State Dept. Spends $16.7M on Legacy Visa System Maintenance, Awarded to Multimaxarray HITSS JV
Contract Overview
Contract Amount: $16,764,211 ($16.8M)
Contractor: Multimaxarray Hitss Joint Venture
Awarding Agency: Department of State
Start Date: 2010-09-22
End Date: 2012-10-22
Contract Duration: 761 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: LEGACY VISA SYTEM MAINTENANCE & SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522
Plain-Language Summary
Department of State obligated $16.8 million to MULTIMAXARRAY HITSS JOINT VENTURE for work described as: LEGACY VISA SYTEM MAINTENANCE & SUPPORT Key points: 1. Significant spending on legacy system maintenance highlights potential for modernization. 2. Single award to Multimaxarray HITSS JV warrants scrutiny of competition effectiveness. 3. Contract duration of 761 days suggests ongoing need for support. 4. NAICS code 541519 indicates a broad category of computer-related services.
Value Assessment
Rating: fair
The contract value of $16.7M over two years for system maintenance appears high, especially for a legacy system. Benchmarking against similar maintenance contracts for comparable systems is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may not have yielded the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for the maintenance of an older system, potentially diverting resources from more modern or efficient solutions.
Public Impact
Citizens relying on visa services may experience continued use of an outdated system. Government efficiency could be impacted by reliance on legacy technology. Potential for data security vulnerabilities associated with aging systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Legacy system reliance
- Limited competition
- High maintenance cost
Positive Signals
- Continued operational support for visa services
Sector Analysis
Spending on IT maintenance for government agencies is common, but the focus on legacy systems like this visa system can be a concern. Benchmarks for similar legacy system support contracts are difficult to establish due to system uniqueness.
Small Business Impact
The contract was awarded to a joint venture, MULTIMAXARRAY HITSS JOINT VENTURE. There is no specific indication of small business participation in this award.
Oversight & Accountability
The Department of State is responsible for oversight of this contract. The 'exclusion of sources' clause in the competition method warrants further review for accountability.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns on legacy systems
- Risk of security vulnerabilities in outdated technology
- Limited competition may lead to suboptimal pricing
- Lack of transparency in 'exclusion of sources' competition
Tags
other-computer-related-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $16.8 million to MULTIMAXARRAY HITSS JOINT VENTURE. LEGACY VISA SYTEM MAINTENANCE & SUPPORT
Who is the contractor on this award?
The obligated recipient is MULTIMAXARRAY HITSS JOINT VENTURE.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2010-09-22. End: 2012-10-22.
What is the long-term strategy for modernizing the visa system to reduce reliance on legacy maintenance?
The long-term strategy for modernizing the visa system is crucial for reducing ongoing maintenance costs and improving efficiency. Agencies should prioritize a phased approach, potentially involving cloud migration or replacement of outdated components. This would not only enhance security and performance but also align with digital transformation goals, ultimately providing better service delivery and reducing taxpayer burden associated with legacy systems.
What risks are associated with continued reliance on this legacy visa system?
Continued reliance on this legacy visa system poses several risks, including increased vulnerability to cyber threats due to outdated security protocols, potential for system failures and operational disruptions, and difficulties in integration with newer technologies. Furthermore, maintaining such systems can become increasingly expensive as specialized expertise becomes scarce, and the lack of modern features may hinder efficient processing and user experience.
How effectively does the current maintenance contract ensure the operational continuity of visa services?
The current maintenance contract, awarded to MULTIMAXARRAY HITSS JOINT VENTURE, ensures operational continuity by providing necessary support for the legacy visa system. However, the effectiveness is tempered by the inherent risks of legacy technology. While the contract addresses immediate needs, it does not inherently guarantee long-term system resilience or optimal performance compared to a modernized system.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1441 MCCORMICK RD, UPPER MARLBORO, MD, 20774
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,212,138
Exercised Options: $18,212,138
Current Obligation: $16,764,211
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMPD07D0091
IDV Type: IDC
Timeline
Start Date: 2010-09-22
Current End Date: 2012-10-22
Potential End Date: 2012-10-22 00:00:00
Last Modified: 2018-02-09
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