Treasury's $13.7M contract for IT services awarded to BAHFED CORP, highlighting potential value and competition

Contract Overview

Contract Amount: $13,733 ($13.7K)

Contractor: Bahfed Corp

Awarding Agency: Department of the Treasury

Start Date: 2023-08-22

End Date: 2026-08-21

Contract Duration: 1,095 days

Daily Burn Rate: $13/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: X1 SOCIAL DISCOVERY

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97205

State: Oregon Government Spending

Plain-Language Summary

Department of the Treasury obligated $13,733.16 to BAHFED CORP for work described as: X1 SOCIAL DISCOVERY Key points: 1. The contract's fixed-price nature suggests cost predictability for the government. 2. Competition dynamics appear robust, with a full and open competition after source exclusion. 3. The duration of 1095 days indicates a significant, long-term need for these services. 4. The award to BAHFED CORP warrants scrutiny regarding past performance and pricing. 5. The contract's focus on IT services aligns with broader government modernization efforts. 6. The small business set-aside status is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: good

The contract's firm fixed-price structure is generally favorable for managing costs. Benchmarking against similar IT services contracts awarded by the Bureau of the Fiscal Service or other Treasury bureaus would provide a clearer picture of value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process suggests a reasonable price was likely achieved.

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 that multiple vendors were likely solicited and allowed to bid. The presence of two bids suggests a moderate level of competition. While not the highest number of bidders, it is sufficient to provide a basis for price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging vendors to offer their best value.

Public Impact

The primary beneficiary is the Bureau of the Fiscal Service, which will receive IT services to support its operations. The services delivered are categorized under 'Other Computer Related Services,' likely encompassing a range of IT support, maintenance, or development. The geographic impact is centered in Oregon, where the contractor is located, though the services may support a wider federal network. The contract supports the federal IT workforce by engaging a private sector entity for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT functions could pose a risk if performance degrades.
The 'after exclusion of sources' clause warrants understanding the rationale to ensure no viable competitors were unfairly excluded.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract provides cost certainty for the government.
The contract duration suggests a stable, long-term partnership, potentially leading to efficiencies.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services.' The IT services market is vast and highly competitive, with numerous firms offering specialized solutions. Federal spending in this area is substantial, driven by the need for modernization, cybersecurity, and efficient data management. Comparable spending benchmarks would involve analyzing other federal contracts for similar IT support services, considering factors like contract duration, scope of work, and agency.

Small Business Impact

The contract data indicates that small business set-asides were not utilized (ss: false, sb: false). This means the competition was open to all eligible businesses, regardless of size. While there are no direct subcontracting requirements specified, BAHFED CORP may choose to engage small businesses as subcontractors. The lack of a set-aside means opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures are typically embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Support Services
Cloud Computing Services
Software Development Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance
Justification for source exclusion unclear
Long-term commitment requires ongoing oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13,733.16 to BAHFED CORP. X1 SOCIAL DISCOVERY

Who is the contractor on this award?

The obligated recipient is BAHFED CORP.

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 $13,733.16.

What is the period of performance?

Start: 2023-08-22. End: 2026-08-21.

What is BAHFED CORP's track record with federal contracts, particularly for IT services?

A review of BAHFED CORP's federal contract history would be necessary to assess their performance. Key indicators include past performance ratings on similar contracts, any documented disputes or contract terminations, and the types of services they have previously provided. Examining awards from the Bureau of the Fiscal Service and other agencies can reveal patterns in their service delivery, pricing strategies, and overall reliability. Without specific past performance data for BAHFED CORP, it's difficult to definitively assess their suitability for this $13.7 million contract beyond the fact that they were selected through a competitive process.

How does the $13.7 million value compare to similar IT services contracts?

To benchmark the $13.7 million value, one would compare it against contracts for 'Other Computer Related Services' awarded by the Bureau of the Fiscal Service or other Treasury bureaus over the past 3-5 years. Factors such as contract duration (1095 days), scope of work (unspecified but IT-related), and the number of bidders (2) are crucial for a meaningful comparison. If similar contracts with comparable scopes and durations were awarded at significantly lower total values, it might indicate this contract is priced above market. Conversely, if it aligns with or is lower than benchmarks, it suggests good value for money.

What are the primary risks associated with this contract for the Bureau of the Fiscal Service?

Key risks include potential underperformance by BAHFED CORP, leading to disruptions in IT services critical to the Bureau's operations. There's also a risk of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed-price nature mitigates this to some extent. Vendor lock-in is another concern, making it difficult and costly to switch providers if needed. Finally, the 'after exclusion of sources' aspect of the competition warrants scrutiny to ensure no potential competitors were unfairly barred, which could indicate a less than optimal competitive outcome.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value?

This method aims to balance broad competition with specific needs. 'Full and open competition' ensures a wide range of potential bidders can participate. The 'after exclusion of sources' clause implies that certain potential sources were initially considered but then excluded, possibly due to specific requirements or prior relationships. While this can streamline the process, it's crucial that the exclusions were justified and did not unduly limit competition. When executed properly, it can lead to good value by allowing for broad participation while focusing on qualified vendors, but a narrow exclusion could reduce competitive pressure and potentially increase costs.

What is the historical spending trend for 'Other Computer Related Services' by the Bureau of the Fiscal Service?

Analyzing historical spending on 'Other Computer Related Services' by the Bureau of the Fiscal Service would reveal trends in demand and investment in this area. If spending has been consistently high or increasing, it suggests a growing reliance on external IT support. Conversely, a decrease might indicate a shift towards in-house capabilities or different service categories. Understanding this trend provides context for the current $13.7 million award, helping to determine if it represents a typical investment or a significant deviation. This data would also inform future budget planning and procurement strategies.

What are the implications of the contract's 1095-day duration for service continuity and cost?

A 1095-day duration (3 years) suggests a significant, long-term requirement for the IT services being procured. This extended period offers the benefit of service continuity and allows the contractor to develop deep expertise in the Bureau's systems. For cost, a longer duration on a firm fixed-price contract can provide greater cost certainty and potentially lower overall costs through economies of scale and reduced transition expenses compared to multiple shorter contracts. However, it also increases the risk associated with long-term vendor performance and the potential for the contract to become misaligned with evolving technological needs.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 SW BROADWAY STE 1110, PORTLAND, OR, 97205

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

Financial Breakdown

Contract Ceiling: $13,733

Exercised Options: $13,733

Current Obligation: $13,733

Actual Outlays: $13,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD09B

IDV Type: GWAC

Timeline