Agriculture awards $33.1M for regional hub services, with Analytic Acquisitions LLC securing the delivery order

Contract Overview

Contract Amount: $33,106,513 ($33.1M)

Contractor: Analytic Acquisitions LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-05-01

End Date: 2025-04-08

Contract Duration: 708 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REGIONAL HUB SERVICES REGIONS THREE (3) AND FOUR (4)

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $33.1 million to ANALYTIC ACQUISITIONS LLC for work described as: REGIONAL HUB SERVICES REGIONS THREE (3) AND FOUR (4) Key points: 1. The contract value of $33.1 million over approximately 23 months suggests a significant investment in regional support services. 2. Analytic Acquisitions LLC, the awardee, has a track record that warrants further examination for performance consistency. 3. The 'Other Computer Related Services' NAICS code indicates a focus on IT or data management functions. 4. A firm-fixed-price contract type generally shifts risk to the contractor, potentially leading to more predictable costs if managed well. 5. The contract's duration of 708 days (approx. 23 months) provides a substantial period for service delivery and performance evaluation. 6. The award was made under full and open competition, implying a broad search for qualified vendors.

Value Assessment

Rating: fair

The contract value of $33.1 million for approximately 23 months averages to roughly $1.44 million per month. Benchmarking this against similar regional hub service contracts is difficult without more specific service details. However, the award amount itself does not immediately suggest overpricing, but the value for money will depend heavily on the quality and scope of services delivered by Analytic Acquisitions LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the agency sought proposals from all responsible sources. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than one, it is not indicative of a highly competitive market for these services, which could potentially impact price discovery.

Taxpayer Impact: A competitive process, even with two bidders, is generally favorable for taxpayers as it encourages vendors to offer competitive pricing. However, a broader range of bidders could have potentially driven prices lower.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's regional hubs in Regions Three (3) and Four (4), receiving essential support services. The services delivered are categorized under 'Other Computer Related Services,' suggesting IT support, data management, or related technical assistance. The geographic impact is concentrated within the specified regions served by USDA hubs in Maryland. Workforce implications may include the direct employment by Analytic Acquisitions LLC to fulfill the contract requirements and potential indirect support for USDA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The limited number of bidders (2) raises questions about the extent of market engagement and potential for optimal price competition.
Without detailed performance metrics, assessing the true value-for-money and effectiveness of the services provided by Analytic Acquisitions LLC is challenging.
The broad NAICS code 'Other Computer Related Services' lacks specificity, making it difficult to benchmark costs against precise industry standards.

Positive Signals

The contract was awarded through full and open competition, indicating an effort to find the best value from a wide pool of potential contractors.
The firm-fixed-price contract type provides cost certainty for the government, assuming the contractor can manage their expenses effectively.
The contract duration allows for sustained service delivery and the establishment of a working relationship between the agency and the contractor.

Sector Analysis

The IT services sector, particularly under the broad category of 'Other Computer Related Services,' is highly dynamic. This contract likely supports the operational needs of the Department of Agriculture's regional infrastructure, which could involve data management, IT support, or specialized software services. Comparable spending benchmarks are difficult to establish without more granular detail on the specific services rendered, but government spending on IT support services is substantial across all agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus remains on larger, potentially more established firms capable of competing under full and open solicitation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Office of the Chief Financial Officer and the contracting officers responsible for managing the delivery order. Transparency is facilitated by the public nature of contract awards. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. The Inspector General's office for the Department of Agriculture would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Regional Support Services
IT Services Contracts
Computer Systems Design Services
Federal IT Infrastructure Support

Risk Flags

Limited Competition
Broad NAICS Code
Performance Data Unavailable

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $33.1 million to ANALYTIC ACQUISITIONS LLC. REGIONAL HUB SERVICES REGIONS THREE (3) AND FOUR (4)

Who is the contractor on this award?

The obligated recipient is ANALYTIC ACQUISITIONS 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 $33.1 million.

