Treasury's $50M ITISS contract with Federal Working Group, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $50,019,983 ($50.0M)

Contractor: Federal Working Group, Inc

Awarding Agency: Department of the Treasury

Start Date: 2017-07-20

End Date: 2023-01-19

Contract Duration: 2,009 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)

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 $50.0 million to FEDERAL WORKING GROUP, INC for work described as: IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS) Key points: 1. Contract awarded for IT infrastructure support services, indicating a need for ongoing technical assistance. 2. The contract duration of 2009 days (approx. 5.5 years) suggests a long-term strategic partnership. 3. A firm-fixed-price contract type generally offers cost certainty for the government. 4. The award was made to a single contractor, Federal Working Group, Inc. 5. The contract was competed under full and open competition, suggesting a broad search for qualified vendors. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The total award amount of approximately $50 million over roughly 5.5 years averages to about $9 million annually. This figure needs to be compared against the scope and complexity of the IT infrastructure support provided. Without detailed service level agreements or performance data, it's difficult to definitively assess value for money. However, the firm-fixed-price structure can be advantageous if the contractor efficiently manages costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 16 bids suggests a competitive environment, which typically drives better pricing and service offerings. The high number of bidders implies that the market for these IT infrastructure support services is robust and that the government had a good selection of potential providers.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by fostering price discovery and ensuring the government secures services at a reasonable market rate.

Public Impact

The Office of the Comptroller of the Currency (OCC) within the Department of the Treasury is the primary beneficiary of these IT infrastructure support services. The contract supports essential IT infrastructure, likely ensuring the smooth operation of critical financial regulatory functions. Services provided are expected to maintain and enhance the technological backbone of the OCC. The contract's impact on the workforce is indirect, primarily supporting the IT personnel and operations within the OCC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The long duration of the contract could lead to vendor lock-in if not managed carefully.
Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
The high number of bids (16) suggests a healthy competitive market for these services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on infrastructure support. The market for IT infrastructure services is vast and highly competitive, encompassing hardware, software, networking, and cloud solutions. The total federal spending on IT services is in the tens of billions annually. This contract represents a portion of that spending dedicated to maintaining and operating the foundational IT systems necessary for agency operations, such as those within the Department of the Treasury.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus was on large or established IT service providers. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is likely minimal, though the prime contractor may engage small businesses as part of their overall operations.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Office of the Comptroller of the Currency. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Systems Support
IT Professional Services

Risk Flags

Potential for technological obsolescence due to long contract duration.
Risk of vendor lock-in if performance management is not rigorous.
Need for clear performance metrics to ensure service quality under FFP.
Limited visibility into small business subcontracting impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $50.0 million to FEDERAL WORKING GROUP, INC. IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)

Who is the contractor on this award?

The obligated recipient is FEDERAL WORKING GROUP, 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 $50.0 million.

What is the period of performance?

Start: 2017-07-20. End: 2023-01-19.

What specific IT infrastructure support services were included in this contract?

The contract, identified as IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS), was awarded to FEDERAL WORKING GROUP, INC. for IT infrastructure support. While the specific deliverables are not detailed in the provided data, typical services under such a contract can include network management, server maintenance, data center operations, help desk support, system administration, hardware/software installation and configuration, and IT security monitoring. The NAICS code 541519 ('Other Computer Related Services') suggests a broad scope beyond standard IT support, potentially encompassing specialized consulting or integration services related to computer systems.

How does the $50 million award compare to similar IT infrastructure support contracts within the federal government?

Comparing the $50 million award for ITISS to similar contracts requires access to a broader dataset of federal IT procurements. However, for a contract spanning approximately 5.5 years (2009 days), an average annual value of around $9 million is within the range for significant IT support engagements in large federal agencies. Many agencies award multi-year contracts for IT infrastructure support in the tens of millions of dollars. The key differentiator would be the scope of services, the criticality of the systems supported, and the specific agency's IT environment. Without detailed service level agreements and performance benchmarks, a precise comparison is difficult, but the award size suggests a substantial and ongoing need for IT support.

What are the potential risks associated with a long-term (over 5 years) IT support contract?

Long-term IT support contracts, like this one with a duration of over 5 years, carry several potential risks. One primary risk is technological obsolescence; the technology landscape can change rapidly, and a contract designed for current needs might not adequately address future requirements or emerging technologies. Another risk is vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult and costly to switch vendors even if performance is subpar or better alternatives emerge. There's also the risk of complacency from the contractor, potentially leading to reduced service quality over time if performance monitoring is not rigorous. Finally, changes in agency needs or budget constraints could make the long-term commitment less flexible.

What does the 'firm fixed price' contract type imply for cost management and risk allocation?

A 'firm fixed price' (FFP) contract type implies that the contractor, Federal Working Group, Inc., agreed to a set price for the defined scope of work, regardless of the actual costs incurred. This allocation of risk heavily favors the government, as it provides cost certainty and predictability. The contractor assumes the primary risk of cost overruns. For the government, this means the total expenditure is known upfront, simplifying budgeting. However, it can also incentivize the contractor to minimize costs, potentially impacting the quality or scope of services if not carefully monitored through performance metrics and oversight. The government benefits from price stability, while the contractor bears the burden of managing expenses efficiently.

How does the number of bids (16) influence the perceived value and competition for this contract?

Receiving 16 bids for this IT infrastructure support contract is a strong indicator of robust competition. A higher number of bids generally suggests that the market is healthy, with multiple capable vendors interested in providing the services. This level of competition typically drives down prices as contractors vie for the award, potentially leading to better value for the government. It also increases the likelihood that the government selected a highly qualified vendor offering competitive terms. For taxpayers, this signifies that the procurement process was likely effective in soliciting a wide range of offers, promoting efficiency and potentially securing a more favorable price point compared to a contract with fewer bidders.

What is the significance of the NAICS code 541519 ('Other Computer Related Services') in understanding the contract's scope?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' indicates that the contract's scope extends beyond basic IT support. While it encompasses services like IT infrastructure management, it also suggests the inclusion of more specialized activities. This could involve IT consulting, systems integration, custom software development related to infrastructure, IT project management, or other computer-related professional services not classified under more specific codes. This broader classification implies that the Department of the Treasury sought a comprehensive suite of services to manage and potentially enhance its IT infrastructure, rather than just routine maintenance.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7918 JONES BRANCH DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $53,896,203

Exercised Options: $50,019,983

Current Obligation: $50,019,983

Actual Outlays: $33,483,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0604X

IDV Type: FSS

Timeline