USDA awards $26.6M contract for IT application development to support Inflation Reduction Act initiatives

Contract Overview

Contract Amount: $26,599,614 ($26.6M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-01

End Date: 2026-08-02

Contract Duration: 823 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACT IS TO PROVIDE APPLICATION DEVELOPMENT, ENHANCEMENT AND MAINTENANCE TO CURRENT APPLICATIONS FOR IT APPLICATIONS REQUIRED TO DELIVER THE INITIATIVES WITHIN THE RD-FORCE ORG SUPPORTING RD PROGRAM EFFORTS IMPLEMENTING THE INFLATION REDUCTION ACT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $26.6 million to STEAMPUNK, INC. for work described as: CONTRACT IS TO PROVIDE APPLICATION DEVELOPMENT, ENHANCEMENT AND MAINTENANCE TO CURRENT APPLICATIONS FOR IT APPLICATIONS REQUIRED TO DELIVER THE INITIATIVES WITHIN THE RD-FORCE ORG SUPPORTING RD PROGRAM EFFORTS IMPLEMENTING THE INFLATION REDUCTION ACT Key points: 1. Contract focuses on application development and maintenance for critical IT systems. 2. Supports initiatives under the RD-Force org, specifically for programs implementing the Inflation Reduction Act. 3. The contract is a Delivery Order under a larger contract vehicle. 4. Awarded through full and open competition, indicating a broad market search. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The duration of the contract is 823 days, ending in August 2026. 7. The contractor, Steampunk, Inc., is based in Virginia.

Value Assessment

Rating: good

The total award amount of $26.6 million for application development and maintenance over approximately two years appears reasonable given the scope. Benchmarking against similar IT services contracts for government agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it may limit flexibility if requirements change significantly. Further analysis would require detailed task breakdowns and comparison to specific service rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that the agency sought proposals from all responsible sources. The presence of 4 bids indicates a healthy level of interest and competition for this requirement. This competitive process is expected to drive better pricing and service quality by allowing multiple vendors to vie for the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent inflated pricing.

Public Impact

Benefits rural housing programs and other RD-Force initiatives by ensuring the availability of robust IT systems. Delivers essential application development, enhancement, and maintenance services for critical government IT infrastructure. Supports the implementation of key policy objectives outlined in the Inflation Reduction Act. Impacts the workforce by potentially creating or sustaining jobs in IT development and maintenance roles within the contractor's organization. Geographic impact is primarily national, supporting USDA's mission across the country.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single delivery order under a larger contract vehicle may limit long-term strategic planning.
Ensuring continued alignment with evolving Inflation Reduction Act initiatives requires ongoing communication.

Positive Signals

Firm Fixed Price contract structure provides cost predictability.
Full and open competition suggests a robust selection process.
Awarded to a single contractor for a defined period, allowing for focused execution.
Supports a high-priority government initiative (Inflation Reduction Act).

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services industry. The market for government IT services is substantial, with agencies continually investing in modernizing their systems. This contract aligns with broader government trends towards digital transformation and the use of technology to implement policy initiatives, such as those under the Inflation Reduction Act. Comparable spending benchmarks for similar application development and maintenance contracts can vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete and potentially win. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively included in subcontracting goals by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Rural Housing Service within the Department of Agriculture. As a Delivery Order under a larger contract vehicle, the terms and conditions of the parent contract will also apply. Accountability measures are typically embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Rural Housing Service IT Modernization Efforts
Inflation Reduction Act Implementation Support
Department of Agriculture Application Development Contracts
Federal IT Services Procurement
Computer Systems Design Services Contracts

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependency on contractor's ability to adapt to evolving IRA requirements.
Risk of underestimation of complexity in application enhancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.6 million to STEAMPUNK, INC.. CONTRACT IS TO PROVIDE APPLICATION DEVELOPMENT, ENHANCEMENT AND MAINTENANCE TO CURRENT APPLICATIONS FOR IT APPLICATIONS REQUIRED TO DELIVER THE INITIATIVES WITHIN THE RD-FORCE ORG SUPPORTING RD PROGRAM EFFORTS IMPLEMENTING THE INFLATION REDUCTION ACT

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-08-02.

What is the track record of Steampunk, Inc. in performing similar IT application development and maintenance services for federal agencies?

Steampunk, Inc. has a history of performing IT services for the federal government. While specific details on past performance for application development and maintenance are not provided in this data snippet, their ability to win this contract suggests they have met the qualifications set forth by the Department of Agriculture. A deeper dive into their contract history, past performance reviews, and any reported issues would be necessary for a comprehensive assessment of their track record. Examining their portfolio of completed projects, particularly those involving similar technologies or government initiatives, would offer further insight into their capabilities and reliability in delivering complex IT solutions.

How does the $26.6 million award compare to other IT application development contracts awarded by the USDA or similar agencies?

The $26.6 million award for application development and maintenance over approximately two years is a moderate-sized contract within the federal IT services landscape. To benchmark effectively, one would compare this to contracts for similar services (e.g., custom software development, system integration, application support) awarded by agencies of comparable size and mission, such as other departments within the USDA or agencies like the GSA or HHS. Factors such as the number of users supported, complexity of the applications, and the specific technologies involved significantly influence pricing. Without these granular details, a precise comparison is difficult, but the award appears to be within a typical range for a multi-year, comprehensive IT support contract.

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

Key risks include potential scope creep if requirements are not precisely defined and managed, technical obsolescence of applications over the contract period, and contractor performance issues. Mitigation strategies likely involve robust contract management by the Rural Housing Service, including clear statement of work, regular progress reviews, and performance metrics. The firm fixed-price nature shifts some financial risk to the contractor. Ensuring the contractor has strong technical expertise and a clear understanding of the Inflation Reduction Act initiatives is crucial. Regular communication and collaboration between the agency and Steampunk, Inc. will be vital to address evolving needs and potential challenges proactively.

How effectively does this contract support the goals of the Inflation Reduction Act (IRA)?

This contract directly supports the IRA by providing the necessary IT application development, enhancement, and maintenance for initiatives within the RD-Force organization that implement IRA programs. The effectiveness hinges on how critical these applications are to the delivery of IRA-related services and the successful execution of those programs. By ensuring the IT infrastructure is robust, up-to-date, and functional, the contract enables the USDA to better manage and deliver on the objectives set forth by the IRA, particularly concerning rural development efforts. The success of the IT support will be a key enabler for the broader policy goals.

What is the historical spending pattern for application development and maintenance within the Rural Housing Service or related USDA divisions?

Historical spending data for application development and maintenance within the Rural Housing Service or related USDA divisions would provide crucial context for evaluating this $26.6 million award. Analyzing past expenditures on similar IT services can reveal trends in contract values, types of services procured, and the contractors frequently utilized. This analysis helps determine if the current award represents an increase, decrease, or stable level of investment in IT support. Understanding historical spending patterns also aids in identifying potential cost efficiencies or areas where spending may have been disproportionately high or low in the past, informing future budgeting and procurement strategies.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12SAD124Q0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1753 PINNACLE DR STE 900, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,599,614

Exercised Options: $26,599,614

Current Obligation: $26,599,614

Actual Outlays: $21,318,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D005E

IDV Type: FSS

Timeline