Department of State awards $5.6M for IT services, with a 3-year duration and full and open competition

Contract Overview

Contract Amount: $5,601,083 ($5.6M)

Contractor: Blue Tech Inc.

Awarding Agency: Department of State

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $5.1K/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: ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR GARRETTM ASSET ALIGNMENT: OKAY PSC: OKAY UII ALIGNMENT REVIEWED - INV - CONSULAR ENTERPRISE INFRASTRUCTURE OPERATIONS - 014-000000475 UPDATE TO POP- START IS 3/22/24

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $5.6 million to BLUE TECH INC. for work described as: ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR GARRETTM ASSET ALIGNMENT: OKAY PSC: OKAY UII ALIGNMENT REVIEWED - INV - CONSULAR ENTERPRISE INFRASTRUCTURE OPERATIONS - 014-000000475 UPDATE TO POP- START IS 3/22/24 Key points: 1. The contract value of $5.6 million over three years suggests a moderate annual spend for IT services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The service category 'Other Computer Related Services' is broad and requires further detail to assess specific value. 5. The fixed-price contract type aims to control costs, but the value proposition depends on the scope of services delivered. 6. The contract is awarded to BLUE TECH INC., whose past performance and pricing will be key indicators of value. 7. The duration of 1094 days (approx. 3 years) provides a stable period for service delivery.

Value Assessment

Rating: fair

The contract value of $5.6 million over approximately three years equates to roughly $1.87 million annually. Benchmarking this against similar 'Other Computer Related Services' contracts is challenging without specific service details. However, for IT services of this duration and scope, the annual spend appears within a reasonable range, assuming the services are critical and well-defined. The firm-fixed-price structure provides cost certainty for the government, but the ultimate value for money will depend on the contractor's performance and the effective delivery of required services.

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,' which is a specific type of full and open competition. This suggests that while the initial solicitation may have had some exclusions, the final award was made after a broad competitive process. The presence of 3 bids (implied by 'no': 3) indicates a moderate level of competition for this contract. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes a wider pool of potential contractors, driving down prices through market forces. Even with a moderate number of bidders, this approach ensures that the government is not limited to a select few providers, maximizing the opportunity for a competitive price.

Public Impact

The Department of State is the primary beneficiary, receiving IT services essential for its operations. The contract supports the Consular Enterprise Infrastructure Operations, likely impacting the efficiency and security of consular services. Services delivered are categorized as 'Other Computer Related Services,' which could encompass a wide range of IT support, maintenance, or development. The geographic impact is centered in Washington D.C., where the Department of State is headquartered. Workforce implications may include the need for specialized IT personnel within the Department or reliance on the contractor's skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on 'Other Computer Related Services' makes it difficult to assess the true scope and potential for cost overruns.
The 'after exclusion of sources' clause in the competition type warrants a review to ensure no viable sources were unduly excluded.
Reliance on a single delivery order under a potential IDIQ could concentrate risk if the underlying IDIQ has limited contractor options.
The contractor's track record for similar complex IT infrastructure operations needs thorough vetting to ensure successful delivery.

Positive Signals

The use of 'Full and Open Competition' is a positive signal for achieving competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration of three years allows for stable service provision and planning.
Awarding to a single contractor (BLUE TECH INC.) can streamline management if performance is strong.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services,' a broad category that can include IT consulting, system integration, data processing, and IT support. The market for such services is characterized by a mix of large prime contractors and numerous small and medium-sized businesses. Government spending in this area is substantial, driven by the increasing reliance on technology for agency operations. Benchmarking requires detailed service descriptions, but annual IT spending for federal agencies often runs into billions of dollars across various categories.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans. Without a small business set-aside, the primary contractor, BLUE TECH INC., has the discretion to utilize small businesses for subcontracting, but it is not mandated. The absence of set-aside information means the direct impact on the small business ecosystem is not guaranteed and depends on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. As a delivery order, it is likely governed by the terms of an underlying IDIQ contract, which may have its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance metrics and internal oversight processes are not publicly disclosed. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State IT Modernization Efforts
Consular Systems and Services
Federal IT Services Contracts
Other Computer Related Services Contracts
Delivery Order Contracts

Risk Flags

Lack of specific service details
Potential for scope creep in broad service categories
Dependence on underlying IDIQ contract terms
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.6 million to BLUE TECH INC.. ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR GARRETTM ASSET ALIGNMENT: OKAY PSC: OKAY UII ALIGNMENT REVIEWED - INV - CONSULAR ENTERPRISE INFRASTRUCTURE OPERATIONS - 014-000000475 UPDATE TO POP- START IS 3/22/24

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the specific nature of the 'Other Computer Related Services' being procured under this contract?

The provided data categorizes the service as 'Other Computer Related Services' (NAICS 541519). This is a broad classification that can encompass a wide array of IT functions, including but not limited to IT consulting, custom software development, IT support and help desk services, data processing, and IT infrastructure management. Without further details from the contract's statement of work (SOW) or performance work statement (PWS), it is impossible to ascertain the precise services. For instance, it could range from routine help desk support for a specific office to complex system integration for the Consular Enterprise Infrastructure. Understanding the specific services is crucial for evaluating the value for money and assessing performance risks.

How does the pricing of this contract compare to similar IT services contracts awarded by the Department of State or other agencies?

Direct price comparison is difficult without knowing the specific services rendered under this $5.6 million contract over three years. The annual average of approximately $1.87 million is a starting point. However, 'Other Computer Related Services' is a very broad category. If the contract involves high-level IT strategy consulting or complex software development, this annual figure might be considered competitive or even low. Conversely, if it's for basic IT support or maintenance, it could be on the higher side. A thorough benchmark would require comparing the contract's labor categories, hours, rates, and deliverables against similar contracts within the Department of State and across other federal agencies that procure comparable IT services.

What is the track record of BLUE TECH INC. in delivering similar IT services, particularly for federal agencies?

Information regarding BLUE TECH INC.'s specific track record is not detailed in the provided data. To assess this, one would need to examine their past performance evaluations on federal contracts, particularly those involving 'Other Computer Related Services' or IT infrastructure operations for agencies of similar size and complexity to the Department of State. Key areas to investigate would include on-time delivery, quality of work, adherence to budget (especially relevant for fixed-price contracts), and customer satisfaction ratings. A review of contract award histories and performance reviews, often available through federal procurement data systems, would provide insights into their reliability and capability.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will performance be measured?

The provided summary data does not include details on the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are typically defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a contract involving IT services, common KPIs might include system uptime, response times for help desk tickets, project completion rates, security compliance adherence, and user satisfaction. Performance measurement would involve regular reporting by the contractor and government oversight to ensure these metrics are met. Failure to meet KPIs or SLAs could result in penalties or impact future contract awards.

What is the historical spending pattern for 'Other Computer Related Services' at the Department of State, and how does this contract fit within that trend?

Without access to historical spending data for the Department of State specifically for the NAICS code 541519 ('Other Computer Related Services'), it's difficult to place this $5.6 million contract within a precise trend. However, federal agencies, including the Department of State, have consistently increased their spending on IT services over the past decade due to digital transformation initiatives, cybersecurity needs, and the modernization of legacy systems. This contract, valued at approximately $1.87 million annually, represents a portion of the department's overall IT budget. Its significance would depend on whether it funds a new initiative, continues existing services, or represents a shift in the department's IT service procurement strategy.

Industry Classification

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

Product/Service Code: 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,100,629

Exercised Options: $10,707,825

Current Obligation: $5,601,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline