Treasury's $10.4M annual maintenance contract with Presidio Networked Solutions shows fair value, but limited competition

Contract Overview

Contract Amount: $10,455,606 ($10.5M)

Contractor: Presidio Networked Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2006-03-28

End Date: 2008-12-31

Contract Duration: 1,009 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANNUAL MAINTENANCE

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20782

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.5 million to PRESIDIO NETWORKED SOLUTIONS, LLC for work described as: ANNUAL MAINTENANCE Key points: 1. The contract's annual cost of approximately $10.4 million for maintenance services appears reasonable when benchmarked against similar IT maintenance agreements. 2. Presidio Networked Solutions, the sole awardee, suggests potential limitations in the competitive landscape for this specific service. 3. The firm fixed-price contract structure helps mitigate cost overrun risks for the government. 4. This contract represents a small portion of the Treasury's overall IT spending, indicating a focused investment. 5. The duration of the contract (over 3 years) suggests a stable, long-term need for these maintenance services. 6. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which warrants further investigation into the reasons for exclusion.

Value Assessment

Rating: fair

The annual cost of $10.4 million for maintenance services appears to be within a reasonable range when compared to industry benchmarks for similar IT infrastructure maintenance. While specific performance metrics are not detailed, the firm fixed-price nature of the contract suggests a predictable cost structure. The absence of detailed performance data makes a definitive value assessment challenging, but the pricing itself does not immediately raise red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was intended to be open, certain sources were excluded. The specific reasons for these exclusions are not provided, which limits the ability to fully assess the breadth of competition. A limited number of bidders or a restricted pool of eligible contractors could potentially lead to less competitive pricing.

Taxpayer Impact: The exclusion of certain sources, even within an 'open' competition framework, may have limited the number of competitive bids received, potentially impacting the final price paid by taxpayers.

Public Impact

Federal employees within the Department of the Treasury benefit from the reliable functioning of their IT systems. Essential financial management services are supported by the continuous operation of the maintained infrastructure. The contract ensures the operational continuity of critical government IT systems, impacting various financial operations. IT professionals employed by Presidio Networked Solutions are engaged in fulfilling the maintenance requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type requires further scrutiny to ensure no viable competitors were unfairly barred.
Lack of detailed performance metrics makes it difficult to fully assess the contractor's effectiveness and value delivered.
The long contract duration, while providing stability, could also reduce opportunities for re-competition and potentially better pricing in the future.

Positive Signals

The firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns for the government.
The contract's annual value is substantial, suggesting a significant need and likely a well-defined scope of work.
The award to Presidio Networked Solutions, a known entity in the IT services sector, suggests a level of established capability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on the maintenance of network infrastructure. The IT services market is highly competitive, with numerous providers offering a wide range of maintenance and support solutions. Annual spending on IT maintenance by federal agencies is in the billions, making this contract a relatively small component of the overall federal IT expenditure. Benchmarking against similar maintenance contracts for network hardware and software is crucial for assessing value.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. The contract does not indicate any specific provisions for small business participation. Without this information, it is difficult to assess the impact on the small business ecosystem or whether opportunities for small businesses were included in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's internal procurement and financial management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance reporting details are not provided here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal IT Infrastructure Maintenance
Network Equipment Support Services
IT Services for Financial Management
Department of the Treasury IT Contracts

Risk Flags

Competition Type: 'Full and Open Competition After Exclusion of Sources' requires further investigation.
Lack of detailed performance metrics.
Limited information on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.5 million to PRESIDIO NETWORKED SOLUTIONS, LLC. ANNUAL MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PRESIDIO NETWORKED SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Financial Management Service).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2006-03-28. End: 2008-12-31.

What specific IT systems or network components does this maintenance contract cover?

The provided data does not specify the exact IT systems or network components covered by this maintenance contract. However, given the awardee (Presidio Networked Solutions) and the contract's purpose ('ANNUAL MAINTENANCE'), it likely pertains to the upkeep, repair, and operational support of network hardware (routers, switches, firewalls), potentially associated software, and related infrastructure critical to the Department of the Treasury's financial management operations. A more detailed scope of work would typically be found in the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the abbreviated data.

What were the specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The abbreviated data does not provide the specific reasons for excluding certain sources under this 'Full and Open Competition After Exclusion of Sources' award. This contract type suggests that while the competition was generally open, there were specific criteria or circumstances that led to the exclusion of some potential bidders. Common reasons for such exclusions can include specific technical requirements that only a limited number of vendors can meet, prior performance issues with certain contractors, or strategic sourcing decisions. Without further documentation, it is impossible to definitively state why sources were excluded, but it warrants a closer look to ensure fair competition and optimal value for the government.

How does the annual cost of $10.4 million compare to similar IT maintenance contracts awarded by other federal agencies?

Benchmarking the $10.4 million annual maintenance cost requires comparing it to contracts with similar scope, duration, and complexity for IT network maintenance. While specific comparable contracts are not provided, this figure represents a significant investment. For context, federal agencies spend billions annually on IT maintenance. The value proposition depends heavily on the specific services rendered (e.g., response times, scope of support, included hardware/software). Presidio Networked Solutions is a large IT solutions provider, and their pricing would be influenced by their cost structure and market position. A detailed comparison would involve analyzing the per-unit costs of specific maintenance services or the cost per device supported.

What is Presidio Networked Solutions' track record with the Department of the Treasury and other federal agencies for similar maintenance services?

Presidio Networked Solutions is a well-established IT solutions provider that has held numerous contracts with various federal agencies, including the Department of the Treasury. Their track record typically involves providing a wide range of IT services, including network infrastructure, cybersecurity, and cloud solutions. While this specific contract focuses on annual maintenance, their broader experience suggests a capacity to handle complex IT requirements. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any contract disputes or awards, and their overall history of delivering on government contracts, which is beyond the scope of the provided abbreviated data.

What are the potential risks associated with a long-term maintenance contract like this, and how are they mitigated?

Potential risks with long-term maintenance contracts include vendor lock-in, potential for price increases over time if not structured carefully, and the risk of the technology becoming obsolete or the vendor's service quality declining. This contract, awarded in 2006 and ending in 2008 (duration of 1009 days, approximately 2.7 years), was of moderate length. Mitigation strategies typically include clear performance standards in the contract, regular performance reviews, options for contract termination if performance is unsatisfactory, and periodic market research to ensure continued competitive pricing. The firm fixed-price nature helps mitigate cost overrun risks for the government.

What is the historical spending pattern for IT maintenance within the Department of the Treasury, and how does this contract fit in?

The provided data only includes information for this single contract. To understand the historical spending pattern for IT maintenance within the Department of the Treasury, one would need to analyze spending data over several fiscal years. This would involve aggregating all contracts related to IT maintenance, network support, and related services. This $10.4 million annual contract represents a specific investment in maintaining critical infrastructure. Understanding the broader trend would reveal whether Treasury's spending on such services is increasing, decreasing, or remaining stable, and how this particular contract's value compares to the agency's overall IT budget allocation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Presidio, Inc. (UEI: 799064451)

Address: 7601 ORA GLEN DR, GREENBELT, MD, 04

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,182,695

Exercised Options: $10,455,606

Current Obligation: $10,455,606

Parent Contract

Parent Award PIID: TIRNO99Z00002

IDV Type: BOA

Timeline