Treasury's $37.3M IT services contract awarded to TANTUS TECHNOLOGIES, INC. for computer systems design

Contract Overview

Contract Amount: $37,286,737 ($37.3M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-01-16

End Date: 2027-01-15

Contract Duration: 1,825 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES (ITS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $37.3 million to TANTUS TECHNOLOGIES, INC. for work described as: INFORMATION TECHNOLOGY SERVICES (ITS) Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators will be evaluated based on contractor performance and contract type. 4. Performance context will be established by examining the scope of work and delivery timeline. 5. Sector positioning places this contract within the broader Information Technology Services market. 6. The contract's duration of five years suggests a significant, long-term IT support requirement.

Value Assessment

Rating: good

The contract's value of $37.3 million over five years for computer systems design services appears reasonable within the IT services sector. Benchmarking against similar government contracts for system design and integration services would provide a more precise assessment of value. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency and value if managed effectively. However, without specific performance metrics and award fee criteria, a definitive value-for-money judgment is challenging.

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,' indicating a robust competitive process where all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bidders typically leads to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. The inclusion of multiple bidders increases the likelihood that the government is receiving a fair market price for the services rendered.

Public Impact

The Bureau of the Fiscal Service benefits from enhanced computer systems design and integration. This contract supports the modernization and efficiency of critical financial management systems. The primary geographic impact is within the District of Columbia, where the agency is located. Workforce implications may include the need for specialized IT personnel to support the contract's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed rigorously.
The exclusion of sources in the competition, even if justified, warrants scrutiny.
Long-term IT contracts require continuous monitoring to ensure evolving needs are met and costs remain controlled.

Positive Signals

Full and open competition generally promotes fair pricing and access for a wide range of contractors.
The award fee structure incentivizes contractor performance, potentially leading to higher quality outcomes.
The contract's duration suggests a stable, long-term partnership for critical IT services.

Sector Analysis

The Information Technology Services (ITS) sector is a vast and critical component of government operations, encompassing a wide array of services from software development to cybersecurity. This contract for computer systems design services falls under the broader IT services umbrella, which sees significant federal spending annually. Comparable spending benchmarks for IT services contracts of this nature can vary widely based on scope, complexity, and duration, but $37.3 million over five years for specialized design services is within a typical range for significant federal IT procurements.

Small Business Impact

The data provided does not indicate any specific small business set-aside provisions for this contract, nor does it explicitly mention subcontracting goals for small businesses. Given the 'Full and Open Competition' award, it's possible that small businesses could have participated directly or indirectly through subcontracting opportunities. Further analysis of the contract's terms and conditions would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are likely embedded within the Cost Plus Award Fee structure, where contractor performance against defined metrics dictates a portion of the payment. Transparency is generally facilitated through contract award databases and public reporting, though specific performance details and award fee decisions may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Services
Computer Systems Design Services
Information Technology Procurement
Federal IT Modernization

Risk Flags

Potential for cost overruns in CPAF contracts if not managed stringently.
Dependence on a limited number of bidders may impact competitive pricing.
Long-term IT contracts require continuous adaptation to evolving technological landscapes and agency needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $37.3 million to TANTUS TECHNOLOGIES, INC.. INFORMATION TECHNOLOGY SERVICES (ITS)

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, 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 $37.3 million.

What is the period of performance?

Start: 2022-01-16. End: 2027-01-15.

What is the track record of TANTUS TECHNOLOGIES, INC. with federal contracts, particularly in IT services?

TANTUS TECHNOLOGIES, INC. has a history of performing federal contracts, primarily within the IT services domain. A review of federal procurement data indicates they have been awarded numerous contracts across various agencies, often related to IT modernization, system integration, and professional services. Their performance history, as reflected in contract performance reports (CPARS), would provide insight into their reliability, quality of work, and ability to meet deadlines and budget constraints. Analyzing past contract values and types can also indicate their specialization and capacity. For this specific contract, understanding their past performance on similar Cost Plus Award Fee (CPAF) contracts would be particularly relevant to assessing their suitability and potential value.

