DOI Awards $420K for Computing Infrastructure to Trace3 Government, LLC

Contract Overview

Contract Amount: $420,641 ($420.6K)

Contractor: Trace3 Government, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-23

End Date: 2026-09-23

Contract Duration: 730 days

Daily Burn Rate: $576/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE DEPARTMENT OF THE INTERIOR (DOI) INTERIOR BUSINESS CENTER (IBC) ACQUISITION SERVICES DIRECTORATE (AQD) IS ISSUING THIS COMPETITIVE REQUEST FOR QUOTATION (RFQ) ON BEHALF OF THE HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG)

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80210

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $420,641.48 to TRACE3 GOVERNMENT, LLC for work described as: THE DEPARTMENT OF THE INTERIOR (DOI) INTERIOR BUSINESS CENTER (IBC) ACQUISITION SERVICES DIRECTORATE (AQD) IS ISSUING THIS COMPETITIVE REQUEST FOR QUOTATION (RFQ) ON BEHALF OF THE HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG) Key points: 1. The contract is for computing infrastructure, data processing, and web hosting services. 2. Trace3 Government, LLC is the awardee for this competitive RFQ. 3. The contract duration is two years, with a total value of $420,641.48. 4. This award falls under the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code.

Value Assessment

Rating: good

The award amount of $420,641.48 for a two-year contract appears reasonable for the specified IT services. Benchmarking against similar contracts for computing infrastructure and data processing would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition via a Request for Quotation (RFQ). This method allows all eligible vendors to participate, fostering price discovery and potentially leading to competitive pricing.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer funds are being utilized efficiently through market-driven pricing for essential IT services.

Public Impact

Ensures continued operation of critical IT infrastructure for HHS OIG. Supports data processing and web hosting needs, vital for government operations. Provides a competitive avenue for IT service providers to engage with the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive award process
Clear service category (IT Infrastructure)
Defined contract duration and value

Sector Analysis

The IT services sector is highly competitive, with numerous providers offering computing infrastructure, data processing, and web hosting. Government spending in this area is substantial, driven by the need for robust and secure digital operations.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific procurement, either as prime contractors or subcontractors. Future analysis could explore opportunities for small business participation in similar IT service contracts.

Oversight & Accountability

The award was issued by the Department of the Interior's Business Center (IBC) Acquisition Services Directorate on behalf of HHS OIG, indicating a centralized procurement approach. Oversight would involve monitoring contract performance and adherence to terms.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns with Time and Materials contract type.
Reliance on a single vendor for critical IT services.
Need for robust performance monitoring and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $420,641.48 to TRACE3 GOVERNMENT, LLC. THE DEPARTMENT OF THE INTERIOR (DOI) INTERIOR BUSINESS CENTER (IBC) ACQUISITION SERVICES DIRECTORATE (AQD) IS ISSUING THIS COMPETITIVE REQUEST FOR QUOTATION (RFQ) ON BEHALF OF THE HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG)

Who is the contractor on this award?

The obligated recipient is TRACE3 GOVERNMENT, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $420,641.48.

What is the period of performance?

Start: 2024-09-23. End: 2026-09-23.

What specific performance metrics will be used to evaluate the quality of computing infrastructure, data processing, and web hosting services provided by Trace3 Government, LLC?

Performance metrics are crucial for ensuring the value and effectiveness of IT services. While not detailed in the provided data, typical metrics for such contracts include uptime percentages for servers and web services, data processing speeds, response times for technical support, and adherence to security protocols. The HHS OIG would likely establish specific KPIs within the contract's statement of work to monitor these aspects.

Are there any potential risks associated with relying on a single vendor, Trace3 Government, LLC, for these critical IT services over the two-year contract period?

While this was a competitive award, the risk of vendor lock-in or performance issues with a single provider exists. Potential risks include service disruptions if the vendor experiences technical failures or financial instability, and limited flexibility to adopt new technologies if the vendor's offerings are not cutting-edge. Mitigation strategies could involve robust service level agreements (SLAs) and contingency planning.

How does the pricing structure (Time and Materials) for this contract ensure cost-effectiveness and prevent potential overruns for the government?

Time and Materials (T&M) contracts can be flexible but carry a higher risk of cost overruns if not managed carefully. For this contract, cost-effectiveness relies heavily on the government's ability to closely monitor labor hours and material costs, and to ensure that the work performed is necessary and efficient. The competitive nature of the initial award helps set a baseline, but ongoing oversight is key to managing T&M spending.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 140D0424Q0573

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zivaro, Inc.

Address: 3900 E MEXICO AVE, DENVER, CO, 80210

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

Financial Breakdown

Contract Ceiling: $2,109,990

Exercised Options: $420,641

Current Obligation: $420,641

Actual Outlays: $203,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0092

IDV Type: IDC

Timeline