Treasury's OCC awards $18.5M for enterprise workflow and content management, with 3 bidders vying for the contract

Contract Overview

Contract Amount: $18,459,717 ($18.5M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-10-01

End Date: 2026-07-31

Contract Duration: 1,764 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE WORKFLOW AND CONTENT MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $18.5 million to PRAGMATICS, LLC for work described as: ENTERPRISE WORKFLOW AND CONTENT MANAGEMENT SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the scope of enterprise workflow and content management support. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The duration of the contract (over 4 years) indicates a need for sustained support in critical business processes. 4. Performance context is essential to evaluate if the contractor is meeting the defined objectives for workflow efficiency. 5. This contract falls within the IT services sector, specifically focusing on computer-related services. 6. The absence of small business set-aside flags potential challenges for smaller firms in accessing this market segment.

Value Assessment

Rating: good

The contract value of approximately $18.5 million over nearly five years for enterprise workflow and content management support appears to be within a reasonable range for services of this nature. Benchmarking against similar large-scale IT support contracts would provide a more precise value-for-money assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific performance metrics and outcomes, a definitive value assessment is challenging, but the initial award seems aligned with market expectations for comprehensive support.

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 presence of three bidders suggests a moderate level of competition for this specific requirement. While three bidders are better than one or two, a higher number of participants could potentially drive prices down further and foster greater innovation. The agency's approach to full and open competition is a positive sign for market fairness and taxpayer value.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and improved service delivery compared to less competitive procurement methods.

Public Impact

The Office of the Comptroller of the Currency (OCC) is the primary beneficiary, receiving enhanced support for its enterprise workflow and content management systems. The services delivered are expected to improve the efficiency and effectiveness of internal business processes and content handling within the OCC. The geographic impact is concentrated in the District of Columbia, where the OCC's primary operations are located. The contract supports IT professionals and potentially other roles involved in managing and utilizing these enterprise systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical workflow and content management systems could pose a risk if performance falters.
Labor hour pricing requires careful monitoring to ensure efficient use of resources and prevent overspending.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially fair pricing.
The contract duration of over four years indicates a stable, long-term need for these services, allowing for focused expertise development.
The contractor, Pragmatics, LLC, has a track record of performing federal contracts, which can be a positive indicator of capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on 'Other Computer Related Services' (NAICS code 541519). This category encompasses a wide range of IT consulting and support activities. The market for enterprise workflow and content management solutions is substantial, driven by the increasing need for organizations to digitize operations, manage vast amounts of data, and improve internal efficiencies. Comparable spending benchmarks for similar large-scale IT support services within federal agencies can vary significantly based on scope, duration, and specific technologies involved, but contracts in the multi-million dollar range are common for comprehensive enterprise solutions.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business subcontracting goals were mandated. This suggests that larger prime contractors or those with established capabilities in enterprise workflow and content management were the focus of the competition. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potentially participating as subcontractors if the prime contractor chooses to engage them. The overall impact on the small business ecosystem depends on the prime's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Comptroller of the Currency's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, including defined deliverables, service level agreements, and reporting requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS), which reports contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Enterprise Resource Planning (ERP) Systems Support
Document Management Systems Implementation
IT Consulting Services
Workflow Automation Software
Content Management Platforms
Federal IT Modernization Programs

Risk Flags

Potential for vendor lock-in
Reliance on labor-hour pricing requires diligent oversight
Contract duration may exceed actual need if not managed proactively

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $18.5 million to PRAGMATICS, LLC. ENTERPRISE WORKFLOW AND CONTENT MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-07-31.

What is the track record of Pragmatics, LLC in delivering similar enterprise workflow and content management services to federal agencies?

Pragmatics, LLC has a history of performing various IT services for federal agencies. While specific details on their success with enterprise workflow and content management systems on contracts of this scale require deeper analysis of past performance reviews and contract close-outs, their presence as a prime contractor suggests they possess the necessary clearances and experience. A thorough review would involve examining their performance on prior, similar contracts, looking for any documented issues, successes, or areas of concern regarding their ability to manage complex IT projects, meet deadlines, and adhere to budget constraints. Their ability to secure this award under full and open competition indicates they met the agency's initial qualifications.

How does the awarded value compare to similar enterprise workflow and content management contracts within the federal government?

The awarded value of approximately $18.5 million over nearly five years for enterprise workflow and content management support services places this contract in the mid-to-large tier for IT services within the federal government. Benchmarking requires comparing it to contracts with similar scopes of work, agency types (e.g., financial regulators, large civilian agencies), and service requirements. Contracts for enterprise-wide system implementation, integration, and ongoing support often range from several million to tens of millions of dollars annually. Without access to a detailed breakdown of the labor categories, hours, and specific services included, a precise comparison is difficult. However, the value appears consistent with the complexity and duration typically associated with such comprehensive IT support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential contractor underperformance, cost overruns due to labor hour pricing, and vendor lock-in if the system becomes highly customized. Underperformance could manifest as delays in workflow improvements or content management inefficiencies. Cost overruns are a risk with any labor-hour contract if not closely monitored. Vendor lock-in is a concern if the chosen solutions are proprietary and difficult to transition away from. Mitigation strategies likely include robust performance monitoring by the OCC, clearly defined service level agreements (SLAs), regular progress reviews, and potentially incentivizing efficient performance. The contract's defined period also limits long-term lock-in.

How effective is the current enterprise workflow and content management system at the OCC, and what improvements are expected from this contract?

The effectiveness of the current system is not detailed in the provided data. However, the award of this contract implies a need for enhancement, optimization, or modernization of the OCC's enterprise workflow and content management capabilities. Expected improvements likely include increased operational efficiency, better data accessibility and security, streamlined document processing, enhanced collaboration, and improved compliance with record-keeping regulations. The success of these improvements will be measured against the specific objectives outlined in the contract's performance work statement, which would detail key performance indicators (KPIs) and desired outcomes.

What are the historical spending patterns for enterprise workflow and content management services at the OCC or similar agencies?

Historical spending patterns for enterprise workflow and content management at the OCC or similar agencies would typically show a trend of increasing investment in IT modernization and digital transformation. Agencies often allocate significant budgets to these areas to improve efficiency, security, and service delivery. Spending can fluctuate based on major system upgrades, new technology adoptions, or changes in regulatory requirements. Analyzing past contracts for similar services would reveal whether this $18.5 million award represents an increase, decrease, or continuation of previous investment levels. It's common for agencies to have ongoing contracts for maintenance, support, and incremental improvements in these critical IT functions.

What is the potential impact of this contract on the IT workforce within the OCC and the broader federal IT landscape?

This contract is likely to impact the IT workforce by providing specialized support that may augment or complement the existing internal OCC IT staff. The contractor, Pragmatics, LLC, will bring its own team of experts, potentially filling skill gaps or providing capacity for specific projects related to workflow and content management. Internally, OCC staff may need to adapt to new systems or processes implemented under the contract, requiring training and potentially shifting focus to oversight and strategic utilization rather than direct system management. In the broader federal IT landscape, this contract contributes to the overall demand for IT services, influencing market rates and the availability of skilled professionals in areas like content management and workflow automation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW21Q00072

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Integral Federal, Inc.

Address: 1761 BUSINESS CENTER DR, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,933,338

Exercised Options: $18,459,717

Current Obligation: $18,459,717

Actual Outlays: $16,317,429

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $25,001,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0189U

IDV Type: FSS

Timeline