USDA awards $27.8M contract for crop insurance IT support, with 13 bids received

Contract Overview

Contract Amount: $27,861,446 ($27.9M)

Contractor: Alpha Omega Integration LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-29

End Date: 2029-12-31

Contract Duration: 1,919 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA CROP INSURANCE RMA SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.9 million to ALPHA OMEGA INTEGRATION LLC for work described as: USDA CROP INSURANCE RMA SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and the long contract duration. 4. This contract supports critical IT infrastructure for the USDA's crop insurance program. 5. The services fall within the broader IT consulting and systems design sector.

Value Assessment

Rating: good

The contract value of approximately $27.8 million over roughly 5 years (through December 2029) for IT support services seems within a reasonable range for a federal contract of this nature. Benchmarking against similar IT support contracts for large federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the total value will depend on the specific tasks and hours delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple vendors were allowed to bid. The receipt of 13 bids suggests a competitive marketplace for these specialized IT services, which generally leads to better pricing and innovation for the government.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it drives down costs through market forces and encourages contractors to offer their best value propositions.

Public Impact

Farmers and agricultural stakeholders benefit indirectly through the reliable functioning of the USDA's crop insurance program IT systems. Essential IT support services are delivered to maintain and enhance the operational capabilities of the Risk Management Agency (RMA). The contract's impact is primarily national, supporting a federal program with nationwide reach. The contract supports IT professionals and potentially other technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 5 years) could lead to potential cost overruns if not managed tightly.
Reliance on a single contractor for critical IT support could pose a risk if performance degrades.
Scope creep could increase the total cost beyond initial projections if not carefully controlled.

Positive Signals

Firm-fixed-price contract type helps to lock in costs and provides budget certainty.
Receipt of 13 bids indicates strong market interest and potential for competitive pricing.
The contract supports a vital government function, ensuring continuity of operations for the crop insurance program.

Sector Analysis

This contract falls within the IT consulting and systems design services sector, specifically supporting government IT infrastructure. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological capabilities. This contract represents a portion of the USDA's overall IT spending, aimed at ensuring the efficient operation of its critical crop insurance programs.

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, it is unlikely to have direct subcontracting requirements specifically for small businesses unless mandated by the prime contractor. The impact on the small business ecosystem is minimal in terms of direct set-aside opportunities for this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the USDA's Office of the Chief Financial Officer (OCFO) and the relevant program offices within the Risk Management Agency (RMA). The firm-fixed-price contract type provides a degree of cost control. Transparency is generally maintained through federal procurement databases, and performance will be monitored against contract deliverables. Inspector General oversight may be involved if performance issues or potential fraud are identified.

Related Government Programs

USDA IT Modernization
Federal Crop Insurance Program IT Services
RMA Financial Systems Support
Government IT Consulting Contracts
Department of Agriculture IT Services

Risk Flags

Long contract duration
Potential for scope creep
Reliance on contractor performance
Cybersecurity risks for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.9 million to ALPHA OMEGA INTEGRATION LLC. USDA CROP INSURANCE RMA SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALPHA OMEGA INTEGRATION 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 $27.9 million.

What is the period of performance?

Start: 2024-09-29. End: 2029-12-31.

What is the historical spending pattern for IT support services by the USDA's Risk Management Agency?

Analyzing historical spending for the USDA's Risk Management Agency (RMA) on IT support services is crucial for understanding trends and establishing benchmarks. While specific historical data for this exact contract is not provided, agencies like the RMA typically have ongoing needs for IT maintenance, system upgrades, and specialized support. Past contracts would likely show a consistent investment in IT to manage the complex data and operational requirements of the federal crop insurance program. Examining prior contract values, durations, and the types of services procured can reveal whether this $27.8 million award represents an increase, decrease, or stable level of investment compared to previous periods. This context helps assess if the current award is aligned with historical budgetary allocations and program needs.

How does the contractor, ALPHA OMEGA INTEGRATION LLC, perform on other federal contracts?

Assessing the track record of ALPHA OMEGA INTEGRATION LLC on other federal contracts is vital for evaluating performance risk. A review of their past performance, particularly on contracts with similar scope, complexity, and value, would provide insights into their reliability, quality of service, and ability to meet deadlines. Federal procurement systems often contain past performance evaluations. Positive indicators would include successful completion of similar IT support services, favorable client feedback, and a history of meeting contractual obligations. Conversely, any history of performance issues, contract disputes, or significant delays on previous engagements would raise concerns and warrant closer scrutiny of their capabilities for this USDA contract.

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

Key Performance Indicators (KPIs) for this IT support services contract are essential for ensuring the contractor delivers the required level of service and value. While not detailed in the provided data, typical KPIs for such contracts often include system uptime percentages, response times for issue resolution, successful implementation of system updates, adherence to security protocols, and user satisfaction ratings. The contract's performance work statement (PWS) would outline these specific metrics and the methodology for measurement and reporting. The USDA's contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring ALPHA OMEGA INTEGRATION LLC meets the established standards. Failure to meet KPIs could result in contract remedies, including financial penalties or termination.

Are there any specific technological risks associated with the systems this contract will support?

The technological risks associated with the systems supported by this contract are significant, given their role in the federal crop insurance program. These systems likely handle sensitive financial data, policy information, and operational workflows critical to agricultural stability. Potential risks include cybersecurity threats (data breaches, ransomware), system obsolescence (outdated hardware or software), integration challenges with other USDA systems, and the potential for system failures or performance degradation. The long duration of the contract (ending in late 2029) increases the risk of technological obsolescence. Mitigation strategies would involve robust cybersecurity measures, regular system audits, planned technology refresh cycles, and strong vendor management to ensure the contractor stays abreast of evolving technologies and security best practices.

What is the potential impact of this contract on the broader IT services market, particularly for small businesses?

The potential impact of this contract on the broader IT services market, especially for small businesses, is primarily indirect. As a 'Full and Open Competition' award, it signifies a competitive environment where larger firms likely participated. While there's no explicit small business set-aside mentioned, prime contractors often engage small businesses for subcontracting opportunities, particularly for specialized tasks or to meet diversity goals. The success of ALPHA OMEGA INTEGRATION LLC on this contract could enhance their reputation, potentially leading to more large-scale federal IT awards. For small businesses, the opportunity lies in becoming a subcontractor to the prime or demonstrating unique capabilities that could lead to future prime contracts as they grow and gain experience, though direct set-aside benefits are absent here.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314424R0005

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8150 LEESBURG PIKE STE 1010, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $113,021,069

Exercised Options: $27,861,446

Current Obligation: $27,861,446

Actual Outlays: $10,001,873

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,411,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200182W

IDV Type: GWAC

Timeline