SNAP, INC. awarded $19.7M contract for IT services by USDA Forest Service

Contract Overview

Contract Amount: $19,703,927 ($19.7M)

Contractor: Snap, Inc

Awarding Agency: Department of Agriculture

Start Date: 2014-01-10

End Date: 2016-11-30

Contract Duration: 1,055 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.7 million to SNAP, INC for work described as: IGF::OT::IGF Key points: 1. Contract value of $19.7 million over 1055 days indicates a significant investment in IT services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The North American Industry Classification System (NAICS) code 541519 points to a focus on 'Other Computer Related Services'. 5. The contract duration of nearly three years suggests a need for ongoing IT support. 6. Awarded to SNAP, INC., the contract's performance is in Washington D.C.

Value Assessment

Rating: fair

The contract value of $19.7 million for IT services over approximately 2.8 years (1055 days) requires benchmarking against similar federal IT contracts. Without specific details on the services rendered, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an attempt to manage cost overruns. The number of bids received (8) provides some indication of market interest, but the ultimate price competitiveness depends on the scope and complexity of the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With 8 bidders participating, the competition level appears moderate. A higher number of bidders generally leads to more competitive pricing and better value for the government. The fact that 8 entities vied for this contract suggests that the market for these specific 'Other Computer Related Services' is reasonably active.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down prices through competitive pressure, ensuring the government received services at a more market-aligned cost.

Public Impact

The primary beneficiaries are likely the USDA Forest Service, which receives essential IT support to carry out its mission. The services delivered are categorized under 'Other Computer Related Services', which could encompass a wide range of IT functions from software development to network management. The contract's performance location in Washington D.C. suggests a focus on IT needs within the federal government's primary operational hub. The contract supports the federal IT workforce, potentially through direct employment by the contractor or by enabling government IT operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Computer Related Services' are not clearly defined.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
The fixed-price nature might disincentivize innovation or additional value-adds from the contractor.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Multiple bidders (8) suggest a healthy competitive environment for these services.

Sector Analysis

The IT services sector is vast and highly competitive. Contracts for 'Other Computer Related Services' (NAICS 541519) can range from custom software development to IT consulting and support. Federal spending in this area is substantial, driven by the government's need to modernize systems, maintain cybersecurity, and support agency operations. Benchmarking this $19.7 million contract requires understanding the specific services provided, but it represents a significant investment within the broader federal IT procurement landscape.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. The presence of 8 bidders suggests that both large and small businesses may have participated in the competition. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities generated by this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officer and potentially the Forest Service's program managers. The contract's firm-fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Support Services
Cloud Computing Services
Software Development Contracts

Risk Flags

Potential for undefined scope in 'Other Computer Related Services'
Contractor performance risk
Technology obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.7 million to SNAP, INC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SNAP, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2014-01-10. End: 2016-11-30.

What specific 'Other Computer Related Services' were included in this $19.7 million contract?

The provided data indicates the NAICS code is 541519, which covers 'Other Computer Related Services'. This broad category can encompass a wide array of IT functions, including but not limited to IT consulting, custom software development, system integration, IT support, and network management. Without the detailed Statement of Work (SOW) or Performance Work Statement (PWS) for this specific contract, it is impossible to determine the exact services rendered. The contract value of $19.7 million over 1055 days suggests a substantial and ongoing need for these IT services by the USDA Forest Service, likely supporting critical operational or administrative functions.

How does the $19.7 million contract value compare to similar IT service contracts awarded by the USDA or other federal agencies?

To benchmark the $19.7 million contract value, we would need to compare it against IT service contracts with similar scopes, durations, and service types (e.g., NAICS 541519) awarded by the Department of Agriculture (USDA) or other agencies of comparable size and mission. Federal procurement data (like FPDS) can be queried for such comparisons. Factors like the number of bidders, contract type (firm-fixed-price), and performance period (1055 days) are crucial. A preliminary assessment suggests that $19.7 million is a significant, but not extraordinary, amount for a multi-year IT services contract within the federal government, especially considering the broad nature of 'Other Computer Related Services'.

What is the track record of SNAP, INC. in performing federal IT contracts, particularly those of similar size and scope?

Assessing SNAP, INC.'s track record requires examining their past performance on federal contracts. This involves reviewing contract databases (like FPDS) for previous awards to SNAP, INC., noting the agencies involved, contract values, services provided, and performance ratings if available. Specific attention should be paid to contracts within the IT services domain and those of comparable value to the $19.7 million USDA Forest Service award. A history of successful, on-time, and within-budget performance on similar contracts would indicate a lower performance risk. Conversely, past issues with contract delivery, quality, or disputes could raise concerns.

What are the potential risks associated with this contract, given its duration and service category?

Potential risks for this $19.7 million contract include scope creep, where the defined services expand beyond the original agreement, potentially leading to cost overruns (though mitigated by fixed-price) or schedule delays. Given the 'Other Computer Related Services' category, the specific deliverables might be complex or evolving, increasing the risk of misinterpretation or unmet expectations. Contractor performance risk is also present; if SNAP, INC. fails to deliver adequately, the Forest Service's IT operations could be disrupted. Technology obsolescence is another risk; IT services can become outdated quickly, requiring careful management and potential contract modifications.

How does the firm-fixed-price contract type influence the value and risk for the government and the contractor?

The firm-fixed-price (FFP) contract type establishes a ceiling price that is not subject to adjustment based on the contractor's cost experience. For the government, this offers significant cost certainty and predictability, making budgeting easier and reducing the risk of cost overruns. The contractor assumes most of the risk; if their costs exceed the fixed price, their profit margin shrinks or they incur a loss. Conversely, if they manage costs efficiently, their profit increases. This structure incentivizes the contractor to control costs and perform efficiently, potentially leading to better value for the government, but it may also discourage innovation or extensive collaboration if not managed carefully.

What is the historical spending pattern for 'Other Computer Related Services' by the USDA Forest Service?

Analyzing historical spending patterns for 'Other Computer Related Services' (NAICS 541519) by the USDA Forest Service would involve querying federal procurement data over several fiscal years. This would reveal trends in contract values, the number of awards, the types of services procured, and the primary contractors utilized. Understanding these patterns helps contextualize the $19.7 million award. For instance, if historical spending in this category has been consistently high, it suggests a sustained need. If this award is significantly larger than previous ones, it might indicate a new initiative or a consolidation of services. It also helps identify potential market saturation or areas of increasing demand.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4080 LAFAYETTE CENTER DR STE 340, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,703,927

Exercised Options: $19,703,927

Current Obligation: $19,703,927

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AG7604C130002

IDV Type: IDC

Timeline