Forest Service IT Service Desk Contract Awarded to Peckham Vocational Industries for $47.2M

Contract Overview

Contract Amount: $47,223,080 ($47.2M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2021-03-15

End Date: 2024-03-14

Contract Duration: 1,095 days

Daily Burn Rate: $43.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICE DESK SUPPORT FOR FS, IIA, ICAM, AND CEC

Place of Performance

Location: LANSING, CLINTON County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $47.2 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: IT SERVICE DESK SUPPORT FOR FS, IIA, ICAM, AND CEC Key points: 1. Contract value of $47.2M over 3 years. 2. Awarded to a single vendor, Peckham Vocational Industries, Inc. 3. No small business participation noted. 4. Services fall under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: fair

The contract value of $47.2M for 3 years of IT service desk support appears high without a competitive benchmark. The per-unit cost is not readily available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher price than a fully competitive scenario.

Taxpayer Impact: The $47.2M awarded without competition represents a significant taxpayer investment that could potentially be optimized through a more competitive procurement process.

Public Impact

Essential IT support for critical Forest Service functions (FS, IIA, ICAM, CEC) is provided. The sole awardee, Peckham Vocational Industries, Inc., is responsible for maintaining service desk operations. Taxpayers are funding a substantial contract for IT services over a three-year period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business participation

Positive Signals

Firm Fixed Price contract type
Long-term contract duration

Sector Analysis

This contract falls within the IT services sector, specifically IT service desk support. Benchmarks for similar contracts are difficult to ascertain due to the limited competition and lack of detailed cost breakdowns.

Small Business Impact

The contract explicitly states no small business participation. This indicates a missed opportunity to support small businesses within the IT services sector through this significant federal award.

Oversight & Accountability

The contract's limited competition status warrants further oversight to ensure the price paid is reasonable and that future procurements explore competitive options. Accountability for service delivery rests with Peckham Vocational Industries, Inc.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Limited competition
No small business participation
Potential for overpayment due to lack of price discovery
Lack of transparency in cost structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $47.2 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. IT SERVICE DESK SUPPORT FOR FS, IIA, ICAM, AND CEC

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $47.2 million.

What is the period of performance?

Start: 2021-03-15. End: 2024-03-14.

What is the justification for awarding this contract on a limited/non-competitive basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A deeper dive into the contract file or agency justification documents would be necessary to understand the specific reasons, such as unique capabilities, urgent needs, or prior contract limitations, that led to this determination.

How does the $47.2M contract value compare to industry benchmarks for similar IT service desk support?

Without a competitive bid process or detailed cost breakdown, a direct comparison to industry benchmarks is challenging. The 'fair' rating reflects this uncertainty. Further analysis would require access to similar contracts or detailed cost proposals to assess value for money.

What is the potential impact on service quality and cost due to the lack of competition?

The lack of competition can potentially lead to reduced pressure on the contractor to innovate or optimize costs, which could impact service quality and increase long-term expenses for taxpayers. However, a sole-source award might also indicate a highly specialized or critical service where the incumbent is uniquely qualified.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12760421Q0032

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,752,798

Exercised Options: $47,752,798

Current Obligation: $47,223,080

Actual Outlays: $47,223,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline