State Department's $118M Vanguard 2.3.2 contract for messaging systems awarded to Buchanan & Edwards, Inc

Contract Overview

Contract Amount: $117,797,327 ($117.8M)

Contractor: Buchanan & Edwards, Inc.

Awarding Agency: Department of State

Start Date: 2013-09-29

End Date: 2020-06-28

Contract Duration: 2,464 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF "VANGUARD 2.3.2" STATE MESSAGING AND COLLABORATION. SOFTWARE DEVELOPMENT, OPERATIONS, AND MAINTENANCE FOR IT MESSAGING AND INFORMATION SHARING SYSTEMS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $117.8 million to BUCHANAN & EDWARDS, INC. for work described as: IGF::OT::IGF "VANGUARD 2.3.2" STATE MESSAGING AND COLLABORATION. SOFTWARE DEVELOPMENT, OPERATIONS, AND MAINTENANCE FOR IT MESSAGING AND INFORMATION SHARING SYSTEMS. Key points: 1. Contract provides critical IT messaging and information sharing capabilities for the State Department. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over 6 years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was a Delivery Order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Buchanan & Edwards, Inc., has a significant role in supporting State Department IT infrastructure.

Value Assessment

Rating: good

The total contract value of approximately $118 million over nearly 7 years represents a substantial investment in IT messaging systems. Benchmarking this against similar large-scale IT development and maintenance contracts for federal agencies is complex due to varying scope and service levels. However, the firm-fixed-price structure suggests an effort to control costs. Without specific per-unit metrics or detailed service level agreements, a precise value-for-money assessment is challenging, but the duration and scope imply a significant operational need.

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,' indicating that the solicitation was broadly advertised, and multiple bidders were likely considered. The specific exclusion of sources might refer to a pre-qualification process or a specific set of circumstances that limited the pool initially but still allowed for open competition among those qualified. The presence of multiple bidders generally fosters price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It reduces the risk of overpayment compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are State Department personnel who rely on secure and efficient messaging and information sharing systems for diplomatic and operational activities. The services delivered include software development, operations, and maintenance for critical IT infrastructure. The geographic impact is likely global, supporting the State Department's worldwide operations and communication needs. Workforce implications include the need for skilled IT professionals in software development, system administration, and cybersecurity to support the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long-term nature of IT infrastructure support.
Reliance on a single contractor for critical messaging systems could pose a risk if performance degrades or if the contractor faces financial instability.
The complexity of integrating and maintaining advanced messaging systems requires continuous oversight to ensure optimal performance and security.

Positive Signals

The firm-fixed-price contract structure incentivizes the contractor to manage costs effectively.
Awarding under full and open competition suggests a robust selection process that likely identified a capable and competitive offeror.
The long performance period indicates a stable, ongoing requirement, allowing for potential economies of scale and deeper expertise development by the contractor.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software development, operations, and maintenance for communication and information sharing systems. The market for such services is highly competitive, with numerous large and small firms offering specialized solutions. The State Department's spending on IT infrastructure is significant, reflecting the global nature of its operations and the increasing reliance on digital tools for diplomacy and security. Comparable spending benchmarks would typically involve other large federal agencies procuring similar enterprise-level IT solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was awarded to Buchanan & Edwards, Inc., a firm that is likely not a small business. There is no explicit information regarding subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor has robust subcontracting initiatives not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. The firm-fixed-price nature shifts some risk, but performance monitoring, quality assurance, and adherence to security protocols would be key oversight areas. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

State Department IT Modernization Efforts
Federal Secure Communication Systems
Enterprise Software Development Contracts
IT Operations and Maintenance Services
Information Sharing Platforms

Risk Flags

Long-term reliance on a single vendor for critical IT infrastructure.
Potential for scope creep in software development and maintenance contracts.
Cybersecurity vulnerabilities inherent in messaging and information sharing systems.
Dependency on contractor's ability to maintain skilled personnel over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $117.8 million to BUCHANAN & EDWARDS, INC.. IGF::OT::IGF "VANGUARD 2.3.2" STATE MESSAGING AND COLLABORATION. SOFTWARE DEVELOPMENT, OPERATIONS, AND MAINTENANCE FOR IT MESSAGING AND INFORMATION SHARING SYSTEMS.

