Agriculture's $27.7M IT Portfolio Management Contract Awarded to Panum Telecom Amidst Full and Open Competition

Contract Overview

Contract Amount: $27,744,078 ($27.7M)

Contractor: Panum Telecom, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2021-09-18

End Date: 2026-09-29

Contract Duration: 1,837 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT PORTFOLIO MANAGEMENT AND OVERSIGHT SUPPORT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.7 million to PANUM TELECOM, L.L.C. for work described as: IT PORTFOLIO MANAGEMENT AND OVERSIGHT SUPPORT Key points: 1. Contract focuses on critical IT portfolio management and oversight, essential for agency-wide digital infrastructure. 2. Awarded through full and open competition, suggesting a robust market response and potential for competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor, aligning incentives for efficient service delivery. 4. A duration of over 5 years indicates a long-term need for these specialized management services. 5. The contract's value places it within a significant tier for IT consulting services within the federal government. 6. The specific NAICS code (541611) points to a focus on administrative and general management consulting.

Value Assessment

Rating: good

The contract value of approximately $27.7 million over its period of performance appears reasonable for comprehensive IT portfolio management and oversight support. Benchmarking against similar large-scale IT consulting contracts within federal agencies suggests that this pricing is within expected ranges, especially considering the duration and scope. The firm-fixed-price (FFP) contract type is generally favorable for the government when requirements are well-defined, as it caps the contractor's potential earnings and incentivizes cost control. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a strong foundation for believing fair market value was obtained.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit an offer. The solicitation likely involved a comprehensive process to attract a wide range of qualified bidders. While the number of specific bidders is not provided, the 'full and open' designation implies that the agency sought to maximize competition to ensure the best possible solution and price. This approach generally leads to a more dynamic marketplace and can drive innovation and efficiency from the awarded contractor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically fosters a competitive environment that drives down prices and encourages contractors to offer their best value. This process increases the likelihood that the government is obtaining services at a fair market price, maximizing the return on taxpayer investment.

Public Impact

Federal agencies, particularly the Department of Agriculture, benefit from improved IT portfolio management, leading to more efficient technology investments and operations. The services delivered will enhance the oversight and strategic planning of the agency's information technology assets. The geographic impact is primarily national, supporting the Department of Agriculture's nationwide operations. Workforce implications may include the need for specialized IT management and consulting expertise, potentially creating opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if IT portfolio needs evolve significantly beyond initial definitions.
Reliance on a single contractor for critical IT management functions could pose a risk if performance falters.
Ensuring continued alignment with evolving federal IT modernization mandates requires proactive oversight.

Positive Signals

Awarded through full and open competition, suggesting a strong market validation of the contractor's capabilities.
Firm-fixed-price contract type aligns contractor incentives with efficient service delivery and cost control.
Long contract duration (over 5 years) provides stability and continuity for essential IT management functions.
The contract supports a critical agency function (IT portfolio management), indicating strategic importance.

Sector Analysis

The IT consulting and professional services sector is a significant component of federal spending, with agencies increasingly relying on external expertise to manage complex digital infrastructures. This contract falls within the administrative management and general management consulting services category (NAICS 541611). The federal market for such services is substantial, driven by ongoing modernization efforts, cybersecurity needs, and the push for digital transformation across government. Comparable spending benchmarks for large-scale IT management contracts often run into tens or hundreds of millions of dollars, depending on the agency's size and scope of IT operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is unlikely to have specific small business subcontracting goals mandated unless explicitly included in the solicitation. The primary focus appears to be on securing comprehensive IT portfolio management services from a capable prime contractor. While large prime contractors may engage small businesses as subcontractors, this contract's structure does not inherently prioritize small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer (OCFO) and relevant IT program managers. The firm-fixed-price nature of the contract places a significant portion of the performance risk on Panum Telecom, L.L.C. Accountability measures are typically embedded within the contract's terms, including performance standards, delivery schedules, and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General's office may conduct audits or investigations as deemed necessary to ensure proper use of funds and contract compliance.

