USDA awards $40.3M IT contract to TISTA Science and Technology Corporation for information technology operations

Contract Overview

Contract Amount: $40,330,231 ($40.3M)

Contractor: Tista Science and Technology Corporation

Awarding Agency: Department of Agriculture

Start Date: 2022-07-11

End Date: 2026-05-31

Contract Duration: 1,420 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA, FSA INFORMATION TECHNOLOGY OPERATIONS (FIG) POP: 7/7/2022 - 5/31/2027

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.3 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: USDA, FSA INFORMATION TECHNOLOGY OPERATIONS (FIG) POP: 7/7/2022 - 5/31/2027 Key points: 1. Contract focuses on essential IT operations, supporting the Farm Service Agency's mission. 2. Competition was full and open after exclusion of sources, indicating a broad search for qualified vendors. 3. The contract duration of 1420 days suggests a long-term need for these IT services. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The award amount of approximately $40.3 million over the contract period warrants performance monitoring. 6. The contractor, TISTA Science and Technology Corporation, is a significant player in the federal IT space.

Value Assessment

Rating: good

The contract value of $40.3 million over approximately four years for IT operations appears reasonable given the scope of services. Benchmarking against similar IT support contracts within the USDA or other large federal agencies would provide a more precise value-for-money assessment. The firm fixed price structure is a positive indicator for cost control. However, without detailed service delivery metrics or comparisons to industry benchmarks for specific IT services (e.g., help desk, network management), a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, certain sources may have been excluded based on specific criteria or prior performance. The presence of 8 bidders suggests a healthy level of competition for this requirement. A robust competitive process generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The full and open competition, despite exclusions, likely resulted in a more competitive price and a wider range of technical solutions being considered, ultimately benefiting taxpayers by ensuring they receive good value for their investment.

Public Impact

Farmers and agricultural stakeholders benefit indirectly through the reliable operation of IT systems supporting the Farm Service Agency. Essential IT operations, including computer systems design and related services, are delivered. The geographic impact is primarily national, supporting USDA operations across the country. Workforce implications include the potential for employment opportunities within TISTA Science and Technology Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is not robust.
Reliance on a single contractor for critical IT infrastructure could pose risks.
Ensuring continued innovation and adaptation to evolving IT threats within the contract scope.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition generally leads to better value.
Long-term contract duration allows for stable IT support.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized support. This contract falls within the 'Computer Systems Design Services' NAICS code (541512), a segment characterized by a mix of large prime contractors and numerous small businesses. The USDA's significant IT footprint necessitates ongoing investment in operational support, making this contract a key component of their technology infrastructure management.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate specific subcontracting goals for small businesses. The award to TISTA Science and Technology Corporation, a company that may itself be considered a small business depending on its size standards, means that direct subcontracting opportunities for smaller firms may be limited unless proactively pursued by the prime contractor. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the USDA's Office of the Chief Financial Officer and the contracting officer's representative (COR). The firm fixed price nature of the contract provides a degree of accountability for performance against agreed-upon deliverables. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the USDA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA IT Modernization Efforts
Farm Service Agency (FSA) Operations Support
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities
Service level agreement adherence
Technology obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.3 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. USDA, FSA INFORMATION TECHNOLOGY OPERATIONS (FIG) POP: 7/7/2022 - 5/31/2027

Who is the contractor on this award?

The obligated recipient is TISTA SCIENCE AND TECHNOLOGY CORPORATION.

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 $40.3 million.

What is the period of performance?

Start: 2022-07-11. End: 2026-05-31.

What is TISTA Science and Technology Corporation's track record with the federal government, particularly within the USDA?

TISTA Science and Technology Corporation has a notable presence in the federal IT contracting space. While specific details on their USDA performance prior to this award would require deeper database analysis, they have secured contracts with various civilian and defense agencies. Their portfolio often includes IT modernization, cybersecurity, and cloud services. Examining past performance evaluations, contract modifications, and any reported issues on previous USDA or similar agency contracts would provide a clearer picture of their reliability and capability in delivering complex IT operations support. Their ability to win this 'full and open' competition suggests a competitive offering and potentially a positive past performance record.

How does the $40.3 million contract value compare to similar IT operations support contracts at the USDA or other large federal agencies?

The $40.3 million value over approximately four years for comprehensive IT operations support is within the expected range for a contract of this nature supporting a large agency like the USDA. Similar contracts for IT infrastructure management, help desk services, and systems design at agencies such as the Department of Veterans Affairs or the Department of Homeland Security can range from tens to hundreds of millions of dollars, depending on the scope and duration. The key is not just the total dollar amount, but the cost per service or per user, and the efficiency gains achieved. Without a detailed breakdown of the services included and their respective costs, a direct comparison is challenging, but the award appears aligned with market rates for large-scale federal IT support.

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

Key risks include potential over-reliance on a single vendor for critical IT functions, which could lead to vendor lock-in and reduced flexibility. Technical risks involve ensuring the contractor keeps pace with evolving technology and cybersecurity threats. Performance risks relate to the contractor's ability to deliver services consistently and meet service level agreements. Mitigation strategies likely include robust contract oversight by the COR, clearly defined performance metrics and Service Level Agreements (SLAs), regular performance reviews, and contingency planning for service disruptions. The firm fixed price structure also mitigates financial risk for the government, shifting cost overruns to the contractor.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

This contracting approach aims to balance broad competition with specific requirements. By excluding certain sources, the agency might be targeting vendors with particular expertise or avoiding those with documented poor performance. When executed properly, it can still yield competitive pricing and innovative solutions. The fact that 8 bidders participated suggests that the exclusions did not unduly limit the competitive pool. For taxpayers, the effectiveness hinges on whether the exclusions were justified and if the resulting competition truly drove down costs and improved service quality compared to a completely unrestricted full and open competition. Transparency in the justification for exclusions is key.

What is the historical spending pattern for IT operations support within the USDA's Farm Service Agency?

Analyzing historical spending for IT operations support within the FSA is crucial for context. Prior contracts for similar services, their values, durations, and the incumbent contractors would reveal trends in IT investment and vendor relationships. For instance, has spending increased or decreased over time? Were previous contracts awarded through full and open competition or other methods? Understanding these patterns helps assess whether the current $40.3 million award represents a significant shift, an increase in scope, or is consistent with historical investment levels. It also informs whether the agency has consistently sought competitive bids for these essential services.

What specific IT systems or services are covered under this contract, and what is their criticality to the FSA's mission?

The contract specifies 'Computer Systems Design Services' (NAICS 541512) and 'IT Operations'. This typically encompasses a broad range of activities such as network management, server maintenance, help desk support, cybersecurity monitoring, data center operations, and potentially software development or maintenance for critical FSA applications. The criticality to the FSA's mission is high, as these systems underpin everything from farmer loan processing and disaster relief applications to data management and internal communications. Any disruption to these IT operations could significantly impede the agency's ability to serve the agricultural community.

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 › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422R0009

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1201 SEVEN LOCKS RD, STE 350, ROCKVILLE, MD, 20854

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $62,741,539

Exercised Options: $40,330,231

Current Obligation: $40,330,231

Actual Outlays: $37,522,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200068W

IDV Type: GWAC

Timeline