FCC Spends $77.5M on IT Legacy Maintenance, Awarded to Incentive Technology Group LLC
Contract Overview
Contract Amount: $77,548,556 ($77.5M)
Contractor: Incentive Technology Group LLC
Awarding Agency: Federal Communications Commission
Start Date: 2018-04-23
End Date: 2023-08-31
Contract Duration: 1,956 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT LEGACY MAINTENANCE SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554
Plain-Language Summary
Federal Communications Commission obligated $77.5 million to INCENTIVE TECHNOLOGY GROUP LLC for work described as: IT LEGACY MAINTENANCE SUPPORT Key points: 1. Significant contract value of $77.5M for IT legacy maintenance. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk of vendor lock-in or reliance on a single provider for legacy systems. 4. IT sector spending, specifically in computer facilities management services.
Value Assessment
Rating: fair
The contract value of $77.5M for IT legacy maintenance over approximately 5 years appears substantial. Benchmarking against similar contracts for legacy system support is difficult without more specific service details, but the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: While competition was present, the total spend of $77.5M represents a considerable allocation of taxpayer funds for maintaining aging IT infrastructure.
Public Impact
Ensures continued operation of critical FCC systems. Supports the agency's mission by maintaining essential IT infrastructure. Potential for cost savings if legacy systems are modernized or retired.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if legacy systems require unexpected maintenance.
- Risk of security vulnerabilities in aging IT systems.
- Dependence on vendor expertise for outdated technology.
Positive Signals
- Full and open competition can lead to better pricing.
- Contract ensures operational continuity for essential services.
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending in this area is crucial for government agencies to maintain operational capabilities, but often represents a significant portion of IT budgets, especially for legacy systems.
Small Business Impact
The contract was awarded to Incentive Technology Group LLC. Information regarding small business participation or subcontracting is not provided in the data, making it difficult to assess their involvement.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve monitoring performance, adherence to terms, and financial expenditures by the Federal Communications Commission.
Related Government Programs
- Computer Facilities Management Services
- Federal Communications Commission Contracting
- Federal Communications Commission Programs
Risk Flags
- High contract value.
- Long contract duration.
- Potential for vendor lock-in.
- Reliance on legacy technology.
- Lack of small business participation data.
Tags
computer-facilities-management-services, federal-communications-commission, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Federal Communications Commission awarded $77.5 million to INCENTIVE TECHNOLOGY GROUP LLC. IT LEGACY MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is INCENTIVE TECHNOLOGY GROUP LLC.
Which agency awarded this contract?
Awarding agency: Federal Communications Commission (Federal Communications Commission).
What is the total obligated amount?
The obligated amount is $77.5 million.
What is the period of performance?
Start: 2018-04-23. End: 2023-08-31.
What is the long-term strategy for modernizing the IT systems supported by this contract?
The long-term strategy for modernizing IT systems is crucial for reducing reliance on expensive legacy maintenance. Agencies should prioritize a roadmap for system upgrades or replacements to enhance efficiency, security, and reduce long-term costs. Without such a strategy, continued spending on outdated systems may become unsustainable and hinder technological advancement.
How does the cost of this legacy maintenance compare to the potential cost of modernization or replacement?
Comparing the cost of legacy maintenance to modernization or replacement is essential for fiscal responsibility. While initial modernization costs can be high, they may offer significant long-term savings by reducing ongoing maintenance, improving performance, and mitigating risks associated with outdated technology. A thorough cost-benefit analysis is needed to determine the most economical path forward.
What are the key performance indicators (KPIs) used to measure the effectiveness of this maintenance support?
Key performance indicators for IT legacy maintenance should focus on system uptime, response times for critical issues, resolution rates, and adherence to security protocols. Measuring these KPIs helps ensure that the vendor is providing effective support and that the agency's critical IT infrastructure remains operational and secure, justifying the significant expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ICF International, Inc.
Address: 2550 S CLARK ST, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $77,548,557
Exercised Options: $77,548,556
Current Obligation: $77,548,556
Actual Outlays: $61,673,890
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $7,716,612
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0164V
IDV Type: FSS
Timeline
Start Date: 2018-04-23
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-04-15
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