Who is the contractor on this award?

The obligated recipient is BUCHANAN & EDWARDS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $117.8 million.

What is the period of performance?

Start: 2013-09-29. End: 2020-06-28.

What is the track record of Buchanan & Edwards, Inc. with the Department of State and other federal agencies for similar IT services?

Buchanan & Edwards, Inc. has a history of providing IT and professional services to various federal agencies, including the Department of State. Their portfolio often includes support for complex IT systems, cybersecurity, and program management. For the State Department specifically, they have been involved in numerous contracts related to IT infrastructure, software development, and operational support. Analyzing their past performance on similar contracts, including any past performance reviews or awards/debarments, would provide further insight into their reliability and capability in delivering complex IT solutions. Their sustained engagement with the State Department on critical systems like messaging suggests a generally positive or at least acceptable performance history.

How does the per-unit cost or pricing structure of this contract compare to industry benchmarks for similar IT messaging and collaboration software development and maintenance?

Determining a precise per-unit cost comparison is challenging without access to the detailed pricing structure and specific service level agreements (SLAs) associated with the Vanguard 2.3.2 contract. The contract is Firm Fixed Price (FFP), which means the contractor agreed to a set price for the defined scope of work. Benchmarking FFP contracts requires comparing the total price against the estimated cost of performing the work based on industry labor rates, overhead, and profit margins for similar IT services. Factors like the complexity of the systems, the level of security required, and the geographic distribution of support personnel significantly influence pricing. Generally, FFP contracts aim for value by fixing the price, but the government must ensure the initial scope and pricing are reasonable based on market research.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how has the contractor performed against them?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the Vanguard 2.3.2 contract. Typically, for IT development, operations, and maintenance contracts, KPIs might include system uptime, response times for issue resolution, security compliance rates, and successful deployment of new features. SLAs define the minimum acceptable performance levels for these metrics. Performance against these metrics is usually documented in contract performance reports, which are not publicly available in this dataset. Without this information, a detailed assessment of Buchanan & Edwards, Inc.'s performance quality is not possible, though the contract's continuation suggests a level of satisfactory performance.

What is the historical spending trend for IT messaging and collaboration systems at the Department of State, and how does this contract fit within that trend?

The Department of State has consistently invested significant resources in its IT infrastructure, including messaging and collaboration systems, due to its global operational requirements. Historical spending trends likely show a continuous need for modernization, maintenance, and upgrades to ensure secure and reliable communication channels. The Vanguard 2.3.2 contract, valued at approximately $118 million over its duration, represents a substantial portion of this spending category. Its long-term nature suggests it addresses a core, ongoing requirement rather than a one-time project. Analyzing prior contracts for similar services would reveal whether this spending level is consistent, increasing, or decreasing relative to past investments and the overall IT budget.

Are there any identified risks or challenges associated with the contractor's performance or the technology being implemented under this contract?

While the provided data doesn't list specific risks, potential challenges for a contract of this nature and duration often include technological obsolescence, cybersecurity threats, integration issues with other systems, and contractor performance degradation over time. For Buchanan & Edwards, Inc., risks could involve maintaining a skilled workforce, adapting to evolving State Department requirements, and ensuring continuous compliance with security mandates. The long duration also increases the possibility of unforeseen technical hurdles or shifts in strategic priorities for the State Department that might impact the contract's scope or objectives. Proactive risk management by both the contractor and the agency is crucial.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 N. MOORE STREET, SUITE 2110, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $149,448,332

Exercised Options: $120,263,394

Current Obligation: $117,797,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0717Z

IDV Type: GWAC

Timeline