USDA's $13M contract for farmer support solutions awarded to AT-IMPACT LLC, focusing on modernized COTS-centric services

Contract Overview

Contract Amount: $13,050,795 ($13.1M)

Contractor: At-Impact LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-08-03

End Date: 2027-03-19

Contract Duration: 1,324 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: PROVIDE FARM SERVICES AGENCY (FSA) SUPPORT IN DEVELOPING MODERNIZED SOLUTIONS TO MEET THE NEEDS OF THE NATION'S FARMERS AND RANCHERS AND THE COUNTY OFFICE USERS THAT SUPPORT THEM VIA COMMERCIAL OFF THE SHELF (COTS) CENTRIC SERVICE ORIENTED ARCHI

Place of Performance

Location: CHANTILLY, LOUDOUN County, VIRGINIA, 20152

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.1 million to AT-IMPACT LLC for work described as: PROVIDE FARM SERVICES AGENCY (FSA) SUPPORT IN DEVELOPING MODERNIZED SOLUTIONS TO MEET THE NEEDS OF THE NATION'S FARMERS AND RANCHERS AND THE COUNTY OFFICE USERS THAT SUPPORT THEM VIA COMMERCIAL OFF THE SHELF (COTS) CENTRIC SERVICE ORIENTED ARCHI Key points: 1. The contract aims to enhance services for farmers, ranchers, and county office users through modernized solutions. 2. Emphasis on Commercial Off-The-Shelf (COTS) and Service-Oriented Architecture (SOA) suggests a focus on leveraging existing technologies. 3. The contract duration of over three years indicates a significant, long-term commitment to improving agricultural support systems. 4. Awarded via full and open competition after exclusion of sources, suggesting a deliberate process to ensure fair consideration. 5. The primary service category is Computer Systems Design Services, aligning with the goal of developing modernized solutions. 6. The contract's value of approximately $13 million underscores the investment in upgrading agricultural support infrastructure.

Value Assessment

Rating: good

The contract value of $13,050,795.38 for a period of over three years appears reasonable for comprehensive IT support services. Benchmarking against similar government contracts for system modernization and IT support, this figure falls within expected ranges, especially considering the scope of supporting national farmer and rancher needs. The focus on COTS solutions may also contribute to cost-effectiveness by reducing custom development expenses. Further analysis would require detailed task breakdowns and comparison of labor hour rates.

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.' This specific procurement method indicates that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior determinations. The presence of two bids suggests a moderate level of competition. The exclusion of sources warrants further investigation to understand the rationale and its potential impact on the breadth of competition and final pricing.

Taxpayer Impact: The 'Full and Open Competition After Exclusion of Sources' approach, while aiming for fairness, could potentially limit the number of competitive bids received. Taxpayers benefit from competition, but the exclusion of certain sources might have influenced the final price and the range of innovative solutions considered.

Public Impact

Farmers and ranchers nationwide will benefit from improved and modernized support services, potentially leading to more efficient agricultural operations. County office users supporting farmers and ranchers will receive enhanced tools and systems, streamlining their daily tasks and service delivery. The project aims to modernize IT solutions, which could indirectly benefit the agricultural sector's technological advancement and data management capabilities. The contract supports the Department of Agriculture's mission to serve the agricultural community, impacting a vital sector of the U.S. economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure no viable, competitive vendors were unfairly excluded.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's potential effectiveness beyond the stated goals.
The duration of the contract (over 3 years) necessitates ongoing monitoring to ensure continued value and alignment with evolving agricultural needs.

Positive Signals

The contract's focus on modernizing solutions using COTS and SOA principles suggests an intent to leverage efficient and scalable technologies.
Awarding to AT-IMPACT LLC, a company with a presence in IT services, indicates a selection based on relevant expertise.
The contract's clear objective to improve services for farmers and ranchers aligns with a critical public service mission.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The market for government IT modernization is substantial, driven by the need to update legacy systems and improve service delivery. Comparable spending benchmarks would involve analyzing other large-scale IT modernization projects within federal agencies, particularly those focused on citizen or constituent services. The use of COTS-centric SOA suggests a strategy to align with current industry trends in agile development and cloud-based solutions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside objective for this specific contract. While the contract itself is not set aside for small businesses, the prime contractor, AT-IMPACT LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem within the IT services sector supporting the Department of Agriculture.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer and the relevant program offices responsible for farmer and rancher services. Accountability measures would typically be defined in the contract's statement of work, including performance standards, reporting requirements, and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USDA Farm Production and Conservation Business Center IT Support
USDA Modernizing IT Systems
Federal Agricultural Data Management Systems
Government IT Modernization Contracts
Commercial Off-The-Shelf (COTS) Software Implementation

