Agriculture awards $36.1M IT support contract to Focused Management, Inc. for 3+ years

Contract Overview

Contract Amount: $36,133,596 ($36.1M)

Contractor: Focused Management, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-09-18

End Date: 2027-01-15

Contract Duration: 1,215 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CEC/IOD IT SUPPORT SERVICES CRQ000004296796

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $36.1 million to FOCUSED MANAGEMENT, INC. for work described as: CEC/IOD IT SUPPORT SERVICES CRQ000004296796 Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over three years presents some performance risk if issues arise. 4. This contract falls within the broader IT services sector, a common area for federal spending. 5. The fixed-price nature of the contract shifts some financial risk to the contractor. 6. The award amount is a significant investment in maintaining critical IT infrastructure for the agency.

Value Assessment

Rating: good

The contract value of approximately $36.1 million over 1215 days (roughly 3.3 years) for IT support services appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar IT support contracts, the average annual value of around $10.9 million is competitive. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, a detailed comparison with specific service level agreements and the complexity of the IT environment would be needed for a more precise value assessment.

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,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a healthy level of competition for this IT support requirement. A competitive environment like this typically drives down prices and encourages contractors to offer more favorable terms and innovative solutions to win the contract.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective award than a sole-source or limited competition scenario. It ensures that government funds are utilized efficiently by selecting the best value offer.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture is the primary beneficiary, receiving essential IT support. Services delivered include computer systems design and related support, crucial for the agency's financial operations. The contract's geographic impact is primarily within Virginia, where the agency's operations are likely concentrated. This contract supports IT professionals and potentially other roles within the contractor's organization, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical IT support could pose a risk if performance degrades or the contractor faces financial instability.
Ensuring continued alignment with evolving technological advancements may require proactive contract management.

Positive Signals

The firm fixed-price contract structure incentivizes the contractor to manage costs effectively.
The competitive award process suggests the selection of a capable and cost-conscious vendor.
A multi-year contract provides stability and allows for deeper integration of IT support services.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies consistently seeking support for their complex technological infrastructures. This contract for computer systems design services falls under the broader IT consulting and support sector, which is a significant portion of federal IT spending. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and duration. The Department of Agriculture's investment aligns with the trend of agencies outsourcing specialized IT functions to manage and modernize their systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into the contractor's subcontracting plan would be necessary to assess any potential benefits or implications for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Office of the Chief Financial Officer, with specific contract officers and technical monitors responsible for performance and compliance. The firm fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Contract Duration
Performance Risk
Vendor Stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $36.1 million to FOCUSED MANAGEMENT, INC.. CEC/IOD IT SUPPORT SERVICES CRQ000004296796

Who is the contractor on this award?

The obligated recipient is FOCUSED MANAGEMENT, INC..

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 $36.1 million.

What is the period of performance?

Start: 2023-09-18. End: 2027-01-15.

What is the track record of Focused Management, Inc. with federal IT contracts?

Focused Management, Inc. has a history of securing federal contracts, primarily within the IT services domain. While specific details on past performance metrics for this particular contractor require deeper database analysis, their ability to win a full and open competition award suggests they meet the basic qualifications and have demonstrated capability. Agencies often evaluate past performance as a key factor in source selection. A review of their contract history, including any past performance evaluations or awards, would provide a clearer picture of their reliability and success in delivering similar services to government clients. It's important to note that contract awards do not always equate to flawless execution, and a comprehensive review would involve looking at any reported issues or disputes.

How does the value of this contract compare to similar IT support contracts awarded by the Department of Agriculture?

The total award value of $36.1 million over approximately 3.3 years, averaging around $10.9 million annually, places this contract in the mid-to-large tier for IT support services within the Department of Agriculture. To provide a precise comparison, one would need to analyze contracts with similar scope (e.g., systems design, ongoing support) and duration awarded to other entities by the same agency. However, based on general market knowledge, this value is not unusually high or low for comprehensive IT support. Factors like the number of users supported, the complexity of the systems, and the specific services included (e.g., help desk, network management, cybersecurity) heavily influence contract value. A detailed benchmark would require access to a comprehensive database of historical USDA IT contracts.

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

The primary risks associated with this contract include potential performance issues if Focused Management, Inc. fails to meet service level agreements, the risk of vendor lock-in if transitioning to a new provider becomes difficult, and the possibility of cost overruns if the fixed-price model proves inadequate for unforeseen technical challenges. Mitigation strategies are embedded within the contract structure and agency oversight. The firm fixed-price nature shifts financial risk to the contractor. The competitive bidding process aims to select a capable vendor. The agency's contract officers and technical monitors will oversee performance, enforce contract terms, and address any deviations. Clear performance metrics and reporting requirements are crucial for early detection of issues. Regular communication and performance reviews are standard practices to manage the relationship and address concerns proactively.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for IT support contracts?

The 'Full and Open Competition After Exclusion of Sources' approach is generally considered highly effective for IT support contracts, especially for services where a wide range of qualified vendors can potentially meet the requirements. This method maximizes the pool of potential bidders, fostering robust competition that typically leads to better pricing, higher quality services, and innovative solutions. By excluding specific sources, the government ensures that the competition is not unduly restricted, promoting fairness and transparency. The presence of 5 bidders in this case indicates that the approach successfully attracted multiple interested parties. The effectiveness is further enhanced when the agency clearly defines its needs and evaluation criteria, allowing vendors to submit tailored and competitive proposals.

What are the historical spending patterns for IT support services within the Department of Agriculture?

Historical spending patterns for IT support services within the Department of Agriculture show a consistent and significant investment in maintaining and modernizing its technological infrastructure. Agencies like the USDA typically allocate a substantial portion of their budget to IT, covering areas such as network management, software development, cybersecurity, and end-user support. Spending in this category has generally trended upwards over the years, reflecting the increasing reliance on digital systems and the need to address evolving cyber threats. The Department frequently utilizes a mix of contract types, including full and open competition, task orders against indefinite-delivery/indefinite-quantity (IDIQ) vehicles, and sole-source awards for specialized needs. Analyzing past spending data would reveal trends in specific IT service categories and the primary contractors utilized.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314423Q0012

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6354 WALKER LN STE 101, ALEXANDRIA, VA, 22310

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $76,172,253

Exercised Options: $41,557,166

Current Obligation: $36,133,596

Actual Outlays: $28,984,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200062W

IDV Type: GWAC

Timeline