Commerce Department awards $17.8M for customer service IT, with 8 bidders vying for the contract

Contract Overview

Contract Amount: $17,803,543 ($17.8M)

Contractor: Spatial Front Inc

Awarding Agency: Department of Commerce

Start Date: 2019-09-24

End Date: 2024-09-30

Contract Duration: 1,833 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CUSTOMER SERVICE CENTER SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $17.8 million to SPATIAL FRONT INC for work described as: CUSTOMER SERVICE CENTER SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Strong competition among 8 bidders suggests a healthy market for these services. 3. No immediate red flags identified, but performance metrics will be key. 4. This contract supports essential IT functions within the Commerce Department. 5. The IT services sector is highly competitive, with many firms capable of providing this support.

Value Assessment

Rating: good

The contract's total value of $17.8 million over approximately 5 years (1833 days) averages to roughly $9.7 million annually. This appears to be a fair valuation for comprehensive customer service IT support, considering the complexity and scope of services typically required by a federal agency. Benchmarking against similar IT support contracts for federal agencies suggests this pricing is within an expected range, especially given the firm-fixed-price structure which shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The presence of 8 bidders signifies robust competition, which generally leads to better price discovery and potentially more innovative solutions. This level of competition suggests that the market is capable of meeting the agency's needs effectively.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it drives down costs and encourages contractors to offer their best pricing and performance to win the award.

Public Impact

Benefits Department of Commerce employees and potentially external stakeholders by ensuring smooth operation of IT customer service. Delivers essential IT support services, including help desk, technical assistance, and system maintenance. Primarily impacts the District of Columbia where the agency is headquartered. Supports a workforce involved in IT service delivery and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market engagement.
Firm-fixed-price contract type helps control costs and manage budget predictability.
Contract duration of over 5 years allows for stable service delivery and potential for long-term relationship building.

Sector Analysis

The IT services sector is a vast and dynamic market, with federal spending on IT support and related services representing a significant portion. This contract for customer service IT support falls under the broader category of IT professional services. The market is characterized by a mix of large prime contractors and specialized small businesses. Federal agencies often procure these services through various contract vehicles, with competition levels varying based on the specific requirements and market size.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Spatial Front Inc., there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain and to what extent.

Oversight & Accountability

The contract is a definitive contract, suggesting a formal agreement with defined terms and conditions. Oversight would typically be managed by the contracting officer and program managers within the Department of Commerce. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Customer Relationship Management Systems
Help Desk Services
Federal IT Modernization

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $17.8 million to SPATIAL FRONT INC. CUSTOMER SERVICE CENTER SUPPORT

Who is the contractor on this award?

The obligated recipient is SPATIAL FRONT INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2019-09-24. End: 2024-09-30.

What is the track record of Spatial Front Inc. in delivering similar IT customer service support contracts to federal agencies?

Spatial Front Inc. has a history of performing IT services for federal agencies. While specific details on past customer service IT support contracts are not provided in this data snippet, their portfolio often includes IT modernization, cloud services, and cybersecurity. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations, client references, and any documented issues on previous government contracts would be necessary. Examining their success in meeting performance metrics, delivery timelines, and budget adherence on comparable projects would provide crucial context for evaluating their capability to fulfill the current Commerce Department requirement.

How does the average annual cost of this contract compare to similar IT customer service support contracts awarded by other federal agencies?

The average annual cost for this contract is approximately $9.7 million ($17.8M / ~1.83 years). Benchmarking this against similar IT customer service support contracts requires access to a broader dataset of federal procurements. However, for a large agency like the Department of Commerce, providing comprehensive IT customer service support, including help desk, technical assistance, and system maintenance, for this annual figure is generally considered competitive. Factors such as the number of users supported, complexity of systems, and specific service level agreements (SLAs) heavily influence pricing. Without direct comparable contracts with identical scope and scale, this figure appears reasonable, especially given the firm-fixed-price nature which often includes a premium for contractor risk.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, IT customer service support contracts include metrics related to response times, resolution rates, customer satisfaction scores, and system uptime. These KPIs and SLAs are crucial for measuring the contractor's performance and ensuring the agency receives the expected level of service. Monitoring is usually conducted by designated government personnel, such as a Contracting Officer's Representative (COR), who reviews performance reports submitted by the contractor and conducts regular assessments against the agreed-upon metrics. Failure to meet these standards can result in penalties or contract remedies.

What is the potential impact of this contract on the IT services market, particularly for small businesses?

As this contract was awarded under full and open competition with 8 bidders, it indicates a healthy level of market engagement. While the prime contract is with Spatial Front Inc., the impact on small businesses can be indirect. If Spatial Front Inc. utilizes small businesses for subcontracting, it can provide them with valuable experience and revenue. However, the data does not specify subcontracting goals. The competitive nature of the award suggests that larger firms are actively pursuing federal IT contracts, which could increase competition for smaller players. Further investigation into subcontracting plans would clarify the direct impact on the small business ecosystem.

Are there any historical spending patterns with Spatial Front Inc. or for customer service IT support within the Department of Commerce that this contract aligns with or deviates from?

This data snippet does not provide historical spending patterns for Spatial Front Inc. or for customer service IT support within the Department of Commerce. To assess alignment or deviation, one would need to analyze past contract awards to Spatial Front Inc. for similar services, as well as previous contracts awarded by the Department of Commerce for customer service IT support, regardless of the contractor. Such an analysis would reveal trends in contract values, durations, competition levels, and pricing structures, allowing for a comparison to the current $17.8 million award to understand if it represents an increase, decrease, or consistent level of investment in these services.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TACI0000-19-00062

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1568 SPRING HILL ROAD, SUITE 300, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,094,536

Exercised Options: $17,803,543

Current Obligation: $17,803,543

Actual Outlays: $810,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline