Treasury's $28M IT Contract Awarded to Priority Fulfillment Services for Computing Infrastructure
Contract Overview
Contract Amount: $28,010,002 ($28.0M)
Contractor: Priority Fulfillment Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2023-10-18
End Date: 2028-09-30
Contract Duration: 1,809 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROGRAM MANAGEMENT
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75063
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $28.0 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: PROGRAM MANAGEMENT Key points: 1. Significant contract value of $28 million over five years. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. No small business participation noted, which could be a missed opportunity. 4. Contract falls under IT services, a critical sector for government operations.
Value Assessment
Rating: good
The contract value of $28 million over nearly five years for computing infrastructure is within a reasonable range for similar government IT services. Benchmarking against other federal contracts for data processing and web hosting would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. This method is generally preferred for ensuring fair market value.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by fostering a competitive environment among vendors.
Public Impact
Ensures continued operation of essential computing infrastructure for the Department of the Treasury. Supports the United States Mint's digital services and data processing needs. Potential for improved IT service delivery through a dedicated provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration (nearly 5 years) may limit flexibility.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
Sector Analysis
This contract is within the Information Technology sector, specifically for computing infrastructure and related services. Federal spending in this area is substantial, with agencies constantly seeking reliable and cost-effective solutions for data processing and hosting.
Small Business Impact
The data indicates no small business participation in this contract. Agencies are encouraged to actively seek out and include small businesses in their contracting opportunities to promote economic growth and diversity.
Oversight & Accountability
The contract's duration and value warrant regular oversight to ensure performance standards are met and that the pricing remains competitive throughout its term. Performance metrics should be clearly defined and monitored.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- No small business participation.
- Potential for technological obsolescence over the contract term.
- Long-term vendor dependency.
- Need for ongoing performance monitoring.
Tags
computing-infrastructure-providers-data-, department-of-the-treasury, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $28.0 million to PRIORITY FULFILLMENT SERVICES, INC.. PROGRAM MANAGEMENT
Who is the contractor on this award?
The obligated recipient is PRIORITY FULFILLMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $28.0 million.
What is the period of performance?
Start: 2023-10-18. End: 2028-09-30.
What specific IT services are included under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services'?
This category typically encompasses a broad range of services including server hosting, cloud computing, data storage, network management, cybersecurity, and potentially software licensing or maintenance. The specific details would be outlined in the contract's statement of work, detailing the exact deliverables and service level agreements.
How does the awarded price compare to benchmarks for similar IT services in the federal market?
Without specific benchmark data for comparable federal contracts, a definitive assessment is difficult. However, the 'Full and Open Competition' award method suggests an effort to achieve market-driven pricing. Further analysis would involve comparing the per-unit costs for specific services against GSA schedules or other agency contracts.
What are the potential risks associated with a five-year contract for IT infrastructure?
Risks include technological obsolescence, as IT evolves rapidly, potentially making the contracted services outdated before the contract ends. Vendor lock-in is another concern, making it difficult to switch providers if performance issues arise or better solutions become available. Price increases or service degradation over time are also potential risks.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4455 REGENT BLVD, IRVING, TX, 75063
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,010,002
Exercised Options: $28,010,002
Current Obligation: $28,010,002
Actual Outlays: $24,304,950
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG23D00015
IDV Type: IDC
Timeline
Start Date: 2023-10-18
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-02-26
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