State Department awards $5.7M contract for instability monitoring platform to Federal Resources Corporation

Contract Overview

Contract Amount: $5,737,307 ($5.7M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of State

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTABILITY MONITORING ANALYSIS PLATFORM (MAP)

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 $5.7 million to FEDERAL RESOURCES CORPORATION for work described as: INSTABILITY MONITORING ANALYSIS PLATFORM (MAP) Key points: 1. Contract value appears reasonable for a multi-year IT service delivery. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 4. The duration of the contract is three years, aligning with typical IT service lifecycles. 5. The North American Industry Classification System (NAICS) code 541519 indicates a focus on computer-related services. 6. The contract is a delivery order under a larger contract, implying potential for future task orders.

Value Assessment

Rating: good

The contract value of $5.7 million over three years for an instability monitoring platform seems within a reasonable range for specialized IT services. Benchmarking against similar contracts for intelligence analysis or data monitoring platforms would provide a more precise assessment. The firm-fixed-price structure is generally favorable for the government, as it caps the contractor's potential earnings and transfers cost overrun risk. Without specific details on the platform's capabilities and the labor hours involved, a definitive value-for-money assessment is challenging, but the pricing structure is a positive indicator.

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 the solicitation was broadly advertised and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is expected to lead to more competitive pricing and better service offerings. The exclusion of sources clause might suggest specific technical requirements that limited the pool of eligible bidders, but the overall approach aims for broad market engagement.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging multiple companies to bid, driving down prices and improving the quality of services offered.

Public Impact

The Department of State is the primary beneficiary, utilizing the platform for its operational needs. The contract will deliver an instability monitoring analysis platform, likely supporting intelligence gathering and foreign policy decision-making. The geographic impact is likely global, given the nature of the Department of State's mission. The contract supports the IT services sector, potentially involving skilled cybersecurity and data analysis professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess contractor performance.
The 'exclusion of sources' clause, while permissible, warrants scrutiny to ensure it did not unduly limit competition.
Reliance on a single delivery order under a potentially larger contract structure could indicate a dependency that might be difficult to shift if performance issues arise.

Positive Signals

The use of firm-fixed-price contract type transfers cost risk to the contractor.
Full and open competition is a strong positive signal for a competitive market.
The contract is awarded to a single entity, Federal Resources Corporation, suggesting they met the requirements.
The contract duration of three years allows for sustained support and development of the platform.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under the 'Other Computer Related Services' NAICS code, which encompasses a broad range of IT support and consulting. The market for intelligence analysis and monitoring platforms is significant, driven by national security and foreign policy needs. Government spending in this area often involves specialized software development, data analytics, and secure infrastructure management. Comparable spending benchmarks would typically be found within agencies like the Department of Defense, intelligence community, and other diplomatic bodies requiring similar analytical capabilities.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While Federal Resources Corporation may utilize small businesses as subcontractors, the primary award was not set aside. This contract's size and nature likely favored larger, more established IT service providers capable of meeting the complex requirements of an instability monitoring platform.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a delivery order, it falls under the purview of the parent contract's oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which publish award details. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Intelligence Analysis Platforms
Foreign Policy Support Systems
Data Monitoring Services
National Security IT Services
Department of State IT Modernization

Risk Flags

Potential for scope creep given the dynamic nature of instability monitoring.
Reliance on contractor's internal quality control for data accuracy and platform reliability.
Limited insight into specific performance metrics and contractor's historical performance on similar systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.7 million to FEDERAL RESOURCES CORPORATION. INSTABILITY MONITORING ANALYSIS PLATFORM (MAP)

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 $5.7 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is the specific nature of the 'instability monitoring' the platform is designed to analyze, and what are the key performance indicators (KPIs) for its success?

The provided data does not specify the exact nature of the 'instability monitoring' or the key performance indicators (KPIs) for the platform. Typically, such platforms are designed to track and analyze various indicators of political, economic, or social instability in specific regions or countries. This could include monitoring news feeds, social media, economic data, and geopolitical events. Success metrics would likely involve the accuracy and timeliness of threat assessments, the ability to identify emerging trends, and the platform's contribution to informed decision-making by the Department of State. Without access to the contract's SOW (Statement of Work) or performance work statement (PWS), a detailed answer on KPIs is not possible.

How does the $5.7 million contract value compare to similar instability monitoring or intelligence analysis platforms procured by the government?

The $5.7 million contract value over three years, averaging approximately $1.9 million annually, appears to be within a moderate range for specialized IT services supporting intelligence and analysis functions. However, a precise comparison is difficult without knowing the specific functionalities, scope, and complexity of the 'INSTABILITY MONITORING ANALYSIS PLATFORM (MAP)'. Contracts for similar systems can range from hundreds of thousands to tens of millions of dollars annually, depending on factors like data sources, analytical capabilities, user base, and security requirements. For instance, broader intelligence analysis platforms or large-scale data fusion systems might cost significantly more, while smaller, more focused monitoring tools could be less expensive. The firm-fixed-price nature suggests a well-defined scope, which can help control costs compared to cost-plus contracts.

What is Federal Resources Corporation's track record with the Department of State and other federal agencies for similar IT service contracts?

Publicly available data indicates that Federal Resources Corporation has received multiple awards from various federal agencies, including the Department of State. While the provided data snippet focuses on this specific contract, a deeper dive into contract databases would reveal the extent and nature of their past performance. Assessing their track record would involve examining the value and duration of previous contracts, client satisfaction ratings (if available), and any history of contract disputes or performance issues. For this specific contract, the award suggests they met the Department of State's requirements. However, a comprehensive review of their past performance across similar IT service delivery and analysis platform contracts would be necessary for a thorough assessment.

What are the potential risks associated with a three-year firm-fixed-price contract for an instability monitoring platform, and how are they mitigated?

A primary risk with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed estimates. For an instability monitoring platform, this could lead to inaccurate data, missed critical events, or system unreliability, impacting national security decisions. Another risk is scope creep if the government's needs evolve significantly beyond the initial SOW, potentially leading to disputes or the need for contract modifications. Mitigation strategies include robust contract oversight by the Department of State, clear definition of requirements in the SOW, performance monitoring, and potentially incorporating incentives for high performance or penalties for failures. The FFP structure itself mitigates cost overrun risk for the government, shifting it to the contractor.

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

The provided data does not offer historical spending trends for the Department of State's IT services for intelligence and analysis. However, it is generally understood that federal agencies, including the State Department, have increasingly relied on advanced IT solutions for data analysis, threat assessment, and operational support. Spending in this area has likely seen a steady increase, driven by the growing volume of data, evolving geopolitical landscapes, and the need for sophisticated analytical tools. This $5.7 million contract for an instability monitoring platform represents a specific investment within that broader IT spending category. Its significance would be assessed relative to the agency's overall IT budget and its strategic priorities for intelligence gathering and foreign policy support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 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: $15,540,921

Exercised Options: $6,437,221

Current Obligation: $5,737,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline