Agriculture's Forest Service spent $15.5M on program management services, with Innovative Solutions Group Inc. as the sole provider

Contract Overview

Contract Amount: $15,448,546 ($15.4M)

Contractor: Innovative Solutions Group, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2007-09-14

End Date: 2011-11-30

Contract Duration: 1,538 days

Daily Burn Rate: $10.0K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IMPLEMENTATION AND OPERATION OF AN PROGRAM MANAGEMENT OFFICE (PMO).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.4 million to INNOVATIVE SOLUTIONS GROUP, INC. for work described as: IMPLEMENTATION AND OPERATION OF AN PROGRAM MANAGEMENT OFFICE (PMO). Key points: 1. The contract focused on program management office (PMO) implementation and operation, a critical function for large federal initiatives. 2. A single award suggests potential limitations in market competition or a highly specialized need met by one firm. 3. The duration of the contract (over 4 years) indicates a sustained requirement for these PMO services. 4. Fixed-price contracts generally offer cost certainty but can limit flexibility if project scope changes significantly. 5. The contract was awarded under the VA (Virginia) region, potentially indicating a concentration of federal IT services in that area. 6. The NAICS code 541519 points to a broad category of 'Other Computer Related Services', requiring further detail to understand the specific IT support provided.

Value Assessment

Rating: fair

The total award of $15.5 million over approximately four years for program management services appears to be within a reasonable range for federal contracts of this nature. However, without specific benchmarks for PMO implementation and operation services, a precise value-for-money assessment is challenging. The fixed-price nature of the contract suggests an attempt to control costs, but the lack of competition raises questions about whether the government secured the most competitive pricing possible. Further analysis would require comparing this contract's unit costs or overall value to similar PMO support contracts awarded to other firms or agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source, indicated by the number of offers being 1. This means that the Department of Agriculture did not conduct a competitive bidding process, likely due to specific circumstances such as a unique capability possessed by Innovative Solutions Group, Inc., or a prior relationship that led to this determination. The absence of competition means that the government did not benefit from the price discovery that typically occurs when multiple vendors vie for a contract.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure federal work.

Public Impact

The primary beneficiary of this contract is the Department of Agriculture's Forest Service, which received program management support to enhance its operational efficiency. The services delivered likely involved planning, organizing, and overseeing projects or programs within the Forest Service, contributing to better resource allocation and project outcomes. The geographic impact is primarily within the United States, supporting federal agency operations, with the contract administered in Virginia. While not directly creating new jobs, the contract supported the workforce within Innovative Solutions Group, Inc., and potentially enabled the Forest Service to better manage its existing personnel and projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpayment and missed opportunities for cost savings.
The broad NAICS code 'Other Computer Related Services' lacks specificity, making it difficult to fully assess the technical scope and value of the services rendered.
The sole-source nature limits transparency into the procurement process and the justification for selecting a single vendor.

Positive Signals

The contract was successfully implemented and operated for its full duration, indicating the contractor met the agency's needs.
The fixed-price contract structure provided cost certainty for the Forest Service, allowing for predictable budgeting.
The contract supported a critical function (PMO) for a major federal agency, contributing to the effective management of its programs.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support functions beyond specialized areas like software development or network management. Federal spending in this broad category is substantial, with agencies frequently outsourcing program management and IT support to leverage external expertise. The market size for such services is vast, with numerous firms capable of providing PMO support. However, the sole-source nature of this award suggests that either the specific requirements were highly specialized or there were other factors limiting the competitive landscape for this particular procurement.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. Furthermore, the contract was awarded sole-source, which typically bypasses the standard competitive processes where small business participation is often encouraged or mandated through subcontracting plans. Without a competitive solicitation, there is no explicit requirement for the prime contractor to engage small businesses as subcontractors. This award, therefore, likely had minimal direct impact on the small business ecosystem in terms of subcontracting opportunities related to this specific contract.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of Agriculture's Forest Service contracting officers and program managers. As a sole-source award, the justification and selection process would have been subject to internal agency review and potentially oversight from bodies like the Government Accountability Office (GAO) if protested. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance.

