USDA's $3.36M PeopleSoft Admin Support Contract Awarded to Panum Telecom for 5 Years

Contract Overview

Contract Amount: $3,360,690 ($3.4M)

Contractor: Panum Telecom, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2022-03-22

End Date: 2027-03-31

Contract Duration: 1,835 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE YEAR - 4/1/2022 - 3/31/2023 - PEOPLESOFT ADMINISTRATIVE SUPPORT.

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.4 million to PANUM TELECOM, L.L.C. for work described as: BASE YEAR - 4/1/2022 - 3/31/2023 - PEOPLESOFT ADMINISTRATIVE SUPPORT. Key points: 1. Contract provides essential administrative support for PeopleSoft systems, crucial for USDA's financial operations. 2. Awarded via BPA Call under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. Contract duration of 5 years indicates a long-term need for these services. 5. Focus on administrative management services aligns with the agency's operational efficiency goals. 6. The contract is not set aside for small businesses, implying larger firms participated.

Value Assessment

Rating: good

The contract value of $3.36 million over five years for administrative support services appears reasonable, especially considering the critical nature of PeopleSoft systems for a large agency like the USDA. Benchmarking against similar administrative support contracts for large federal IT systems suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely utilizing a Blanket Purchase Agreement (BPA) Call. This indicates that multiple vendors were eligible to bid, and the government sought the best value through a competitive process. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition that should drive competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiaries are the USDA's Office of the Chief Financial Officer, ensuring smooth operation of financial management systems. Services delivered include administrative support crucial for the PeopleSoft enterprise resource planning system. The geographic impact is national, supporting USDA operations across the country. Workforce implications include the potential for specialized administrative roles to support the PeopleSoft platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge of the USDA's PeopleSoft instance is developed.
Reliance on a single contractor for critical administrative functions could pose a risk if performance degrades.
The specific performance metrics and service level agreements are not detailed, making it hard to assess performance proactively.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm-fixed-price contract type provides cost certainty.
Long-term contract (5 years) suggests stability and a clear need for the services.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting enterprise resource planning (ERP) systems like PeopleSoft. This sector is vital for government operations, enabling efficient management of financial, human resources, and other core functions. Spending in this area is consistent across large federal agencies that rely on integrated software solutions for operational efficiency.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This suggests that the competition was open to all eligible firms, and larger businesses likely participated. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they might be involved as subcontractors if Panum Telecom chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the USDA's Office of the Chief Financial Officer. Performance monitoring, adherence to contract terms, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

PeopleSoft Support Services
Administrative Management Consulting
Financial System Support
Enterprise Resource Planning (ERP) Services
IT Administrative Support

Risk Flags

Contract duration is long (5 years), requiring sustained performance monitoring.
Potential for vendor lock-in due to specialized system knowledge.
Performance metrics and SLAs not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.4 million to PANUM TELECOM, L.L.C.. BASE YEAR - 4/1/2022 - 3/31/2023 - PEOPLESOFT ADMINISTRATIVE 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 $3.4 million.

What is the period of performance?

Start: 2022-03-22. End: 2027-03-31.

What is the track record of Panum Telecom, L.L.C. with federal contracts, particularly for administrative support and PeopleSoft systems?

Panum Telecom, L.L.C. has a history of receiving federal contracts, primarily as a reseller or provider of telecommunications and IT services. While specific details on their expertise with PeopleSoft administrative support are not immediately apparent from the provided data, their contract history suggests they are capable of managing government procurements. Further investigation into their past performance on similar contracts, especially those involving complex administrative systems or ERP support, would be necessary to fully assess their track record. Reviewing past performance evaluations and any reported issues or successes on prior USDA or other agency contracts would provide a clearer picture of their capabilities and reliability in this specific service area.

How does the awarded amount of $3.36 million compare to similar PeopleSoft administrative support contracts at other federal agencies?

The awarded amount of $3.36 million over a five-year period for PeopleSoft administrative support translates to an average annual cost of approximately $672,000. This figure appears to be within a reasonable range when compared to similar contracts for large federal agencies. Agencies like the Department of Defense, Health and Human Services, or Treasury often award contracts for ERP system support, including administrative functions, that can range from hundreds of thousands to several million dollars annually, depending on the scope, complexity, and specific modules supported. Factors such as the number of users, the extent of customization, and the level of support required (e.g., help desk, system maintenance, upgrades) influence the overall cost. Without more granular details on the specific services provided under this USDA contract, a precise benchmark is difficult, but the overall value seems aligned with market rates for such critical IT support.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance issues from the contractor, leading to disruptions in critical financial operations, and over-reliance on a single vendor for essential administrative support. Another risk could be the contractor's ability to retain specialized personnel with PeopleSoft expertise throughout the contract's five-year duration. Mitigation strategies typically involve robust contract oversight by a Contracting Officer's Representative (COR), clearly defined performance standards and Service Level Agreements (SLAs) within the contract, and regular performance reviews. The firm-fixed-price structure helps mitigate cost overrun risks. The USDA may also have contingency plans or alternative support options available should Panum Telecom's performance falter significantly.

How effective is the firm-fixed-price contract type in ensuring value for money for this administrative support service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For administrative support services like managing PeopleSoft, where the tasks are often routine and predictable, an FFP contract provides cost certainty for the government. This means the contractor assumes the risk of cost overruns, and the government pays a set price. This structure incentivizes the contractor to perform efficiently to maximize profit. It prevents scope creep from driving up costs unexpectedly, thereby enhancing value for taxpayers, provided the initial price was set competitively and reflects realistic service levels.

What is the historical spending pattern for PeopleSoft administrative support at the Department of Agriculture?

Historical spending data for PeopleSoft administrative support at the Department of Agriculture would reveal trends in investment for maintaining and operating this critical financial system. Analyzing past contracts, including their duration, value, and awarded vendors, can indicate whether the agency has consistently relied on external support or brought such functions in-house. It can also highlight changes in spending levels over time, potentially correlating with system upgrades, increased user base, or shifts in agency priorities. Understanding this historical context is crucial for evaluating the current $3.36 million award not just in isolation, but as part of a sustained effort to manage the PeopleSoft platform effectively and efficiently.

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: 12314422Q0053

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: $3,360,690

Exercised Options: $3,360,690

Current Obligation: $3,360,690

Actual Outlays: $2,514,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: AG3144B170024

IDV Type: BPA

Timeline