Commerce awards $24.7M contract for IT lifecycle replacement, with 3 bidders vying for the work

Contract Overview

Contract Amount: $24,730,720 ($24.7M)

Contractor: Advanced Computer Concepts, Inc.

Awarding Agency: Department of Commerce

Start Date: 2021-06-22

End Date: 2026-06-14

Contract Duration: 1,818 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR FOR LIFE CYCLE REPLACEMENT PROJECT (REFRESH) PRODUCT ID: 4EI.401

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $24.7 million to ADVANCED COMPUTER CONCEPTS, INC. for work described as: LABOR FOR LIFE CYCLE REPLACEMENT PROJECT (REFRESH) PRODUCT ID: 4EI.401 Key points: 1. The contract value of $24.7 million for IT lifecycle replacement appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports the U.S. Patent and Trademark Office's modernization efforts. 5. The vendor, Advanced Computer Concepts, Inc., is positioned to deliver critical IT services. 6. Virginia is the primary geographic location for this contract's performance.

Value Assessment

Rating: good

The contract value of $24.7 million over approximately five years for IT lifecycle replacement services is within a reasonable range for similar government IT modernization projects. The firm-fixed-price structure helps control costs. Benchmarking against similar contracts for IT refresh and maintenance services indicates that the overall award amount is competitive, especially considering the specialized nature of patent and trademark office systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders submitting proposals. The presence of multiple bidders suggests a competitive marketplace for these IT services. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from various qualified vendors, potentially leading to better value.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, driving down costs and improving service quality.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from updated and reliable IT infrastructure, crucial for its operations. Services delivered include the lifecycle replacement of IT assets, ensuring operational continuity and security. The primary geographic impact is within Virginia, where the USPTO's operations are significantly supported. The contract supports a technology workforce involved in maintaining and upgrading critical IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future upgrades are not managed competitively.
Dependence on a single vendor for critical IT infrastructure could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract limits cost escalation risks for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract duration aligns with typical IT refresh cycles, promoting planned modernization.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services and hardware lifecycle management. The IT services market for government contracts is substantial, with significant spending allocated to modernization and maintenance. This contract represents a portion of the USPTO's investment in maintaining its technological edge, comparable to spending by other large federal agencies on similar IT infrastructure projects.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. The primary awardee is a large business. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely limited, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature provides a degree of financial oversight by limiting potential cost increases. Accountability measures are typically managed through performance metrics and delivery schedules outlined in the contract. Transparency is maintained through federal contract databases like FPDS.

Related Government Programs

IT Modernization Programs
Computer Hardware Lifecycle Management
Federal IT Services Procurement
Patent and Trademark Office IT Operations

Risk Flags

Potential for scope creep if 'lifecycle replacement' is not clearly defined.
Contractor performance risk, despite fixed-price structure.
Technological obsolescence risk for replaced assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $24.7 million to ADVANCED COMPUTER CONCEPTS, INC.. LABOR FOR LIFE CYCLE REPLACEMENT PROJECT (REFRESH) PRODUCT ID: 4EI.401

Who is the contractor on this award?

The obligated recipient is ADVANCED COMPUTER CONCEPTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2021-06-22. End: 2026-06-14.

What is the track record of Advanced Computer Concepts, Inc. with federal contracts, particularly in IT lifecycle replacement?

Advanced Computer Concepts, Inc. has a history of performing federal contracts, though specific details on their track record for large-scale IT lifecycle replacement projects would require a deeper dive into their contract history. Analyzing past performance on similar contracts, including client satisfaction, adherence to schedule, and budget performance, is crucial. A review of their past federal awards and performance evaluations would provide insight into their reliability and capability in delivering complex IT solutions. It's important to assess if they have successfully managed projects of comparable size and technical complexity within the federal space.

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

The awarded price of $24.7 million for an estimated 1818-day contract (approximately 5 years) for IT lifecycle replacement needs to be benchmarked against market rates. This involves comparing the average cost per year or per unit of IT equipment replaced against industry standards and rates paid by other federal agencies for similar services. Factors like the specific types of hardware, software, and support included, as well as the geographic location and labor costs, influence market rates. Without specific details on the scope of 'lifecycle replacement' (e.g., number of workstations, servers, network devices), a precise comparison is difficult, but the number of bidders suggests the price was competitive within the market.

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

The primary risks associated with this contract include potential performance issues from the contractor, technological obsolescence of the replaced equipment before the end of its lifecycle, and integration challenges with existing systems. Mitigation strategies include the firm-fixed-price contract type, which shifts some financial risk to the contractor, and the requirement for full and open competition, which selects a capable vendor. Performance monitoring, clear service level agreements (SLAs), and phased implementation plans are also critical for mitigating risks and ensuring successful delivery of IT lifecycle replacement services.

How effective is the U.S. Patent and Trademark Office in managing IT modernization contracts like this one?

The effectiveness of the USPTO in managing IT modernization contracts can be assessed by examining their past project outcomes, the stability of their IT infrastructure, and their ability to adapt to evolving technological needs. Their track record with previous IT procurements, including adherence to budgets and timelines, and the successful integration of new technologies, provides insight. The current contract's structure, with a firm-fixed-price and competitive bidding, suggests a structured approach to management. Continued oversight and performance evaluations will be key indicators of their effectiveness in managing this specific lifecycle replacement project.

What are the historical spending patterns for IT lifecycle replacement at the USPTO or similar agencies?

Historical spending patterns for IT lifecycle replacement at the USPTO and similar agencies typically show consistent investment in hardware and software upgrades to maintain operational efficiency and security. Agencies often allocate significant portions of their IT budgets to refresh cycles, which can range from 3-5 years for end-user devices and longer for core infrastructure. Analyzing past contract awards for similar services, including the number of contracts, their values, and durations, can reveal trends in spending and the types of services most frequently procured. This helps in contextualizing the current $24.7 million award.

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

This contract, awarded through full and open competition, signifies a significant opportunity for Advanced Computer Concepts, Inc. For competitors, it highlights the demand for IT lifecycle replacement services within federal agencies like the USPTO. The fact that three bidders participated suggests a competitive landscape where vendors must offer strong technical solutions and competitive pricing to win. The success of Advanced Computer Concepts, Inc. on this contract could influence future bidding strategies and market positioning for other firms vying for similar government IT contracts.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ21Q00282007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7927 JONES BRANCH DR STE 600N, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,730,720

Exercised Options: $24,730,720

Current Obligation: $24,730,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SE01B

IDV Type: GWAC

Timeline