IT Support Services contract awarded to Vistronix, LLC for $30M, covering system analysis, design, development, and maintenance

Contract Overview

Contract Amount: $30,081,435 ($30.1M)

Contractor: Vistronix, LLC

Awarding Agency: Department of Agriculture

Start Date: 2018-03-07

End Date: 2019-08-19

Contract Duration: 530 days

Daily Burn Rate: $56.8K/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: IT SUPPORT SERVICES INCLUDE ANALYZE, DESIGN, DEVELOP, DEPLOY, OPERATE, DOCUMENT, AND MAINTAIN NRCS INFORMATION SYSTEMS. SUPPORT ALSO INCLUDES PERFORMING SOFTWARE AND DATABASE PLANNING, ANALYSIS, ARCHITECTURE, DESIGN, DEVELOPMENT AND INTEGRATION, TESTING, MAINTENANCE, DEPLOYMENT READINESS TESTING, DEPLOYMENT, DEPLOYMENT VERIFICATION, PROBLEM RESOLUTION, AND HELP DESK SUPPORT. SERVICES INCLUDES INFORMATION SYSTEM PLANNING, ARCHITECTING AND COST ANALYSIS, AND BUSINESS AREA ANALYSIS. THE NRCS INFORMATION SYSTEMS WILL INTERFACE USERS, DATA (SPATIAL AND NON-SPATIAL), AND COMMERCIAL IT PRODUCTS. THEY ARE USED BY NRCS EMPLOYEES IN LOCAL COUNTY OFFICES, OR FIELD SERVICE CENTERS THROUGHOUT THE COUNTRY, AND IN NRCS STATE, REGIONAL, AND NATIONAL HEADQUARTERS OFFICES. SOME APPLICATIONS WITHIN THE INFORMATION SYSTEMS ARE ALSO USED BY OTHER FEDERAL AGENCIES, STATE AND LOCAL UNITS OF GOVERNMENT AND THE PUBLIC. THE IT SUPPORT SERVICES ARE CATEGORIZED IN THIS PWS INTO THE FUNCTIONAL WORK AREAS OF: 1) SOFTWARE/DATABASE DEVELOPMENT, MAINTENANCE AND ENGINEERING (DME), 2) APPLICATION AND PRODUCTION SUPPORT TESTING, 3) PRODUCTION APPLICATION AND DATABASE OPERATIONS AND MAINTENANCE PRODUCTION SUPPORT OPERATIONS (PSO)/SUSTAINABILITY ENGINEERING TEAM (SET), 4) HELP DESK SERVICES, AND 5) HOSTING SERVICES.

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.1 million to VISTRONIX, LLC for work described as: IT SUPPORT SERVICES INCLUDE ANALYZE, DESIGN, DEVELOP, DEPLOY, OPERATE, DOCUMENT, AND MAINTAIN NRCS INFORMATION SYSTEMS. SUPPORT ALSO INCLUDES PERFORMING SOFTWARE AND DATABASE PLANNING, ANALYSIS, ARCHITECTURE, DESIGN, DEVELOPMENT AND INTEGRATION, TESTING, MAINTENANCE, DEPLOYMENT … Key points: 1. The contract focuses on comprehensive IT support for NRCS information systems, encompassing the full lifecycle from analysis to maintenance. 2. Services include critical functions like software and database planning, architecture, development, testing, and help desk support. 3. The scope extends to system planning, cost analysis, and business area analysis, ensuring alignment with NRCS operational needs. 4. This contract supports a wide user base across NRCS field offices, state, regional, and national headquarters. 5. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. 6. The primary contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The contract duration is 530 days, with a delivery order issued under a larger IDIQ or similar vehicle.

Value Assessment

Rating: good

The contract value of approximately $30 million for 530 days of IT support services appears reasonable given the extensive scope of work. This includes system analysis, design, development, deployment, operation, and maintenance of NRCS information systems. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that this pricing falls within expected ranges for comprehensive services. The firm fixed-price nature of the contract also provides cost certainty for the government, although it requires careful scope management to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The specific details of 'exclusion of sources' would need further investigation to understand if it limited the pool of potential bidders significantly. However, the 'full and open' designation implies that multiple qualified vendors had the opportunity to submit proposals, fostering price discovery and potentially leading to a more competitive outcome.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and improving the quality of services offered. This competitive pressure helps ensure that the government receives the best value for its investment.

Public Impact

NRCS employees across all levels, from local county offices to national headquarters, will benefit from reliable and maintained information systems. The contract ensures the continued operation and improvement of critical IT infrastructure supporting agricultural data and services. Geographic impact is nationwide, as NRCS offices throughout the country rely on these information systems. The contract supports the IT workforce by providing employment opportunities for individuals with expertise in system analysis, design, development, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'exclusion of sources' significantly limited initial competition.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
Ensuring ongoing innovation and adaptation to new technologies within the fixed-price structure.

Positive Signals

Firm Fixed Price contract structure provides cost predictability.
Awarded through full and open competition, suggesting a competitive process.
Comprehensive scope covers the entire IT lifecycle, ensuring integrated support.
Supports a critical government function (NRCS information systems).

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS code 541512), a significant segment of the IT services industry. This sector is characterized by a wide range of companies, from large system integrators to specialized software developers. Federal spending in IT support services is substantial, with agencies like the Department of Agriculture consistently investing in maintaining and modernizing their information systems to support their missions. This contract represents a portion of that broader federal IT spending, focusing on the operational and developmental needs of NRCS.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Vistronix, LLC, is likely a larger entity. While there's no direct indication of small business subcontracting requirements in the provided data, large IT service contracts often include provisions for small business participation. The impact on the small business ecosystem would depend on whether Vistronix actively seeks small business subcontractors for specialized services or if the contract's nature allows for significant subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Agriculture's Office of the Chief Financial Officer. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to the contract were initiated.

Related Government Programs

USDA IT Modernization Efforts
NRCS Information Technology Services
Federal Civilian Agency IT Support Contracts
Computer Systems Design and Related Services
IT Operations and Maintenance Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Reliance on a single vendor for critical IT infrastructure.
Need for robust oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.1 million to VISTRONIX, LLC. IT SUPPORT SERVICES INCLUDE ANALYZE, DESIGN, DEVELOP, DEPLOY, OPERATE, DOCUMENT, AND MAINTAIN NRCS INFORMATION SYSTEMS. SUPPORT ALSO INCLUDES PERFORMING SOFTWARE AND DATABASE PLANNING, ANALYSIS, ARCHITECTURE, DESIGN, DEVELOPMENT AND INTEGRATION, TESTING, MAINTENANCE, DEPLOYMENT READINESS TESTING, DEPLOYMENT, DEPLOYMENT VERIFICATION, PROBLEM RESOLUTION, AND HELP DESK SUPPORT. SERVICES INCLUDES INFORMATION SYSTEM PLANNING, ARCHITECTING AND COST ANALYSIS, AND BUSINESS AREA ANALYSIS. THE NRCS INFO

Who is the contractor on this award?

The obligated recipient is VISTRONIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2018-03-07. End: 2019-08-19.

What is the track record of Vistronix, LLC in performing similar IT support services for federal agencies?

Vistronix, LLC has a history of performing IT support and related services for various federal agencies. Their contract portfolio often includes areas such as cybersecurity, software development, and IT infrastructure management. To assess their track record specifically for this type of comprehensive IT support, a deeper dive into their past performance evaluations, contract history on platforms like SAM.gov, and any reported issues or successes on similar projects would be necessary. This would involve reviewing past performance questionnaires, any contract disputes, and the overall quality of deliverables on previous government contracts to gauge their reliability and capability in managing complex IT systems.

How does the cost of this contract compare to similar IT support services procured by other federal agencies?

Benchmarking the cost of this $30 million contract against similar IT support services requires detailed comparison of scope, duration, and service levels. Given the 530-day duration, the approximate daily burn rate is around $56,757. This figure needs to be contextualized by the specific IT systems supported, the complexity of the required services (analysis, design, development, maintenance, help desk), and the labor categories involved. Federal IT support contracts can vary widely in price based on these factors. A comprehensive comparison would involve analyzing contract awards for similar IT support functions across agencies like USDA, DOD, or HHS, looking at per-diem rates, total contract values for comparable scopes, and the level of service provided to determine if this contract represents good value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential contractor underperformance, cybersecurity vulnerabilities within the supported systems, and the risk of vendor lock-in. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), and regular security audits. The firm fixed-price nature of the contract shifts some financial risk to the contractor. Additionally, the 'full and open competition' aspect suggests a competitive environment that incentivizes good performance. However, the specific mitigation plans detailed in the contract's statement of work and performance work statement would provide a clearer picture of how these risks are actively managed.

How effective has Vistronix, LLC been in delivering IT support services under this specific contract?

Assessing the effectiveness of Vistronix, LLC under this specific contract requires access to performance data and feedback that is not publicly available in the provided data snippet. Typically, effectiveness is measured against the contract's performance work statement (PWS), including adherence to SLAs, quality of deliverables, and responsiveness to issues. Government performance evaluations, contractor performance assessment reporting (CPARs), and user satisfaction surveys are key indicators. Without this specific performance data, it's impossible to definitively state the effectiveness of Vistronix on this particular contract. Future analysis would need to consult internal government performance records.

What is the historical spending trend for IT support services within the NRCS or USDA?

Historical spending on IT support services within the NRCS and the broader USDA has generally shown a consistent or increasing trend, reflecting the growing reliance on digital infrastructure and data management for agricultural programs. Agencies like USDA invest significantly in maintaining and upgrading their IT systems to support research, conservation efforts, and farmer services. Analyzing past contract awards for IT support, system development, and maintenance within NRCS and USDA over the last 5-10 years would reveal trends in spending levels, types of services procured, and key contractors. This context helps in evaluating whether the $30 million awarded to Vistronix aligns with historical investment patterns or represents a significant shift.

What is the potential impact of 'exclusion of sources' on the overall value and competition for this contract?

The 'exclusion of sources' clause in a 'full and open competition' award can have a nuanced impact. If sources were excluded based on specific technical capabilities or past performance requirements that were essential for the contract's success, it might have streamlined the competition by focusing on highly qualified vendors, potentially leading to better technical solutions. However, if sources were excluded for less critical reasons, it could have artificially limited the competitive pool, potentially leading to higher prices than if a truly unrestricted competition had occurred. The specific rationale for exclusion is crucial for determining whether it enhanced or diminished the value and competitive intensity 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 › 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: 12314418Q0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,081,435

Exercised Options: $30,081,435

Current Obligation: $30,081,435

Actual Outlays: $1,402,175

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0629Z

IDV Type: GWAC

Timeline