State Department's $16.9M SaaS & Hardware Contract for Communications Modernization Awarded to Federal Resources Corporation

Contract Overview

Contract Amount: $16,940,010 ($16.9M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of State

Start Date: 2023-02-21

End Date: 2027-02-20

Contract Duration: 1,460 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE AS A SERVICE (SAAS) AND HARDWARE IN DIRECT SUPPORT OF THE GOVERNMENT MODERNIZATION OF THEIR COMMUNICATIONS AND MARKETING PLATFORMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $16.9 million to FEDERAL RESOURCES CORPORATION for work described as: SOFTWARE AS A SERVICE (SAAS) AND HARDWARE IN DIRECT SUPPORT OF THE GOVERNMENT MODERNIZATION OF THEIR COMMUNICATIONS AND MARKETING PLATFORMS Key points: 1. Contract aims to modernize government communications and marketing platforms through SaaS and hardware. 2. Federal Resources Corporation secured the contract, indicating a specific market alignment. 3. The contract duration of 1460 days suggests a long-term need for these services. 4. The award type is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The contract's focus on modernization highlights a strategic investment in government capabilities. 6. The fixed-price nature of the contract provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $16.9 million over approximately four years for SaaS and hardware supporting communications modernization appears reasonable. Benchmarking against similar government IT modernization contracts suggests that pricing is within expected ranges, especially considering the inclusion of both software and hardware components. The firm fixed-price structure helps manage cost overruns, providing good value for the taxpayer if deliverables are met efficiently. Further analysis would require detailed cost breakdowns of the SaaS and hardware components.

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, indicating that multiple vendors were likely considered. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While not a vast number, it implies that the market was aware of the opportunity and that the government sought competitive proposals. The exclusion of sources clause might indicate specific technical requirements that narrowed the field initially, but the overall 'full and open' designation is positive.

Taxpayer Impact: The full and open competition, even with a limited number of bidders, suggests that taxpayers benefited from a degree of price discovery and that the government likely received competitive offers, leading to a more efficient use of funds.

Public Impact

Government agencies, particularly the Department of State, will benefit from modernized communication and marketing platforms. Services delivered include Software as a Service (SaaS) and necessary hardware. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications may include training for personnel on new systems and potential shifts in IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if SaaS solutions are highly proprietary.
Dependence on Federal Resources Corporation for ongoing support and updates.
Risk of scope creep if modernization requirements evolve significantly during the contract period.

Positive Signals

Modernization of critical government communications infrastructure.
Use of a firm fixed-price contract for cost predictability.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT services and solutions. The market for government IT modernization, including SaaS and hardware, is substantial and competitive. This contract represents a portion of the government's ongoing investment in upgrading its digital infrastructure to improve efficiency and effectiveness in communication and outreach. Comparable spending benchmarks for similar IT modernization efforts vary widely based on scope and complexity.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Federal Resources Corporation engages them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of set-asides means larger prime contractors are likely the focus.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Government IT Modernization Programs
Federal Cloud Computing Services
Department of State IT Procurement
Communications Infrastructure Upgrades

Risk Flags

Potential for technological obsolescence due to contract duration.
Dependence on a single vendor for critical communications infrastructure.
Risk of limited flexibility in adopting emerging technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $16.9 million to FEDERAL RESOURCES CORPORATION. SOFTWARE AS A SERVICE (SAAS) AND HARDWARE IN DIRECT SUPPORT OF THE GOVERNMENT MODERNIZATION OF THEIR COMMUNICATIONS AND MARKETING PLATFORMS

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2023-02-21. End: 2027-02-20.

What is the track record of Federal Resources Corporation in delivering similar IT modernization solutions to government agencies?

Federal Resources Corporation's track record in delivering IT modernization solutions, particularly SaaS and hardware for communications platforms, would need to be thoroughly reviewed. While the award itself indicates they were deemed capable, a deeper dive into past performance evaluations, client testimonials, and previous contract successes or failures is crucial. Examining their history with similar-sized projects and their expertise in government-specific compliance and security protocols would provide a clearer picture of their reliability and ability to meet the Department of State's needs. Information on their financial stability and capacity to handle a contract of this magnitude is also important for assessing long-term performance risk.

How does the per-unit cost of the SaaS and hardware compare to market rates for comparable commercial solutions?

A detailed comparison of the per-unit cost for the SaaS and hardware components against commercial market rates is essential for assessing value for money. This would involve identifying the specific software functionalities and hardware specifications procured and benchmarking them against offerings from leading commercial vendors. Factors such as volume discounts, government-specific licensing agreements, and the inclusion of support and maintenance services must be considered. If the government's negotiated rates are significantly higher than commercial equivalents, it could indicate potential inefficiencies in the procurement process or a lack of competitive pressure. Conversely, lower rates might suggest effective negotiation or strategic sourcing.

What are the key performance indicators (KPIs) used to measure the success of this communications modernization contract?

The key performance indicators (KPIs) for this contract are critical for evaluating its effectiveness and ensuring the Department of State achieves its modernization goals. While not explicitly detailed in the award abstract, typical KPIs for such a contract might include system uptime and availability, response times for technical support, user adoption rates, successful migration of data and functionalities, and the achievement of specific communication or marketing campaign metrics enabled by the new platforms. The contract's statement of work (SOW) would likely outline these KPIs, and performance against them would be monitored throughout the contract's duration to ensure value delivery and identify areas for improvement.

What is the historical spending pattern for communications and marketing platform modernization at the Department of State?

Analyzing the historical spending patterns for communications and marketing platform modernization at the Department of State is vital for contextualizing this $16.9 million award. Understanding previous investments in similar technologies, the frequency of such upgrades, and the average contract values over the past 5-10 years can reveal trends in IT modernization strategy and budget allocation. This historical data can help determine if current spending is consistent with past efforts, represents an increase or decrease in investment, or signifies a shift in technological focus. It also aids in identifying potential patterns of recurring needs or one-time major overhauls, providing a baseline for assessing the current contract's significance.

What are the potential risks associated with the long duration (1460 days) of this contract?

The 1460-day (approximately 4-year) duration of this contract presents several potential risks. Technological obsolescence is a primary concern; the IT landscape evolves rapidly, and hardware or software procured today might be outdated or unsupported by the end of the contract term. Vendor viability is another risk; Federal Resources Corporation could face financial difficulties or strategic shifts that impact their ability to fulfill the contract. Furthermore, a long duration can reduce flexibility, making it harder for the Department of State to adapt to changing requirements or adopt newer, more innovative solutions that emerge during the contract period. Managing scope creep over such an extended period also requires diligent oversight.

How does the 'full and open competition after exclusion of sources' clause impact the overall competitiveness and potential cost savings?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was broadly open, certain initial requirements or pre-qualification criteria may have narrowed the field of potential bidders. This approach aims to ensure that all responsible sources are considered while potentially focusing on vendors with specific capabilities relevant to the requirement. The impact on competitiveness and cost savings is nuanced: it could lead to a more targeted competition among highly qualified vendors, potentially resulting in innovative solutions. However, if the exclusion criteria were overly restrictive, it might limit the number of bidders, potentially reducing competitive pressure and leading to higher costs compared to a truly unrestricted full and open competition.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 STATE ST, ERIE, PA, 16501

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $50,750,600

Exercised Options: $50,750,600

Current Obligation: $16,940,010

Actual Outlays: $523,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline