Agriculture Dept Awards $6M+ IT Contract to DecisionPoint Corp for Food Safety Systems

Contract Overview

Contract Amount: $6,041,045 ($6.0M)

Contractor: Decisionpoint Corporation

Awarding Agency: Department of Agriculture

Start Date: 2024-09-01

End Date: 2027-08-31

Contract Duration: 1,094 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: A&A III SECURITY CONTRACT

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.0 million to DECISIONPOINT CORPORATION for work described as: A&A III SECURITY CONTRACT Key points: 1. Contract value of $6,041,045.04 over 3 years. 2. DecisionPoint Corporation is the sole awardee. 3. The contract falls under Computer Systems Design Services (NAICS 541512). 4. Awarded via Full and Open Competition after Exclusion of Sources. 5. Firm Fixed Price contract type.

Value Assessment

Rating: fair

The contract value of $6.04 million over three years for IT services appears reasonable for the scope. Benchmarking against similar government IT contracts for system design and integration would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process but with specific limitations. This method can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for IT support services. The competitive nature, even with exclusions, aims to secure reasonable pricing, but the specific impact depends on the number and quality of competing bids.

Public Impact

Ensures continued operation and enhancement of critical food safety IT systems. Supports the Department of Agriculture's mission to protect public health. Potential for improved efficiency and data management in food safety. Contract duration of three years provides stability for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single vendor for critical IT systems.

Positive Signals

Clear contract duration and defined scope.
Firm Fixed Price contract type provides cost certainty.
Awarded to a single entity, potentially streamlining management.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Government spending in this area is substantial, supporting a wide range of agency operations. Benchmarks for similar contracts vary widely based on complexity and duration.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were specified for this award. This suggests that the primary awardee, DecisionPoint Corporation, is not a small business, and there's no explicit requirement for them to engage small businesses for this contract.

Oversight & Accountability

The award process, described as 'Full and Open Competition after Exclusion of Sources,' implies some level of oversight to justify the exclusion. Further review of the justification for exclusion and the competitive bidding process would be necessary to assess accountability.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Food Safety and Inspection Service Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation noted.
Potential for vendor lock-in.
Need for justification of source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.0 million to DECISIONPOINT CORPORATION. A&A III SECURITY CONTRACT

Who is the contractor on this award?

The obligated recipient is DECISIONPOINT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2024-09-01. End: 2027-08-31.

What specific IT systems or services are covered under this contract, and how critical are they to the Food Safety and Inspection Service's mission?

The contract is for Computer Systems Design Services, likely encompassing the development, integration, maintenance, and support of IT systems crucial for food safety. These systems are vital for tracking, inspection, data analysis, and regulatory compliance, directly supporting the agency's mission to protect public health by ensuring the safety of the nation's food supply.

What was the justification for excluding other sources, and how did this impact the pricing and overall value achieved?

The justification for excluding other sources needs to be examined to understand the rationale behind the limited competition. If the exclusion was based on unique capabilities or proprietary technology, it might explain the pricing. However, limited competition generally poses a risk of higher prices and reduced value compared to a truly open market.

How does the per-unit cost or overall pricing compare to industry benchmarks for similar IT system design services, considering the government context?

Without specific details on the services rendered and their quantities, a precise per-unit cost benchmark is difficult. However, the total contract value of over $6 million for three years suggests a significant scope. A comparative analysis against similar government IT contracts for system design and integration, factoring in the specific requirements and the limited competition, is needed to assess if the pricing is competitive.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123A9424Q0020

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 RUSSELL AVE, GAITHERSBURG, MD, 20877

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

Financial Breakdown

Contract Ceiling: $9,954,776

Exercised Options: $6,041,045

Current Obligation: $6,041,045

Actual Outlays: $2,799,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0013

IDV Type: GWAC

Timeline