State Department's $24.8M IT support contract awarded to Alpha Omega Integration LLC for digital transformation
Contract Overview
Contract Amount: $24,831,004 ($24.8M)
Contractor: Alpha Omega Integration LLC
Awarding Agency: Department of State
Start Date: 2021-07-01
End Date: 2026-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: IT
Official Description: BUREAU OF ADMINISTRATION, INFORMATION TECHNOLOGY SERVICES DIVISION APPLICATION AND BNET SUPPORT - DIGITAL TRANSFORMATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $24.8 million to ALPHA OMEGA INTEGRATION LLC for work described as: BUREAU OF ADMINISTRATION, INFORMATION TECHNOLOGY SERVICES DIVISION APPLICATION AND BNET SUPPORT - DIGITAL TRANSFORMATION Key points: 1. Value for money appears fair given the 5-year duration and scope of digital transformation services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with performance dependent on contractor's ability to deliver complex IT solutions. 4. This contract supports the Bureau of Administration's IT services, focusing on application and network support. 5. The sector is IT services, specifically custom computer programming, a critical area for government modernization.
Value Assessment
Rating: fair
The contract's value of approximately $24.8 million over five years averages to about $4.96 million annually. Benchmarking this against similar large-scale IT support and digital transformation contracts within federal agencies is challenging without more granular data on specific services. However, the duration suggests a significant, ongoing need for these services. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this significant IT services contract.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.
Public Impact
Federal employees within the Department of State will benefit from improved IT infrastructure and digital services. The contract delivers application and network support, crucial for the daily operations and modernization efforts of the Bureau of Administration. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications include the potential for IT specialists employed by Alpha Omega Integration LLC to support government functions, and indirectly, the efficiency gains for state department personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in digital transformation projects if not managed tightly.
- Dependence on contractor expertise for critical IT infrastructure could pose a risk if performance falters.
- Ensuring continuous alignment with evolving technological advancements throughout the contract's lifespan.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Long-term contract duration allows for sustained support and development of digital transformation initiatives.
- Focus on critical IT services essential for government operations and modernization.
Sector Analysis
The IT services sector, particularly custom computer programming (NAICS 541511), is a substantial part of federal spending. Agencies increasingly rely on specialized contractors for digital transformation, cloud migration, cybersecurity, and application development. This contract fits within the broader trend of federal agencies seeking to modernize their legacy systems and improve digital service delivery. Comparable spending benchmarks would typically involve looking at other large, multi-year IT support contracts awarded by agencies like the Department of State or other cabinet-level departments.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Alpha Omega Integration LLC, may choose to subcontract portions of the work, potentially including opportunities for small businesses, though this is not mandated by the contract terms.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of State's Bureau of Administration, Information Technology Services Division. Accountability measures would be defined in the contract's performance work statement (PWS), with regular reviews and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms, although specific performance metrics may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of State IT Modernization Programs
- Federal Civilian IT Services Contracts
- Digital Transformation Services
- Application Development and Maintenance
- Network Infrastructure Support
Risk Flags
- Potential for cost overruns due to labor-hour pricing model.
- Risk of contractor performance not meeting evolving digital transformation needs.
- Cybersecurity vulnerabilities inherent in complex IT systems.
- Dependence on a single contractor for critical IT functions.
Tags
it-services, custom-computer-programming, department-of-state, bureau-of-administration, digital-transformation, application-support, network-support, full-and-open-competition, labor-hours, multi-year-contract, district-of-columbia, alpha-omega-integration-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $24.8 million to ALPHA OMEGA INTEGRATION LLC. BUREAU OF ADMINISTRATION, INFORMATION TECHNOLOGY SERVICES DIVISION APPLICATION AND BNET SUPPORT - DIGITAL TRANSFORMATION
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 $24.8 million.
What is the period of performance?
Start: 2021-07-01. End: 2026-06-30.
What is Alpha Omega Integration LLC's track record with federal IT contracts, particularly those involving digital transformation?
Alpha Omega Integration LLC has a history of performing IT services for the federal government. While specific details on their digital transformation project successes or failures are not publicly detailed in this summary, their award for this significant contract suggests they met the Department of State's criteria for capability and experience. A deeper dive into their contract history, past performance evaluations, and any reported issues or commendations would provide a more comprehensive understanding of their track record. Analyzing their portfolio of completed projects, especially those with similar scope and objectives, is crucial for assessing their suitability and reliability for this ongoing digital transformation effort.
How does the $24.8 million contract value compare to similar IT support and digital transformation contracts awarded by the Department of State or other agencies?
The $24.8 million contract value over five years, averaging nearly $5 million annually, places this contract in the mid-to-large tier for IT services within the federal government. The Department of State, like other large agencies, awards numerous IT contracts, with values ranging significantly based on scope, duration, and complexity. Contracts for enterprise-wide digital transformation, cloud migration, or major system overhauls can easily reach tens or hundreds of millions of dollars. This particular contract's value seems reasonable for comprehensive application and network support aimed at digital transformation, especially when compared to similar multi-year, full-service IT contracts awarded to large system integrators by agencies such as the Department of Defense or HHS.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?
Key performance indicators (KPIs) for this contract would likely focus on service availability, system uptime, response times for issue resolution, successful implementation of new digital capabilities, and user satisfaction. Risk mitigation strategies would involve robust contract management by the Department of State, including regular performance reviews, clear deliverables, and defined penalties for non-performance. The contractor, Alpha Omega Integration LLC, would be expected to have its own internal risk management processes, addressing potential technical challenges, cybersecurity threats, and personnel retention. The 'labor hours' pricing model necessitates close monitoring to ensure efficient resource allocation and prevent cost overruns, which is a key risk area.
What is the expected impact of this contract on the Department of State's digital transformation goals?
This contract is expected to be a significant enabler of the Department of State's digital transformation goals by providing essential application and network support. It aims to modernize the IT infrastructure, improve the efficiency and security of digital services, and enhance the user experience for Department personnel. Successful execution by Alpha Omega Integration LLC should lead to more agile IT systems, better data management capabilities, and potentially improved communication and collaboration tools. The focus on 'digital transformation' suggests a forward-looking approach, moving away from legacy systems towards more integrated, cloud-based, and user-centric solutions.
What has been the historical spending trend for similar IT support services at the Department of State?
Historical spending trends for IT support services at the Department of State have generally shown a consistent and significant investment in maintaining and modernizing its complex technological infrastructure. Agencies like the State Department require substantial resources for network operations, application development and maintenance, cybersecurity, and end-user support to manage global diplomatic missions and internal operations. Over the past decade, there has been a noticeable increase in federal IT spending directed towards digital transformation initiatives, cloud adoption, and cybersecurity enhancements. This $24.8 million contract aligns with this broader trend, reflecting the ongoing need for robust IT support to achieve modernization objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 8150 LEESBURG PIKE, 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: $30,217,245
Exercised Options: $30,217,245
Current Obligation: $24,831,004
Actual Outlays: $12,261,583
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $7,165,234
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 19AQMM21A0096
IDV Type: BPA
Timeline
Start Date: 2021-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-06
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