Interior Department's $72M IT Infrastructure Contract Awarded to Octo Consulting Group

Contract Overview

Contract Amount: $72,116,025 ($72.1M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of the Interior

Start Date: 2018-09-17

End Date: 2023-06-30

Contract Duration: 1,747 days

Daily Burn Rate: $41.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $72.1 million to OCTO CONSULTING GROUP LLC for work described as: IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract's duration and scope. 2. Competition was robust, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance context needing further review. 4. This contract positions the Department of the Interior within the broader IT services sector. 5. The contract type (Time and Materials) can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The contract's total value of $72.1 million over nearly five years suggests a moderate annual spend. Benchmarking against similar IT infrastructure support services contracts is crucial to determine true value for money. The Time and Materials pricing structure, while flexible, requires diligent oversight to prevent cost overruns compared to fixed-price contracts. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the price appears within a reasonable range for the services provided.

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 a competitive process where multiple vendors were allowed to bid. With 9 bidders, the level of competition was substantial, which typically drives down prices and encourages innovation. This broad competition suggests that the Department of the Interior sought a wide range of solutions and likely secured a competitive price point.

Taxpayer Impact: The robust competition indicates that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best value, preventing a single vendor from dictating terms and prices.

Public Impact

Federal employees within the Department of the Interior benefit from reliable IT infrastructure support. Essential IT services, including computer systems design, are delivered to support agency operations. The contract's impact is primarily concentrated within the Department of the Interior's operational framework. Workforce implications include the potential for IT specialists employed by Octo Consulting Group to support federal IT needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not closely monitored.
Scope creep could increase costs beyond initial projections without strict change control.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair process.
Multiple bidders participated, indicating a healthy market response and potential for quality solutions.
The contract duration of nearly five years allows for stability in IT support services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from software development to infrastructure management. This contract falls under computer systems design services, a sub-sector focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The federal government is a major consumer of these services, with significant spending allocated annually to maintain and modernize its technological backbone. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts within federal agencies.

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. This suggests that the primary award went to a large or mid-sized business. The lack of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they may still be involved further down the supply chain if the prime contractor utilizes them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Systems Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to manage scope and prevent inefficiencies.
Dependence on contractor performance for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $72.1 million to OCTO CONSULTING GROUP LLC. IGF::CT::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $72.1 million.

What is the period of performance?

Start: 2018-09-17. End: 2023-06-30.

What is the track record of Octo Consulting Group with the Department of the Interior and other federal agencies?

Octo Consulting Group LLC has a history of securing federal contracts, particularly within the IT services domain. Their portfolio often includes support for various agencies, demonstrating experience in navigating federal procurement processes and delivering IT solutions. Analyzing their past performance ratings, any past performance issues or awards, and the types of services they have provided to the Department of the Interior and other agencies would offer insight into their reliability and capability. A review of their contract history would reveal the scale and complexity of projects they have successfully managed, providing a basis for assessing their suitability for this IT infrastructure support role.

How does the awarded price compare to similar IT infrastructure support contracts?

Benchmarking the $72.1 million award against similar IT infrastructure support contracts requires access to a database of comparable federal procurements. Factors such as contract duration, scope of services (e.g., network management, system design, help desk support), geographic coverage, and the specific agency's needs influence pricing. If this contract's annual value or its total value relative to its duration is significantly higher or lower than comparable contracts awarded through similar competitive processes, it would indicate potential overpricing or exceptional value. Without specific benchmark data, a precise comparison is difficult, but the 'full and open competition' suggests a market-driven price.

What are the primary risks associated with a Time and Materials (T&M) contract for IT infrastructure support?

Time and Materials (T&M) contracts, like the one awarded to Octo Consulting Group, carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor and materials, plus a fee. This structure can lead to cost overruns if the scope of work is not well-defined or if project duration extends beyond initial estimates. Effective oversight, detailed tracking of hours and materials, and robust change management processes are critical to mitigate these risks. The government must actively manage the contractor's effort to ensure efficiency and prevent scope creep from inflating the final cost.

How effective has the Department of the Interior been in managing its IT infrastructure contracts historically?

Assessing the historical effectiveness of the Department of the Interior's IT infrastructure contract management requires a review of past contract performance evaluations, IG reports, and GAO findings related to the department's IT procurements. Key indicators of effectiveness include on-time and on-budget delivery, achievement of performance metrics, and successful adoption of new technologies. Challenges often arise from complex requirements, evolving technological landscapes, and the inherent difficulties in managing large-scale service contracts. Understanding past successes and failures can provide context for the current contract's oversight strategy and potential areas of focus.

What is the trend in federal spending on computer systems design services over the past five years?

Federal spending on computer systems design services (NAICS code 541512) has generally shown an upward trend over the past five years, driven by the ongoing need for agencies to modernize IT systems, enhance cybersecurity, and adopt cloud-based solutions. This growth reflects the increasing reliance on technology across all government functions. Analyzing specific spending data from sources like FPDS or agency budget reports would provide precise figures and growth rates. This trend suggests that contracts like the one awarded to Octo Consulting Group are part of a larger, sustained investment in federal IT capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0418R0029

Offers Received: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD 4TH FL, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,116,025

Exercised Options: $72,116,025

Current Obligation: $72,116,025

Actual Outlays: $58,723,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200121W

IDV Type: GWAC

Timeline