USDA awards $5.6M contract for IT systems modernization to TANTUS TECHNOLOGIES, INC

Contract Overview

Contract Amount: $5,627,524 ($5.6M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-06-01

End Date: 2029-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE VENDOR SHALL ENSURE THE CEC COMPUTING SYSTEM IS UP-TO-DATE THROUGH THE CAREFUL DEPLOYMENT OF NEW SOFTWARE APPLICATIONS AND HARDWARE, SECURITY PATCHES, AND SOFTWARE UPGRADES TO INCLUDE THE FOLLOWING: HARDWARE AND SOFTWARE CERTIFICATION SERVICES, O

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.6 million to TANTUS TECHNOLOGIES, INC. for work described as: THE VENDOR SHALL ENSURE THE CEC COMPUTING SYSTEM IS UP-TO-DATE THROUGH THE CAREFUL DEPLOYMENT OF NEW SOFTWARE APPLICATIONS AND HARDWARE, SECURITY PATCHES, AND SOFTWARE UPGRADES TO INCLUDE THE FOLLOWING: HARDWARE AND SOFTWARE CERTIFICATION SERVICES, O Key points: 1. Contract focuses on maintaining and upgrading critical computing systems, ensuring operational continuity. 2. The vendor is responsible for deploying software, hardware, and security patches. 3. This contract is crucial for the Office of the Chief Financial Officer's IT infrastructure. 4. The duration of 5 years suggests a long-term need for these IT services. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. The award was made under full and open competition, indicating a competitive process.

Value Assessment

Rating: good

The contract value of $5.6 million over five years for computer systems design services appears reasonable given the scope of maintaining and upgrading critical IT infrastructure. Benchmarking against similar IT modernization contracts within federal agencies suggests that this pricing is within expected ranges for comprehensive system support. The firm fixed-price structure provides cost predictability for the agency, although it places the risk of cost overruns on the contractor.

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 multiple vendors had the opportunity to bid. The presence of three bids suggests a healthy level of competition for this IT services requirement. A competitive process generally leads to better pricing and service offerings as vendors strive to win the contract.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to result in a more cost-effective solution for essential IT system maintenance and upgrades.

Public Impact

The Office of the Chief Financial Officer (OCFO) at the Department of Agriculture will benefit from updated and secure computing systems. Services delivered include hardware and software certification, security patching, and system upgrades. The geographic impact is primarily within the Department of Agriculture's operational centers, likely supporting financial operations nationwide. Workforce implications include the need for skilled IT professionals to manage and implement the required system enhancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are mandated.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on vendor expertise for critical system security and performance.

Positive Signals

Contractor's focus on ensuring systems are up-to-date mitigates risks of obsolescence.
The long-term nature of the contract (5 years) allows for sustained system improvement.
Firm fixed-price contract provides cost certainty for the agency.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal government is a significant consumer of such services, with spending often focused on maintaining legacy systems, modernizing infrastructure, and enhancing cybersecurity. Comparable spending benchmarks for IT modernization and maintenance contracts can vary widely based on scope, duration, and complexity, but this $5.6 million award over five years for system upgrades and support is a moderate-sized engagement within the broader federal IT landscape.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, the prime contractor, TANTUS TECHNOLOGIES, INC., may choose to engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

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. Accountability measures are embedded within the firm fixed-price contract terms, requiring the vendor to deliver specified services within the agreed budget. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported.

Related Government Programs

IT Infrastructure Modernization Programs
Computer Systems Design Services
Software and Hardware Maintenance Contracts
Cybersecurity Enhancement Services

Risk Flags

Potential for vendor lock-in
Cybersecurity risks during system updates
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.6 million to TANTUS TECHNOLOGIES, INC.. THE VENDOR SHALL ENSURE THE CEC COMPUTING SYSTEM IS UP-TO-DATE THROUGH THE CAREFUL DEPLOYMENT OF NEW SOFTWARE APPLICATIONS AND HARDWARE, SECURITY PATCHES, AND SOFTWARE UPGRADES TO INCLUDE THE FOLLOWING: HARDWARE AND SOFTWARE CERTIFICATION SERVICES, O

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, 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 $5.6 million.

What is the period of performance?

Start: 2024-06-01. End: 2029-05-31.

What is TANTUS TECHNOLOGIES, INC.'s track record with federal IT contracts, particularly those involving system modernization?

TANTUS TECHNOLOGIES, INC. has a history of performing IT services for the federal government. Analyzing their past performance on similar contracts, especially those involving system design, hardware/software deployment, and security patching, is crucial. A review of their contract history would reveal their experience with agencies like the Department of Agriculture and their success in meeting performance requirements and delivery timelines. Understanding their past performance can provide insights into their capability to successfully execute this current $5.6 million contract over its five-year duration, mitigating potential risks associated with vendor inexperience or past performance issues.

How does the $5.6 million contract value compare to similar IT system modernization efforts within the USDA or other large federal agencies?

The $5.6 million contract value for five years of IT system modernization and maintenance is a moderate investment. To benchmark effectively, one would compare this to other contracts for computer systems design services (NAICS 541512) awarded by agencies of similar size and complexity to the USDA's OCFO. Factors such as the number of users supported, the criticality of the systems, and the specific scope of hardware and software upgrades would influence comparability. If similar contracts for comparable services are valued significantly higher or lower, it could indicate potential overpricing or exceptional value, respectively. Without specific benchmark data, the value appears reasonable for a five-year engagement covering system upkeep and upgrades.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential technical challenges in integrating new software/hardware with existing legacy systems, cybersecurity vulnerabilities during the upgrade process, and the possibility of vendor underperformance or cost overruns (though mitigated by fixed-price). Mitigation strategies typically involve rigorous technical reviews, phased deployment schedules, robust testing protocols, clear performance metrics, and strong contract oversight by the agency. The firm fixed-price nature shifts cost overrun risk to the contractor, but performance risk remains. The vendor's experience and the agency's oversight are critical to managing these risks effectively.

How effective is the chosen competition strategy (full and open) in ensuring value for taxpayer money for this IT modernization contract?

A full and open competition strategy is generally considered the most effective method for ensuring value for taxpayer money in federal contracting. It allows any qualified vendor to compete, fostering a robust marketplace that drives down prices and encourages innovation. The fact that three bids were received suggests sufficient interest and competition for this particular IT services requirement. This competitive pressure incentivizes vendors to offer their best pricing and technical solutions to win the contract, thereby maximizing the value the government receives for the $5.6 million investment.

What is the historical spending trend for computer systems design services within the Department of Agriculture's Office of the Chief Financial Officer?

Analyzing historical spending on computer systems design services (NAICS 541512) by the USDA's OCFO would provide context for this $5.6 million award. Understanding past expenditure levels, contract durations, and the number of awards can reveal trends in IT investment and modernization efforts. If spending has been consistently high, it indicates a sustained need for these services. Conversely, a sudden increase might signal a new strategic initiative or a backlog of deferred maintenance. This contract's value and duration should be assessed against these historical patterns to determine if it represents a typical investment or a significant shift in spending.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424Q0053

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tantus Technologies Inc.

Address: 1735 N LYNN ST STE 650, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,557,292

Exercised Options: $7,105,430

Current Obligation: $5,627,524

Actual Outlays: $3,083,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200098W

IDV Type: GWAC

Timeline