What is the period of performance?

Start: 2023-05-01. End: 2025-04-08.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data classifies the service under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT-related activities not specified under other more defined NAICS codes. Examples could include IT consulting, data processing services, computer facilities management, IT support services, network management, or specialized software development and maintenance. Without further details from the contract's statement of work, it is difficult to pinpoint the exact services. However, given the context of 'Regional Hub Services,' it likely involves supporting the IT infrastructure, data management, and operational technology needs of USDA's regional hubs in Maryland.

How does the $33.1 million contract value compare to similar regional hub service contracts within the Department of Agriculture or other federal agencies?

Direct comparison of the $33.1 million contract value for approximately 23 months is challenging without knowing the precise scope and nature of the 'Regional Hub Services.' Federal IT and support service contracts vary significantly in price based on complexity, duration, geographic reach, and required expertise. A contract for basic IT helpdesk support would differ vastly from one involving complex data analytics or infrastructure management. To provide a meaningful comparison, one would need to identify contracts with similar NAICS codes (541519), similar agency functions (e.g., regional operations support), and comparable contract durations. The average monthly cost of approximately $1.44 million suggests a substantial service requirement.

What is the track record of Analytic Acquisitions LLC in performing similar federal contracts, particularly those involving IT or regional support services?

Assessing the track record of Analytic Acquisitions LLC requires accessing historical contract data, such as performance ratings (e.g., CPARS), past performance questionnaires, and any documented issues or successes on previous federal awards. Without this specific performance data, it's difficult to definitively evaluate their capability. However, the fact that they were awarded this $33.1 million contract suggests they met the basic eligibility requirements and were deemed capable by the Department of Agriculture during the solicitation process. Further investigation into their past performance on contracts of similar size, scope, and complexity would be necessary to gauge their reliability and effectiveness.

Given the firm-fixed-price contract type, what are the potential risks and benefits for the government regarding cost control and service quality?

A firm-fixed-price (FFP) contract type offers significant benefits for cost control, as the price is set and generally not subject to adjustment based on the contractor's cost experience. This provides budget certainty for the government. The primary risk for the government under an FFP contract lies in ensuring adequate service quality and scope. If the contractor underestimates costs or faces unforeseen challenges, they might be tempted to cut corners on quality or scope to maintain profitability, potentially leading to subpar service delivery. Effective government oversight, clear performance standards, and robust acceptance criteria are crucial to mitigate these risks and ensure the contractor delivers the required value.

What does the limited competition (2 bidders) imply about the market for these specific regional hub services and its impact on future procurements?

The fact that only two bids were received for this contract suggests that the market for these specific 'Regional Hub Services' might be relatively niche, or that the solicitation requirements were tailored in a way that limited the number of potential bidders. This limited competition could indicate several things: the required expertise is specialized, the contract value may not have been attractive enough for a larger number of firms, or perhaps the pre-solicitation market research did not identify a broader base of capable vendors. For future procurements, the agency might need to reassess its market research strategy, consider breaking down the requirement into smaller components to attract more bidders, or explore different contract vehicles to encourage wider participation and potentially achieve better pricing.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended over the past five years, and where does this $33.1M award fit within that trend?

Federal spending on NAICS code 541519, 'Other Computer Related Services,' has generally seen a consistent increase over the past five years, reflecting the government's ongoing reliance on IT modernization, data management, and specialized technology support. While specific aggregate spending figures fluctuate annually, the trend indicates a growing demand for these services across various agencies. This $33.1 million award to the Department of Agriculture fits within this broader trend as a significant, but not exceptionally large, investment in IT-related support for regional operations. It represents a portion of the overall federal expenditure on such services, contributing to the continued growth observed in this category.

Industry Classification

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 HARTFORD AVE, SILVER SPRING, MD, 20910

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,106,513

Exercised Options: $33,106,513

Current Obligation: $33,106,513

Actual Outlays: $33,106,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D0071

IDV Type: FSS

Timeline