State Dept. Spent $27.8M on Microsoft Expert Consulting, Primarily with Inforeliance LLC
Contract Overview
Contract Amount: $27,790,469 ($27.8M)
Contractor: Inforeliance LLC
Awarding Agency: Department of State
Start Date: 2008-06-09
End Date: 2015-09-28
Contract Duration: 2,667 days
Daily Burn Rate: $10.4K/day
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SMART - MICROSOFT EXPERT CONSULTING SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX (CITY) County, VIRGINIA, 22030, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $27.8 million to INFORELIANCE LLC for work described as: SMART - MICROSOFT EXPERT CONSULTING SERVICES Key points: 1. Significant spending on specialized IT consulting services. 2. Inforeliance LLC was the primary contractor, suggesting a strong incumbent relationship. 3. The contract spanned over 7 years, indicating long-term reliance. 4. NAICS code 541511 points to custom computer programming, a core IT function.
Value Assessment
Rating: fair
The total award of $27.8M over 7 years averages to approximately $4M annually. Without specific deliverables or performance metrics, it's difficult to definitively assess value. However, the duration suggests consistent need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded to a single vendor, Inforeliance LLC, for the majority of its duration. This limited competition likely impacted price discovery and potentially led to higher costs than a more competitive environment.
Taxpayer Impact: Taxpayer funds were directed to a single vendor for an extended period, potentially missing out on cost savings achievable through broader competition.
Public Impact
Long-term IT support for a major government agency. Potential for vendor lock-in and reduced flexibility in technology adoption. Impact on the IT consulting market, favoring established vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of clear performance metrics
Positive Signals
- Consistent IT support provided
- Vendor expertise in specific Microsoft technologies
Sector Analysis
The Department of State's spending on custom computer programming services falls within the broader IT sector. Benchmarks for IT consulting services vary widely based on specialization, but $4M annually for a single agency's focused needs is substantial.
Small Business Impact
The contract was awarded to Inforeliance LLC, which is not explicitly identified as a small business in the provided data. The long duration and potential for sole-source extensions may limit opportunities for small businesses to compete.
Oversight & Accountability
Oversight would typically involve regular performance reviews and budget tracking by the Department of State. The limited competition and time-and-materials nature warrant close scrutiny to ensure efficient use of funds.
Related Government Programs
- Custom Computer Programming Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition
- Potential for cost overruns (Time & Materials)
- Lack of detailed performance metrics
- Long contract duration without clear re-competition
Tags
custom-computer-programming-services, department-of-state, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $27.8 million to INFORELIANCE LLC. SMART - MICROSOFT EXPERT CONSULTING SERVICES
Who is the contractor on this award?
The obligated recipient is INFORELIANCE LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $27.8 million.
What is the period of performance?
Start: 2008-06-09. End: 2015-09-28.
What specific Microsoft technologies or services did Inforeliance LLC provide, and were these critical to the Department of State's operations?
The data indicates custom computer programming services (NAICS 541511) related to Microsoft technologies. Without further details, it's unclear if these were core operational systems, niche applications, or general IT support. Understanding the criticality is key to assessing the value and necessity of the $27.8M expenditure over the contract's lifespan.
Were there any attempts to introduce competition or re-evaluate the vendor relationship during the 7-year contract period?
The data suggests a limited competition approach, with Inforeliance LLC being the primary awardee. The lack of information on competitive re-solicitations or market research during the contract's 7-year span raises questions about whether the Department of State actively sought better pricing or alternative solutions, potentially leading to missed cost-saving opportunities.
How did the time and materials pricing structure impact the overall cost compared to a fixed-price or performance-based contract?
Time and materials contracts can be less predictable in terms of final cost, as they are tied to the hours worked and material used. While offering flexibility, this structure can lead to cost overruns if not managed tightly. The $27.8M total award suggests significant hours were logged, and a comparison to potential fixed-price bids would reveal if this structure was cost-effective for the services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Address: 4050 LEGATO RD STE 700, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $46,676,904
Exercised Options: $30,602,060
Current Obligation: $27,790,469
Parent Contract
Parent Award PIID: GS35F0273L
IDV Type: FSS
Timeline
Start Date: 2008-06-09
Current End Date: 2015-09-28
Potential End Date: 2015-09-28 00:00:00
Last Modified: 2015-11-03
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