State Department awards $3.2M task order for IT systems support to SkyePoint Decisions, Inc

Contract Overview

Contract Amount: $3,194,377 ($3.2M)

Contractor: Skyepoint Decisions, Inc.

Awarding Agency: Department of State

Start Date: 2020-01-15

End Date: 2026-07-14

Contract Duration: 2,372 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: PERFORMANCE AND PLANNING SYSTEMS SUPPORT TASK ORDER AWARD

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $3.2 million to SKYEPOINT DECISIONS, INC. for work described as: PERFORMANCE AND PLANNING SYSTEMS SUPPORT TASK ORDER AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is over 6 years, indicating a long-term need for these services. 3. SkyePoint Decisions, Inc. is the sole awardee, raising questions about potential single-source reliance. 4. The contract type is labor hours, which can be less predictable in final cost compared to fixed-price. 5. The award is a delivery order under a larger contract vehicle, typical for IT services. 6. The task order value is substantial, reflecting significant IT support requirements.

Value Assessment

Rating: fair

Benchmarking the value of this $3.2 million task order is challenging without specific performance metrics or comparable contract data. The labor hours pricing model introduces variability, making it difficult to assess upfront cost-effectiveness. However, the duration of over six years suggests a sustained need, and the award amount is within a typical range for complex IT support services. Further analysis would require understanding the specific deliverables and the efficiency of SkyePoint Decisions, Inc. in meeting those requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the actual competitiveness is influenced by the number of responsive bids received and the specific requirements of the task.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging vendors to offer their best value. The fact that this was competed openly is a positive signal for fiscal responsibility.

Public Impact

The Department of State benefits from continued IT systems support, crucial for its global operations. This contract ensures the maintenance and potential enhancement of critical computer systems. The services delivered are essential for the smooth functioning of the department's administrative and operational infrastructure. The primary beneficiaries are the internal users and operations of the Department of State, enabling them to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type can lead to cost overruns if not managed tightly.
Long contract duration may reduce flexibility to adopt newer technologies if needs change.
Sole awardee for this task order could indicate limited market interest or specific niche requirements.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
The contract supports critical IT infrastructure for a major federal agency.
The vendor, SkyePoint Decisions, Inc., is established in providing IT services to government clients.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. This sector is characterized by high demand for specialized expertise in software development, system integration, and IT support. The market size for government IT services is substantial, with agencies like the Department of State being significant spenders. This task order represents a typical procurement for ongoing operational support within this sector, complementing larger system development or modernization efforts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to SkyePoint Decisions, Inc., a company that may or may not be classified as a small business itself, means that opportunities for small business participation are not explicitly mandated through this specific award mechanism. Further investigation into the prime contractor's subcontracting plan would be needed to assess potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. Accountability measures are usually embedded within the contract's performance work statement, with regular reviews and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of State IT Support Contracts
General Services Administration (GSA) IT Schedule Contracts
IT Services for Federal Agencies
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to labor-hours pricing model.
Long contract duration may limit adaptability to future technological advancements.
Reliance on a single vendor for this task order could pose a risk if performance issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.2 million to SKYEPOINT DECISIONS, INC.. PERFORMANCE AND PLANNING SYSTEMS SUPPORT TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is SKYEPOINT DECISIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2020-01-15. End: 2026-07-14.

What is the track record of SkyePoint Decisions, Inc. in performing similar IT support contracts for the Department of State or other federal agencies?

SkyePoint Decisions, Inc. has a history of performing IT support and related services for various federal agencies, including the Department of State. Their contract portfolio often includes areas such as cybersecurity, cloud services, and enterprise IT solutions. Analyzing their past performance on similar task orders, particularly those involving system design and support, would provide insight into their capabilities and reliability. Specific metrics like on-time delivery, adherence to budget, and client satisfaction from previous engagements would be key indicators. A review of past performance evaluations, if publicly available, would offer a more concrete assessment of their track record.

How does the estimated cost per year for this task order compare to industry benchmarks for similar IT support services?

The total value of this task order is approximately $3.2 million over a period of roughly 6.5 years (January 15, 2020, to July 14, 2026). This averages to about $492,000 per year. Benchmarking this figure requires detailed knowledge of the specific services provided, such as help desk support, system maintenance, network administration, or specialized IT consulting. However, for comprehensive IT support services for a large agency like the Department of State, this annual figure appears to be within a reasonable range. Factors like the complexity of the systems supported, the required skill sets of the personnel, and the geographic locations of service delivery significantly influence industry benchmarks. Without a precise breakdown of labor categories and hours, a definitive comparison is difficult.

What are the primary risks associated with a labor-hours contract for IT systems support, and how are they mitigated?

Labor-hours contracts, like this one, carry inherent risks primarily related to cost control. The final cost is directly tied to the actual hours worked and the labor rates, making it susceptible to cost overruns if work is inefficiently performed or if scope creep occurs without proper change order management. To mitigate these risks, the Department of State would typically employ robust oversight mechanisms. This includes detailed tracking of hours worked, regular progress reviews, and performance metrics tied to deliverables. A strong contract management team is essential to monitor labor utilization, ensure adherence to the Statement of Work (SOW), and manage any scope changes through formal modification processes. Clear communication channels with the contractor are also vital for early identification and resolution of potential issues.

What is the strategic importance of this IT systems support contract to the Department of State's overall mission and operations?

This IT systems support contract is strategically important as it ensures the continued functionality and reliability of critical computer systems that underpin the Department of State's global operations. Effective IT infrastructure is fundamental for communication, data management, diplomatic activities, and administrative functions. Disruptions or inefficiencies in these systems can have significant operational and even national security implications. By securing ongoing support, the Department maintains its ability to conduct foreign policy, manage personnel, and process information securely and efficiently. This contract, therefore, directly contributes to the agency's core mission by providing the technological backbone necessary for its day-to-day and long-term objectives.

How has the Department of State's spending on IT systems design and support services evolved over the past five years, and where does this contract fit in?

Analyzing the Department of State's spending trends on IT systems design and support services over the past five years would reveal patterns of investment and evolving needs. Generally, federal agencies have seen increasing reliance on IT, leading to sustained or growing expenditures in this area. This $3.2 million task order, awarded in early 2020, represents a specific investment within that broader spending context. Its duration suggests a commitment to maintaining existing systems or supporting ongoing projects. To understand its place, one would compare its value and scope against other IT contracts awarded by the Department during the same period. This helps determine if it's a routine operational expense, part of a larger modernization initiative, or a response to a specific emerging requirement.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 45240 BUSINESS CT, DULLES, VA, 20166

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

Financial Breakdown

Contract Ceiling: $3,220,745

Exercised Options: $3,205,102

Current Obligation: $3,194,377

Actual Outlays: $1,096,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0216Y

IDV Type: FSS

Timeline