State Department's Salesforce Services Contract Exceeds $23.7M, Awarded to Phase One Consulting Group

Contract Overview

Contract Amount: $23,791,160 ($23.8M)

Contractor: Phase ONE Consulting Group, LLC

Awarding Agency: Department of State

Start Date: 2016-07-07

End Date: 2023-07-29

Contract Duration: 2,578 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW SALESFORCE APPLICATION SERVICES FOR INTERNATIONAL INFORMATION PROGRAMS OR IIP IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $23.8 million to PHASE ONE CONSULTING GROUP, LLC for work described as: NEW SALESFORCE APPLICATION SERVICES FOR INTERNATIONAL INFORMATION PROGRAMS OR IIP IGF::OT::IGF Key points: 1. Value for money appears fair given the extended duration and scope, though specific performance metrics are not detailed. 2. Full and open competition suggests a competitive pricing environment, but the number of bidders (6) is moderate. 3. Risk indicators are moderate, with a long contract duration and a fixed-price structure potentially mitigating cost overruns. 4. Performance context is limited without specific deliverables or success metrics, but the contract spans over 7 years. 5. Sector positioning is within IT services, specifically application development and support for government information programs.

Value Assessment

Rating: fair

The contract's total value of $23.79 million over more than seven years suggests a moderate annual spend. Benchmarking against similar large-scale Salesforce implementation and support contracts is difficult without detailed scope of work and service level agreements. However, the fixed-price nature of the contract provides some cost certainty for the government. The value proposition hinges on the successful delivery of the IIP IGF system and its ongoing operational support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Six bidders participated in the competition, which is a reasonable number suggesting some level of market interest. The presence of multiple bidders generally aids in price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a competitive marketplace, potentially driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the Department of State and its International Information Programs (IIP), which utilize the Salesforce platform for information dissemination and management. Services delivered include the development, implementation, and ongoing support of the IIP IGF application, a critical IT system. The geographic impact is likely global, supporting the IIP's international information programs and outreach efforts. Workforce implications may include the need for skilled IT professionals within the State Department to manage and utilize the system, as well as the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to scope creep or evolving technology needs not fully addressed.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
Reliance on a single contractor for an extended period might reduce future competitive pressure if not managed carefully.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost predictability for the government.
The contract supports critical international information programs, aligning with agency mission objectives.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on the implementation and support of Customer Relationship Management (CRM) software, Salesforce. The market for government IT services, particularly CRM solutions, is substantial, with agencies increasingly adopting cloud-based platforms to manage constituent and program data. Comparable spending benchmarks would involve looking at other large federal contracts for Salesforce customization, integration, and ongoing support across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Phase One Consulting Group, LLC, may engage small businesses as subcontractors, though this information is not provided in the summary data. The absence of a small business set-aside means larger, established firms were likely the primary participants.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded within the fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Salesforce Government Cloud Contracts
Department of State IT Modernization Programs
Federal Civilian Agency Application Development
International Information Dissemination Services
Large-Scale CRM Implementation Contracts

Risk Flags

Long contract duration
Limited performance metrics in summary data
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.8 million to PHASE ONE CONSULTING GROUP, LLC. NEW SALESFORCE APPLICATION SERVICES FOR INTERNATIONAL INFORMATION PROGRAMS OR IIP IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PHASE ONE CONSULTING GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2016-07-07. End: 2023-07-29.

What specific Salesforce modules or functionalities were implemented or supported under this contract?

The provided data does not specify the exact Salesforce modules or functionalities implemented or supported. However, given the contract's description as 'NEW SALESFORCE APPLICATION SERVICES FOR INTERNATIONAL INFORMATION PROGRAMS OR IIP IGF', it likely involves core Salesforce Sales Cloud, Service Cloud, or custom application development tailored to the needs of the International Information Programs (IIP) and its Information Gateway Framework (IGF). This could encompass case management, constituent relationship management, data analytics, and workflow automation to support IIP's global outreach and information dissemination efforts.

How does the per-unit cost of this contract compare to similar Salesforce implementation projects in the federal government?

A direct per-unit cost comparison is not feasible with the provided data, as 'per-unit' is not defined (e.g., per user, per module, per hour). The contract value is a total fixed price over a long duration. To benchmark, one would need to analyze the scope of work, the number of users, the complexity of customizations, and the specific Salesforce products used in comparable federal contracts. Generally, large-scale, multi-year Salesforce implementations for federal agencies can range from hundreds of thousands to tens of millions of dollars, depending heavily on customization and integration requirements.

What are the key performance indicators (KPIs) used to measure the success of Phase One Consulting Group's services?

The provided summary data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for IT service contracts of this nature, KPIs might include system uptime, response times for support requests, successful completion of development milestones, user satisfaction ratings, and adherence to security protocols. The Department of State's contracting officer and program managers would be responsible for defining and monitoring these KPIs as part of contract oversight to ensure the contractor meets performance expectations.

What is Phase One Consulting Group's track record with the Department of State and similar federal agencies for Salesforce services?

Without access to detailed performance history or past performance evaluations, it's challenging to definitively assess Phase One Consulting Group's track record specifically for Salesforce services with the Department of State. However, the award of a significant, multi-year contract suggests they met the agency's requirements and demonstrated capability during the procurement process. A deeper dive into their contract history, past performance questionnaires, and any publicly available CPARS (Contractor Performance Assessment Reporting System) reports would provide a more comprehensive understanding of their performance.

How has the total spending on Salesforce application services by the Department of State evolved over the past five years?

The provided data only pertains to a single contract ($23.79M) awarded in 2016 and ending in 2023. It does not offer a historical spending trend for Salesforce services across the entire Department of State. To analyze the evolution of spending, one would need to aggregate data from all Salesforce-related contracts awarded by the Department of State over the past five years, looking at total obligations, number of contracts, and average contract values. This would reveal whether spending has increased, decreased, or remained stable.

What are the potential risks associated with the long duration and fixed-price nature of this contract?

The primary risks associated with a long-duration, fixed-price contract include scope creep, where the requirements may evolve beyond the original agreement, potentially leading to disputes or change orders. For the contractor, there's a risk of underestimating costs if unforeseen technical challenges arise or if market rates for labor increase significantly. For the government, the risk is that the fixed price might not reflect the most current market value by the end of the contract term, or that the contractor may have less incentive to innovate or improve efficiency once the price is locked in.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 99 CANAL CENTER PLZ STE 405, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,029,150

Exercised Options: $83,029,150

Current Obligation: $23,791,160

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $2,950,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q16AEA1004

IDV Type: BPA

Timeline