Related Government Programs

Program Management Support Services
IT Consulting Services
Federal Agency Operations Support
Forest Service IT Spending
Department of Agriculture Contracts

Risk Flags

Sole-source award
Lack of competition
Broad NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.4 million to INNOVATIVE SOLUTIONS GROUP, INC.. IMPLEMENTATION AND OPERATION OF AN PROGRAM MANAGEMENT OFFICE (PMO).

Who is the contractor on this award?

The obligated recipient is INNOVATIVE SOLUTIONS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2007-09-14. End: 2011-11-30.

What specific program management functions did Innovative Solutions Group, Inc. provide under this contract?

The contract focused on the 'IMPLEMENTATION AND OPERATION OF AN PROGRAM MANAGEMENT OFFICE (PMO)'. This typically involves establishing and running the infrastructure, processes, and tools necessary for effective program management. Specific functions could include project planning, scheduling, resource allocation, risk management, performance monitoring, reporting, and stakeholder communication. For the Forest Service, this might have related to managing large-scale IT projects, conservation initiatives, or operational improvements. The broad NAICS code 541519 suggests a general IT support context, but the PMO focus implies a higher level of strategic and organizational support rather than just technical IT services.

How does the $15.5 million cost compare to similar federal PMO contracts?

Benchmarking the $15.5 million cost for this contract requires comparing it to similar Program Management Office (PMO) implementation and operation contracts awarded by federal agencies. Given this contract spanned approximately four years (1538 days), the average annual spend was roughly $3.86 million. This figure needs to be contextualized against the scope, complexity, and specific services rendered. Without detailed information on the size and nature of the programs managed by the Forest Service PMO, direct comparisons are difficult. However, for large federal agencies, multi-million dollar contracts for dedicated PMO support are not uncommon, especially for complex, long-term initiatives. The sole-source nature, however, prevents a direct comparison with competitively bid contracts, which might have yielded different pricing.

What are the risks associated with awarding a sole-source contract of this magnitude?

Sole-source awards, especially for contracts valued at $15.5 million, carry inherent risks. The primary risk is the potential for inflated pricing due to the absence of competition; without competing bids, the government may not achieve the best possible price. There's also a risk that the chosen contractor may not be the most innovative or capable vendor available in the market, as alternatives were not explored through a formal solicitation. Furthermore, sole-source awards can reduce transparency in the procurement process, potentially leading to perceptions of favoritism or inefficiency. Agencies must have robust justification for sole-source awards, often citing unique capabilities or urgent needs, to mitigate these risks.

What was the historical spending pattern for PMO services by the Forest Service or USDA?

Analyzing historical spending patterns for PMO services by the Forest Service or the broader Department of Agriculture (USDA) would provide crucial context for this $15.5 million contract. Without access to historical procurement data, it's difficult to ascertain if this represents an increase, decrease, or consistent level of investment in PMO functions. Typically, agencies increase or decrease such spending based on strategic priorities, the number and scale of ongoing projects, and shifts in policy regarding in-house versus outsourced support. Understanding past investments would help determine if this contract aligns with established trends or signifies a new direction in how the Forest Service manages its programs.

What is the significance of the NAICS code 541519 ('Other Computer Related Services') in the context of this PMO contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that encompasses a wide array of IT services not specified under more granular codes. In the context of a PMO contract, it suggests that the services provided by Innovative Solutions Group, Inc. likely involved IT support, systems integration, or technology consulting that facilitated the program management functions. This could include managing IT project lifecycles, advising on technology solutions for program efficiency, or providing general IT support for the PMO's operations. However, the generality of the code means the specific nature of the IT services supporting the PMO remains somewhat undefined without further details from the contract statement of work.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Contractor Details

Address: 12001 MARKET ST #405, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,448,546

Exercised Options: $15,448,546

Current Obligation: $15,448,546

Parent Contract

Parent Award PIID: AG7604C070025

IDV Type: IDC

Timeline