Agriculture's ACE PGA Message Set Help Desk contract awarded to Technik Inc. for $1.98M, spanning FY23 with options through 2026

Contract Overview

Contract Amount: $1,984,020 ($2.0M)

Contractor: Technik Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-01-13

End Date: 2026-07-12

Contract Duration: 1,276 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES. ONE-YEAR FY23 FUNDING FOR ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES WITH TWO ONE YEAR OPTIONS. THIS IS NOT AN IT CONTRACT AND, THEREFORE, DOES NOT REQUIRE AAR.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.0 million to TECHNIK INC for work described as: ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES. ONE-YEAR FY23 FUNDING FOR ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES WITH TWO ONE YEAR OPTIONS. THIS IS NOT AN IT CONTRACT AND, THEREFORE, DOES NOT REQUIRE AAR. Key points: 1. Contract provides essential help desk services for the ACE PGA Message Set, crucial for agricultural trade facilitation. 2. The award to Technik Inc. represents a single delivery order under a larger contract vehicle. 3. Pricing appears reasonable given the specialized nature of help desk support for complex systems. 4. The contract duration extends over three years, indicating a stable need for these services. 5. Services are delivered in Virginia, with potential implications for regional employment. 6. The contract is not IT-related, distinguishing it from typical technology service procurements.

Value Assessment

Rating: good

The contract value of approximately $1.98 million for a base year (FY23) with two one-year options appears reasonable for specialized help desk support. Benchmarking against similar government help desk contracts is challenging without more specific service level agreements and scope details. However, the firm-fixed-price structure suggests a predictable cost for the government. The duration of the contract, extending potentially to July 2026, indicates a sustained need for these services, and the awarded amount aligns with typical annual spending for such support functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should have driven favorable pricing. This approach is generally preferred for government procurements as it maximizes the pool of potential offerors and promotes market-driven pricing.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that typically leads to better prices and service quality.

Public Impact

Benefits agricultural stakeholders by ensuring the smooth operation of the ACE PGA Message Set, facilitating trade. Provides critical help desk support for users encountering issues with the message set. Services are geographically focused in Virginia, potentially supporting local jobs. Ensures continuity of operations for a key component of agricultural trade processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to fully assess service quality.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the intensity of price discovery.
The contract is not IT-related, which might lead to different oversight expectations compared to standard IT service contracts.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration of over a year with options indicates a stable, ongoing need for the services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on custom computer programming services (NAICS 541511), although the description notes it is not an IT contract. This category encompasses a wide range of support services for specialized government systems. The market for such services is competitive, with many firms capable of providing help desk and technical support. Government spending in this area is substantial, supporting various agency operations and mission-critical functions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Technik Inc., will be responsible for delivering the services, and any subcontracting decisions would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Animal and Plant Health Inspection Service (APHIS) contracting officer and program officials. As a delivery order under a larger contract vehicle, the oversight might be streamlined. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to the performance standards and terms outlined in the contract, with potential for review by agency oversight bodies or the Inspector General if performance issues arise.

Related Government Programs

ACE PGA Message Set
USDA Help Desk Services
Agricultural Trade Facilitation Systems
APHIS Support Contracts

Risk Flags

Potential for performance degradation if contractor fails to meet service levels.
Risk of scope creep or unmanaged changes impacting cost and schedule.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.0 million to TECHNIK INC. ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES. ONE-YEAR FY23 FUNDING FOR ACE PGA MESSAGE SET HELP DESK CONTRACT SERVICES WITH TWO ONE YEAR OPTIONS. THIS IS NOT AN IT CONTRACT AND, THEREFORE, DOES NOT REQUIRE AAR.

Who is the contractor on this award?

The obligated recipient is TECHNIK INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-01-13. End: 2026-07-12.

What is the track record of Technik Inc. in performing similar help desk or support services for federal agencies?

Information regarding Technik Inc.'s specific track record for similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references. Typically, agencies conduct pre-award reviews of a contractor's past performance to gauge their capability to meet contract requirements. Without access to these specific performance records, it is difficult to definitively assess Technik Inc.'s suitability beyond the fact that they were selected through a competitive process for this particular award.

How does the awarded price of $1.98 million compare to market rates for similar help desk services?

The awarded price of $1.98 million for the base year (FY23) of the ACE PGA Message Set Help Desk contract is difficult to benchmark precisely against market rates without detailed specifications of the services, support levels, and number of users. Help desk services can vary significantly in cost based on complexity, response times, and the technical expertise required. Given that this contract supports a specialized government system (ACE PGA Message Set) and is not a standard IT contract, the pricing may reflect unique requirements. A firm-fixed-price award suggests the government has negotiated a price deemed acceptable based on the defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract could include potential performance issues if Technik Inc. fails to meet service level expectations, leading to disruptions in agricultural trade processing. Another risk is the potential for cost overruns if the scope expands beyond the initial agreement, although the firm-fixed-price structure mitigates this for the base year. Mitigation strategies likely involve clear contract terms, defined performance metrics (though not detailed here), regular communication between the agency and contractor, and the agency's right to exercise or not exercise contract options based on performance. The limited duration of each option year also allows for reassessment.

How effective is the ACE PGA Message Set Help Desk service in supporting agricultural trade?

The effectiveness of the ACE PGA Message Set Help Desk service is crucial for the smooth functioning of agricultural trade processes facilitated by the Automated Commercial Environment (ACE) and the Partner Government Agency (PGA) Message Set. A well-functioning help desk ensures that users can quickly resolve issues, minimizing delays in trade documentation and processing. While the contract award indicates a recognized need for this support, its actual effectiveness would be measured by metrics such as user satisfaction, issue resolution times, and the impact on trade flow efficiency. Continued funding and contract renewals suggest the service is meeting essential operational needs.

What are the historical spending patterns for ACE PGA Message Set Help Desk services?

Historical spending data for the ACE PGA Message Set Help Desk services prior to this FY23 award is not provided. However, the structure of this award—a base year with two one-year options—suggests a pattern of seeking multi-year support for essential functions. Agencies typically aim for stable support contracts to ensure continuity. Understanding past spending would involve analyzing previous contract awards for similar services, their values, durations, and the incumbent contractors, which would provide context for the current $1.98 million award.

What is the significance of this contract not being classified as an IT contract?

The classification of this contract as 'not an IT contract' is significant because it likely means it does not fall under the purview of certain IT-specific procurement regulations, acquisition authorities (like AAR), or reporting requirements. This distinction suggests the services, while potentially involving technology, are focused on operational support for a specific business process (message set help desk) rather than general IT infrastructure, software development, or enterprise IT services. This could impact the type of personnel required, the security protocols, and the oversight framework applied to the contract.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

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: 12950 WORLDGATE DR STE 110, HERNDON, VA, 20170

Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,984,020

Exercised Options: $1,984,020

Current Obligation: $1,984,020

Actual Outlays: $1,694,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0491S

IDV Type: FSS

Timeline