State Department awards $4M IT services contract to XFINION INC. for computer systems design

Contract Overview

Contract Amount: $4,047,406 ($4.0M)

Contractor: Xfinion Inc.

Awarding Agency: Department of State

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8(A)STARSIII GWAC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $4.0 million to XFINION INC. for work described as: 8(A)STARSIII GWAC Key points: 1. Contract value appears reasonable for the scope of computer systems design services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No immediate risk indicators are apparent from the provided data. 4. This contract supports essential IT infrastructure for the Department of State. 5. The contract falls within the IT services sector, specifically computer systems design. 6. The award is a delivery order under a larger GWAC vehicle.

Value Assessment

Rating: good

The contract value of approximately $4 million for a three-year period for computer systems design services seems within a reasonable range for the federal government. Benchmarking against similar contracts for IT systems design and integration services would provide a more precise value-for-money assessment. However, without specific details on the scope of work, it's difficult to make a definitive comparison. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while some sources might have been initially excluded, the competition was ultimately open to all eligible bidders. The data does not specify the number of bidders, but the 'full and open' designation generally implies a robust competitive process designed to solicit the best value from a wide range of potential offerors.

Taxpayer Impact: A full and open competition typically leads to more competitive pricing, benefiting taxpayers by ensuring the government secures services at a fair market rate.

Public Impact

The primary beneficiary is the Department of State, which will receive enhanced computer systems design services. Services delivered include computer systems design, crucial for maintaining and improving the department's IT infrastructure. The geographic impact is primarily within the District of Columbia, where the contract is managed and likely executed. Workforce implications may include the need for skilled IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a Government-Wide Acquisition Contract (GWAC) suggests adherence to pre-vetted contract vehicles.
Firm Fixed Price contract type shifts cost risk to the contractor.
Full and open competition indicates a broad solicitation process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the category of Computer Systems Design Services (NAICS 541512). This is a significant area of federal spending, supporting the operational backbone of various government agencies. The market for these services is competitive, with numerous firms offering specialized expertise. The value of this contract, at approximately $4 million, is moderate within the broader IT services landscape for federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The focus of competition was likely on larger or more specialized firms capable of meeting the full scope of the computer systems design requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a delivery order under a GWAC (8(A)STARSIII), the underlying GWAC vehicle itself likely has its own oversight mechanisms and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

8(A)STARSIII GWAC
Department of State IT Services
Computer Systems Design Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.0 million to XFINION INC.. 8(A)STARSIII GWAC

Who is the contractor on this award?

The obligated recipient is XFINION INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What is the specific scope of work for XFINION INC.'s computer systems design services under this contract?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541512, which corresponds to Computer Systems Design Services. This typically encompasses a range of activities such as analyzing user needs, designing computer systems, and planning for the integration of hardware, software, and communication technologies. However, the specific deliverables, technical requirements, and the exact nature of the systems to be designed or improved are not detailed in the summary data. Further review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the precise scope, including whether it involves new system development, modernization of existing systems, cybersecurity integration, or cloud migration strategies.

How does the $4.05 million contract value compare to similar IT systems design contracts awarded by the Department of State or other agencies?

The contract value of approximately $4.05 million over a period of roughly three years (September 2022 to September 2026) is a moderate-sized award for IT systems design services. To benchmark effectively, one would need to compare it against contracts with similar scopes of work, complexity, and duration. For instance, contracts for enterprise-wide system architecture design or major IT infrastructure overhauls might range from several million to tens or even hundreds of millions of dollars. Conversely, smaller, task-specific design projects might be valued in the hundreds of thousands. Without detailed scope comparison, it's challenging to definitively state if this represents excellent or fair value. However, given the 'full and open' competition, it suggests the pricing was deemed competitive at the time of award.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for a contract of this nature could include scope creep, technical challenges in system design, contractor performance issues, or cybersecurity vulnerabilities. The mitigation strategies are partly indicated by the contract's structure. The Firm Fixed Price (FFP) nature shifts the financial risk of cost overruns to the contractor, XFINION INC. The use of a GWAC (8(A)STARSIII) implies that the vehicle itself has undergone vetting, potentially reducing some acquisition risks. Furthermore, the 'full and open' competition suggests a thorough evaluation process was used to select a capable contractor. Ongoing oversight by the Department of State contracting officers and program managers, along with defined performance metrics and reporting requirements within the contract's Statement of Work, would be crucial for managing performance and technical risks.

What is XFINION INC.'s track record with federal contracts, particularly for computer systems design services?

XFINION INC. has a history of receiving federal contracts, as indicated by its participation in the 8(A)STARSIII GWAC. To assess their track record specifically for computer systems design services, a deeper dive into their past performance on similar contracts would be necessary. This would involve examining contract databases for awards to XFINION INC. under NAICS code 541512 or closely related codes, reviewing past performance evaluations (if publicly available), and looking at the size and complexity of previously awarded projects. Without this detailed historical data, it's difficult to provide a comprehensive assessment of their specific expertise and reliability in this domain, beyond the fact that they were selected for this current award.

How does the spending on computer systems design services by the Department of State compare to other agencies, and what does this indicate about their IT priorities?

The Department of State's spending on computer systems design services, represented by this $4.05 million contract, needs to be viewed within the context of their overall IT budget and mission requirements. As a global diplomatic organization, the State Department relies heavily on secure and robust IT infrastructure to manage communications, data, and operations worldwide. Compared to agencies with large domestic operational footprints (like HHS or VA), their IT spending might focus more on secure global networks, diplomatic communication systems, and data management for foreign affairs. Analyzing their total spending on NAICS 541512 over several fiscal years, alongside spending in related IT categories (e.g., software development, cloud services, cybersecurity), would reveal trends and priorities. This specific contract suggests a focus on foundational IT architecture and design.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1033200064

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7800 LONESOME PINE LN, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $4,685,487

Exercised Options: $4,205,548

Current Obligation: $4,047,406

Actual Outlays: $729,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0027

IDV Type: GWAC

Timeline