Treasury's $27.3M Enterprise Services Contract Awarded to Highpoint Digital, Inc. for IT Facilities Management

Contract Overview

Contract Amount: $27,346,485 ($27.3M)

Contractor: Highpoint Digital, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-07-20

End Date: 2013-12-31

Contract Duration: 1,625 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE SERVICES OF AGENCY PORTFOLIO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.3 million to HIGHPOINT DIGITAL, INC. for work described as: ENTERPRISE SERVICES OF AGENCY PORTFOLIO Key points: 1. Contract value represents a significant investment in essential IT infrastructure management. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of over 4 years indicates a long-term need for these services. 4. Awarded under the 'Computer Facilities Management Services' NAICS code, aligning with core IT operational needs. 5. The contract's performance period spans a substantial timeframe, requiring consistent service delivery. 6. The relatively low number of bids (2) warrants further examination of competition depth.

Value Assessment

Rating: fair

Benchmarking the value of this $27.3 million contract requires detailed analysis of the specific services rendered under 'Computer Facilities Management Services'. Without direct comparisons to similar, contemporaneous contracts for identical services, it's challenging to definitively assess value for money. However, the duration of over four years suggests a sustained need, and the fact it was competed openly implies an attempt to secure competitive pricing. The number of bids received (2) is on the lower side for full and open competition, which could indicate potential limitations in market reach or contractor interest, possibly impacting optimal price discovery.

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 bids. However, only two bids were received. This limited number of bidders, despite the open competition, may suggest that the market for these specific services is concentrated, or that the requirements were highly specialized, deterring a broader range of potential offerors. A low number of bids can sometimes lead to less aggressive pricing than a more robustly competed contract.

Taxpayer Impact: While the contract was open to all, the low bid count means taxpayers may not have benefited from the most competitive pricing achievable with a larger pool of interested contractors.

Public Impact

The Office of the Comptroller of the Currency (OCC) benefits from reliable IT facilities management, ensuring operational continuity. Essential IT services are delivered, supporting the OCC's mission to supervise financial institutions. The contract's impact is primarily within the District of Columbia, where the OCC is headquartered. The contract supports a workforce involved in IT infrastructure and facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than if more vendors had participated.
The long contract duration could lead to vendor lock-in or reduced flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
The contract addresses a critical need for IT facilities management, ensuring operational stability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical sub-sector supporting the operational backbone of government agencies. The market for such services is substantial, with numerous large and small businesses offering specialized expertise. Benchmarking against similar government contracts for IT facilities management would typically involve analyzing pricing structures, service level agreements, and the scope of work to determine if the $27.3 million award represents a fair market value over its duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that the prime contractor, Highpoint Digital, Inc., is likely not a small business given the contract value. There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though Highpoint Digital may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of the Comptroller of the Currency (OCC) through contract officers and technical representatives. Accountability measures would be defined in the contract's performance work statement and service level agreements. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Facilities Management Services
Enterprise IT Services
Government IT Contracts
Department of the Treasury IT Spending

Risk Flags

Limited competition may impact price.
Contract duration could lead to inflexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.3 million to HIGHPOINT DIGITAL, INC.. ENTERPRISE SERVICES OF AGENCY PORTFOLIO

Who is the contractor on this award?

The obligated recipient is HIGHPOINT DIGITAL, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2009-07-20. End: 2013-12-31.

What is the specific scope of 'Computer Facilities Management Services' covered under this contract?

The scope of 'Computer Facilities Management Services' (NAICS 541513) typically encompasses a range of activities related to the operation and maintenance of an organization's computer systems and related infrastructure. This can include data center operations, hardware maintenance, network infrastructure management, system administration, help desk support, and ensuring the physical security and environmental controls of IT facilities. For this specific contract with the OCC, the detailed scope would be outlined in the Performance Work Statement (PWS), detailing the exact services, deliverables, and performance standards expected from Highpoint Digital, Inc. These services are crucial for maintaining the operational integrity and availability of the OCC's IT systems.

How does the pricing structure of this contract compare to industry benchmarks for similar IT facilities management services?

Assessing the pricing structure against industry benchmarks requires detailed knowledge of the contract's specific terms, including labor categories, rates, and the exact services provided. Given this is a 'Labor Hours' contract type, the government pays for the actual hours worked by the contractor's personnel at pre-negotiated rates. Benchmarking would involve comparing these rates to those charged by other IT facilities management providers for comparable roles and expertise in the Washington D.C. metropolitan area. Factors like the contractor's overhead, profit margins, and the specific skill sets required influence these rates. Without access to the detailed rate structure and a direct comparison with similar government or commercial contracts, a definitive value assessment is difficult, though the limited competition might suggest less downward pressure on rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any IT facilities management contract, ensuring that the contractor meets the required standards of service. While the specific KPIs and SLAs for this Highpoint Digital, Inc. contract are not detailed in the provided data, they would typically cover areas such as system uptime and availability, response times for service requests and incidents, resolution times for issues, data center environmental controls (temperature, humidity), and security compliance. The OCC would have established these metrics in the Performance Work Statement (PWS) to measure Highpoint Digital's performance and ensure the reliable operation of their IT infrastructure. Failure to meet these SLAs could result in penalties or corrective actions.

What is Highpoint Digital, Inc.'s track record with government contracts, particularly in IT facilities management?

Highpoint Digital, Inc. has a history of performing government contracts, including those related to IT services. Examining their past performance, contract values, and client agencies provides insight into their capabilities and reliability. Information available through federal procurement databases (like SAM.gov or FPDS) would detail their award history, including the types of services rendered and their performance ratings on previous contracts. For this specific contract with the OCC, their successful bid suggests they met the qualifications and demonstrated the capability to perform the required computer facilities management services. A thorough review would involve looking at past performance evaluations and any past issues or disputes.

How has the spending on 'Computer Facilities Management Services' by the Department of the Treasury and its sub-agencies evolved over time?

Analyzing historical spending on 'Computer Facilities Management Services' (NAICS 541513) by the Department of the Treasury and its sub-agencies, like the OCC, reveals trends in IT infrastructure investment. This specific contract, awarded in 2009 and ending in 2013, represents a portion of that historical spending. To understand the evolution, one would need to examine spending data for this NAICS code across multiple fiscal years, identifying major contracts, their values, and the agencies awarding them. This analysis could show whether spending has increased or decreased, whether services are being consolidated or decentralized, and how technology shifts (e.g., cloud adoption) might be impacting traditional facilities management contracts. The $27.3M for this contract indicates a significant, multi-year investment during its performance period.

Industry Classification

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

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: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1005 N GLEBE RD STE 160, ARLINGTON, VA, 08

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,346,485

Exercised Options: $27,346,485

Current Obligation: $27,346,485

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TCC09HQD0014

IDV Type: IDC

Timeline