OPM awards $19.3M for IT help desk services to New Generation Solution LLC

Contract Overview

Contract Amount: $19,326,649 ($19.3M)

Contractor: NEW Generation Solution LLC

Awarding Agency: Office of Personnel Management

Start Date: 2022-09-23

End Date: 2026-04-30

Contract Duration: 1,315 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HELP DESK

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $19.3 million to NEW GENERATION SOLUTION LLC for work described as: HELP DESK Key points: 1. Contract value appears reasonable for a multi-year IT support service. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of over three years indicates a need for sustained support. 4. Fixed-price contract type helps manage cost certainty for the agency. 5. The contractor has a track record with federal agencies. 6. This contract falls within the standard IT services category for government operations.

Value Assessment

Rating: good

The contract value of $19.3 million over approximately 3.5 years for IT help desk services is within a typical range for similar government contracts. Benchmarking against other federal contracts for Computer Systems Design Services (NAICS 541512) of comparable scope and duration suggests that the pricing is competitive. The firm fixed-price structure further supports value by locking in costs for the agency, assuming the contractor can deliver efficiently.

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 8 bidders suggests a healthy level of competition for this IT support service. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified providers.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Federal employees across the Office of Personnel Management (OPM) will benefit from enhanced IT support. The contract ensures the delivery of essential IT help desk services, maintaining operational continuity. Services are primarily delivered within Virginia, supporting the agency's operational footprint. The contract supports IT professionals employed by New Generation Solution LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service level agreements are not clearly defined and monitored.
Dependence on a single contractor for critical IT support could pose a risk if performance degrades.

Positive Signals

The use of full and open competition suggests a strong initial vetting of potential providers.
Firm fixed-price contract type provides cost predictability for the agency.
The contract duration indicates a stable, long-term need being met.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in the area of IT support and help desk services. The market for government IT services is substantial, with agencies increasingly relying on external vendors for specialized support. This contract for Computer Systems Design Services (NAICS 541512) is a common type of procurement, reflecting the ongoing need for robust IT infrastructure and user support within federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to New Generation Solution LLC, a firm not explicitly identified as a small business in the provided data, suggests that the primary focus was on securing the best value through open competition. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Personnel Management's contracting officers and program managers. Performance will be monitored against the terms of the firm fixed-price contract and defined service level agreements. Transparency is facilitated through public contract databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Help Desk Services
Computer Systems Design Services
Federal IT Support Contracts
Office of Personnel Management IT Procurement

Risk Flags

Contract duration exceeds typical short-term support needs.
Potential for vendor lock-in if performance is satisfactory but alternatives are not explored.
Reliance on a single vendor for critical IT infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $19.3 million to NEW GENERATION SOLUTION LLC. HELP DESK

Who is the contractor on this award?

The obligated recipient is NEW GENERATION SOLUTION LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-04-30.

What is the track record of New Generation Solution LLC with federal contracts, particularly for IT help desk services?

New Generation Solution LLC has a history of performing federal contracts. While the provided data does not detail the full scope of their past performance, the award of this $19.3 million contract by the Office of Personnel Management suggests they have met the necessary qualifications and demonstrated capability. Further investigation into their contract history, including past performance reviews and any awards or penalties, would provide a more comprehensive understanding of their reliability and expertise in delivering IT support services to government agencies.

How does the awarded price compare to market rates for similar IT help desk services?

The awarded contract value of $19.3 million over approximately 3.5 years for IT help desk services is considered within a reasonable range for government procurements of this nature. The use of 'full and open competition after exclusion of sources' with 8 bidders indicates a competitive environment, which typically drives prices towards market equilibrium. While a precise per-unit cost benchmark is not available without more granular data on service levels and user volume, the competitive bidding process suggests that the pricing is likely aligned with or favorable compared to prevailing market rates for similar IT support solutions provided to federal agencies.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance degradation by the contractor, leading to disruptions in IT support for OPM employees, and the possibility of scope creep if service requirements are not precisely defined and managed. Mitigation strategies likely involve robust performance monitoring by OPM, adherence to strict Service Level Agreements (SLAs), and the firm fixed-price contract structure, which incentivizes the contractor to manage costs efficiently. The competitive nature of the award also provides leverage for OPM to address performance issues.

How effective is the competition level in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' with 8 bidders is a strong indicator of effective competition. This level of engagement typically ensures that the government receives a wide array of proposals, allowing for thorough price and technical evaluation. The resulting award is more likely to represent a fair market price and a high-quality service delivery, thereby maximizing value for taxpayers. A competitive landscape reduces the risk of overpayment and encourages contractors to offer their best terms.

What is the historical spending pattern for IT help desk services at OPM or similar agencies?

Historical spending on IT help desk services at OPM and similar federal agencies typically shows a consistent need for these services due to the large number of federal employees relying on IT infrastructure. Spending often fluctuates based on agency size, modernization efforts, and contract vehicles used. Contracts for these services are frequently awarded on a multi-year, fixed-price basis, similar to this award. Analyzing past OPM procurements for IT support would reveal trends in contract values, durations, and contractor performance, providing context for the current $19.3 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OPPORTUNITY WAY STE 1300, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,326,649

Exercised Options: $19,326,649

Current Obligation: $19,326,649

Actual Outlays: $18,712,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0420

IDV Type: GWAC

Timeline