State Department awards $12.3M for software development, application maintenance, and support

Contract Overview

Contract Amount: $12,319,145 ($12.3M)

Contractor: Eagle Harbor Solutions LLC

Awarding Agency: Department of State

Start Date: 2024-03-17

End Date: 2025-09-16

Contract Duration: 548 days

Daily Burn Rate: $22.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SOFTWARE DEVELOPMENT & APPLICATION MAINTENANCE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $12.3 million to EAGLE HARBOR SOLUTIONS LLC for work described as: SOFTWARE DEVELOPMENT & APPLICATION MAINTENANCE SUPPORT Key points: 1. Contract focuses on essential IT services for government operations. 2. Limited competition may impact price optimization. 3. Performance period extends over 1.5 years, indicating ongoing need. 4. Contract type is labor hours, allowing flexibility in resource allocation. 5. Geographic focus is Washington D.C., suggesting on-site or closely managed services.

Value Assessment

Rating: fair

The contract value of $12.3 million for software development and application maintenance over 1.5 years appears to be within a reasonable range for specialized IT services. However, without specific details on the scope of work, labor categories, and hours, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comparable services would be necessary to determine if the pricing is competitive. The labor hours contract type can sometimes lead to higher costs if not managed tightly, but also offers flexibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent need that precludes a competitive process. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can result in taxpayers paying a premium due to the absence of competitive pressure on pricing.

Public Impact

The Department of State benefits from continued support for its critical software applications. Government operations relying on these applications will experience sustained functionality. The primary geographic impact is within Washington D.C., where the services are likely utilized. The contract supports IT professionals, potentially including developers, analysts, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of competition may reduce incentive for contractor to innovate or optimize performance.
Labor hours contract type requires diligent oversight to prevent cost overruns.

Positive Signals

Contract ensures continuity of essential IT services for the Department of State.
Longer performance period suggests a stable and reliable service provider.
Focus on software development and maintenance addresses critical government IT needs.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software development and application maintenance. The market for these services is highly competitive, with numerous firms offering specialized expertise. Government spending in this area is substantial, supporting a wide range of functions from administrative systems to mission-critical applications. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to bid or subcontract. The absence of specific small business considerations in the award mechanism suggests that the primary focus was on meeting the agency's specific requirements with a particular vendor, rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would include performance monitoring against contract requirements, delivery schedules, and quality standards. Transparency is generally facilitated through contract databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Services
Software Development
Application Maintenance
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits market-based price discovery.
Labor hours contract requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $12.3 million to EAGLE HARBOR SOLUTIONS LLC. SOFTWARE DEVELOPMENT & APPLICATION MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2024-03-17. End: 2025-09-16.

What is the specific scope of software development and application maintenance covered by this contract?

The provided data indicates the contract is for 'SOFTWARE DEVELOPMENT & APPLICATION MAINTENANCE SUPPORT' under NAICS code 541519 (Other Computer Related Services). However, the specific applications, systems, or development projects are not detailed. This could range from maintaining legacy systems, developing new modules for existing software, to providing ongoing support and bug fixes. A deeper dive into the contract's Statement of Work (SOW) would be necessary to understand the precise technical requirements, deliverables, and the criticality of the software being supported.

How does the $12.3 million contract value compare to similar IT support contracts at the Department of State or other agencies?

Benchmarking this $12.3 million contract requires comparing it against similar IT support and software maintenance contracts, ideally within the Department of State or for agencies with comparable IT infrastructure complexity. Factors like contract duration (548 days), labor categories, and specific services (development vs. pure maintenance) are crucial. Without access to a detailed breakdown of labor hours and rates, or a comparison to contracts with similar scope and complexity, it's difficult to definitively state if the value is optimal. However, for a 1.5-year period, this value suggests a significant level of effort or specialized skill is required.

What are the primary risks associated with a sole-source award for critical IT services?

The primary risks associated with a sole-source award for critical IT services include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of vendor accountability that might be present in a competitive environment. Taxpayers may bear a higher cost. Furthermore, reliance on a single vendor can create strategic risks if that vendor faces financial difficulties, undergoes significant changes, or if their technology becomes obsolete. The government also loses the opportunity to explore potentially better solutions or pricing from other qualified vendors.

What is the expected impact of this contract on the Department of State's operational effectiveness?

This contract is expected to ensure the continued operational effectiveness of the Department of State's software applications and systems. By providing dedicated resources for development, maintenance, and support, it aims to prevent disruptions, enhance system performance, and potentially implement necessary updates or new functionalities. The stability and reliability of these IT services are crucial for the Department's day-to-day operations, data management, and communication, thereby directly supporting its mission objectives.

What is the historical spending pattern for software development and application maintenance at the Department of State?

Analyzing historical spending patterns for software development and application maintenance at the Department of State would involve reviewing past contract awards for similar services over several fiscal years. This would help identify trends in contract values, types of services procured, and the contractors frequently engaged. Understanding this history can reveal whether spending has been consistent, increasing, or decreasing, and whether the agency typically relies on sole-source awards or competitive procurements for these types of services. Such analysis provides context for the current $12.3 million award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM20R0215

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,669,535

Exercised Options: $12,669,535

Current Obligation: $12,319,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0095

IDV Type: IDC

Timeline