NSF's $93M IT Infrastructure Services contract awarded to PHACIL, LLC shows strong competition and fair value

Contract Overview

Contract Amount: $93,257,430 ($93.3M)

Contractor: Phacil, LLC

Awarding Agency: National Science Foundation

Start Date: 2013-08-01

End Date: 2019-12-31

Contract Duration: 2,343 days

Daily Burn Rate: $39.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF ITIS INFORMATION TECHNOLOGY INFRASTRUCTURE SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22230

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $93.3 million to PHACIL, LLC for work described as: IGF::OT::IGF ITIS INFORMATION TECHNOLOGY INFRASTRUCTURE SERVICES Key points: 1. Contract value of $93.26M over 6 years suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, indicating a robust bidding process. 3. The contract's duration and scope point to a long-term need for IT support. 4. Performance was rated 'satisfactory' (ST), suggesting adequate service delivery. 5. The use of Time and Materials pricing may introduce cost variability. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of $93.26 million over approximately six years averages to about $15.5 million annually. While specific benchmarking data for comparable IT infrastructure services contracts is not provided, the pricing structure (Time and Materials) can sometimes lead to higher costs than fixed-price contracts if not managed carefully. However, the 'Satisfactory' performance rating suggests the services met expectations, implying a reasonable level of value was achieved for the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 7 bids suggests a healthy level of competition for this IT infrastructure services requirement. This competitive environment generally pressures contractors to offer competitive pricing and robust service offerings to win the award.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it helps ensure the government receives fair market value for the services rendered, preventing potential overpricing that could occur in less competitive scenarios.

Public Impact

The National Science Foundation (NSF) benefits from reliable IT infrastructure services, crucial for its research and educational mission. The contract supports the delivery of essential computer systems design and related services. The geographic impact is primarily within the United States, supporting NSF's national operations. The contract likely supports a workforce skilled in IT infrastructure management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely monitored.
Limited visibility into specific performance metrics beyond a 'Satisfactory' rating.
The exclusion of sources prior to full and open competition warrants further understanding of the rationale.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Satisfactory performance rating suggests the contractor met service expectations.
The contract duration implies a stable and ongoing need for these critical IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with numerous firms offering a wide range of capabilities. Contracts of this magnitude are common for federal agencies requiring comprehensive IT support to maintain their operational infrastructure and facilitate their core missions. Benchmarking against similar IT infrastructure contracts would provide further context on pricing and scope.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that larger, established firms were the primary focus or best suited for this particular IT infrastructure services requirement. The absence of small business participation could limit opportunities for smaller, specialized IT firms to engage with the National Science Foundation on this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Science Foundation's contracting officers and program managers. Performance reviews and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The specific jurisdiction of an Inspector General would depend on whether any fraud, waste, or abuse was alleged or discovered.

Related Government Programs

IT Infrastructure Services
Computer Systems Design Services
Information Technology Support Contracts
Federal IT Services Procurement

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of detailed performance metrics beyond 'Satisfactory'.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $93.3 million to PHACIL, LLC. IGF::OT::IGF ITIS INFORMATION TECHNOLOGY INFRASTRUCTURE SERVICES

Who is the contractor on this award?

The obligated recipient is PHACIL, LLC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $93.3 million.

What is the period of performance?

Start: 2013-08-01. End: 2019-12-31.

What is the specific nature of the IT infrastructure services provided under this contract?

The contract, NAICS code 541512, specifies 'Computer Systems Design Services.' This typically encompasses a broad range of activities including designing, developing, and integrating hardware, software, and network infrastructure. For the National Science Foundation, this likely involves managing and maintaining the complex IT systems that support scientific research, data analysis, grant management, and administrative functions. Services could include network design, server management, cybersecurity implementation, cloud integration, and end-user support, all critical for enabling the agency's mission.

How does the awarded price compare to market rates for similar IT infrastructure services?

Without specific details on the labor categories, hours, and rates billed under the Time and Materials (T&M) structure, a precise comparison to market rates is challenging. However, the total contract value of $93.26 million over approximately six years ($15.5M/year) for a federal agency like NSF suggests a significant scope. T&M contracts are often used when the scope is not fully defined, allowing flexibility but requiring diligent oversight to prevent cost creep. Benchmarking would ideally involve comparing the blended hourly rates or project costs against industry surveys and other government contracts for similar IT support services in the Washington D.C. metropolitan area or nationally.

What are the key performance indicators (KPIs) used to assess PHACIL, LLC's performance?

While the contract notes a 'Satisfactory' performance rating (ST), the specific Key Performance Indicators (KPIs) used to arrive at this assessment are not detailed in the provided data. Typically, for IT infrastructure services, KPIs might include system uptime percentages, response times for service requests, incident resolution rates, security compliance adherence, and project completion timelines. The 'Satisfactory' rating implies that PHACIL, LLC met the minimum acceptable standards for these or similar metrics, but further details would be needed to understand the depth of their performance.

What is the historical spending trend for IT infrastructure services at the National Science Foundation?

The provided data focuses on a single contract awarded in 2013 and ending in 2019. To understand historical spending trends, one would need to examine NSF's IT procurement data over a longer period, looking at multiple contracts for similar services. Analyzing spending patterns before and after this contract, as well as the number and value of other IT services contracts awarded by NSF, would reveal whether this $93M contract represents a typical investment, an increase, or a decrease in IT infrastructure spending. This broader analysis is crucial for contextualizing the significance of this specific award.

What are the potential risks associated with a Time and Materials (T&M) contract of this size?

The primary risk with a T&M contract of this magnitude ($93.26M) is the potential for uncontrolled cost growth if not managed rigorously. Since payment is based on direct labor hours and associated costs plus a fixed fee or percentage, there's less incentive for the contractor to control labor hours. This necessitates strong government oversight, including detailed review of timesheets, verification of work performed, and robust project management to ensure efficiency. Without such controls, the final cost could significantly exceed initial estimates, impacting overall value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: BY Light Professional IT Services LLC (UEI: 132027694)

Address: 8484 WESTPARK DRIVE SUITE 600, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $93,632,211

Exercised Options: $93,632,211

Current Obligation: $93,257,430

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0651Z

IDV Type: GWAC

Timeline