EOP Spends $33.7M on MAX Technology Support, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $33,728,955 ($33.7M)
Contractor: TCG Inc
Awarding Agency: Executive Office of the President
Start Date: 2023-09-27
End Date: 2026-09-26
Contract Duration: 1,095 days
Daily Burn Rate: $30.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: OMB MAX TECHNOLOGY AND PROGRAM MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20500
Plain-Language Summary
Executive Office of the President obligated $33.7 million to TCG INC for work described as: OMB MAX TECHNOLOGY AND PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Significant contract value of $33.7M for technology and program management support. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with the long duration (3 years) and labor hours pricing. 4. Services fall under Computer Systems Design, a key IT sector.
Value Assessment
Rating: good
The contract value of $33.7M for 3 years of support appears reasonable given the scope of technology and program management services. Benchmarking against similar IT support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award process is likely to result in favorable pricing, maximizing taxpayer value for the technology and program management services.
Public Impact
Ensures critical technology and program management functions within the Executive Office of the President are supported. The competitive award process suggests efficient use of taxpayer funds. Long-term support contract provides stability for essential government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hours pricing can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt well to rapidly changing technology needs.
Positive Signals
- Full and open competition ensures a broad range of potential bidders.
- Awarded to TCG Inc, a known entity in government contracting.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for modernizing government operations and ensuring efficient program delivery.
Small Business Impact
The contract does not indicate specific set-asides for small businesses, suggesting that larger, established firms were likely the primary bidders. Further analysis would be needed to determine if small business participation was encouraged or achieved.
Oversight & Accountability
The Executive Office of the President is responsible for overseeing this contract. Robust oversight will be necessary to manage the labor hours and ensure the services meet objectives within budget.
Related Government Programs
- Computer Systems Design Services
- Executive Office of the President Contracting
- Executive Office of the President Programs
Risk Flags
- Labor Hours Pricing
- Long Contract Duration
- Potential for Scope Creep
- Limited Small Business Participation Indicated
Tags
computer-systems-design-services, executive-office-of-the-president, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Executive Office of the President awarded $33.7 million to TCG INC. OMB MAX TECHNOLOGY AND PROGRAM MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is TCG INC.
Which agency awarded this contract?
Awarding agency: Executive Office of the President (Executive Office of the President).
What is the total obligated amount?
The obligated amount is $33.7 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-09-26.
What specific program management and technology support functions are covered under this contract?
The contract details are general, but 'MAX Technology and Program Management Support Services' implies support for IT infrastructure, software development lifecycle, project management, cybersecurity, and potentially data analytics or system integration within the EOP. Specific deliverables and performance metrics would be outlined in the contract's statement of work.
What are the potential risks associated with the labor hours pricing model for this contract?
The primary risk of labor hours pricing is the potential for cost escalation if work hours exceed initial estimates or if productivity is lower than expected. Without strict oversight and clear performance metrics, this model can be less cost-effective than fixed-price contracts, potentially leading to increased taxpayer expenditure.
How does the 'full and open competition after exclusion of sources' method impact price discovery and overall value?
This method, while competitive, suggests that certain sources were initially excluded before the broader competition. If the exclusion was justified (e.g., specific capabilities), it could still yield good value. However, if the exclusion was arbitrary, it might have limited the competitive pool, potentially impacting the best possible price discovery and overall value for taxpayers.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 7348 GEORGIA AVENUE NW, WASHINGTON, DC, 20012
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $84,669,731
Exercised Options: $38,895,923
Current Obligation: $33,728,955
Actual Outlays: $25,072,506
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $770,126
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200178W
IDV Type: GWAC
Timeline
Start Date: 2023-09-27
Current End Date: 2026-09-26
Potential End Date: 2028-09-26 00:00:00
Last Modified: 2026-03-03
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