Opm's $23.7M Mainframe Upgrade Contract Awarded to Sona Networks LLC for IT Services

Contract Overview

Contract Amount: $23,670,340 ($23.7M)

Contractor: Sona Networks LLC

Awarding Agency: Office of Personnel Management

Start Date: 2013-06-05

End Date: 2016-11-30

Contract Duration: 1,274 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINFRAME UPGRADE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $23.7 million to SONA NETWORKS LLC for work described as: MAINFRAME UPGRADE Key points: 1. Contract value of $23.7 million for IT services indicates a significant investment in infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The definitive contract type with a firm fixed price suggests a clear scope and predictable costs. 4. The duration of 1274 days points to a substantial, long-term project. 5. The NAICS code 541519 covers 'Other Computer Related Services', providing a broad category for the work performed. 6. The contract's performance period spans across fiscal years, requiring careful budget management. 7. The award to SONA NETWORKS LLC highlights a specific vendor's role in federal IT modernization.

Value Assessment

Rating: fair

The contract value of $23.7 million for a mainframe upgrade is substantial. Without specific benchmarks for similar mainframe modernization projects, it's difficult to definitively assess value for money. The firm fixed-price structure, however, provides cost certainty. Further analysis would require comparing the scope of services and deliverables against industry standards and the pricing of comparable government or commercial contracts. The absence of detailed performance metrics makes a precise value assessment challenging.

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'. While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests that certain potential bidders may have been excluded at some stage. The number of bidders is not specified, which limits the assessment of the competitive landscape. A fully open competition typically fosters better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a wide range of offers. However, the exclusion of sources warrants scrutiny to ensure it did not unduly limit competition and potentially increase costs.

Public Impact

Federal employees and agencies benefit from improved IT infrastructure and potentially more reliable systems. The contract delivers essential computer-related services for the modernization of critical government systems. The geographic impact is primarily within the District of Columbia, where the Office of Personnel Management is located. The contract supports the IT workforce, potentially involving specialized skills in mainframe operations and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'Other Computer Related Services' expands beyond initial estimates.
Risk of vendor lock-in if specialized knowledge is developed solely by SONA NETWORKS LLC.
Dependence on a single contractor for a critical IT infrastructure upgrade.
Challenges in ensuring seamless integration with existing or future IT systems.
Potential for performance issues if the contractor lacks sufficient expertise in legacy mainframe systems.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Awarded through full and open competition, suggesting a competitive selection process.
Definitive contract type implies a clear agreement on terms and conditions.
Long contract duration allows for thorough project execution and potential knowledge transfer.
Focus on mainframe upgrade addresses critical infrastructure needs for OPM.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide range of IT support, maintenance, and modernization activities. Federal spending in this area is substantial, driven by the continuous need to update legacy systems and adopt new technologies. Comparable spending benchmarks would typically involve analyzing other government contracts for mainframe upgrades or large-scale IT modernization projects, often measured by contract value relative to system complexity and duration.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'sb' field is false. Consequently, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor, SONA NETWORKS LLC, may engage small businesses as subcontractors, depending on the project's requirements and their subcontracting plan. The overall impact on the small business ecosystem would depend on the extent of such subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of Personnel Management (OPM) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract structure, which incentivizes the contractor to meet defined deliverables within budget. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Infrastructure Modernization
Legacy System Support
Mainframe Services
Computer Facilities Management
Information Technology Professional Services

Risk Flags

Potential for scope creep in 'Other Computer Related Services'.
Risk of vendor lock-in due to specialized mainframe knowledge.
Dependence on a single contractor for critical infrastructure.
Complexity of mainframe systems poses technical risks.
Need for robust oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $23.7 million to SONA NETWORKS LLC. MAINFRAME UPGRADE

Who is the contractor on this award?

The obligated recipient is SONA NETWORKS LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2013-06-05. End: 2016-11-30.

What is the track record of SONA NETWORKS LLC in performing similar large-scale mainframe upgrade contracts for federal agencies?

Assessing SONA NETWORKS LLC's track record requires a deep dive into their past performance on federal contracts, specifically those involving mainframe upgrades. Publicly available data, such as contract award histories and past performance evaluations (if accessible), would be crucial. Key indicators to examine include the successful completion of similar projects, adherence to schedule and budget, and client satisfaction ratings. Without specific details on their experience with projects of comparable size and technical complexity, it is difficult to definitively gauge their capability for this particular MAINFRAME UPGRADE contract. Further investigation into their contract portfolio and any reported performance issues or commendations would provide a clearer picture of their reliability and expertise in this domain.

How does the $23.7 million contract value compare to industry benchmarks for similar mainframe upgrade projects?

Benchmarking the $23.7 million contract value against industry standards for mainframe upgrades is challenging without detailed project scope and complexity information. Mainframe modernization projects can vary significantly in cost based on the size of the system, the technologies involved (e.g., rehosting, refactoring, replacing), the amount of data migration, and the required downtime minimization. Generally, large-scale federal IT projects of this magnitude often represent significant investments. To establish a robust benchmark, one would need to compare this contract's deliverables, duration, and technical requirements against similar projects undertaken by other federal agencies or large commercial enterprises. The firm fixed-price nature suggests a defined scope, but the 'Other Computer Related Services' classification is broad, making direct comparisons difficult without further granularity.

What are the primary risks associated with this MAINFRAME UPGRADE contract for the Office of Personnel Management?

The primary risks associated with this MAINFRAME UPGRADE contract include potential cost overruns if the scope of 'Other Computer Related Services' is not tightly managed, leading to unforeseen requirements. There's also a risk of schedule delays, which could impact OPM's operational continuity and modernization goals. Technical risks are significant, given the complexity of mainframe systems; failure to properly execute the upgrade could lead to system instability, data loss, or security vulnerabilities. Furthermore, over-reliance on a single vendor, SONA NETWORKS LLC, could create vendor lock-in and limit future flexibility. Ensuring adequate knowledge transfer and maintaining system integrity throughout the upgrade process are critical risk mitigation areas.

What is the expected impact of this contract on the efficiency and effectiveness of OPM's IT operations?

The expected impact of this MAINFRAME UPGRADE contract on OPM's IT operations is anticipated to be positive, aiming to enhance efficiency and effectiveness. By upgrading the mainframe, OPM likely seeks to improve system performance, reduce the likelihood of outages, and potentially lower maintenance costs associated with aging infrastructure. Modernized systems can support new functionalities, improve data processing speeds, and enhance overall system reliability. This, in turn, should enable OPM to deliver its services more effectively and securely. The success of this impact hinges on the contractor's ability to execute the upgrade flawlessly and integrate new capabilities seamlessly with OPM's existing IT environment.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this contract fit in?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a steady increase over the past five years, reflecting the government's ongoing need for IT modernization, cybersecurity enhancements, and specialized technical support. This category encompasses a wide array of services beyond standard software development or hardware maintenance, including IT consulting, system integration, data management, and legacy system support. This specific $23.7 million MAINFRAME UPGRADE contract represents a significant, albeit singular, investment within this broad category. It highlights a focus on critical infrastructure renewal rather than routine IT services. Its value places it as a substantial project, likely falling within the upper quartile of individual contract awards for this NAICS code, underscoring its importance to OPM's IT strategy.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: OPM3213R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11350 MCCORMICK RD EXECUTIVE PLAZA I STE 409, HUNT VALLEY, MD, 21031

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,670,340

Exercised Options: $23,670,340

Current Obligation: $23,670,340

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline