Treasury's $22.3M IT contract to Priority Fulfillment Services, Inc. for computing infrastructure services

Contract Overview

Contract Amount: $22,328,416 ($22.3M)

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: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SYSTEMS

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75063

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $22.3 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: IT SYSTEMS Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of approximately 5 years (1809 days) indicates a long-term need for these IT services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award to Priority Fulfillment Services, Inc. warrants a review of their past performance and capacity. 5. The specific NAICS code (518210) points to a market segment focused on data processing and hosting. 6. The contract's value is moderate within the broader IT services sector for federal agencies.

Value Assessment

Rating: good

The contract value of $22.3 million over nearly five years appears reasonable for comprehensive computing infrastructure services. Benchmarking against similar federal contracts for data processing, web hosting, and related services would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without detailed breakdowns of the services provided and their specific performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should lead to better pricing and service offerings for the government. The agency likely conducted market research to ensure adequate competition was possible.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately driving down costs and improving service quality.

Public Impact

The United States Mint benefits from reliable and potentially cost-effective computing infrastructure, supporting its operations. Services delivered likely include data processing, web hosting, and other critical IT infrastructure support. The geographic impact is primarily within Texas, where the contractor is based, but the services support federal operations nationwide. Workforce implications are likely concentrated within Priority Fulfillment Services, Inc., with potential indirect impacts on federal IT personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and efficiency of services delivered.
The duration of the contract could lead to vendor lock-in if not managed carefully.
Potential for scope creep if requirements are not clearly defined and managed throughout the contract period.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Firm fixed-price contract type helps to control costs and provides budget certainty.
The contractor, Priority Fulfillment Services, Inc., is expected to have the necessary capabilities for providing these IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computing infrastructure and data services. The federal market for these services is substantial, with agencies increasingly relying on robust data processing, cloud hosting, and related IT solutions to support their missions. Comparable spending benchmarks would involve analyzing other large federal contracts for similar IT infrastructure support, often awarded under categories like cloud computing, managed services, or data center operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Priority Fulfillment Services, Inc. chooses to engage small businesses. Without specific subcontracting plans or goals outlined in the award, it's difficult to quantify the direct benefit to small businesses from this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the United States Mint and the Department of the Treasury. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Cloud Computing Services
Data Center Operations
IT Managed Services

Risk Flags

Cybersecurity Risk
Technological Obsolescence
Vendor Lock-in
Service Disruption Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.3 million to PRIORITY FULFILLMENT SERVICES, INC.. IT SYSTEMS

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 $22.3 million.

What is the period of performance?

Start: 2023-10-18. End: 2028-09-30.

What is the track record of Priority Fulfillment Services, Inc. with federal contracts, particularly in IT infrastructure and data processing?

A review of Priority Fulfillment Services, Inc.'s federal contract history is crucial for assessing their capability and reliability. While this specific award is for $22.3 million, understanding their past performance on similar-sized or smaller contracts, including any issues with delivery, quality, or cost overruns, is essential. Data from contract databases like FPDS or SAM.gov can reveal their award history, payment performance, and any past performance evaluations. A strong track record with positive past performance reviews would increase confidence in their ability to meet the requirements of this new Treasury contract. Conversely, a history of performance issues or disputes could signal potential risks.

How does the awarded price compare to market rates for similar computing infrastructure and data processing services?

Benchmarking the $22.3 million contract value against market rates requires detailed analysis of the specific services included (e.g., server hosting, data storage, network management, cybersecurity). Industry reports, commercial pricing for comparable services, and data from other federal contracts awarded through competitive processes can serve as benchmarks. For instance, if the contract includes cloud hosting, comparing its per-gigabyte or per-server costs to major cloud providers (AWS, Azure, GCP) or other government-wide cloud contracts (like GSA's Cloud IT Schedule) is informative. The firm fixed-price nature suggests the government has negotiated a set price, but understanding the underlying cost structure relative to market norms is key to assessing value for money.

What are the key performance indicators (KPIs) for this contract, and how will they be measured and enforced?

The effectiveness of this contract hinges on clearly defined Key Performance Indicators (KPIs) and robust measurement and enforcement mechanisms. While not detailed in the provided data, typical KPIs for IT infrastructure contracts include uptime percentages (e.g., 99.99%), response times for service requests, data security compliance (e.g., NIST standards), disaster recovery capabilities, and timely resolution of incidents. The contract should specify how these KPIs are monitored (e.g., through regular reporting, audits), what constitutes acceptable performance, and the consequences of failing to meet them, such as service credits or contract termination. Strong oversight and clear performance standards are vital for ensuring the government receives the expected value.

What is the historical spending pattern for computing infrastructure and data processing services by the United States Mint?

Analyzing historical spending patterns for the United States Mint in the IT infrastructure and data processing domain provides context for the $22.3 million award. Examining previous contracts, their values, durations, and the contractors involved can reveal trends in technology adoption, outsourcing strategies, and budget allocation. For example, has the Mint historically relied on multiple smaller contracts or consolidated its needs into larger agreements? Understanding if this contract represents an increase, decrease, or stable level of spending compared to prior years helps assess its significance. It also informs whether the Mint is moving towards more centralized IT services or continuing a decentralized approach, and how this award fits into that broader strategy.

Are there any identified risks associated with the technology or services being procured under this contract?

Potential risks associated with this IT infrastructure contract could include technological obsolescence, cybersecurity vulnerabilities, vendor lock-in, and service disruptions. Given the contract's duration (nearly five years), the chosen technologies must remain relevant and secure throughout its term. Cybersecurity is paramount, requiring robust measures to protect sensitive government data. Vendor lock-in can occur if the contractor's proprietary systems or processes make it difficult or costly to switch providers. Service disruptions, whether due to technical failures, natural disasters, or cyberattacks, pose a significant risk to the Mint's operations. The contract should include provisions for risk mitigation, such as security audits, contingency planning, and clear exit strategies.

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: $22,328,416

Exercised Options: $22,328,416

Current Obligation: $22,328,416

Actual Outlays: $21,771,734

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