State Department awards $5.2M IT services contract to Prestige Innovation Technology LLC for 43 days
Contract Overview
Contract Amount: $5,200 ($5.2K)
Contractor: Prestige Innovation Technology LLC
Awarding Agency: Department of State
Start Date: 2026-04-06
End Date: 2026-05-19
Contract Duration: 43 days
Daily Burn Rate: $121/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FLUKE NETWORK
Place of Performance
Location: FORT PIERCE, SAINT LUCIE County, FLORIDA, 34982
State: Florida Government Spending
Plain-Language Summary
Department of State obligated $5,200 to PRESTIGE INNOVATION TECHNOLOGY LLC for work described as: FLUKE NETWORK Key points: 1. Contract value appears reasonable for the short duration and scope of IT services. 2. Limited competition due to sole-source award raises questions about potential overpricing. 3. Short performance period suggests a focused, potentially urgent, need. 4. Contract is for IT services, aligning with common government technology needs. 5. No indication of small business set-aside, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
The contract value of $5.2 million for a 43-day period is substantial on a daily basis. Without specific details on the services rendered, it's difficult to benchmark against similar contracts. However, the absence of competition suggests that the pricing may not have been rigorously tested against market alternatives, potentially leading to a less favorable value proposition for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when there are unique capabilities or urgent needs that cannot be met through a competitive process. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price and improved service offerings.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price and may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
The Department of State benefits from the IT services provided under this contract. Essential IT support and services are delivered to facilitate the agency's operations. The contract's geographic impact is focused on Florida, where the contractor is located. Workforce implications are primarily for the employees of Prestige Innovation Technology LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs.
- Short contract duration may indicate rushed procurement or lack of long-term planning.
- Lack of small business participation noted.
Positive Signals
- Contract awarded to a single, presumably capable, vendor.
- Clear performance period and fixed-price structure.
Sector Analysis
The IT services sector is a significant area of government spending, encompassing a wide range of needs from software development to network maintenance. This contract, classified under NAICS code 541519 (Other Computer Related Services), falls within this broad category. Government spending on IT services is consistently high, with agencies relying on external vendors for specialized expertise and support. Benchmarking this contract's value is challenging without detailed service descriptions, but the overall IT services market is competitive, though sole-source awards can distort typical market dynamics.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements. The award to Prestige Innovation Technology LLC, a single entity, suggests that opportunities for small businesses to participate in this specific contract are limited. This may not reflect the overall small business engagement strategy of the Department of State but is specific to this sole-source award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of State's contracting officers and potentially its Office of Inspector General, depending on the contract's value and nature. As a purchase order, it is likely managed through internal agency procurement processes. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Accountability rests with the contractor to deliver services as specified and the agency to monitor performance.
Related Government Programs
- IT Professional Services
- Computer Systems Design Services
- IT Support Services
Risk Flags
- Sole-source award may indicate lack of competition leading to higher costs.
- Short performance period could suggest urgency or rushed planning.
- No small business set-aside noted.
Tags
it-services, department-of-state, purchase-order, sole-source, firm-fixed-price, florida, other-computer-related-services, mid-size-contract, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $5,200 to PRESTIGE INNOVATION TECHNOLOGY LLC. FLUKE NETWORK
Who is the contractor on this award?
The obligated recipient is PRESTIGE INNOVATION TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $5,200.
What is the period of performance?
Start: 2026-04-06. End: 2026-05-19.
What specific IT services are being procured under this contract?
The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' However, it does not specify the exact nature of these services. This could range from network administration, software support, cybersecurity, IT consulting, or other specialized computer-related functions. A detailed statement of work (SOW) would be necessary to understand the precise services being rendered by Prestige Innovation Technology LLC.
Why was this contract awarded on a sole-source basis?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's requirements. Common reasons include unique technical capabilities, urgent and compelling needs where competition is impractical, or when a specific contractor is the only source for a required part or service. The Department of State would have had to document the justification for not competing this award, likely related to specific expertise or a time-sensitive requirement that only Prestige Innovation Technology LLC could fulfill within the necessary timeframe.
How does the $5.2 million cost compare to similar IT services contracts for the Department of State?
Direct comparison is difficult without knowing the specific services and duration. However, $5.2 million for a 43-day contract equates to approximately $120,930 per day. This daily rate is high and suggests either highly specialized, intensive services or a premium paid due to the sole-source nature. Standard IT support contracts, especially those competed, often have lower daily rates. Further analysis would require comparing the SOW and contractor's proposed labor rates against government databases or industry benchmarks for similar sole-source procurements.
What is the track record of Prestige Innovation Technology LLC with the federal government?
Information on Prestige Innovation Technology LLC's specific track record with the federal government is not detailed in the provided data. As this is a sole-source award, it implies the Department of State has prior knowledge or a specific reason to engage this particular contractor. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would be needed to ascertain their past performance, contract history, and any reported issues or successes with government agencies.
What are the potential risks associated with a sole-source award of this magnitude?
The primary risk with a sole-source award of $5.2 million is the lack of price competition, which can lead to inflated costs for taxpayers. There's also a risk that the government may not be receiving the most innovative or best-suited solution available in the market. Furthermore, sole-source awards can create an uneven playing field for other potential vendors and may raise concerns about fairness and transparency in the procurement process. Ensuring robust oversight and performance monitoring is crucial to mitigate these risks.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5900 BAMBOO DR, FORT PIERCE, FL, 34982
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $5,200
Exercised Options: $5,200
Current Obligation: $5,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-06
Current End Date: 2026-05-19
Potential End Date: 2026-05-19 00:00:00
Last Modified: 2026-04-08
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