underpins the delivery of vital nutrition assistance to millions of Americans.

How does the $20.3 million contract value compare to other custom programming services contracts awarded by the USDA or similar agencies?

The $20.3 million contract value for custom computer programming services over approximately five years (1817 days) represents an average annual spend of roughly $4.1 million. To compare this effectively, one would need to analyze the scope, complexity, and duration of other similar contracts. For instance, contracts for enterprise-level software development or large-scale system integration would likely be significantly higher. Conversely, smaller, project-specific programming tasks might be valued lower. Without detailed service descriptions and performance periods for comparable contracts, a precise benchmark is difficult. However, for a single task order under a BPA, $4.1 million annually for specialized IT programming is within a plausible range for federal agencies with significant IT needs like the USDA.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was contractor performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such metrics would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include measures related to code quality, bug resolution times, system uptime, adherence to project timelines, and user satisfaction. Contractor performance is usually assessed through regular performance evaluations conducted by the government's Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC). These evaluations often result in contractor performance reports, which can influence future contract awards or options.

What is Acentra Health LLC's track record with federal contracts, particularly in IT services and custom programming?

Acentra Health LLC has a history of receiving federal contracts, as indicated by its presence in contract databases. While the provided data snippet doesn't offer a comprehensive history, it confirms an award from the Department of Agriculture. To fully assess their track record, a deeper dive into their contract portfolio across various agencies (like HHS, CMS, etc., where they have historically been active) would be necessary. This would involve examining past performance evaluations, contract modifications, and the types of IT services they have provided. Their experience in custom programming is suggested by this specific contract's designation (NAICS 541511), implying they possess the capabilities to develop tailored software solutions for government clients.

Given the 'Labor Hours' contract type, what measures were in place to control costs and ensure efficient resource utilization?

Contracts awarded on a 'Labor Hours' basis, like this one, are designed for flexibility but require robust cost controls. The government typically manages this by establishing ceilings on the total contract value and potentially on the number of labor hours or specific labor categories. The Contracting Officer's Representative (COR) plays a crucial role in monitoring the hours worked by contractor personnel against the approved labor mix and project milestones. Regular reporting requirements from the contractor on labor utilization, along with government oversight of progress and deliverables, are essential. Furthermore, the government reserves the right to audit contractor labor charges to ensure accuracy and compliance with contract terms, helping to prevent cost overruns and ensure efficient resource allocation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 702 KING FARM BLVD FL 2, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,705,813

Exercised Options: $20,357,780

Current Obligation: $20,357,780

Parent Contract

Parent Award PIID: AG3198B080002

IDV Type: BPA

Timeline