State Department paid $14M for IT support, with a single vendor dominating delivery

Contract Overview

Contract Amount: $13,965,072 ($14.0M)

Contractor: Apptis (MD), Inc.

Awarding Agency: Department of State

Start Date: 2009-02-20

End Date: 2013-01-22

Contract Duration: 1,432 days

Daily Burn Rate: $9.8K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PPT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $14.0 million to APPTIS (MD), INC. for work described as: PPT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS Key points: 1. The contract focused on IT system support and enhancement, a common need across federal agencies. 2. A single vendor, APPTIS (MD), INC., was responsible for the entirety of the contract's performance. 3. The contract duration was substantial, spanning nearly four years, indicating a long-term need for these services. 4. The firm fixed-price contract type suggests that the cost was determined upfront, potentially limiting cost overruns but also requiring accurate initial estimates. 5. The absence of small business participation raises questions about broader economic inclusion for this contract. 6. The contract was awarded as a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific IT systems supported and the scope of 'enhancement.' However, a $14 million spend over four years for IT support services is within a typical range for federal agencies. The firm fixed-price nature suggests a negotiated price, but without comparison to similar contracts for equivalent services, it's difficult to definitively assess if it represents excellent value. The lack of competition, as detailed below, could have impacted the final price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under a sole-source vehicle, meaning APPTIS (MD), INC. was the only vendor considered. This approach bypasses the competitive bidding process typically used for new contract awards. While sole-source awards can be justified for specific reasons (e.g., unique capabilities, urgency), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding, as the government did not explore alternative vendors or pricing structures.

Public Impact

The primary beneficiaries of this contract were the Department of State's internal operations, ensuring the stability and functionality of its IT systems. The services delivered included support and enhancement of 'PPT SYSTEMS,' likely referring to presentation or project management systems crucial for diplomatic and administrative functions. The geographic impact is centered in Washington D.C., where the Department of State is headquartered and where the primary IT infrastructure is likely managed. Workforce implications would primarily involve the IT professionals employed by APPTIS (MD), INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency regarding the specific 'PPT SYSTEMS' makes it difficult to assess the necessity and scope of enhancements.
Contract duration of nearly four years without re-competition could indicate a missed opportunity for cost savings or service improvements.
No small business participation noted, potentially excluding smaller, specialized IT firms from contributing.

Positive Signals

The contract successfully provided dedicated IT support and enhancement for a significant period.
Firm fixed-price contract structure provided cost certainty for the government once the price was set.
Delivery order mechanism allowed for task-specific execution within a potentially pre-existing framework.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of support, development, and maintenance activities. Federal spending in this area is consistently high as agencies rely on technology for operations. Contracts for system design and support services, like this one (NAICS 541512), are common. Benchmarks for similar IT support contracts vary widely based on complexity, duration, and specific services, but a $14 million spend over four years for a single vendor suggests a focused, long-term engagement.

Small Business Impact

This contract did not include any small business set-aside provisions, nor is there any indication of subcontracting to small businesses. This suggests that the entire value of the contract was potentially captured by a large business. The lack of small business involvement means that opportunities to leverage the innovation and specialized services often offered by smaller firms were not realized, and the broader small business IT ecosystem did not benefit from this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a delivery order under a larger vehicle, the initial oversight framework of that vehicle would also apply. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Department of State IT Modernization Efforts
Federal IT Procurement
Sole Source IT Contracts

Risk Flags

Sole Source Award
Lack of Competition
Limited Transparency
No Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.0 million to APPTIS (MD), INC.. PPT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS

Who is the contractor on this award?

The obligated recipient is APPTIS (MD), INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2009-02-20. End: 2013-01-22.

What specific 'PPT SYSTEMS' were supported and enhanced under this contract, and what was the criticality of these systems to the Department of State's mission?

The provided data does not specify the exact nature of the 'PPT SYSTEMS.' 'PPT' could potentially refer to Project Planning and Tracking, Presentation, or other internal Department of State acronyms. Understanding the specific systems is crucial for assessing the necessity and impact of the $14 million expenditure. If these systems are critical for diplomatic communications, intelligence analysis, or administrative functions, the investment might be justified. However, without this context, it's difficult to evaluate the true value or risk associated with the contract. Further investigation into Department of State IT inventories or system documentation would be required to identify these specific 'PPT SYSTEMS' and their operational importance.

How did the Department of State justify the sole-source award to APPTIS (MD), INC. for this contract?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there's a compelling urgency. For this contract, awarded as a delivery order, the justification likely stems from the parent IDIQ contract under which it was issued. If the original IDIQ was sole-source or if APPTIS held a unique position or capability relevant to the specific task order requirements, that would explain the lack of competition. Without access to the justification documentation (e.g., a Justification and Approval - J&A), the precise reasons remain unknown, but it implies a perceived lack of alternatives or a specific strategic decision to use this vendor.

What was the total spending on IT support and enhancement by the Department of State during the contract period (2009-2013)?

To assess the relative significance of this $14 million contract, it's important to compare it against the Department of State's overall IT spending during the 2009-2013 period. Comprehensive data on the Department's total IT budget for those specific years is not readily available in the provided snippet. However, federal IT spending generally increased during that era, driven by modernization initiatives and growing reliance on digital infrastructure. This contract represented a portion of that spending, focused on specific system support. A broader analysis would require accessing the Department's historical budget reports and IT spending summaries to contextualize this single contract's financial footprint.

What performance metrics or quality standards were established for APPTIS (MD), INC. under this contract, and were they met?

The provided data does not include details on the performance metrics, service level agreements (SLAs), or quality standards set for APPTIS (MD), INC. under this contract. For a firm fixed-price contract of this duration and value, establishing clear, measurable performance standards is crucial for ensuring effective service delivery and accountability. Without this information, it is impossible to objectively assess whether the contractor met expectations or if the government received the full value intended. Post-award performance reviews or contract close-out documentation would typically contain this information, but it is not accessible here.

Were there any follow-on contracts awarded to APPTIS (MD), INC. by the Department of State or other agencies for similar IT support services after January 2013?

The provided data only covers the period up to January 2013 for this specific contract. To understand APPTIS (MD), INC.'s ongoing relationship with the Department of State or its broader footprint in federal IT contracting, one would need to examine contract databases for subsequent awards to this vendor. If APPTIS continued to receive similar contracts, it might indicate sustained performance and a continued need for their services, or it could suggest a lack of effective market research for alternative providers. Conversely, a lack of follow-on work could imply the Department sought different solutions or that APPTIS's role was project-specific.

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

Contractor Details

Parent Company: Apptis (MD) Inc. (UEI: 825878734)

Address: 6430 ROCKLEDGE DR STE 600, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $13,965,072

Exercised Options: $13,965,072

Current Obligation: $13,965,072

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD06D1014

IDV Type: IDC

Timeline