State Department awards $22.9M contract for IT services to ASRC Federal Highland Technology

Contract Overview

Contract Amount: $22,899,264 ($22.9M)

Contractor: Asrc Federal Highland Technology, Inc

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2026-03-29

Contract Duration: 545 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: STS SERVICES FOR CA/CST

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $22.9 million to ASRC FEDERAL HIGHLAND TECHNOLOGY, INC for work described as: STS SERVICES FOR CA/CST Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 545 days indicates a medium-term need for these services. 3. The primary contractor, ASRC Federal Highland Technology, Inc., is a significant player in the federal IT services market. 4. The contract is for IT services, falling under the 'Other Computer Related Services' NAICS code. 5. The award amount of $22.9 million is a substantial investment in IT support for the State Department. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $22.9 million for IT services over approximately 1.5 years appears reasonable given the scope. Benchmarking against similar IT support contracts for large federal agencies suggests this pricing is within expected ranges. The use of labor hours indicates flexibility in resource allocation, which can be cost-effective if managed efficiently. Further analysis would require detailed labor rates and comparison to specific service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 8 bids (no) indicates a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in IT services.

Public Impact

The Department of State benefits from enhanced IT services, crucial for its diplomatic and operational functions. The contract supports the delivery of essential computer-related services, ensuring the smooth functioning of the department's technological infrastructure. The primary impact is within the District of Columbia, where the State Department is headquartered. The contract likely supports a workforce of IT professionals, both within the contractor's organization and potentially impacting government IT staff through collaboration and knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely monitored and managed.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
Scope creep could lead to increased costs beyond the initial award amount if not managed through contract modifications.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, ASRC Federal Highland Technology, Inc., has experience in government contracting.
The contract is a delivery order, suggesting it aligns with a pre-established IDIQ vehicle, potentially streamlining future procurements.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized support. This contract falls within the 'Other Computer Related Services' category, which encompasses a broad range of IT support functions. Spending in this sector is driven by the need for modernization, cybersecurity, and operational efficiency across government. Comparable contracts often involve significant dollar values and long durations, reflecting the critical nature of IT infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor is not obligated to subcontract with small businesses under this specific award. The absence of set-aside provisions means that opportunities for small businesses would likely arise indirectly through the prime contractor's supply chain, if at all. This could limit direct subcontracting opportunities for small businesses in this instance.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically fall under the State Department's Office of Inspector General, which investigates fraud, waste, and abuse in government programs.

Related Government Programs

Department of State IT Support Services
Federal Civilian Agency IT Contracts
Other Computer Related Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contract Vehicles

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical IT functions
Cybersecurity vulnerabilities
Data privacy and protection concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.9 million to ASRC FEDERAL HIGHLAND TECHNOLOGY, INC. STS SERVICES FOR CA/CST

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL HIGHLAND TECHNOLOGY, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-29.

What is the track record of ASRC Federal Highland Technology, Inc. with the Department of State and similar agencies?

ASRC Federal Highland Technology, Inc. has a history of performing IT services for various federal agencies, including the Department of State. Reviewing past performance evaluations and contract histories within the Federal Procurement Data System (FPDS) would provide specific details on their performance metrics, on-time delivery rates, and any past issues or commendations. Their experience with similar agencies suggests a familiarity with government IT requirements and compliance standards. Further investigation into their specific contract awards and their outcomes would offer a clearer picture of their reliability and capability in delivering complex IT solutions.

How does the awarded amount compare to historical spending on similar IT services by the Department of State?

The awarded amount of $22.9 million for IT services represents a significant investment. To benchmark this, one would need to analyze the Department of State's historical spending on 'Other Computer Related Services' (NAICS 541519) over the past several fiscal years. Comparing the average contract value, duration, and scope of similar awards would provide context. If this contract is a renewal or replacement of a previous service, a direct comparison of the new value against the old would be insightful. A higher or lower value than historical averages could indicate changes in service needs, market rates, or the competitive landscape.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are typically detailed within the contract's Statement of Work (SOW). These would outline measurable objectives for service delivery, such as system uptime, response times for technical support, data security compliance, and project completion timelines. The effectiveness of the contract is largely determined by how well these KPIs and SLAs are defined, monitored, and met by ASRC Federal Highland Technology, Inc. Performance reviews and potential penalties or incentives are often tied to adherence to these metrics.

What is the potential impact of this contract on the broader IT services market, particularly for competitors?

The award of a $22.9 million contract to ASRC Federal Highland Technology, Inc. by the Department of State signifies a substantial win for the contractor and a loss for competing firms. This contract likely represents a significant portion of the IT services budget for the State Department in this category, potentially limiting opportunities for other vendors in the short to medium term. For competitors, it underscores the need to maintain competitive pricing, demonstrate superior technical capabilities, and build strong past performance records to vie for future awards in this lucrative sector of the federal IT market.

Are there any specific risks associated with the 'Other Computer Related Services' category that this contract addresses?

The 'Other Computer Related Services' category can encompass a wide array of IT functions, from network management and cybersecurity to software development and data analysis. Risks within this category often include rapid technological obsolescence, evolving cybersecurity threats, data privacy concerns, and the potential for vendor lock-in. This contract likely aims to mitigate these risks by ensuring the State Department has access to up-to-date IT expertise and infrastructure, maintained by a qualified contractor. The specific risks addressed would depend on the precise services outlined in the Statement of Work, such as ensuring compliance with data protection regulations or maintaining the security of sensitive government information.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM24Q0007

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $149,971,022

Exercised Options: $22,899,264

Current Obligation: $22,899,264

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $3,582,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D001A

IDV Type: FSS

Timeline