State Department awards $38M for IT advisory and support, with Alpha Omega Integration LLC as prime

Contract Overview

Contract Amount: $38,081,783 ($38.1M)

Contractor: Alpha Omega Integration LLC

Awarding Agency: Department of State

Start Date: 2018-03-01

End Date: 2023-08-28

Contract Duration: 2,006 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO FOR CPIC ADVISORY&SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $38.1 million to ALPHA OMEGA INTEGRATION LLC for work described as: TO FOR CPIC ADVISORY&SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT advisory and support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The awardee, Alpha Omega Integration LLC, is a key player in the IT services sector. 6. The services are categorized under Computer Systems Design, a critical area for government operations.

Value Assessment

Rating: fair

The total award amount of approximately $38 million over five years for IT advisory and support services appears to be within a reasonable range for a contract of this scope and duration. However, without specific benchmarks for 'CPIC Advisory & Support Services' or detailed breakdowns of labor categories and rates, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not managed diligently, as it directly reimburses labor hours and material costs. Comparing this to similar contracts for IT advisory services within the Department of State or other federal agencies would provide a more robust benchmark for pricing and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that it was competed suggests that multiple vendors likely vied for this opportunity. The level of competition, while not explicitly detailed by the number of bidders, generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to propose solutions, driving down prices through competitive pressure and ensuring the government receives the best possible value for its investment.

Public Impact

The Department of State benefits from enhanced IT advisory and support services, crucial for its global operations. Citizens and international partners benefit from more efficient and secure IT systems supporting diplomatic and consular functions. The contract supports the modernization and effective management of the Department's complex information technology infrastructure. 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

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess service effectiveness.
The duration of the contract (over 5 years) requires sustained oversight to ensure continued value.
Limited information on the specific 'CPIC Advisory & Support Services' makes it hard to benchmark against industry standards.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The prime contractor, Alpha Omega Integration LLC, is an established entity in the federal IT services market.
The contract addresses critical IT support needs for a major federal agency, the Department of State.
The contract duration suggests a stable, long-term requirement, allowing for focused service delivery.

Sector Analysis

The IT services sector for the federal government is highly competitive and diverse, encompassing a wide range of specialized capabilities. Contracts for computer systems design and related advisory services are fundamental to agency operations, supporting everything from cybersecurity to data management and strategic IT planning. The Department of State, like many large federal agencies, relies heavily on such contracts to maintain and upgrade its complex technological infrastructure. Spending in this category often benchmarks against broader IT services procurement trends, with significant variations based on the specific services required, the agency's mission, and the level of technical expertise demanded.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the prime contractor is not a small business (st: VA, which likely refers to a large business category). Therefore, there are no direct small business set-aside benefits associated with this prime award. However, the prime contractor, Alpha Omega Integration LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of small business subcontracting would depend on the contractor's internal policies and the specific needs of the services delivered under this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is facilitated through contract award databases like FPDS. While specific Inspector General (IG) jurisdiction isn't detailed here, the Department of State's Office of Inspector General typically has oversight over agency spending and program effectiveness, including major IT contracts, to identify waste, fraud, and abuse.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Advisory Services
Management and Consulting Services
Federal Civilian IT Spending

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for robust performance monitoring given the long contract duration.
Scope definition clarity for advisory services is crucial for effective service delivery.
Ensuring alignment with evolving IT strategies and technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $38.1 million to ALPHA OMEGA INTEGRATION LLC. TO FOR CPIC ADVISORY&SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALPHA OMEGA INTEGRATION LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2018-03-01. End: 2023-08-28.

What is the track record of Alpha Omega Integration LLC with the Department of State and other federal agencies for similar IT services contracts?

Alpha Omega Integration LLC has a history of performing IT services for various federal agencies, including the Department of State. Analyzing their past performance on similar contracts, such as those involving IT advisory, systems design, and integration, would reveal their ability to meet performance requirements, manage budgets, and adhere to schedules. Examining past performance evaluations, any contract modifications, and the number of task orders issued under previous agreements can provide insights into their reliability and effectiveness. A review of their contract history might also highlight any past performance issues or successes that could inform future assessments of this current award.

How does the awarded price compare to market rates for similar Computer Systems Design Services?

Benchmarking the awarded price against market rates for similar Computer Systems Design Services requires detailed analysis of the labor categories, hours, and overhead rates utilized in the Time and Materials (T&M) structure of this contract. Without this granular data, a direct comparison is difficult. However, general market intelligence suggests that IT advisory and support services, especially those requiring specialized expertise for complex government systems, can command significant rates. The Department of State likely conducted a price analysis during the procurement process to ensure the offered rates were fair and reasonable. Further investigation could involve comparing the average loaded labor rates to industry surveys or publicly available data for comparable government contracts.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific service?

The primary risk with a Time and Materials (T&M) contract, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost than initially projected. For IT advisory and support services, this risk is amplified if requirements evolve rapidly or if the contractor does not efficiently manage its resources. Robust oversight, clear task definitions, and diligent monitoring of labor hours and material expenditures are critical to mitigating these risks.

What specific CPIC (Capital Planning and Investment Control) advisory and support services are being provided under this contract?

The designation 'CPIC Advisory & Support Services' suggests the contract supports the government's processes for planning, budgeting, acquiring, and managing its IT investments. This typically involves activities such as IT portfolio management, business case development, investment analysis, IT budget formulation, and ensuring IT investments align with agency strategic goals and comply with federal mandates like the Clinger-Cohen Act. The services likely assist the Department of State in making informed decisions about which IT projects to fund, how to manage their lifecycle, and how to measure their return on investment. Specific deliverables might include reports, analyses, recommendations, and support for CPIC-related meetings and reviews.

How does the five-year duration of this contract impact the Department of State's IT strategy and budget planning?

A five-year contract duration provides the Department of State with a degree of stability and predictability for critical IT advisory and support services. This allows for long-term strategic planning and resource allocation, ensuring continuity of essential functions. It enables the contractor to develop a deeper understanding of the Department's specific needs and challenges, potentially leading to more tailored and effective solutions. From a budget perspective, it allows for more consistent forecasting of IT expenditures related to these services. However, it also means the Department is committed to these services for an extended period, necessitating careful performance management to ensure the services remain relevant and cost-effective throughout the contract's life.

What is the significance of the 'Computer Systems Design Services' NAICS code (541512) in the context of this award?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' signifies that the primary purpose of this contract is to provide expertise in designing and implementing computer systems. This encompasses a broad range of activities, including analyzing user needs, designing system architecture, integrating hardware and software, and providing consulting services related to IT systems. For the Department of State, this code indicates that the awarded services are focused on the strategic planning, design, and potentially the implementation oversight of their complex IT infrastructure, rather than just routine maintenance or software development. It highlights the contract's role in shaping the Department's technological capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8150 LEESBURG PIKE STE 1010, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $39,138,378

Exercised Options: $39,138,378

Current Obligation: $38,081,783

Actual Outlays: $19,320,071

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $62,071,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200182W

IDV Type: GWAC

Timeline