Commerce awards $5.26M IT service contract to Alvarez LLC under full and open competition
Contract Overview
Contract Amount: $5,259,527 ($5.3M)
Contractor: Alvarez LLC
Awarding Agency: Department of Commerce
Start Date: 2021-12-29
End Date: 2026-12-31
Contract Duration: 1,828 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT AND TELECOM - SERVICE DELIVERY MANAGEMENT (HARDWARE AND PERPETUAL LICENSE SOFTWARE)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $5.3 million to ALVAREZ LLC for work described as: IT AND TELECOM - SERVICE DELIVERY MANAGEMENT (HARDWARE AND PERPETUAL LICENSE SOFTWARE) Key points: 1. Contract value of $5.26M for IT service delivery management. 2. Awarded to Alvarez LLC, indicating a specific vendor relationship. 3. Utilizes full and open competition, suggesting a competitive bidding process. 4. Focuses on hardware and perpetual license software for service delivery.
Value Assessment
Rating: good
The contract value of $5.26M appears reasonable for IT service delivery management, encompassing hardware and software licenses. Benchmarking against similar contracts would provide a more precise assessment of value.
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,' suggesting a competitive process was initiated but potentially narrowed. This method aims for competitive pricing but the exclusion of sources warrants scrutiny.
Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering competitive pricing and potentially leading to cost savings.
Public Impact
Ensures continued IT service delivery management for the Department of Commerce. Supports the operational needs of the Office of the Secretary. Potential for technology upgrades and software license renewals. Impacts the efficiency and effectiveness of Commerce's IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in a full and open competition needs clarification.
- Small business participation is not indicated.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and delivery order structure.
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically focusing on service delivery management. Spending benchmarks for similar IT service contracts vary widely based on scope and duration, but this value is moderate for a multi-year federal award.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). There is no explicit mention of small business set-asides or subcontracting plans, suggesting limited direct impact on small businesses.
Oversight & Accountability
The contract is managed by the Department of Commerce, Office of the Secretary. Oversight would involve monitoring performance, adherence to contract terms, and financial accountability throughout the contract's duration.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of small business participation.
- Potential for limited competition due to source exclusion.
- Need for clarity on specific service delivery components.
- Vendor lock-in risk with perpetual licenses.
Tags
other-computer-related-services, department-of-commerce, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $5.3 million to ALVAREZ LLC. IT AND TELECOM - SERVICE DELIVERY MANAGEMENT (HARDWARE AND PERPETUAL LICENSE SOFTWARE)
Who is the contractor on this award?
The obligated recipient is ALVAREZ LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $5.3 million.
What is the period of performance?
Start: 2021-12-29. End: 2026-12-31.
What specific services are included under 'Service Delivery Management (Hardware and Perpetual License Software)'?
This typically encompasses the management of IT infrastructure, including hardware maintenance, lifecycle management, and the procurement and licensing of perpetual software. It ensures the smooth operation and availability of IT services critical to the agency's mission.
What was the rationale for excluding certain sources in a 'full and open competition'?
Excluding sources in a full and open competition usually occurs when specific capabilities, existing infrastructure compatibility, or unique requirements necessitate a limited pool of vendors. The justification for such exclusions is crucial for ensuring fairness and maximizing competition.
How does this contract contribute to the overall IT effectiveness of the Department of Commerce?
By ensuring reliable service delivery management, this contract directly supports the operational continuity and efficiency of the Department of Commerce's IT systems. It likely covers essential hardware and software, preventing disruptions and enabling staff to perform their duties effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $5,259,527
Exercised Options: $5,259,527
Current Obligation: $5,259,527
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD19B
IDV Type: GWAC
Timeline
Start Date: 2021-12-29
Current End Date: 2026-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-25
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