State Department awards $2.45M IT desktop support contract to Soft Tech Consulting, Inc

Contract Overview

Contract Amount: $2,451,442 ($2.5M)

Contractor: Soft Tech Consulting, Inc.

Awarding Agency: Department of State

Start Date: 2024-12-25

End Date: 2026-12-24

Contract Duration: 729 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT DESKTOP SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $2.5 million to SOFT TECH CONSULTING, INC. for work described as: IT DESKTOP SUPPORT SERVICES Key points: 1. Contract value appears reasonable for a 2-year IT support service agreement. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract's duration of 729 days is standard for this type of service. 4. Performance is measured by labor hours, a common but potentially less precise metric. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The award amount is relatively small compared to larger enterprise IT contracts.

Value Assessment

Rating: good

The contract value of $2.45 million over two years for IT desktop support services appears to be within a reasonable range for a federal agency. Benchmarking against similar contracts for IT support services of comparable scope and duration would provide a more precise assessment of value for money. The use of labor hours as the primary performance metric is standard but can make direct cost comparisons challenging without detailed labor rate breakdowns.

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,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: This competitive approach helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal employees within the Department of State will benefit from reliable IT desktop support. The services delivered will ensure the smooth operation of essential IT infrastructure. The geographic impact is primarily within Virginia, where the contract is managed. The contract supports the IT workforce by providing necessary technical assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics beyond labor hours could lead to challenges in objectively measuring contractor performance and value.
The 'after exclusion of sources' clause, while part of full and open competition, warrants understanding the specific reasons for exclusion to ensure no viable small businesses were inadvertently overlooked.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Contract duration is clearly defined, providing stability for service delivery.
The contractor, Soft Tech Consulting, Inc., is established in the IT services sector.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration services (NAICS 541512). The market for IT support services is highly competitive, with numerous small, medium, and large businesses vying for federal contracts. The total federal spending on IT services is in the billions annually, making this contract a small component of overall government IT expenditure. Comparable contracts often involve help desk support, network maintenance, and end-user device management.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting requirements, federal contracts of this nature often include provisions for small business participation. The impact on the small business ecosystem would depend on whether Soft Tech Consulting, Inc. utilizes small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. Accountability measures are typically tied to the performance standards outlined in the contract, with remedies for non-performance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
Federal IT Infrastructure Management
Department of State IT Procurement

Risk Flags

Potential for cost overruns due to labor hour pricing model.
Reliance on contractor performance for critical IT functions.
Need for strong oversight to ensure value for money with labor hour contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.5 million to SOFT TECH CONSULTING, INC.. IT DESKTOP SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SOFT TECH CONSULTING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-12-25. End: 2026-12-24.

What is the track record of Soft Tech Consulting, Inc. with federal IT support contracts?

A review of federal procurement data would be necessary to fully assess Soft Tech Consulting, Inc.'s track record. Specifically, examining past performance evaluations, contract modifications, and any reported disputes or terminations for similar IT support services contracts awarded to this company would provide insight. Understanding their history with the Department of State or other agencies can indicate their reliability, quality of service, and ability to manage federal contracts effectively. Without specific past performance data, it's difficult to definitively gauge their experience and success rate in delivering comparable services.

How does the awarded price compare to market rates for similar IT desktop support services?

To benchmark the awarded price against market rates, one would need to compare the contract's estimated labor rates and total value against industry surveys and pricing data for IT desktop support services. Factors such as geographic location (Virginia), service level agreements, and the specific technologies supported are crucial for an accurate comparison. Given the contract is for labor hours, analyzing the blended average hourly rate and comparing it to prevailing wages and commercial IT support service provider rates in the Washington D.C. metropolitan area would be informative. The $2.45 million over two years suggests an average annual cost of approximately $1.225 million, which needs to be broken down by labor categories for a precise market comparison.

What are the primary risks associated with this contract?

Key risks for this contract include potential performance issues if the contractor fails to meet service level agreements, leading to disruptions in IT services for State Department personnel. There's also a risk related to the labor hour pricing model; if not managed carefully, it could lead to cost overruns if work hours exceed initial estimates without corresponding value. Another risk involves the potential for scope creep, where the services required expand beyond the original contract terms, necessitating modifications and potentially increasing costs. Finally, reliance on a single contractor for critical IT support introduces operational risk if the contractor experiences financial instability or significant staffing challenges.

How effective is the labor hour pricing model for ensuring value in IT support services?

The labor hour pricing model is common for IT support services because it offers flexibility to adapt to fluctuating support demands. However, its effectiveness in ensuring value is contingent on robust oversight and clear performance metrics. While it allows the government to pay for actual work performed, it can be susceptible to inefficiencies or over-billing if not closely monitored. The Department of State's ability to effectively manage this contract relies on diligent tracking of hours, validation of tasks performed, and ensuring that the labor categories and rates are competitive and justified. Without strong controls, this model can sometimes lead to higher costs than fixed-price contracts for well-defined scopes of work.

What is the historical spending trend for IT desktop support at the Department of State?

Analyzing historical spending data for IT desktop support at the Department of State would reveal trends in contract values, durations, and the number of awarded contracts over time. This analysis could indicate whether spending has been increasing, decreasing, or remaining stable. It would also highlight which contractors have been historically successful in winning these types of awards and whether the agency typically uses full and open competition or other methods. Understanding these patterns can provide context for the current $2.45 million award, helping to determine if it aligns with past investment levels or represents a significant shift in procurement strategy or service needs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19FS1A24Q0008

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4229 LAFAYETTE CENTER DR. STE 1700, CHANTILLY, VA, 20151

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,451,442

Exercised Options: $2,451,442

Current Obligation: $2,451,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200173W

IDV Type: GWAC

Timeline