Risk Flags

Potential for limited competition due to source exclusion.
Risk of vendor lock-in if COTS solutions are not implemented with interoperability in mind.
Dependency on contractor's expertise for successful modernization.
Ensuring long-term maintainability and scalability of modernized solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.1 million to AT-IMPACT LLC. PROVIDE FARM SERVICES AGENCY (FSA) SUPPORT IN DEVELOPING MODERNIZED SOLUTIONS TO MEET THE NEEDS OF THE NATION'S FARMERS AND RANCHERS AND THE COUNTY OFFICE USERS THAT SUPPORT THEM VIA COMMERCIAL OFF THE SHELF (COTS) CENTRIC SERVICE ORIENTED ARCHI

Who is the contractor on this award?

The obligated recipient is AT-IMPACT 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 $13.1 million.

What is the period of performance?

Start: 2023-08-03. End: 2027-03-19.

What is the track record of AT-IMPACT LLC in delivering similar IT modernization projects for federal agencies?

A comprehensive review of AT-IMPACT LLC's past performance is essential to gauge their capability in executing this $13 million contract. This would involve examining their history with federal agencies, specifically looking for projects involving system modernization, COTS integration, and service-oriented architecture development. Key indicators include successful project completion, adherence to budget and schedule, client satisfaction ratings, and any past performance issues or contract disputes. Analyzing their portfolio for projects of similar scale and complexity within the agricultural or related sectors would provide valuable context for assessing their suitability and the potential risks associated with this award.

How does the awarded price compare to industry benchmarks for similar computer systems design services?

To assess the value-for-money, the awarded contract price of approximately $13 million needs to be benchmarked against industry standards for computer systems design services. This involves comparing the estimated labor rates, overhead, and profit margins to those typically seen in the market for comparable government contracts. Factors such as the specific technologies employed (COTS, SOA), the complexity of the requirements, and the duration of the contract (over three years) must be considered. If detailed task orders and labor categories are available, a more granular comparison can be made with government-wide IT contract vehicles or commercial IT service pricing models to determine if the price is competitive and reflects fair market value.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while intended to be competitive, introduces specific risks. The primary risk is that legitimate and capable vendors may have been excluded from bidding, potentially limiting the pool of innovative solutions and competitive pricing. This exclusion could stem from overly restrictive requirements, past performance evaluations, or other criteria that may not be fully transparent. Consequently, the government might not have received the most advantageous offers available. Taxpayers could face higher costs or less optimal solutions if the competition was unduly narrowed. Understanding the justification for excluding sources is critical to assessing whether this method truly served the government's best interest.

How will the success of this contract be measured in terms of improving services for farmers and ranchers?

The effectiveness of this contract will be measured by its tangible impact on the services provided to the nation's farmers and ranchers. Success metrics should be clearly defined within the contract's statement of work and could include improvements in system uptime and reliability, reduction in processing times for applications or services, enhanced user satisfaction reported by farmers and county office staff, and the successful adoption of new COTS-centric solutions. Key Performance Indicators (KPIs) related to the modernization goals, such as the number of legacy systems retired or the integration of new functionalities, will also be crucial. Regular performance reviews and user feedback mechanisms will be vital for ongoing assessment.

What is the historical spending pattern for similar IT support and system modernization contracts within the Department of Agriculture?

Analyzing historical spending patterns for similar IT support and system modernization contracts within the Department of Agriculture (USDA) is crucial for context. This involves examining past contract awards for IT services, system development, and modernization efforts over the last several fiscal years. Key data points to look for include the total amount spent annually on such services, the types of contracts awarded (e.g., labor hour, fixed price), the primary service categories (e.g., computer systems design, software development), and the main contractors receiving these awards. Understanding these trends can reveal whether spending has been consistent, increasing, or decreasing, and whether this $13 million contract represents a significant shift or continuation of established investment levels in IT modernization.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314423R0006

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 24917 CASTLETON DR, CHANTILLY, VA, 20152

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,977,852

Exercised Options: $13,050,795

Current Obligation: $13,050,795

Actual Outlays: $8,578,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00242

IDV Type: GWAC

Timeline