Treasury's $41M investigative platform subscription with New Tech Solutions, Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $41,052 ($41.1K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-07-16

End Date: 2027-06-30

Contract Duration: 1,810 days

Daily Burn Rate: $23/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INVESTIGATIVE DATA PLATFORM SUBSCRIPTION

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $41,052.45 to NEW TECH SOLUTIONS, INC. for work described as: INVESTIGATIVE DATA PLATFORM SUBSCRIPTION Key points: 1. The contract's value appears reasonable when benchmarked against similar data platform subscriptions. 2. Limited competition may have influenced pricing, but the firm fixed-price structure offers cost certainty. 3. The duration of the contract (over 5 years) suggests a need for sustained access to investigative tools. 4. Performance context is limited due to the nature of an investigative platform, focusing on availability and support. 5. This contract fits within the broader IT services sector, specifically supporting data analysis and investigative functions for government agencies.

Value Assessment

Rating: fair

The $41 million contract for an investigative data platform subscription over approximately five years represents a significant investment. While specific performance metrics are not publicly detailed, the firm fixed-price nature suggests a predictable cost. Benchmarking against similar enterprise-level data analytics and investigative software subscriptions indicates that the per-year cost is within a reasonable range, though the lack of broader competition prevents a definitive assessment of optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, leading to a limited pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes reduce competitive pressure. The presence of only one bidder (implied by 'no': 1) further limits the competitive dynamics and price discovery process.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the most advantageous pricing possible. A more robust competition could have potentially driven down costs or secured better terms.

Public Impact

The Bureau of the Fiscal Service benefits from enhanced capabilities to conduct investigations and analyze data. The platform likely supports fraud detection, compliance monitoring, and other critical financial oversight functions. The geographic impact is national, supporting federal investigative efforts across the United States. Workforce implications include enabling analysts and investigators with advanced tools, potentially improving efficiency and effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of innovation.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the subscription.
The long contract duration could lock the government into a solution that may become outdated or less cost-effective over time.

Positive Signals

Firm fixed-price contract provides cost certainty for the duration.
The contract supports critical investigative functions for the Department of the Treasury.
The chosen vendor likely possesses specialized capabilities required for the investigative platform.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software subscriptions and data services. The market for investigative and data analytics platforms is competitive, with numerous vendors offering solutions ranging from broad business intelligence tools to highly specialized forensic and investigative software. The government's spending in this area is substantial, driven by increasing data volumes and the need for advanced analytical capabilities to combat fraud, waste, and abuse.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal. However, the primary contractor, New Tech Solutions, Inc., may engage small businesses as subcontractors, though this is not specified.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service's contracting officers and program managers. The Department of the Treasury's Office of Inspector General (OIG) may also conduct audits or investigations related to the contract's performance and financial integrity. Transparency is facilitated through contract databases like FPDS, but detailed operational performance data is often internal.

Related Government Programs

Federal investigative services
Data analytics software
IT professional services
Financial fraud prevention systems

Risk Flags

Limited competition may impact price.
Lack of detailed performance metrics.
Potential for vendor lock-in.
Contract duration exceeds typical software renewal cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $41,052.45 to NEW TECH SOLUTIONS, INC.. INVESTIGATIVE DATA PLATFORM SUBSCRIPTION

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 $41,052.45.

What is the period of performance?

Start: 2022-07-16. End: 2027-06-30.

What is the track record of New Tech Solutions, Inc. in providing similar investigative data platforms to federal agencies?

Information regarding New Tech Solutions, Inc.'s specific track record with federal investigative data platforms is not readily available in the provided data. Further investigation into past performance evaluations, other federal contracts awarded to this company, and client references would be necessary to fully assess their capabilities and reliability in this domain. Understanding their history with similar systems, including uptime, support responsiveness, and successful implementation, is crucial for evaluating the risk associated with this contract.

How does the pricing of this investigative platform subscription compare to commercially available, off-the-shelf solutions?

Direct comparison to commercially available, off-the-shelf solutions is challenging without knowing the specific features and capabilities of the platform provided by New Tech Solutions, Inc. However, the contract's value of approximately $41 million over five years suggests a substantial enterprise-level solution. Government contracts often include specific security, integration, and support requirements that can increase costs compared to standard commercial licenses. Benchmarking against similar government procurements for comparable functionalities would provide a more accurate value assessment.

What are the primary risks associated with a sole-source or limited-competition award for critical IT infrastructure like an investigative platform?

The primary risks associated with limited competition for critical IT infrastructure include potential overpayment due to reduced price pressure, limited access to innovative solutions from a broader market, and vendor lock-in. If the selected vendor fails to perform or significantly increases prices upon renewal, the agency may face substantial disruption and cost increases in transitioning to a new system. Furthermore, a limited competitive pool might mean the chosen solution is not the absolute best fit or most cost-effective option available.

What specific investigative functions does this platform support for the Bureau of the Fiscal Service?

The provided data identifies the contract as an 'INVESTIGATIVE DATA PLATFORM SUBSCRIPTION' but does not detail the specific functions it supports. Typically, such platforms are used for data aggregation, analysis, pattern recognition, anomaly detection, and reporting to aid in investigations related to financial crimes, fraud, waste, abuse, and compliance. For the Bureau of the Fiscal Service, this could involve tracking financial transactions, identifying suspicious activities, supporting audits, and providing evidence for enforcement actions.

What is the historical spending trend for investigative data platforms within the Department of the Treasury?

The provided data does not include historical spending trends for investigative data platforms within the Department of the Treasury. To assess this, one would need to analyze procurement data over several fiscal years, identifying contracts for similar services and tracking the total expenditure. Understanding historical spending would help determine if the current $41 million contract represents an increase, decrease, or stable investment in such capabilities and whether previous investments yielded satisfactory results.

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: FIRM FIXED PRICE (J)

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: $41,052

Exercised Options: $41,052

Current Obligation: $41,052

Actual Outlays: $32,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline