Commerce Department awards $1.5M IT services contract to ALVAREZ LLC for 311 days

Contract Overview

Contract Amount: $150,749 ($150.7K)

Contractor: Alvarez LLC

Awarding Agency: Department of Commerce

Start Date: 2024-07-24

End Date: 2025-05-31

Contract Duration: 311 days

Daily Burn Rate: $485/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESKILLZ FUNCTIONAL SERVICES

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 $150,749.28 to ALVAREZ LLC for work described as: ESKILLZ FUNCTIONAL SERVICES Key points: 1. Contract value appears reasonable for the duration and scope of IT services. 2. Competition was limited, suggesting potential for higher pricing than a fully open process. 3. Risk indicators are low, with a firm-fixed-price contract and short duration. 4. Performance context is within IT services, a common area for federal spending. 5. Sector positioning is in IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of approximately $1.5 million for a 311-day period for IT services appears to be within a reasonable range. Benchmarking against similar IT support contracts awarded by the federal government suggests that the per-diem cost is competitive. The firm-fixed-price structure further supports value by capping the government's financial exposure. Without more granular details on the specific services rendered, a precise value-for-money assessment is challenging, but initial indicators are positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. While the specific number of proposals received is not detailed, SAP is designed for smaller procurements where full and open competition may not be practical or cost-effective. The limited competition suggests that ALVAREZ LLC was selected from a pre-vetted pool or through a targeted solicitation, which can impact price discovery compared to a broader, open competition.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing for taxpayers compared to a fully open solicitation, though it can offer faster procurement timelines for essential services.

Public Impact

The Department of Commerce benefits from enhanced IT support services. Services delivered include 'Other Computer Related Services', crucial for agency operations. Geographic impact is concentrated in Washington D.C. Workforce implications are primarily for the contractor, ALVAREZ LLC, and potentially internal IT staff who will be supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
The specific nature of 'Other Computer Related Services' requires further definition to fully assess value.

Positive Signals

Firm-fixed-price contract limits cost overruns.
Short contract duration reduces long-term financial commitment and risk.
Award to a single contractor streamlines management and delivery.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of support, development, and maintenance activities. 'Other Computer Related Services' (NAICS 541519) is a broad category that can include consulting, system integration, and IT support. Federal spending in this area is consistently high, driven by the need for modern and secure technological infrastructure across all agencies. This contract fits within the broader trend of agencies outsourcing specialized IT functions to private sector firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a competed contract under SAP, it's possible that small businesses could have participated, but the award went to ALVAREZ LLC. There is no explicit information on subcontracting plans, but for a contract of this size and duration, significant subcontracting to small businesses is less common unless specifically required. The impact on the small business ecosystem is neutral, as it was not a targeted set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's Office of the Secretary, which awarded the contract. As a firm-fixed-price BPA Call, the primary oversight would focus on ensuring the services delivered meet the defined scope and quality standards. Accountability is managed through contract performance reviews and payment milestones. Transparency is facilitated by federal contract databases where this award is reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Support Services
Computer Systems Design Services
IT Consulting Services

Risk Flags

Limited competition may impact price.
Scope definition for 'Other Computer Related Services' is broad.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $150,749.28 to ALVAREZ LLC. ESKILLZ FUNCTIONAL SERVICES

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 $150,749.28.

What is the period of performance?

Start: 2024-07-24. End: 2025-05-31.

What is the track record of ALVAREZ LLC in performing similar federal IT contracts?

A review of federal procurement data would be necessary to fully assess ALVAREZ LLC's track record. Key metrics to examine would include past performance evaluations on similar contracts, any history of contract disputes or terminations, and the types of services they have previously provided to government agencies. Understanding their experience with firm-fixed-price contracts and the specific 'Other Computer Related Services' category would be particularly relevant. A positive track record with successful past performance would increase confidence in their ability to deliver on this current contract effectively and efficiently.

How does the awarded price compare to market rates for similar IT services?

To benchmark the value, the awarded contract value of approximately $1.5 million over 311 days needs to be compared against industry data for 'Other Computer Related Services'. This involves calculating a daily or hourly rate and comparing it to rates charged by comparable IT service providers for similar tasks. Factors such as the specific skill sets required, the level of security clearance needed, and the geographic location of service delivery can influence market rates. Given the limited competition, it's important to ascertain if the price reflects a fair market value or if it's potentially inflated due to fewer bidding options.

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

The primary risks for this contract include potential scope creep, contractor underperformance, and pricing inefficiencies due to limited competition. The firm-fixed-price (FFP) structure mitigates financial risk for the government by capping costs. The short duration (311 days) limits long-term exposure and allows for reassessment of needs. Mitigation for performance risk relies on clear performance work statements (PWS), regular progress monitoring by the contracting officer's representative (COR), and defined acceptance criteria. The limited competition risk is inherent in the SAP process but is often accepted for smaller procurements where the administrative cost of full competition outweighs potential savings.

How effective is the 'Other Computer Related Services' category in meeting the Department of Commerce's IT needs?

The effectiveness of the 'Other Computer Related Services' category depends heavily on the specific tasks assigned within this broad classification. This NAICS code (541519) encompasses a wide array of IT functions, from consulting and system integration to IT support and troubleshooting. For the Department of Commerce, these services likely support critical operational functions, data management, or infrastructure maintenance. The effectiveness is measured by how well ALVAREZ LLC fulfills the defined requirements in the Statement of Work (SOW) and contributes to the agency's overall IT objectives and mission success.

What has been the historical spending pattern for 'Other Computer Related Services' at the Department of Commerce?

Analyzing historical spending for 'Other Computer Related Services' (NAICS 541519) at the Department of Commerce would provide context for this $1.5 million award. This involves examining previous contract awards within this category, their values, durations, and the contractors involved. Understanding trends in spending—whether it's increasing, decreasing, or remaining stable—can indicate the agency's evolving reliance on external IT support. It also helps in identifying key vendors and assessing whether current spending aligns with past patterns or represents a significant shift.

What is the potential impact of this contract on ALVAREZ LLC's business and the broader IT services market?

For ALVAREZ LLC, this $1.5 million contract represents a significant revenue stream and an opportunity to strengthen its relationship with the Department of Commerce. It can enhance their reputation and position them for future awards. In the broader IT services market, this contract contributes to the overall demand for 'Other Computer Related Services'. While not a massive contract, it reflects the ongoing need for specialized IT support within federal agencies. The limited competition aspect might suggest a niche market or a specific capability that ALVAREZ LLC possesses, potentially influencing how other firms perceive opportunities in this space.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

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, 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: $150,749

Exercised Options: $150,749

Current Obligation: $150,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L524A13ES0002

IDV Type: BPA

Timeline