Treasury's OCC awards $45.4M for ESSM2 IT services to Pragmatics, LLC under full and open competition
Contract Overview
Contract Amount: $45,401,297 ($45.4M)
Contractor: Pragmatics, LLC
Awarding Agency: Department of the Treasury
Start Date: 2011-10-01
End Date: 2014-12-30
Contract Duration: 1,186 days
Daily Burn Rate: $38.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: LABOR HOURS
Sector: IT
Official Description: ESSS OPERATIONS AND MAINTENANCE TWO (ESOM2).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219, UNITED STATES OF AMERICA
Plain-Language Summary
Department of the Treasury obligated $45.4 million to PRAGMATICS, LLC for work described as: ESSS OPERATIONS AND MAINTENANCE TWO (ESOM2). Key points: 1. The contract value of $45.4M for IT services over approximately 3 years is moderate. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract's focus on computer facilities management services is a common IT requirement. 4. The absence of small business set-aside indicates larger prime contractors were likely involved.
Value Assessment
Rating: fair
The contract value of $45.4M for 1186 days of service averages approximately $38,281 per day. Without specific service level agreements or detailed scope, a direct comparison is difficult, but this appears within a reasonable range for complex IT operations and maintenance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery through competitive proposals. This method is generally expected to yield fair and reasonable pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in IT operations and maintenance services for the OCC.
Public Impact
Ensures continued operation of critical IT infrastructure for the Office of the Comptroller of the Currency. Supports the agency's mission by maintaining essential computing facilities. The use of a large prime contractor may limit direct opportunities for smaller specialized IT firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Contract duration is significant, requiring ongoing monitoring.
Positive Signals
- Awarded via full and open competition.
- Supports essential agency operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending in this area is substantial across federal agencies, supporting core operational needs. Benchmarks for similar contracts vary widely based on scope and complexity.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates no small business participation. This suggests that the prime contractor, Pragmatics, LLC, likely handled the majority of the work or subcontracted to other large businesses.
Oversight & Accountability
The award was made by the Department of the Treasury's Office of the Comptroller of the Currency. Standard federal procurement oversight applies, with potential for agency-level reviews and GAO protests if issues arise.
Related Government Programs
- Computer Facilities Management Services
- Department of the Treasury Contracting
- Office of the Comptroller of the Currency Programs
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Reliance on a single large contractor may reduce flexibility.
- Limited visibility into small business subcontracting opportunities.
- Need for ongoing performance monitoring to ensure service quality.
Tags
computer-facilities-management-services, department-of-the-treasury, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $45.4 million to PRAGMATICS, LLC. ESSS OPERATIONS AND MAINTENANCE TWO (ESOM2).
Who is the contractor on this award?
The obligated recipient is PRAGMATICS, LLC.
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 $45.4 million.
What is the period of performance?
Start: 2011-10-01. End: 2014-12-30.
What specific IT facilities and services are included in the ESSM2 scope, and how do they align with the OCC's current and future needs?
The ESSM2 contract covers computer facilities management services. A detailed breakdown of the specific hardware, software, network infrastructure, and operational support functions is necessary to fully assess its alignment with the OCC's evolving technological requirements and strategic goals. Understanding the scope is crucial for evaluating long-term value and potential for modernization.
What were the key performance indicators (KPIs) and service level agreements (SLAs) established for this contract, and how was performance measured?
Performance metrics and SLAs are critical for ensuring the effectiveness of IT operations and maintenance. Without specific details on KPIs (e.g., uptime, response times, resolution rates) and SLAs, it's challenging to objectively assess the contractor's performance and the overall value delivered. Post-award performance reports would provide insights into adherence to these standards.
How did the pricing structure and the competitive bidding process ensure cost-effectiveness for the taxpayer over the contract's duration?
The contract utilized full and open competition, which is designed to foster competitive pricing. Analyzing the submitted proposals, the government's cost realism assessment, and the final negotiated price against industry benchmarks would confirm cost-effectiveness. The labor hour contract type requires careful monitoring to prevent scope creep and ensure efficient resource utilization.
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: 8
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 22102
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,401,297
Exercised Options: $45,401,297
Current Obligation: $45,401,297
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $10,560,116
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TCC09HQD0013
IDV Type: IDC
Timeline
Start Date: 2011-10-01
Current End Date: 2014-12-30
Potential End Date: 2014-12-30 00:00:00
Last Modified: 2015-05-01
More Contracts from Pragmatics, LLC
- Enhanced Classroom Crxxi Level 2 — $109.3M (Department of Defense)
- IT Support Services — $89.1M (Department of State)
- Enterprise Classroom Programs Technology — $45.4M (Department of Defense)
- Base Contract Award Classroom XXI - Igf::ot::igf for Other Functions — $44.0M (Department of Defense)
- RFQ Amendment NO. 1 to Hshqdc-08-A-00059a — $41.5M (Department of Homeland Security)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)