Interior Department's $17.5M IT contract with Octo Consulting Group shows strong competition and long-term support

Contract Overview

Contract Amount: $17,512,056 ($17.5M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of the Interior

Start Date: 2019-09-18

End Date: 2024-11-30

Contract Duration: 1,900 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $17.5 million to OCTO CONSULTING GROUP LLC for work described as: INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract provides essential IT systems design and support, aligning with agency needs. 2. Full and open competition indicates a healthy market and potential for competitive pricing. 3. Long contract duration suggests a need for sustained IT services and stable vendor relationship. 4. The contract's value is moderate within the context of large federal IT procurements. 5. Focus on computer systems design services highlights a critical area for agency operations. 6. Delivery order structure allows for flexibility in tasking and resource allocation.

Value Assessment

Rating: good

The contract's value of approximately $17.5 million over its period of performance appears reasonable given the scope of IT systems design and support services. Benchmarking against similar large-scale IT service contracts within federal agencies suggests that pricing is likely competitive, especially considering the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of four bids suggests a robust competitive environment, which typically drives better pricing and service quality for the government. This level of competition is a positive sign for price discovery and value for taxpayer money.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a market-driven price, preventing potential overpayment and encouraging efficient service delivery.

Public Impact

Federal agencies, specifically the Department of the Interior, benefit from enhanced IT infrastructure and support. Services delivered include computer systems design, integration, and ongoing support, crucial for agency operations. The primary geographic impact is within the agency's operational locations, likely nationwide. Workforce implications include the potential for skilled IT professionals to be engaged through the prime contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration if not managed effectively.
Reliance on a single contractor for critical IT functions could pose risks if performance degrades.
Scope creep could increase costs if not carefully monitored and controlled through task orders.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Long-term contract provides stability and continuity for essential IT services.
Delivery order structure allows for flexibility in adapting to evolving IT needs.

Sector Analysis

This contract falls within the broader federal IT services sector, a significant portion of government spending. The market for computer systems design services is highly competitive, with numerous large and small businesses vying for federal contracts. The Department of the Interior's spending on such services is typical for an agency of its size and operational complexity, aiming to maintain and modernize its technological infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. There is no explicit information on subcontracting plans for small businesses within this data. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) within the Department of the Interior, who monitors performance and ensures compliance with contract terms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Information Technology Support
Cloud Computing Services
Cybersecurity Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in if not managed proactively.
Performance monitoring is critical to ensure sustained quality of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $17.5 million to OCTO CONSULTING GROUP LLC. 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 $17.5 million.

What is the period of performance?

Start: 2019-09-18. End: 2024-11-30.

What is the historical spending pattern for similar IT support services at the Department of the Interior?

Historical spending on IT support services at the Department of the Interior has been substantial, reflecting the agency's reliance on technology for its diverse operations. Over the past decade, the Department has consistently awarded multi-million dollar contracts for various IT functions, including systems design, network management, cybersecurity, and data analytics. Spending has seen fluctuations based on modernization initiatives, cybersecurity threats, and budget allocations. For instance, periods of significant infrastructure upgrades or the implementation of new agency-wide software systems often correlate with increased IT contract spending. The trend generally shows a sustained need for IT services, with a gradual shift towards cloud-based solutions and advanced data processing capabilities.

How does the per-unit cost of this contract compare to other federal IT service contracts?

Direct per-unit cost comparison for this contract is challenging without specific task order details and labor categories. However, the contract's total value of approximately $17.5 million over its duration, awarded under full and open competition with four bidders, suggests a competitive pricing structure. Federal IT service contracts, especially those involving systems design and support, can vary widely in per-unit costs based on labor rates, complexity, and geographic location. Given the competitive bidding environment, it is likely that the per-unit costs are benchmarked against prevailing market rates for similar services. Agencies often use GSA Schedules or other established pricing agreements as reference points to ensure fair and reasonable pricing.

What are the key performance indicators (KPIs) used to evaluate Octo Consulting Group's performance on this contract?

While specific KPIs are not detailed in the provided data, federal IT service contracts typically include performance standards related to system uptime, response times for technical support, project completion rates, and adherence to security protocols. For a contract focused on computer systems design services, KPIs might also include the successful implementation of new system features, the reduction of system vulnerabilities, and the efficiency of deployed solutions. Performance is usually monitored through regular progress reports, user feedback, and formal reviews by the Contracting Officer's Representative (COR). Failure to meet these KPIs can result in contractual remedies, including reduced payment or termination.

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

Octo Consulting Group has a notable track record of serving federal agencies, including the Department of the Interior. Publicly available contract data indicates that the company has been awarded numerous contracts across various civilian and defense agencies for IT services, consulting, and digital transformation. Their experience often spans areas such as cloud migration, data analytics, software development, and cybersecurity. For the Department of the Interior specifically, Octo Consulting Group has likely provided a range of IT support and modernization services, contributing to the agency's operational capabilities. A thorough review of their past performance ratings and any past performance issues would provide a more comprehensive understanding of their reliability and effectiveness.

What are the potential risks associated with a long-term IT support contract like this one?

Long-term IT support contracts, such as this one with a duration extending into late 2024, carry several potential risks. One primary risk is technological obsolescence; the IT landscape evolves rapidly, and a long-term contract might lock the agency into outdated technologies if not managed proactively. Vendor lock-in is another concern, where the agency becomes overly dependent on a single provider, potentially limiting flexibility and bargaining power. Performance degradation over time is also a risk, as contractor motivation or capability might wane. Furthermore, changes in agency requirements or budget constraints could make the contract less relevant or affordable. Effective contract management, including regular reviews and potential modifications, is crucial to mitigate these risks.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0419Q0037

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,359,505

Exercised Options: $18,359,505

Current Obligation: $17,512,056

Actual Outlays: $17,512,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0234W

IDV Type: FSS

Timeline