USDA awards $2.07M for IT infrastructure, data processing, and web hosting to Ventera LLC

Contract Overview

Contract Amount: $2,065,556 ($2.1M)

Contractor: Ventera LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-05-15

End Date: 2027-05-14

Contract Duration: 1,094 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ELECTRONIC DISQUALIFIED RECIPIENT SYSTEM O&M

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.1 million to VENTERA LLC for work described as: ELECTRONIC DISQUALIFIED RECIPIENT SYSTEM O&M Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The fixed-price contract type suggests predictable costs for the government. 3. The awardee, Ventera LLC, has secured this contract under full and open competition. 4. The duration of the contract is approximately three years, aligning with typical IT service lifecycles. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting services. 6. The contract is managed by the Office of the Chief Financial Officer, suggesting a focus on financial systems support.

Value Assessment

Rating: good

The contract value of $2.07 million over three years for IT infrastructure and data processing services appears reasonable, especially given it was awarded under full and open competition. Benchmarking against similar contracts for computing infrastructure providers, data processing, web hosting, and related services would provide a more precise value-for-money assessment. However, the use of a BPA Call suggests that some level of pre-negotiation and potentially competitive pricing has already occurred, which can be advantageous.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition for this specific BPA Call. While more bidders could potentially drive prices lower, a competitive process was still employed, allowing the agency to select the best value offering.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

The Department of Agriculture benefits from enhanced IT infrastructure and data processing capabilities. Services delivered include computing infrastructure provision, data processing, and web hosting. The contract is geographically located in Virginia, supporting federal operations within the state. The contract supports the agency's financial operations through the Office of the Chief Financial Officer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA framework is not regularly re-competed.
Reliance on a single awardee for critical IT infrastructure could pose a risk if performance issues arise.
The specific details of the BPA Call's competitive process beyond the number of bids are not fully detailed.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential providers were considered.
The use of a BPA Call suggests a streamlined procurement process for pre-qualified services.
Fixed-price contract type provides cost certainty for the government.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a critical area for government operations, enabling digital services and data management. Spending in this category is substantial across federal agencies, with significant market competition among large and small IT service providers. The NAICS code 518210 represents a segment of the broader IT services market focused on infrastructure and data management.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Future procurements under this BPA or similar contracts could potentially include small business considerations.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Office of the Chief Financial Officer, which is listed as the servicing agency. Standard contract management and oversight procedures would apply, including performance monitoring and invoice review. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Services
Data Processing Services
Web Hosting Services
Cloud Computing Services
IT Managed Services

Risk Flags

Potential for service disruption
Cybersecurity vulnerabilities
Vendor lock-in risk
Key personnel dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.1 million to VENTERA LLC. ELECTRONIC DISQUALIFIED RECIPIENT SYSTEM O&M

Who is the contractor on this award?

The obligated recipient is VENTERA 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 $2.1 million.

What is the period of performance?

Start: 2024-05-15. End: 2027-05-14.

What is the historical spending pattern of the Department of Agriculture for NAICS code 518210?

Analyzing historical spending for NAICS code 518210 by the Department of Agriculture (USDA) reveals a consistent investment in computing infrastructure, data processing, and web hosting services. Over the past five fiscal years, USDA has awarded contracts in this category ranging from tens of millions to over a hundred million dollars annually. This spending is distributed across various offices and agencies within the USDA, supporting diverse functions from financial management to agricultural research and data dissemination. The trend indicates a steady demand for these foundational IT services, often utilizing multiple contract vehicles including BPA calls, task orders against larger IDIQs, and direct solicitations. The current award of $2.07 million to Ventera LLC represents a relatively small portion of the overall historical spending in this category, suggesting it may be for a specific project or a defined period within a larger IT strategy.

How does Ventera LLC's track record compare for similar IT infrastructure contracts?

Ventera LLC has a history of securing federal contracts, including those related to IT services and infrastructure. A review of their contract awards indicates participation in various IT-related procurements across different agencies. For contracts similar to this USDA award (NAICS 518210), Ventera has previously been awarded agreements for IT support, system integration, and managed services. The value and scope of these prior contracts vary, but they demonstrate experience in delivering IT solutions to government entities. Assessing their performance on past contracts, particularly regarding on-time delivery, budget adherence, and technical execution, would provide further insight into their reliability for this current BPA Call. Publicly available data suggests a pattern of successful contract completions, though a deeper dive into performance metrics and customer feedback would be necessary for a comprehensive evaluation.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

While the specific Key Performance Indicators (KPIs) for this particular BPA Call are not detailed in the provided summary data, typical KPIs for IT infrastructure, data processing, and web hosting contracts include service availability (uptime), response times for technical support, data processing throughput, security compliance, and adherence to service level agreements (SLAs). Performance will likely be measured through regular reporting by Ventera LLC, system monitoring tools, and periodic reviews conducted by the Department of Agriculture's contracting officer's representative (COR). The contract's fixed-price nature implies that performance must meet defined standards to avoid penalties or non-payment, while successful delivery against SLAs would trigger full payment. The COR plays a crucial role in validating reported performance data and ensuring the government receives the contracted services effectively.

Are there any identified risks associated with Ventera LLC's performance or the nature of these IT services?

Potential risks associated with this contract include standard IT service delivery challenges such as service disruptions, cybersecurity threats, and potential cost overruns if scope creep occurs (though less likely with a fixed-price contract). For Ventera LLC specifically, risks could relate to their capacity to scale resources to meet fluctuating demands, the potential for key personnel turnover impacting service continuity, and their ability to maintain compliance with evolving federal security mandates. The reliance on a single awardee for critical infrastructure also presents a risk of vendor lock-in and potential difficulties in transitioning services if performance issues arise or the contract is not renewed. Proactive risk management by the USDA, including robust monitoring and clear communication channels, is essential to mitigate these potential issues.

How does the pricing structure of this contract compare to industry benchmarks for similar services?

The pricing structure of this contract is 'Firm Fixed Price' (FFP), which is common for IT services where the scope of work is well-defined. This structure shifts the risk of cost overruns to the contractor, Ventera LLC, providing cost certainty for the Department of Agriculture. To benchmark the pricing, one would need to compare the proposed rates for labor categories, infrastructure components (e.g., server hours, storage, bandwidth), and managed services against prevailing market rates for similar services in the Virginia region and within the federal IT contracting landscape. Given that this was awarded under full and open competition with 3 bidders, it suggests the pricing was competitive. However, without the specific line-item costs, a precise comparison to industry benchmarks is not possible from the provided data alone. Generally, FFP contracts aim to secure services at a competitive market rate, with the contractor factoring in their own risk and profit margins.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424Q0048

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1875 CAMPUS COMMONS DR STE 304, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,788,801

Exercised Options: $2,065,556

Current Obligation: $2,065,556

Actual Outlays: $1,130,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314422A0015

IDV Type: BPA

Timeline