USDA's $77M Agile Teams Contract Awarded to Alethix, LLC for Conservation Financial Assistance Support

Contract Overview

Contract Amount: $77,112,502 ($77.1M)

Contractor: Alethix, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-09-29

End Date: 2023-01-16

Contract Duration: 839 days

Daily Burn Rate: $91.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ELM 4 CALL ORDER MONEY ART O&M THIS CALL ORDER IS TO ACQUIRE AGILE TEAMS SKILLED AND EXPERIENCED WITH THE TECHNOLOGIES INDICATED IN THIS SOO. THE SCOPE OF THIS EFFORT SUPPORTS CONSERVATION FINANCIAL ASSISTANCE AND FARM BILL UPDATES OR OTHER LE

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80521

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $77.1 million to ALETHIX, LLC for work described as: ELM 4 CALL ORDER MONEY ART O&M THIS CALL ORDER IS TO ACQUIRE AGILE TEAMS SKILLED AND EXPERIENCED WITH THE TECHNOLOGIES INDICATED IN THIS SOO. THE SCOPE OF THIS EFFORT SUPPORTS CONSERVATION FINANCIAL ASSISTANCE AND FARM BILL UPDATES OR OTHER LE Key points: 1. The contract focuses on acquiring agile teams with specific technology skills for conservation financial assistance and Farm Bill updates. 2. Alethix, LLC, the sole awardee, will provide services under a Firm Fixed Price contract. 3. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 4. The spending is categorized under Custom Computer Programming Services, a common area for IT support.

Value Assessment

Rating: fair

The contract value of $77.1M over approximately 2.7 years (839 days) appears substantial for custom programming services. Benchmarking against similar agile team acquisition contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific mechanism (BPA Call) implies that the initial competition for the BPA itself may have influenced the pricing for this call order.

Taxpayer Impact: Taxpayer funds are being used to procure specialized IT services to support critical USDA functions related to conservation and agricultural policy.

Public Impact

Supports critical USDA functions related to conservation and agricultural policy. Ensures the development and maintenance of systems crucial for financial assistance programs. Leverages agile methodologies for potentially faster and more adaptive software development. The contract duration of over two years suggests a significant, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for cost overruns if scope creep occurs.
Dependence on a single vendor for critical IT services.

Positive Signals

Awarded under full and open competition.
Utilizes a Firm Fixed Price contract type, providing cost certainty.
Supports important government functions related to conservation and agriculture.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The value is significant, but benchmarks for similar agile team procurements within government would provide better context. The Department of Agriculture's focus on conservation and financial assistance suggests a need for specialized IT solutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, although they may participate as subcontractors.

Oversight & Accountability

The award was made under a BPA Call, which typically has established oversight mechanisms from the initial BPA competition. Further oversight would involve monitoring contractor performance against the Statement of Objectives (SOO) and ensuring adherence to contract terms.

Related Government Programs

Custom Computer Programming Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of specific technology details.
Limited insight into performance metrics.
Potential for vendor lock-in if not managed carefully.
Reliance on a single awardee for a significant scope of work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $77.1 million to ALETHIX, LLC. ELM 4 CALL ORDER MONEY ART O&M THIS CALL ORDER IS TO ACQUIRE AGILE TEAMS SKILLED AND EXPERIENCED WITH THE TECHNOLOGIES INDICATED IN THIS SOO. THE SCOPE OF THIS EFFORT SUPPORTS CONSERVATION FINANCIAL ASSISTANCE AND FARM BILL UPDATES OR OTHER LE

Who is the contractor on this award?

The obligated recipient is ALETHIX, 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 $77.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2023-01-16.

What specific technologies are required for these agile teams, and how do they align with the USDA's long-term IT strategy?

The provided data mentions 'technologies indicated in this SOO' but does not specify them. Understanding these technologies is crucial to assess their relevance and alignment with the USDA's broader IT modernization efforts. Without this detail, it's difficult to gauge the strategic value beyond the immediate project needs.

How does the pricing structure of this BPA Call compare to other similar agile team procurements within the federal government, particularly those under full and open competition?

While this contract was awarded under full and open competition, the pricing effectiveness is difficult to assess without comparative data. Benchmarking against similar agile team contracts, considering factors like team size, skill sets, and duration, is essential. The BPA Call mechanism might also influence pricing compared to standalone solicitations.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured to ensure effective delivery of services?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how contractor performance will be measured. Effective oversight requires clearly defined metrics related to agile team productivity, software quality, and timely delivery of conservation financial assistance support. Without these, assessing the effectiveness of the $77M investment is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD STE 440, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $109,503,728

Exercised Options: $77,247,708

Current Obligation: $77,112,502

Actual Outlays: $77,112,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314420A0065

IDV Type: BPA

Timeline