VMware support contract awarded to Affigent, LLC for $6.4M, spanning over two years

Contract Overview

Contract Amount: $6,406,864 ($6.4M)

Contractor: Affigent, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-01-17

End Date: 2027-01-20

Contract Duration: 733 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VMWARE SUPPORT FOR OIT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $6.4 million to AFFIGENT, LLC for work described as: VMWARE SUPPORT FOR OIT Key points: 1. Contract value of $6.4 million for IT support services. 2. Competition was full and open after exclusion of sources, indicating a potentially competitive process. 3. The contract duration is over two years, suggesting a need for sustained support. 4. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was made to Affigent, LLC, a specific vendor for this service.

Value Assessment

Rating: fair

The contract value of $6.4 million for two years of VMware support appears moderate for enterprise-level IT services. Benchmarking against similar contracts for comprehensive VMware support would be necessary for a definitive value assessment. The Firm Fixed Price structure is generally favorable for budget predictability, but the specific pricing details and the scope of services are crucial for determining true value-for-money. Without more granular data on the services included and comparable market rates, it's difficult to definitively assess if this represents an excellent or questionable use of funds.

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.' This designation implies that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation. The number of bidders is not specified, but the 'full and open' aspect suggests an effort to solicit from a broad range of qualified vendors. The exclusion of sources, however, warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The 'full and open' competition, despite potential source exclusions, aims to leverage market forces to secure competitive pricing for taxpayers. A wider pool of bidders generally leads to better price discovery and potentially lower costs.

Public Impact

The primary beneficiaries are likely the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education, who will receive essential IT support. The services delivered will ensure the continued operation and maintenance of VMware infrastructure, critical for government IT operations. The geographic impact is centered in New Mexico, where the contractor is based. The contract supports the IT workforce by providing specialized VMware support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential impact of 'exclusion of sources' on the breadth of competition and price.
Lack of specific details on the scope of VMware support services provided.
Need for clarity on whether this contract represents a renewal or a new service requirement.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor.
Awarded under 'Full and Open Competition' principles, aiming for market-driven pricing.
Contract duration of over two years suggests a stable and predictable IT support arrangement.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services and support for virtualization software like VMware. The market for IT support services is vast and highly competitive, with numerous vendors offering specialized solutions. The Department of the Interior's spending on such services is part of a broader government-wide trend to modernize and maintain critical IT infrastructure. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar software and service levels.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary focus remains on the prime contractor, Affigent, LLC.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed price. Transparency is facilitated by contract award databases, though detailed performance metrics and specific oversight activities are not publicly detailed in this summary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Software Maintenance Contracts
Cloud Computing Services
Virtualization Technology Support
Department of the Interior IT Modernization

Risk Flags

Potential for limited competition due to source exclusion.
Risk of service quality degradation under Firm Fixed Price if not closely monitored.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $6.4 million to AFFIGENT, LLC. VMWARE SUPPORT FOR OIT

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2025-01-17. End: 2027-01-20.

What is the specific scope of VMware support services covered under this contract?

The provided data indicates the contract is for 'VMWARE SUPPORT FOR OIT' and falls under NAICS code 541519 ('Other Computer Related Services'). However, the specific details of the support services—such as the versions of VMware supported, the level of technical assistance (e.g., 24/7, business hours), incident response times, patch management, and proactive maintenance—are not detailed in the summary. A comprehensive understanding of the scope is crucial for assessing the contract's value and comparing it to market rates. Further review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain the full scope of services.

How does the awarded price of $6.4 million compare to market rates for similar VMware support contracts?

Benchmarking the $6.4 million contract value requires comparing it against similar VMware support contracts awarded by federal agencies or large commercial entities. Key comparison factors include the duration (733 days/approx. 2 years), the scope of services (as mentioned above), the number of supported users or virtual machines, and the level of support (e.g., standard, premium). Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise benchmark is difficult. However, for enterprise-level VMware support, $6.4 million over two years suggests a significant but potentially reasonable investment, contingent on the breadth and depth of services provided.

What are the potential risks associated with Affigent, LLC's performance on this contract?

Potential risks associated with Affigent, LLC's performance include failure to meet service level agreements (SLAs) for response and resolution times, inadequate technical expertise for complex VMware issues, or cybersecurity vulnerabilities within the supported environment. Given the Firm Fixed Price nature, there's also a risk that the contractor might cut corners on service quality to maintain profitability. The 'exclusion of sources' in the competition process could also indicate potential challenges in finding qualified vendors, which might translate to performance risks if the chosen vendor is not fully capable. Thorough performance monitoring and clear communication channels are essential to mitigate these risks.

What is the historical spending pattern for VMware support by the Department of the Interior?

The provided data does not include historical spending patterns for VMware support by the Department of the Interior. To analyze this, one would need to query federal procurement databases (like FPDS or USASpending) for previous contracts related to VMware support awarded by the DOI or its sub-agencies. Understanding historical spending would reveal trends in contract values, durations, awarded vendors, and competition levels, providing context for the current $6.4 million award. It would help determine if this contract represents an increase, decrease, or stable level of investment in VMware support.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for contractor selection and pricing?

This designation implies that the solicitation was intended to be open to all responsible sources capable of meeting the requirements. However, 'after exclusion of sources' suggests that certain potential offerors were deliberately excluded from the competition prior to the solicitation phase. The reasons for exclusion (e.g., lack of specific certifications, past performance issues, or other pre-defined criteria) are critical. While aiming for open competition, this exclusion could limit the number of bidders and potentially impact price discovery. The government must justify such exclusions to ensure they are reasonable and do not unduly restrict competition, thereby potentially leading to higher prices than a truly unrestricted competition.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140A1625R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,921,821

Exercised Options: $6,406,864

Current Obligation: $6,406,864

Actual Outlays: $5,322,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline