State Dept. IT Support Contract Exceeds $82M, Awarded to Actionet Inc
Contract Overview
Contract Amount: $82,685,870 ($82.7M)
Contractor: Actionet Inc
Awarding Agency: Department of State
Start Date: 2014-01-30
End Date: 2021-01-31
Contract Duration: 2,558 days
Daily Burn Rate: $32.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IT SERVICES SUPPORTING DOS DIPLOMATIC SECURITY, CHIEF TECHNOLOGY OFFICER IGF::OT::IGF
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22180
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $82.7 million to ACTIONET INC for work described as: IT SERVICES SUPPORTING DOS DIPLOMATIC SECURITY, CHIEF TECHNOLOGY OFFICER IGF::OT::IGF Key points: 1. Significant contract value of over $82 million for IT services. 2. Actionet Inc. is the sole awardee, raising questions about competition. 3. Contract duration spans over 7 years, indicating long-term reliance. 4. NAICS code 541512 suggests a focus on computer systems design.
Value Assessment
Rating: fair
The contract value of $82.6M over 7 years suggests a substantial investment. Benchmarking against similar IT support contracts is difficult without more granular cost data, but the duration implies a need for consistent service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may have restricted the pool of potential bidders and potentially impacted price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for extensive IT support services over a prolonged period. The limited competition raises concerns about whether the best possible price was achieved.
Public Impact
Ensures critical IT infrastructure and support for the Department of State's diplomatic security. Supports the Chief Technology Officer's office, impacting technological advancements. Long-term contract may indicate stable but potentially less innovative service delivery. Potential for cost overruns or inefficiencies due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Long contract duration could reduce flexibility.
- Lack of small business participation noted.
Positive Signals
- Provides essential IT services for national security.
- Consistent vendor support over an extended period.
- Clear service delivery for diplomatic operations.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar government IT support contracts vary widely based on scope and duration, but $82M over 7 years represents a significant investment.
Small Business Impact
The data indicates that small businesses were not a direct participant in this contract, as 'sb' is false. This suggests that the prime contractor, Actionet Inc., is likely a larger entity, and opportunities for subcontracting to small businesses are not explicitly detailed.
Oversight & Accountability
The contract's duration and value warrant robust oversight to ensure performance standards are met and costs remain justified. The 'limited competition' aspect necessitates careful monitoring of vendor performance and pricing to safeguard taxpayer interests.
Related Government Programs
- Computer Systems Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for inflated costs due to limited competition.
- Risk of vendor lock-in given the long contract duration.
- Lack of transparency regarding small business subcontracting.
- Need for rigorous performance monitoring to ensure value for money.
Tags
computer-systems-design-services, department-of-state, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $82.7 million to ACTIONET INC. IT SERVICES SUPPORTING DOS DIPLOMATIC SECURITY, CHIEF TECHNOLOGY OFFICER IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is ACTIONET INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $82.7 million.
What is the period of performance?
Start: 2014-01-30. End: 2021-01-31.
What specific IT services are included under this contract, and how do they align with the Department of State's evolving technological needs?
The contract primarily covers 'Computer Systems Design Services' (NAICS 541512) and is structured using 'LABOR HOURS' (PT). While the exact scope isn't detailed, it supports the Diplomatic Security and Chief Technology Officer's office. The alignment with evolving needs would depend on contract modifications and performance reviews, which are not detailed here. Further analysis would require examining task orders and performance reports.
Given the limited competition, what mechanisms are in place to ensure Actionet Inc. is providing cost-effective services and preventing potential price gouging?
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a specific justification for limiting bidders. Oversight likely involves performance metrics and potentially periodic price reviews. However, without explicit details on price benchmarking or competitive re-evaluation clauses within the contract, the risk of suboptimal pricing remains a concern that requires diligent monitoring by the agency.
How effectively has this contract supported the Department of State's mission-critical functions, particularly in diplomatic security and technological modernization?
The contract's long duration (2014-2021) implies a sustained need for the IT services provided. Its support for Diplomatic Security and the CTO's office suggests a direct contribution to core functions. However, assessing 'effectiveness' quantitatively requires performance metrics, user feedback, and comparison against defined objectives, none of which are present in the provided data.
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: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 2600 PARK TOWER DR STE 1000, VIENNA, VA, 22180
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $86,153,987
Exercised Options: $86,153,987
Current Obligation: $82,685,870
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200202W
IDV Type: GWAC
Timeline
Start Date: 2014-01-30
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2023-02-08
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