FCC awards $47.1M IT support contract to Soft Tech Consulting, Inc. for 4 years

Contract Overview

Contract Amount: $47,105,176 ($47.1M)

Contractor: Soft Tech Consulting, Inc.

Awarding Agency: Federal Communications Commission

Start Date: 2023-01-30

End Date: 2027-01-29

Contract Duration: 1,460 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED TECHNOLOGY SYSTEM SUPPORT ITSS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $47.1 million to SOFT TECH CONSULTING, INC. for work described as: INTEGRATED TECHNOLOGY SYSTEM SUPPORT ITSS Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Performance risk appears moderate given the contract type and duration. 4. This contract supports essential IT systems for the FCC's regulatory functions. 5. The IT support sector is characterized by rapid technological evolution and specialized expertise.

Value Assessment

Rating: good

The contract value of $47.1 million over four years averages to approximately $11.77 million annually. Benchmarking this against similar IT support contracts for federal agencies of the FCC's size and scope suggests this pricing is within a reasonable range. The firm fixed-price structure provides cost certainty for the government, though it places the risk of cost overruns on the contractor. Without specific per-unit data, a precise value-for-money assessment is challenging, but the competitive award mechanism implies a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded prior to the final solicitation. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions, but three bidders can still yield a competitive outcome, especially if the requirements are well-defined and the bidders are qualified.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally benefits taxpayers by driving down prices and encouraging efficient service delivery. It ensures that the government is not locked into a single provider without exploring alternatives.

Public Impact

The Federal Communications Commission (FCC) benefits from enhanced IT system support. Services delivered include computer systems design and integration. The geographic impact is primarily within the FCC's operational locations, likely Washington D.C. and potentially other federal facilities. The contract supports a workforce of IT professionals employed by Soft Tech Consulting, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competitively procured.
Reliance on a single contractor for critical IT systems could pose a risk if performance falters.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Firm fixed-price contract provides budget certainty for the government.
Contract duration of four years allows for stable IT support and potential for long-term system improvements.

Sector Analysis

The IT support services sector is a critical component of federal agency operations, encompassing a wide range of activities from system design and integration to maintenance and cybersecurity. The market is highly competitive, with numerous large and small businesses vying for government contracts. Spending in this sector is substantial, reflecting the increasing reliance on technology for mission execution. This contract fits within the broader category of IT professional services, where agencies procure specialized expertise to manage and enhance their technological infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Soft Tech Consulting, Inc., is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This means that opportunities for small business participation may be limited unless Soft Tech Consulting, Inc. voluntarily engages them for subcontracting, which is not a requirement under this award.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Federal Communications Commission. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal IT Services
Computer Systems Design Services
IT Infrastructure Support
Information Technology Professional Services

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Contractor performance history needs further review.
Cybersecurity risks inherent in IT support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $47.1 million to SOFT TECH CONSULTING, INC.. INTEGRATED TECHNOLOGY SYSTEM SUPPORT ITSS

Who is the contractor on this award?

The obligated recipient is SOFT TECH CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2023-01-30. End: 2027-01-29.

What is the track record of Soft Tech Consulting, Inc. with federal contracts, particularly in IT support?

A review of federal procurement data indicates that Soft Tech Consulting, Inc. has a history of receiving federal contracts, primarily within the IT services domain. While specific details on past performance metrics for this contractor are not provided in this summary, their ability to secure this $47.1 million contract suggests they have met the qualifications and demonstrated capability required by the FCC. Further investigation into their past performance ratings on similar contracts, any past performance issues, and their financial stability would provide a more comprehensive understanding of their reliability and expertise in delivering IT support services.

How does the awarded price compare to similar IT support contracts for federal agencies of comparable size?

The total contract value of $47.1 million over four years equates to an average annual value of approximately $11.77 million. To benchmark this effectively, one would compare it to IT support contracts awarded to agencies with similar budgets and mission scopes as the FCC. Factors such as the complexity of IT systems, the number of users supported, and the specific services required (e.g., cybersecurity, network management, help desk) heavily influence pricing. While this contract appears within a reasonable range based on general market knowledge, a detailed comparison with anonymized data from similar federal IT support contracts would be necessary for a precise value assessment.

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

Key risks include potential performance failures by the contractor, leading to disruptions in FCC IT systems; cost overruns if the firm fixed-price structure is challenged by unforeseen technical issues (though risk lies with the contractor); and potential security vulnerabilities if IT systems are not adequately protected. Mitigation strategies include the FCC's oversight through contract management, performance monitoring, and defined service level agreements. The firm fixed-price nature incentivizes the contractor to manage costs efficiently. Security protocols and compliance requirements are standard in federal IT contracts to address cybersecurity risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers?

This procurement method aims to balance broad competition with specific agency needs. By excluding certain sources, the agency might be targeting vendors with particular expertise or avoiding those with past performance issues, potentially leading to a more tailored and effective solution. However, if the exclusion criteria are too narrow or not well-justified, it could limit the pool of bidders, potentially reducing price competition and leading to less optimal value. The effectiveness hinges on the transparency and justification behind the source exclusions and the resulting number and quality of bids received.

What is the historical spending trend for IT support services at the FCC?

Analyzing historical spending patterns for IT support at the FCC would provide context for the current $47.1 million award. If spending has been consistently high in this area, it suggests a sustained need for robust IT infrastructure and services. Conversely, a significant increase or decrease in spending could indicate shifts in technology strategy, agency priorities, or efficiency gains. Understanding these trends helps assess whether the current contract represents a continuation of established investment, a strategic expansion, or a potential area for cost optimization in future procurements.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 273FCC22R0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4229 LAFAYETTE CENTER DR. STE 1700, CHANTILLY, VA, 20151

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $74,256,264

Exercised Options: $58,877,665

Current Obligation: $47,105,176

Actual Outlays: $38,215,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200173W

IDV Type: GWAC

Timeline