GSA Awards $14.7M IT Support Contract to Rose International for USDA Rural Development System Redesign

Contract Overview

Contract Amount: $14,773,942 ($14.8M)

Contractor: Rose International, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-05-13

End Date: 2010-05-12

Contract Duration: 1,825 days

Daily Burn Rate: $8.1K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO SUPPORT USDA TO PROVIDE RURAL DEVELOPMENT WITH INFORMATION TECHNOLOGY SUPPORT TO REDESIGN THE CURRENT LEGACY SYSTEM INTO ONE FULLY INTEGRATED SYSTEM.

Place of Performance

Location: CHESTERFIELD, ST. LOUIS County, MISSOURI, 63017, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $14.8 million to ROSE INTERNATIONAL, INC. for work described as: TO SUPPORT USDA TO PROVIDE RURAL DEVELOPMENT WITH INFORMATION TECHNOLOGY SUPPORT TO REDESIGN THE CURRENT LEGACY SYSTEM INTO ONE FULLY INTEGRATED SYSTEM. Key points: 1. Contract focuses on modernizing USDA's legacy IT systems into an integrated platform. 2. Rose International, Inc. secured the contract valued at $14.7 million. 3. The contract duration is 5 years, indicating a significant, long-term project. 4. The sector is Information Technology, specifically Computer Facilities Management Services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $14.7 million for a 5-year IT modernization project needs further benchmarking against similar complex system integration efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified, making it difficult to assess the price discovery process. If the contract was not fully and openly competed, it may have resulted in a higher price for taxpayers.

Taxpayer Impact: The total value of $14.7 million represents taxpayer investment in modernizing critical USDA infrastructure. Effective execution is key to realizing value and avoiding cost overruns.

Public Impact

Modernization of USDA's rural development IT systems aims to improve service delivery to rural communities. The project's success could lead to more efficient government operations and better data management. Potential for improved access to information and resources for rural businesses and individuals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of clarity on competition method raises concerns about optimal pricing.
Legacy system integration is often complex and prone to delays.

Positive Signals

Supports critical USDA mission for rural development.
Long-term contract (5 years) suggests a stable partnership.
Focus on system integration can lead to significant efficiency gains.

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government, with benchmarks varying widely based on project complexity and scope. Modernizing legacy systems is a common but challenging undertaking.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Federal Acquisition Service. Oversight would typically involve contract management and performance monitoring by GSA to ensure adherence to terms and successful project completion.

Related Government Programs

Computer Facilities Management Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Unclear competition method.
Complexity of legacy system integration.
Potential for scope creep.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.8 million to ROSE INTERNATIONAL, INC.. TO SUPPORT USDA TO PROVIDE RURAL DEVELOPMENT WITH INFORMATION TECHNOLOGY SUPPORT TO REDESIGN THE CURRENT LEGACY SYSTEM INTO ONE FULLY INTEGRATED SYSTEM.

Who is the contractor on this award?

The obligated recipient is ROSE INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2005-05-13. End: 2010-05-12.

What was the specific justification for using a Cost Plus Fixed Fee contract type for this IT modernization project, and what controls were in place to manage potential cost overruns?

The rationale for a Cost Plus Fixed Fee (CPFF) contract, especially for complex IT modernization, often stems from uncertainty in project scope or technical requirements. CPFF allows for cost reimbursement plus a fixed fee, incentivizing the contractor to control costs while covering necessary expenses. However, robust oversight, clear performance metrics, and change control processes are crucial to mitigate the risk of budget escalation inherent in this contract type.

How did the procurement process ensure fair and competitive pricing, given the lack of explicit detail on the competition method used?

Without explicit details on the competition method (e.g., full and open, sole source), it's challenging to definitively assess price discovery. If the contract was awarded through a limited or sole-source approach, the government may not have received the most competitive pricing. A thorough review of the contract file and justification for the procurement method would be necessary to determine if taxpayer value was maximized.

What are the key performance indicators (KPIs) for this contract, and how will the success of the legacy system redesign be measured to ensure effective IT modernization?

Effective measurement of this IT modernization project's success would rely on clearly defined KPIs. These could include system uptime, reduction in bug reports, successful data migration rates, user adoption metrics, and achievement of specific functional improvements. Regular performance reviews against these KPIs, tied to the contract's objectives, are essential for ensuring the government realizes the intended benefits and value from the investment.

Industry Classification

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

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

Contractor Details

Address: 16401 SWINGLEY RIDGE RD STE 300, CHESTERFIELD, MO, 63017

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,656,616

Exercised Options: $14,773,942

Current Obligation: $14,773,942

Parent Contract

Parent Award PIID: GS07T00BGD0026

IDV Type: GWAC

Timeline