How does the awarded amount of $37.3 million compare to similar computer systems design services contracts?

The awarded amount of $37.3 million over a five-year period for computer systems design services is a substantial figure, suggesting a significant scope of work. To benchmark this value, one would compare it to other federal contracts for similar services, considering factors such as the complexity of the systems being designed, the level of customization required, the number of users or endpoints supported, and the specific technologies involved. For instance, contracts involving the design of large-scale enterprise resource planning (ERP) systems or complex financial infrastructure would command higher prices than those for smaller, more specialized system designs. Analyzing the average cost per year ($7.46 million) and comparing it to industry benchmarks for IT consulting and system design firms of comparable size and expertise would provide a more accurate assessment of whether this contract represents good value for money.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude ($37.3 million) revolve around cost control and the potential for cost overruns if not managed diligently. In a CPAF structure, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount determined by performance against pre-defined criteria. The risk for the government lies in ensuring that the 'cost' component remains reasonable and that the 'award' fee is genuinely earned through exceptional performance, rather than being awarded too liberally. Without robust oversight and clearly defined, measurable performance metrics, there's a risk that costs could escalate beyond initial projections, and the award fee might not accurately reflect superior value. Contractor performance, scope creep, and the effectiveness of the government's administration of the contract are key risk factors.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring competitive pricing for IT services?

The 'Full and Open Competition After Exclusion of Sources' approach is designed to maximize competition while allowing for specific justifications to exclude certain types of sources or technologies. In theory, by opening the competition broadly to all responsible sources, it should foster competitive pricing. However, the 'after exclusion of sources' clause suggests that certain potential bidders or types of solutions might have been pre-qualified or excluded based on specific criteria, which could limit the breadth of competition. The fact that only two bidders participated in this specific instance suggests that while the process was open, the market for this particular requirement might be concentrated, or the specific requirements may have naturally limited the number of capable bidders. Therefore, while aiming for competition, the actual price discovery effectiveness depends on the number and competitiveness of the actual bidders who submit proposals.

What are the potential implications of this contract on the IT services market and future government procurements?

This contract, awarded to TANTUS TECHNOLOGIES, INC. for $37.3 million, signals a significant investment by the Bureau of the Fiscal Service in IT services, specifically computer systems design. Its implications for the IT services market include reinforcing the position of TANTUS TECHNOLOGIES, INC. as a key player in government IT contracts. For future government procurements, this contract could serve as a benchmark for similar IT services, influencing pricing expectations and the types of solutions sought. The success or challenges encountered in this contract's execution could also shape how agencies approach future IT system design procurements, particularly regarding contract types (like CPAF) and competition strategies. It highlights the ongoing demand for specialized IT expertise within federal agencies managing complex financial systems.

What are the key performance indicators (KPIs) likely used to determine the award fee for TANTUS TECHNOLOGIES, INC.?

For a Cost Plus Award Fee (CPAF) contract focused on computer systems design services, Key Performance Indicators (KPIs) for determining the award fee would likely center on aspects critical to successful IT project delivery. These could include: Technical Performance (e.g., meeting design specifications, system functionality, integration success), Schedule Performance (e.g., timely completion of design milestones, adherence to project timelines), Cost Management (e.g., efficiency in resource utilization, staying within projected cost parameters for design phases), Quality of Deliverables (e.g., accuracy and completeness of design documents, minimal defects in prototypes), and Customer Satisfaction (e.g., feedback from agency stakeholders on collaboration and responsiveness). The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and the Award Fee Plan, ensuring objective measurement of the contractor's contribution to the program's success.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 20341421R00001

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tantus Technologies Inc.

Address: 1735 N LYNN ST STE 650, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $37,287,249

Exercised Options: $37,287,249

Current Obligation: $37,286,737

Actual Outlays: $27,858,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200098W

IDV Type: GWAC

Timeline