USDA awards $952K for IT systems support to Lentech, Inc. under full and open competition

Contract Overview

Contract Amount: $952,510 ($952.5K)

Contractor: Lentech, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-08-09

End Date: 2029-08-08

Contract Duration: 1,825 days

Daily Burn Rate: $522/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USPTO AUTOMATION STATION GOVTA IMPLEMENTATION & MAINTENANCE

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87193

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $952,509.65 to LENTECH, INC for work described as: USPTO AUTOMATION STATION GOVTA IMPLEMENTATION & MAINTENANCE Key points: 1. Contract value appears reasonable for a 5-year IT support and implementation task. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. Task order awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract is common for IT services. 5. Performance period of five years allows for sustained support and system evolution. 6. The specific services (Computer Systems Design) are critical for agency operations.

Value Assessment

Rating: good

The contract value of approximately $952,509 over five years for IT systems design and maintenance is within a reasonable range for government IT support. Without specific details on the scope of work, it's difficult to benchmark precisely, but the duration and nature of the services suggest a moderate investment. The firm fixed-price structure is a positive indicator for cost control, as it shifts some of the financial risk to the contractor. This award is likely comparable to other IT support contracts of similar duration and complexity issued by federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process with the potential for multiple offers. The specific number of bidders is not provided, but the designation implies that the agency sought the widest possible pool of qualified contractors, which can lead to better pricing and service options for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Agriculture's Office of the Chief Financial Officer, who will receive enhanced IT systems implementation and maintenance. The services delivered include computer systems design, crucial for the efficient operation of financial management systems. The geographic impact is primarily within New Mexico, where the contractor is located, but the benefits extend to the national operations supported by USDA's financial systems. Workforce implications include the potential for skilled IT professionals to be engaged in supporting critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements are not clearly defined.
Dependence on a single contractor for critical IT systems could pose a risk if performance issues arise.
Ensuring the contractor maintains up-to-date cybersecurity practices is crucial for protecting sensitive financial data.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market was leveraged.
Long-term contract (5 years) allows for stable support and system development.
Award to Lentech, Inc. indicates a selection based on qualifications and potentially competitive pricing.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their technological infrastructure. This contract represents a small portion of overall federal IT spending, but it is vital for the operational efficiency of the USDA's financial operations. Comparable spending benchmarks would involve looking at other IT support contracts for financial systems within large federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides for this particular award. The focus was on full and open competition, which may include large and small businesses, but without a specific set-aside, the direct impact on the small business ecosystem is not guaranteed unless Lentech, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Agriculture's Office of the Chief Financial Officer. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. While specific Inspector General (IG) jurisdiction isn't detailed here, the USDA OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Financial Management Systems
Federal IT Modernization Programs
Computer Systems Design Services Contracts
Department of Agriculture IT Support

Risk Flags

Contract title may be inaccurate or a placeholder.
Specific number of bidders not disclosed.
Detailed scope of work not provided in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $952,509.65 to LENTECH, INC. USPTO AUTOMATION STATION GOVTA IMPLEMENTATION & MAINTENANCE

Who is the contractor on this award?

The obligated recipient is LENTECH, 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 $952,509.65.

What is the period of performance?

Start: 2024-08-09. End: 2029-08-08.

What is the specific scope of 'USPTO AUTOMATION STATION GOVTA IMPLEMENTATION & MAINTENANCE' and how does it align with the USDA's financial operations?

The contract title 'USPTO AUTOMATION STATION GOVTA IMPLEMENTATION & MAINTENANCE' appears to be a misnomer or a placeholder, as it references the United States Patent and Trademark Office (USPTO) and 'GOVTA' is not a standard acronym. Given the awarding agency is the Department of Agriculture (USDA) and the service category is 'Computer Systems Design Services', it is highly probable that this contract pertains to the implementation and maintenance of automation or IT systems supporting the USDA's financial operations, rather than USPTO systems. The specific scope would detail the systems to be implemented or maintained, the functionalities required, and the expected outcomes for the Office of the Chief Financial Officer. This could include financial reporting tools, accounting systems, budget management software, or other critical financial infrastructure.

How does the firm fixed-price (FFP) contract type mitigate risks for the USDA compared to other contract types?

A Firm Fixed-Price (FFP) contract type is advantageous for the USDA because it establishes a definitive price that is not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns from the government to the contractor, Lentech, Inc. For the USDA, this provides budget certainty and predictability, making financial planning more reliable. Unlike cost-reimbursement contracts, where the government pays for all allowable costs incurred by the contractor plus a fee, FFP requires the contractor to absorb any expenses exceeding the agreed-upon price. This incentivizes the contractor to manage costs efficiently and perform the work within the stipulated budget to maximize their profit.

What does the 'NM' status code signify in the contract data, and what are its implications?

The 'NM' status code in the contract data likely signifies 'New Mexico', indicating the state where the contractor, Lentech, Inc., is located or where the primary performance of the contract will occur. This information is useful for understanding the geographic distribution of federal contract spending and for identifying contractors within specific regions. For the USDA, knowing the contractor's location can be relevant for logistical considerations, communication, and potentially for understanding local economic impacts. It does not inherently imply any special conditions or risks associated with the contract itself, but rather provides a geographical context for the award.

Given the 5-year duration, what are the potential long-term implications for system maintenance and upgrades under this contract?

A 5-year duration for an IT systems implementation and maintenance contract allows for a sustained and stable relationship between the USDA and Lentech, Inc. This extended period enables the contractor to gain deep familiarity with the agency's specific systems and operational needs, potentially leading to more efficient and effective support. It also provides a predictable framework for ongoing maintenance, bug fixes, and routine updates. For long-term system evolution, the contract's structure should ideally accommodate potential upgrades or modifications, possibly through change orders or defined processes for addressing new technological requirements or evolving agency needs. This stability can prevent disruptions often associated with frequent contractor changes and ensures continuity of critical IT services.

How does the NAICS code '541512' (Computer Systems Design Services) define the nature of the work performed under this contract?

The North American Industry Classification System (NAICS) code '541512' specifically defines 'Computer Systems Design Services'. This classification indicates that the primary work performed by Lentech, Inc. under this contract involves providing expertise in designing, developing, and implementing computer systems. This can encompass a wide range of activities, including analyzing user needs, designing system architecture, integrating hardware and software components, and providing project management for the development of new or improved IT systems. It suggests the contract is focused on the planning, configuration, and potentially the initial setup of IT solutions tailored to the USDA's requirements, rather than just routine maintenance or basic IT support.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424Q0153

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4405 WESTRIDGE CT NW, ALBUQUERQUE, NM, 87114

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,339,359

Exercised Options: $952,510

Current Obligation: $952,510

Actual Outlays: $756,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0451V

IDV Type: FSS

Timeline