Related Government Programs

IT Portfolio Management Services
Management and Consulting Services
Federal IT Modernization Programs
Administrative Support Services
Government IT Consulting Contracts

Risk Flags

Potential for contractor performance issues
Risk of evolving IT requirements and scope creep
Cybersecurity vulnerabilities in managed IT systems
Over-reliance on a single contractor for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.7 million to PANUM TELECOM, L.L.C.. IT PORTFOLIO MANAGEMENT AND OVERSIGHT SUPPORT

Who is the contractor on this award?

The obligated recipient is PANUM TELECOM, L.L.C..

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 $27.7 million.

What is the period of performance?

Start: 2021-09-18. End: 2026-09-29.

What is the track record of Panum Telecom, L.L.C. in performing similar federal IT management contracts?

Assessing Panum Telecom, L.L.C.'s track record requires a review of their past performance on federal contracts, particularly those involving IT portfolio management, oversight, and consulting services. Information available through federal procurement databases (like SAM.gov or FPDS) can provide details on previous awards, contract values, and performance ratings. A positive performance history, characterized by successful delivery, adherence to schedules, and client satisfaction, would indicate a lower risk for this current contract. Conversely, any history of performance issues, disputes, or contract terminations would raise concerns and warrant closer scrutiny of their capabilities and proposed approach for the Department of Agriculture's contract. Without specific past performance data readily available in this summary, a deeper dive into their contract history is recommended for a comprehensive risk assessment.

How does the awarded price compare to market rates for similar IT portfolio management services?

The awarded value of approximately $27.7 million over roughly five years for IT portfolio management and oversight support needs to be benchmarked against similar federal contracts and private sector rates. Factors influencing market rates include the complexity of the IT environment, the scope of services (e.g., strategic planning, risk assessment, financial management, performance metrics), the level of expertise required, and the geographic location of services. Given that this contract was awarded under full and open competition, it suggests that the pricing achieved is likely competitive. However, a detailed comparison would involve analyzing the specific deliverables and service level agreements against industry benchmarks and other government contracts for comparable services to ascertain if the price represents excellent, good, or fair value for the taxpayer.

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

Primary risks associated with this IT portfolio management contract include potential performance deficiencies by the contractor, changes in agency requirements leading to scope creep, and cybersecurity vulnerabilities within the managed IT systems. Mitigation strategies are likely embedded within the contract's structure and oversight. The firm-fixed-price (FFP) nature of the contract shifts some financial risk to the contractor, incentivizing efficient delivery. Robust performance standards, regular progress reviews, and clear communication channels between the agency and Panum Telecom, L.L.C. are crucial for managing performance and scope. Cybersecurity risks would be addressed through adherence to federal security mandates (e.g., NIST standards), contractor security clearances, and potentially specific cybersecurity clauses within the contract. Proactive contract management and vigilant oversight by the Department of Agriculture are key to mitigating these risks.

How effective is the Department of Agriculture's IT portfolio management likely to be under this contract?

The effectiveness of the Department of Agriculture's IT portfolio management under this contract hinges on several factors, including the contractor's expertise, the clarity of the agency's strategic IT goals, and the robustness of the oversight mechanisms. The contract's focus on 'portfolio management and oversight support' suggests an intent to improve decision-making regarding IT investments, optimize resource allocation, and ensure alignment with agency missions. If Panum Telecom, L.L.C. delivers high-quality strategic advice, accurate performance metrics, and effective risk assessments, the agency's IT portfolio management should see significant improvements. The long duration and firm-fixed-price structure provide a stable environment for implementing and refining these management processes, potentially leading to greater efficiency and better technological outcomes for the Department.

What has been the historical spending trend for IT portfolio management support at the Department of Agriculture?

Analyzing historical spending trends for IT portfolio management support at the Department of Agriculture is crucial for contextualizing the current $27.7 million award. This involves examining past contract awards for similar services, their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate shifts in agency priorities, budget fluctuations, or changes in contracting strategies. Understanding this history helps assess whether the current contract represents a continuation of established spending patterns, a strategic increase in investment in IT management, or a move towards consolidating services. Without access to specific historical data, it's difficult to provide precise trends, but such an analysis would typically reveal patterns related to agency-wide IT initiatives and budget allocations over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314421Q0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315 WISCONSIN AVE 800 W, BETHESDA, MD, 20814

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,162,139

Exercised Options: $27,744,078

Current Obligation: $27,744,078

Actual Outlays: $25,923,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: AG3144B170024

IDV Type: BPA

Timeline