State Department awards $2.6M IT support contract to XFINION INC. for DS/OSAC technical expertise

Contract Overview

Contract Amount: $2,631,679 ($2.6M)

Contractor: Xfinion Inc.

Awarding Agency: Department of State

Start Date: 2024-09-19

End Date: 2026-09-18

Contract Duration: 729 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TECHNICAL EXPERTISE IN IT SUPPORT FOR DS/OSAC

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $2.6 million to XFINION INC. for work described as: TECHNICAL EXPERTISE IN IT SUPPORT FOR DS/OSAC Key points: 1. Contract focuses on specialized IT support, indicating a need for specific technical skills. 2. The duration of the contract (729 days) suggests a medium-term need for these services. 3. Awarded under full and open competition, implying a competitive bidding process. 4. The contract type is a delivery order, often used for specific taskings within a larger framework. 5. The primary service category is Computer Systems Design Services, a common area for IT support. 6. The contract is for labor hours, allowing flexibility in resource allocation. 7. The geographic location of performance is Maryland.

Value Assessment

Rating: good

The contract value of $2.63 million for approximately two years of IT support appears reasonable given the specialized nature of the services. Benchmarking against similar IT support contracts for government agencies suggests that pricing for labor hours can vary significantly based on skill sets and security requirements. Without specific details on the labor mix and skill levels required for DS/OSAC support, a precise value-for-money assessment is challenging. However, the competitive award process provides some assurance of fair pricing.

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.' This indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that it was competed suggests that multiple vendors likely vied for the contract, leading to price discovery and potentially better value for the government. The specific exclusion of sources might relate to unique requirements or prior performance, but the core competition was open.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. It ensures that the government is not limited to a narrow set of providers, increasing the likelihood of securing services at a fair market price.

Public Impact

The primary beneficiary is the Department of State's DS/OSAC (Diplomatic Security/Overseas Security Advisory Council), which will receive enhanced IT support. Services delivered include technical expertise in IT support, crucial for the operational effectiveness of DS/OSAC. The geographic impact is primarily in Maryland, where the contract performance is located. Workforce implications may include the need for skilled IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the exact IT support needs are not clearly defined.
Reliance on a single contractor for critical IT support could pose a risk if performance issues arise.
The labor hour pricing model requires careful monitoring to ensure efficient resource utilization.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, XFINION INC., has experience in government IT services.
The contract duration allows for stability in IT support operations.

Sector Analysis

The IT support sector for government agencies is highly competitive, with numerous firms offering a wide range of services from basic helpdesk to complex system design and cybersecurity. This contract falls under Computer Systems Design Services, a segment that requires specialized technical knowledge. The market size for government IT services is substantial, with agencies continually investing in modernizing their infrastructure and enhancing cybersecurity. This contract represents a typical procurement for essential IT operational support within the federal landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, XFINION INC., is likely a mid-to-large sized business. The absence of a small business set-aside means that opportunities for small business participation would depend on XFINION INC.'s own subcontracting strategy, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers responsible for DS/OSAC. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated by the public nature of contract awards, though specific performance details are typically not disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State IT Services
Computer Systems Design Services
Federal IT Support Contracts
Overseas Security Advisory Council (OSAC) Support

Risk Flags

Potential for vendor lock-in if not managed carefully.
Labor hour contracts require diligent oversight to prevent cost overruns.
Dependence on specialized IT expertise necessitates clear performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.6 million to XFINION INC.. TECHNICAL EXPERTISE IN IT SUPPORT FOR DS/OSAC

Who is the contractor on this award?

The obligated recipient is XFINION INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-09-19. End: 2026-09-18.

What is the track record of XFINION INC. in performing similar IT support contracts for the federal government?

XFINION INC. has a history of performing IT services for government agencies. While specific details on past performance for DS/OSAC are not provided in this award notice, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous IT support contracts, would be necessary for a comprehensive assessment. This would involve reviewing contract databases and potentially agency performance reports to gauge their reliability and expertise in delivering similar technical support.

How does the awarded value of $2.63 million compare to similar IT support contracts for agencies of the Department of State's size?

The $2.63 million award for approximately two years of IT support is within a common range for specialized technical services at the Department of State. However, direct comparisons are difficult without knowing the exact scope of work, required skill sets, and labor mix. Larger agencies often award multi-million dollar IT support contracts annually. This particular award seems moderate, suggesting it might cover a specific function or division within DS/OSAC rather than an agency-wide IT overhaul. Benchmarking against contracts for similar services (e.g., help desk, network administration, cybersecurity support) would provide a more precise value assessment.

What are the key risk indicators associated with this contract, and how are they being mitigated?

Key risk indicators include potential over-reliance on a single vendor for critical IT functions, the possibility of cost overruns if labor hours are not managed efficiently, and the risk of performance degradation if the contractor's technical expertise does not fully align with DS/OSAC's evolving needs. Mitigation strategies likely involve robust contract oversight by the State Department, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The competitive award process itself helps mitigate risks by selecting a vendor deemed capable and offering fair pricing. The contract's labor hour structure necessitates vigilant monitoring of hours expended against deliverables.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring optimal value for taxpayers in this IT support context?

The 'full and open competition after exclusion of sources' approach aims to balance broad market access with specific requirements. By initially allowing all responsible sources to bid, it maximizes the pool of potential offerors, fostering competition that can lead to better pricing and innovation. The subsequent 'exclusion of sources' suggests that certain vendors might have been disqualified based on specific criteria (e.g., security clearances, past performance, unique capabilities). While this narrows the field, if the exclusions are justified and clearly documented, it can still result in a competitive environment among qualified vendors, ensuring value. The key is that the exclusion criteria are objective and serve a legitimate government need, rather than arbitrarily limiting competition.

What is the historical spending pattern for IT support services by the Department of State, and how does this contract fit within that trend?

The Department of State, like most large federal agencies, consistently spends significant amounts on IT support services annually. Historical data would likely show a trend of increasing investment in IT to maintain and upgrade complex systems, enhance cybersecurity, and support global operations. This $2.63 million contract for DS/OSAC appears to be a component of that larger, ongoing IT expenditure. It represents a specific, task-order-based procurement rather than a broad, multi-year IT services blanket purchase agreement. Its size and duration suggest it addresses a defined need within a particular bureau or program, fitting within the overall pattern of sustained federal investment in IT infrastructure and support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7800 LONESOME PINE LN, BETHESDA, MD, 20817

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,966,479

Exercised Options: $2,920,734

Current Obligation: $2,631,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0027

IDV Type: GWAC

Timeline