Agriculture's $44.4M Help Desk Contract Awarded to Peckham Vocational Industries, Inc

Contract Overview

Contract Amount: $44,426,423 ($44.4M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-03-15

End Date: 2027-03-14

Contract Duration: 1,094 days

Daily Burn Rate: $40.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24 TSD SDO TIER 1 HELP DESK SUPPORT - NRE MIP CRQ 4589699 POP: 15 MARCH 2024 - 14 MARCH 2025

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $44.4 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: FY24 TSD SDO TIER 1 HELP DESK SUPPORT - NRE MIP CRQ 4589699 POP: 15 MARCH 2024 - 14 MARCH 2025 Key points: 1. Contract awarded to a single vendor, Peckham Vocational Industries, Inc. 2. The contract is for IT help desk support services. 3. The contract duration is approximately three years. 4. The total value of the contract is over $44 million. 5. The contract was not competed.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without competitive benchmarks. The firm fixed price structure provides some cost certainty, but the lack of competition raises concerns about whether the government is receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, specifically 'NOT AVAILABLE FOR COMPETITION'. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a full and open competition.

Taxpayer Impact: The lack of competition for a contract of this size suggests potential for overpayment, impacting taxpayer funds negatively.

Public Impact

Citizens rely on effective IT support for government services. Taxpayer dollars are allocated to this significant IT service contract. The awardee's mission may align with public service goals. Lack of competition could set a precedent for future sole-source awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Limited transparency on pricing justification

Positive Signals

Awardee may have a specific mission or capability
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services. Benchmarks for similar help desk support contracts can vary widely based on scope, service levels, and geographic location.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'ss' is false. Further analysis would be needed to determine if small business set-aside opportunities were considered or missed.

Oversight & Accountability

The limited competition and significant value warrant close oversight to ensure accountability and prevent potential cost overruns or performance issues. The contracting activity is the Office of the Chief Financial Officer.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of competitive bidding
High contract value without clear justification for sole source
Potential for inflated costs due to limited competition
Limited transparency on the specific services and performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $44.4 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. FY24 TSD SDO TIER 1 HELP DESK SUPPORT - NRE MIP CRQ 4589699 POP: 15 MARCH 2024 - 14 MARCH 2025

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, 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 $44.4 million.

What is the period of performance?

Start: 2024-03-15. End: 2027-03-14.

What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' determination for this significant IT support contract?

The justification for 'NOT AVAILABLE FOR COMPETITION' is crucial for understanding why a full and open bidding process was bypassed. This could be due to unique capabilities of the awardee, urgent needs, or specific socio-economic program requirements. Without this detailed justification, it's difficult to assess if the limited competition was truly warranted or if it represents a missed opportunity for better value.

How does the pricing of this $44.4M contract compare to industry benchmarks for similar IT help desk services, especially given the lack of competition?

Benchmarking this contract's price against similar IT help desk services is challenging due to the limited competition. Typically, competitive bidding drives prices down. Without a competitive process, the government relies heavily on the contractor's proposed pricing and internal cost analysis. A thorough review of the cost breakdown and comparison to publicly available data for comparable services is necessary to determine if the price is fair and reasonable.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how will their achievement be measured to ensure effectiveness?

Understanding the KPIs and SLAs is vital for assessing the effectiveness of the help desk support. These metrics should define expected response times, resolution rates, customer satisfaction levels, and system uptime. The contract's oversight mechanism must include robust monitoring and reporting procedures to track performance against these agreed-upon standards, ensuring the agency receives the contracted services effectively.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12314424Q0039

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,563,239

Exercised Options: $58,563,239

Current Obligation: $44,426,423

Actual Outlays: $24,766,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline