Treasury's $11.18M ITSS Contract Awarded to GovCIO, LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $11,182,023 ($11.2M)

Contractor: Govcio, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.2 million to GOVCIO, LLC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) CONTRACT Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for IT services. 3. Risk indicators are moderate, given the contract type and duration. 4. Performance context relies on contractor's ability to deliver IT support. 5. Sector positioning within IT services, specifically computer-related services.

Value Assessment

Rating: good

The contract value of $11.18 million over approximately two years appears reasonable for IT support services. Benchmarking against similar contracts for IT support services of this scope and duration is necessary for a definitive value assessment. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor can deliver within the agreed-upon terms.

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. With six bidders participating, the competition level suggests a healthy market for these services and provides a strong basis for price discovery. The presence of multiple bidders likely drove competitive pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government received offers from multiple qualified vendors, leading to a more competitive price.

Public Impact

Federal employees within the Bureau of the Fiscal Service will benefit from enhanced IT support. Services delivered include IT support, crucial for the agency's operational continuity. Geographic impact is concentrated in the District of Columbia. Workforce implications may involve the contractor's IT specialists supporting federal IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently good.
Reliance on contractor's personnel for critical IT functions.
Scope creep could increase costs beyond the initial $11.18M if not managed tightly.

Positive Signals

Competitive award process suggests a fair market price was achieved.
Firm-fixed-price contract provides cost predictability.
Defined contract period limits long-term financial commitment.

Sector Analysis

The IT services sector is a significant area of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a broad range of IT support functions. Federal spending in this area is consistently high, driven by the need to maintain and modernize complex IT infrastructures across various agencies. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract, as 'sb' is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small business engagement for this particular award.

Oversight & Accountability

Oversight will likely be managed by the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified IT support services. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

IT Support Services
Information Technology Professional Services
Computer Systems Design Services
Federal IT Modernization Programs

Risk Flags

Contract duration of 2 years may require re-competition sooner than ideal.
Dependence on a single contractor for critical IT functions.
Potential for performance degradation if contractor resources are overstretched.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.2 million to GOVCIO, LLC. INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) CONTRACT

Who is the contractor on this award?

The obligated recipient is GOVCIO, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the track record of GovCIO, LLC in delivering similar IT support services to federal agencies?

GovCIO, LLC has a notable presence in the federal IT contracting space. A review of federal procurement data indicates they have been awarded numerous contracts across various agencies for a range of IT services, including IT support, cloud services, cybersecurity, and digital transformation. Their past performance on similar contracts would be a key factor in the Bureau of the Fiscal Service's evaluation during the source selection process. Assessing their performance history, including any past issues or commendations, provides insight into their capability to meet the requirements of this specific ITSS contract. Specific details on past performance metrics, such as on-time delivery, quality of service, and customer satisfaction, would offer a more granular understanding of their reliability.

How does the $11.18 million contract value compare to similar IT support contracts awarded by the Treasury or other agencies?

The $11.18 million contract value for approximately two years of IT support services appears to be within a common range for such contracts. However, a precise comparison requires detailed analysis of contract scope, service level agreements, and the specific IT environment being supported. Contracts for IT support can vary significantly based on the number of users, complexity of systems, and the specific services required (e.g., help desk, network management, system administration). For instance, a contract supporting a large, complex agency with extensive legacy systems might command a higher price than one for a smaller, more modern environment. Benchmarking against contracts with similar NAICS codes (541519) and contract types (firm-fixed-price) awarded by agencies of comparable size and mission to the Treasury's Bureau of the Fiscal Service would provide a more accurate assessment of value for money.

What are the primary risks associated with this firm-fixed-price IT support contract?

The primary risks associated with this firm-fixed-price IT support contract revolve around potential performance issues and scope management. For the contractor, the risk lies in underestimating the effort required to deliver the specified services, potentially leading to reduced profit margins or an inability to meet service level agreements. For the government, the main risks include the possibility of the contractor not meeting performance standards, leading to disruptions in IT services, or the risk of scope creep if requirements are not clearly defined and managed, potentially leading to cost overruns if contract modifications are necessary. Additionally, there's a risk associated with the contractor's personnel turnover, which could impact service continuity and knowledge transfer. Effective oversight and clear communication channels are crucial to mitigate these risks.

What is the expected effectiveness of these IT support services for the Bureau of the Fiscal Service?

The expected effectiveness of these IT support services is high, assuming GovCIO, LLC performs according to the contract's terms and conditions. These services are critical for ensuring the smooth operation of the Bureau of the Fiscal Service's IT infrastructure, which underpins all its financial and administrative functions. Effective IT support can lead to increased employee productivity by minimizing downtime, faster resolution of technical issues, and improved user satisfaction. Furthermore, robust IT support is essential for maintaining the security and integrity of the agency's data and systems. The contract's firm-fixed-price nature incentivizes the contractor to deliver services efficiently, contributing to the overall effectiveness of the Bureau's technological operations.

How has federal spending in 'Other Computer Related Services' (NAICS 541519) evolved over the past five years?

Federal spending in the 'Other Computer Related Services' category (NAICS 541519) has shown a consistent upward trend over the past five years, reflecting the government's increasing reliance on technology and the need for specialized IT support. This category encompasses a wide array of services, including IT consulting, system integration, network management, and technical support, all of which are crucial for maintaining and modernizing federal IT infrastructure. Factors driving this growth include digital transformation initiatives, cybersecurity enhancements, cloud migration efforts, and the ongoing need to support complex IT systems across civilian and defense agencies. While specific figures fluctuate annually, the overall trajectory indicates sustained investment in these essential IT services as agencies strive to improve efficiency, security, and service delivery.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 20340924R00011

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,027,560

Exercised Options: $16,541,891

Current Obligation: $11,182,023

Actual Outlays: $7,872,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline