State Department's $34M IT services contract awarded competitively, with 5 bidders

Contract Overview

Contract Amount: $34,160,982 ($34.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2009-09-25

End Date: 2013-10-16

Contract Duration: 1,482 days

Daily Burn Rate: $23.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $34.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. The contract focused on IT services, a critical area for government operations. 2. Competition was present, with 5 bidders vying for this delivery order. 3. The contract duration was substantial, spanning nearly four years. 4. The award was a delivery order under a larger contract vehicle. 5. The specific NAICS code suggests a focus on specialized computer-related services. 6. The contract utilized a labor hours pricing model.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the ceiling of the parent contract or the specific services rendered. However, the presence of 5 bidders suggests a degree of market interest and potential for competitive pricing. The labor hours pricing model can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility for evolving IT needs. Further analysis would require comparing the hourly rates to market benchmarks for similar IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The presence of 5 bidders suggests a reasonably competitive environment for this specific task order. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

The Department of State benefits from the provision of essential IT services to support its global operations. The contract likely supported various IT functions, including system maintenance, development, or support. The geographic impact is likely global, given the nature of the State Department's mission. The workforce implications involve IT professionals providing services under this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can lead to cost uncertainty if not carefully monitored.
Lack of specific details on services rendered makes a precise value assessment difficult.
The parent contract details are not provided, limiting a full understanding of the overall value.

Positive Signals

Awarded competitively with 5 bidders, indicating market interest.
Delivery order structure allows for task-specific competition.
Long contract duration suggests a sustained need for these IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with numerous companies offering specialized solutions. Government spending in this area is substantial, supporting everything from cybersecurity to cloud computing and legacy system modernization. This contract represents a portion of the government's overall investment in maintaining and upgrading its technological infrastructure.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting, is not explicitly provided for this delivery order. Without this data, it's difficult to assess the impact on the small business ecosystem. Typically, larger contract vehicles may have provisions for small business participation, but this specific order's details are missing.

Oversight & Accountability

Oversight for this contract would fall under the Department of State's contracting and program management offices. As a delivery order, it is likely managed under the umbrella of the parent contract. Transparency is moderate, as the award is publicly listed, but detailed service descriptions and performance metrics are not readily available without further inquiry.

Related Government Programs

IT Services Contracts
Department of State IT Modernization
Federal IT Procurement

Risk Flags

Lack of specific service details
Potential for cost overruns with labor hours pricing
Limited insight into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $34.2 million to DOMESTIC AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2009-09-25. End: 2013-10-16.

What specific IT services were provided under this contract?

The provided data indicates the NAICS code as 541519 (Other Computer Related Services) and the pricing type as Labor Hours. However, the exact nature of the IT services rendered is not detailed. This could encompass a wide range of activities such as IT support, network management, software development, system integration, or cybersecurity services. To understand the specific services, one would need to consult the contract's statement of work (SOW) or task orders associated with this delivery order.

How does the number of bidders (5) compare to similar IT services contracts awarded by the State Department?

A competitive delivery order with 5 bidders is a moderate level of competition. For IT services, especially those requiring specialized skills or involving large dollar values, the number of bidders can vary significantly. While 5 bidders suggest a healthy interest, it's not exceptionally high. Benchmarking against similar-sized IT contracts from the State Department or other agencies would provide better context. Contracts with fewer than 3 bidders might raise concerns about market competitiveness, while those with 10+ bidders often indicate a very robust market.

What are the potential risks associated with a 'Labor Hours' pricing model for IT services?

The primary risk with a 'Labor Hours' pricing model is the potential for cost overruns if the effort required is underestimated or if project scope creep occurs without adequate controls. Unlike fixed-price contracts, the government pays for the time spent by personnel. This necessitates robust oversight, detailed timesheet tracking, and strong project management to ensure efficiency and prevent unnecessary labor charges. Conversely, it offers flexibility for projects with uncertain scope or evolving requirements.

What was the total spending on 'Other Computer Related Services' by the Department of State in the years this contract was active (2009-2013)?

To determine the total spending on 'Other Computer Related Services' (NAICS 541519) by the Department of State between 2009 and 2013, one would need to access historical federal procurement data, such as from USASpending.gov or FPDS. This contract alone accounted for approximately $34.16 million. Analyzing the agency's overall IT spending during that period would reveal the proportion this contract represented and identify other major IT service procurements.

Can the value for money be assessed without knowing the specific deliverables or performance metrics?

Assessing 'value for money' for this contract is difficult without specific deliverables and performance metrics. The $34.16 million figure represents the total value awarded, but not necessarily the value received. Key indicators of value for money include whether the services met the government's requirements, were delivered on time, and within budget (if applicable beyond labor hours). Without performance data or comparison to specific outcomes achieved, the assessment remains qualitative, relying on the competitive nature of the award and the general understanding of IT service costs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $100,312,092

Exercised Options: $84,940,529

Current Obligation: $34,160,982

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD07D0088

IDV Type: IDC

Timeline