USDA's $19.5M Nutrition IT Contract Awarded to Panum Telecom Amidst Full and Open Competition

Contract Overview

Contract Amount: $19,508,816 ($19.5M)

Contractor: Panum Telecom, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2018-09-26

End Date: 2025-01-03

Contract Duration: 2,291 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NUTRITION, COMMUNICATION, RESEARCH AND IT/WEB SUPPORT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.5 million to PANUM TELECOM, L.L.C. for work described as: NUTRITION, COMMUNICATION, RESEARCH AND IT/WEB SUPPORT Key points: 1. The contract, valued at $19.5 million, supports nutrition, communication, and IT/web services. 2. Awarded to Panum Telecom, L.L.C., through full and open competition, indicating a competitive bidding process. 3. The contract duration is 2291 days, ending January 3, 2025. 4. The NAICS code 541611 suggests a focus on administrative and management consulting services.

Value Assessment

Rating: good

The contract's value of $19.5 million for administrative management and general management consulting services appears reasonable given the extensive duration and scope. Benchmarking against similar large-scale IT and consulting contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are utilized efficiently through a competitive bidding process, aiming to secure cost-effective services for the Department of Agriculture.

Public Impact

Ensures continued support for critical nutrition programs and related IT infrastructure. Facilitates communication and web services essential for public outreach and program administration. Provides management consulting expertise to enhance operational efficiency within the Food and Nutrition Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for scope creep in long-term consulting contracts.
Dependence on a single vendor for critical IT and communication services.

Positive Signals

Awarded through full and open competition, maximizing potential for cost savings.
Long contract duration provides stability and continuity of essential services.
Clear designation of service areas (nutrition, communication, IT).

Sector Analysis

The IT and administrative management consulting sector is highly competitive. This contract falls within the broader professional services category, where government spending benchmarks vary significantly based on the specific services and duration. The $19.5M value over nearly 6.5 years is substantial but not unusual for comprehensive IT support.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded through full and open competition. Therefore, small businesses were eligible to compete, but the award went to Panum Telecom, L.L.C., suggesting they were the most competitive bidder.

Oversight & Accountability

The contract's award through full and open competition suggests a degree of oversight in the procurement process. However, ongoing monitoring of performance, adherence to contract terms, and cost control by the Department of Agriculture are crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Agriculture Contracting
Food and Nutrition Service Programs

Risk Flags

Potential for vendor lock-in due to long contract duration.
Risk of service degradation if contractor performance is not rigorously monitored.
Dependency on a single contractor for critical IT and communication functions.
Possibility of scope creep impacting the final cost, despite FFP structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.5 million to PANUM TELECOM, L.L.C.. NUTRITION, COMMUNICATION, RESEARCH AND IT/WEB SUPPORT

Who is the contractor on this award?

The obligated recipient is PANUM TELECOM, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2018-09-26. End: 2025-01-03.

What specific IT and management consulting services are included under this contract, and how do they align with the Food and Nutrition Service's strategic goals?

The contract encompasses nutrition, communication, and IT/web support, alongside administrative management and general management consulting. These services likely aim to modernize program delivery, improve data management for nutrition initiatives, enhance public communication channels, and optimize internal operational efficiencies within the Food and Nutrition Service. A detailed review of the Statement of Work would clarify the precise alignment with strategic objectives.

What are the key performance indicators (KPIs) for this contract, and how is Panum Telecom's performance being measured to ensure value for taxpayer money?

The provided data does not specify the key performance indicators (KPIs) or the performance measurement framework for this contract. Effective oversight would require clearly defined KPIs related to service delivery, system uptime, response times, and project completion. Regular performance reviews and reporting by the Department of Agriculture are essential to ensure Panum Telecom meets contractual obligations and delivers value.

How does the firm-fixed-price contract type mitigate risks associated with cost overruns for the government, given the long duration and scope?

A firm-fixed-price (FFP) contract establishes a set price for the work, shifting the risk of cost overruns to the contractor, Panum Telecom. This structure incentivizes the contractor to manage costs efficiently. However, for long-duration contracts with evolving IT needs, the FFP can sometimes lead to less flexibility if requirements change significantly, potentially requiring contract modifications or new procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315 WISCONSIN AVE 800 W, BETHESDA, MD, 20814

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,547,027

Exercised Options: $19,527,027

Current Obligation: $19,508,816

Actual Outlays: $15,083,242

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $424,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: AG3144B170024

IDV Type: BPA

Timeline