Treasury's $1.2M IT Services Contract Awarded to New Tech Solutions, Inc. for Fiscal Service Operations

Contract Overview

Contract Amount: $1,236,105 ($1.2M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-08-01

End Date: 2025-06-30

Contract Duration: 699 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DYNAMICS PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $1.2 million to NEW TECH SOLUTIONS, INC. for work described as: DYNAMICS PROFESSIONAL SERVICES Key points: 1. Contract focuses on IT services, specifically 'Other Computer Related Services', indicating a need for specialized technical support. 2. Awarded via full and open competition after exclusion of sources, suggesting a deliberate but potentially complex procurement process. 3. The contract duration of 699 days points to a medium-term engagement for service delivery. 4. Delivery Order type suggests this is part of a larger contract vehicle. 5. The contract is for labor hours, allowing flexibility in task execution but requiring careful monitoring of effort. 6. The small business set-aside flag is false, indicating no specific provisions for small business participation in this award.

Value Assessment

Rating: fair

Benchmarking the value of this $1.2 million contract requires more detailed information on the specific services rendered and the labor categories involved. Without comparable contract data for 'Other Computer Related Services' within the Bureau of the Fiscal Service, it's difficult to definitively assess value for money. The labor hours pricing model can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility. The award amount appears moderate for IT services of this duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources'. This procurement method implies that while the competition was open, certain sources may have been excluded prior to the solicitation, possibly due to specific requirements or prior performance issues. The number of bidders is not specified, but the 'full and open' nature generally aims to maximize competition and achieve competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to solicit the best possible offers, potentially leading to lower prices and higher quality services.

Public Impact

The Bureau of the Fiscal Service benefits from specialized IT support to maintain its critical financial operations. Services delivered likely include IT consulting, system maintenance, or development related to financial systems. The geographic impact is centered in the District of Columbia, where the Bureau of the Fiscal Service is likely located. Workforce implications may involve the utilization of skilled IT professionals, potentially including both government personnel and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' could mask potential limitations in competition.
Labor hours contract type necessitates robust oversight to prevent scope creep and ensure efficient resource utilization.
The 'Other Computer Related Services' category is broad, making it difficult to assess the precise nature and value of the work without further context.

Positive Signals

Awarded through a full and open competition process, indicating an effort to achieve competitive pricing and service.
The contract duration suggests a stable, medium-term need for these IT services.
The specific agency (Bureau of the Fiscal Service) implies a focus on critical financial infrastructure, where reliable IT is paramount.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a wide range of IT support activities not classified elsewhere. Federal spending in this area is substantial, driven by the government's continuous need to modernize and maintain its complex IT infrastructure. Comparable spending benchmarks would depend heavily on the specific services provided, but IT support contracts are a significant portion of the federal IT budget.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing the necessary IT services through the most competitive means available, regardless of business size.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed performance metrics and spending breakdowns would likely be internal unless otherwise disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design and Related Services
IT Support Services
Financial Systems Modernization

Risk Flags

Potential for cost overruns due to labor hours pricing model.
Limited transparency regarding the 'exclusion of sources' in the competition.
Broad classification of 'Other Computer Related Services' lacks specificity.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $1.2 million to NEW TECH SOLUTIONS, INC.. DYNAMICS PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

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 $1.2 million.

What is the period of performance?

Start: 2023-08-01. End: 2025-06-30.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The classification 'Other Computer Related Services' (NAICS 541519) is broad and can encompass a variety of IT support functions not specifically defined under other categories. For this contract with the Bureau of the Fiscal Service, these services could range from IT consulting, system administration, network support, data management, cybersecurity assistance, or specialized software maintenance. Without a more detailed statement of work or contract line item details, the precise services remain unspecified. However, given the agency's mission, it is likely related to supporting the critical financial systems managed by the Bureau.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar IT services?

Labor hours contracts offer flexibility, allowing the government to pay for the actual time and effort expended by contractor personnel. This can be advantageous when the scope of work is not fully defined or is expected to change. However, it can also lead to higher costs if not managed diligently, as there is less incentive for the contractor to be efficient. Fixed-price contracts, conversely, provide cost certainty for the government but can be less flexible and may lead to contractors cutting corners if the price is set too low. For IT services where requirements may evolve, labor hours can be appropriate, but require strong government oversight to control costs and ensure value.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award?

While 'full and open competition' is generally preferred, the 'after exclusion of sources' qualifier introduces a layer of complexity and potential risk. It implies that certain potential bidders were deliberately excluded before the solicitation was released. This exclusion could be based on various factors, such as past performance, specific technical capabilities, or security clearances. The risk lies in whether these exclusions were justified and did not unduly limit the competitive pool, potentially leading to a less optimal outcome in terms of price or innovation. Transparency regarding the reasons for exclusion is crucial for assessing this risk.

What is the track record of New Tech Solutions, Inc. in performing similar IT services for federal agencies?

Assessing the track record of New Tech Solutions, Inc. requires access to federal procurement databases (like FPDS or SAM.gov) that detail their past performance on similar contracts. Key indicators would include their history of on-time delivery, adherence to budget, quality of services rendered, and any past performance issues or disputes. Without specific data on their prior federal contracts, particularly those involving 'Other Computer Related Services' or work for financial agencies, it's difficult to provide a definitive assessment of their capabilities and reliability for this specific award.

How does the $1.2 million contract value compare to historical spending on IT services by the Bureau of the Fiscal Service?

To compare this $1.2 million contract value to historical spending, one would need to analyze past IT service expenditures by the Bureau of the Fiscal Service. This would involve examining annual budgets and contract awards related to IT support over several fiscal years. Understanding the typical scale and frequency of such contracts would provide context for whether this award is within the expected range, represents an increase or decrease in spending, or signifies a shift in IT service procurement strategy for the Bureau.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,236,105

Exercised Options: $1,236,105

Current Obligation: $1,236,105

Actual Outlays: $1,236,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline