Treasury's $78.5M IT Support Contract with 1 Source Consulting Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $78,497,354 ($78.5M)
Contractor: 1 Source Consulting, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-12-03
End Date: 2022-12-02
Contract Duration: 3,651 days
Daily Burn Rate: $21.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: "OTHER FUNCTION" - IGF::OT::IGF IT SERVICES AND SOFTWARE MAINTENANCE4 SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of the Treasury obligated $78.5 million to 1 SOURCE CONSULTING, INC. for work described as: "OTHER FUNCTION" - IGF::OT::IGF IT SERVICES AND SOFTWARE MAINTENANCE4 SUPPORT SERVICES Key points: 1. The contract awarded to 1 Source Consulting, Inc. for IT services represents a significant investment by the Bureau of the Fiscal Service. 2. Competition was limited, raising questions about price discovery and potential taxpayer impact. 3. The long duration and cost-plus fixed-fee structure warrant close examination for efficiency and value. 4. The sector is IT Services, specifically Computer Systems Design Services, a common area for government spending.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a long duration, can lead to cost overruns if not managed tightly. Benchmarking against similar CPFF contracts for Computer Systems Design Services is crucial to assess if the $78.5M expenditure represents fair value.
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 competitive process. This approach may have restricted the pool of potential bidders, potentially impacting price discovery and leading to a less competitive outcome.
Taxpayer Impact: The limited competition and CPFF structure raise concerns about potential overspending, meaning taxpayers may not be receiving the best possible value for the services rendered.
Public Impact
Taxpayers may be overpaying due to a lack of robust competition. The long contract term could indicate a lack of agile procurement or a reliance on a single vendor. The specific IT services provided are critical for the Bureau of the Fiscal Service's operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Services are essential for agency operations
Sector Analysis
This contract falls within the IT Services sector, specifically Computer Systems Design Services. Government spending in this area is substantial, and effective competition and cost control are paramount to ensure value for money.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a specific justification was made for limiting the competition. Oversight should focus on the appropriateness of this exclusion and the subsequent contract performance monitoring.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition may have inflated prices
- Long contract duration could indicate vendor lock-in
- Lack of transparency in source exclusion
Tags
computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $78.5 million to 1 SOURCE CONSULTING, INC.. "OTHER FUNCTION" - IGF::OT::IGF IT SERVICES AND SOFTWARE MAINTENANCE4 SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is 1 SOURCE CONSULTING, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $78.5 million.
What is the period of performance?
Start: 2012-12-03. End: 2022-12-02.
What was the specific justification for excluding other sources in the competition?
The justification for excluding other sources needs to be thoroughly reviewed. Typically, such exclusions are based on specific technical requirements, proprietary technology, or urgent needs. Without this justification, it's difficult to assess if the limited competition was warranted or if it was a missed opportunity for better pricing and innovation.
How effectively has the Cost Plus Fixed Fee structure been managed to control costs?
The Cost Plus Fixed Fee (CPFF) structure requires rigorous oversight to prevent cost overruns. The agency must demonstrate robust tracking of direct costs, justification of indirect costs, and effective management of the fixed fee to ensure it aligns with performance and value. Without detailed performance and cost data, it's hard to gauge the effectiveness of cost control.
What is the current performance status of 1 Source Consulting, Inc. under this contract?
Assessing the contractor's performance is critical, especially given the contract's duration and structure. Key performance indicators (KPIs) should be tracked, and past performance reviews analyzed. High performance would partially mitigate concerns about competition and contract type, while poor performance would exacerbate them.
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
Solicitation ID: BPD-TTB-12-R-0002
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1250 H ST NW STE 250, WASHINGTON, DC, 20005
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $103,346,405
Exercised Options: $94,983,952
Current Obligation: $78,497,354
Actual Outlays: $20,252,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0624Z
IDV Type: GWAC
Timeline
Start Date: 2012-12-03
Current End Date: 2022-12-02
Potential End Date: 2022-12-02 00:00:00
Last Modified: 2023-07-13
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