FTC awards $51.8M IT infrastructure support contract to 1901 Group, LLC

Contract Overview

Contract Amount: $51,817,852 ($51.8M)

Contractor: 1901 Group, LLC

Awarding Agency: Federal Trade Commission

Start Date: 2019-07-18

End Date: 2028-07-31

Contract Duration: 3,301 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITSS TO4 INFRASTRUCTURE MANAGEMENT SUPPORT SERVICES (IMSS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $51.8 million to 1901 GROUP, LLC for work described as: ITSS TO4 INFRASTRUCTURE MANAGEMENT SUPPORT SERVICES (IMSS) Key points: 1. Contract provides critical IT infrastructure management and support services. 2. The award was made under a full and open competition. 3. The contract duration extends through July 2028. 4. The firm-fixed-price contract type suggests predictable costs for the government. 5. The contract value is substantial, indicating a significant need for IT support. 6. The North American Industry Classification System (NAICS) code is 541519, indicating a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $51.8 million over its period of performance appears reasonable for comprehensive IT infrastructure management support. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure helps control costs, though the total value will depend on the specific services utilized and the duration of task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The competitive process helps ensure that the selected contractor offers the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential IT infrastructure management services.

Public Impact

The Federal Trade Commission (FTC) benefits from enhanced IT infrastructure management and support. Services include maintaining and improving the agency's IT systems. The contract supports the operational continuity and security of the FTC's digital infrastructure. Workforce implications are minimal as this is a service contract, not a direct hiring initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully.
Reliance on a single contractor for critical IT functions could pose risks.
Scope creep could lead to cost overruns if not strictly managed.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability.
Long-term contract allows for stable IT support and planning.
Contractor has a significant role in maintaining essential government IT infrastructure.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on infrastructure management and support. The IT services market for the federal government is substantial, with agencies consistently investing in maintaining and modernizing their technological backbone. This contract represents a significant portion of the FTC's IT operational budget, ensuring the reliability and security of its systems. Comparable spending benchmarks for similar IT support contracts across federal agencies often range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely limited, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the FTC, who will monitor performance, ensure compliance with contract terms, and approve payments. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal procurement databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

IT Infrastructure Support Services
IT Managed Services
Cloud Computing Services
Cybersecurity Services
Network Operations and Maintenance

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical IT infrastructure
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $51.8 million to 1901 GROUP, LLC. ITSS TO4 INFRASTRUCTURE MANAGEMENT SUPPORT SERVICES (IMSS)

Who is the contractor on this award?

The obligated recipient is 1901 GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.8 million.

What is the period of performance?

Start: 2019-07-18. End: 2028-07-31.

What is the track record of 1901 Group, LLC in performing similar federal IT infrastructure contracts?

1901 Group, LLC has a history of providing IT services to federal agencies. Their experience often includes managing complex IT environments, cloud migration, cybersecurity, and help desk support. A review of their past performance on similar contracts, including any past performance evaluations or awards, would provide insight into their capabilities and reliability. Examining their contract history with agencies like the FTC or other civilian departments can reveal their ability to meet performance requirements, manage budgets, and adhere to schedules. Specific details on their performance metrics for previous contracts would be crucial for a comprehensive assessment.

How does the awarded price compare to market rates for similar IT infrastructure management services?

The awarded value of $51.8 million over approximately 8 years suggests an average annual cost of around $6.5 million. To benchmark this, one would compare the specific services included (e.g., network management, server maintenance, help desk, cybersecurity) against industry reports and pricing from other IT service providers, both government and commercial. Factors like the level of service (e.g., 24/7 support, specific response times), the complexity of the FTC's infrastructure, and the geographic scope influence the market rate. Given the full and open competition and multiple bidders, it's likely the price reflects competitive market conditions, but a detailed service-level comparison is needed for precise valuation.

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

Key risks include potential vendor lock-in, over-reliance on a single provider for critical IT functions, and the possibility of scope creep leading to cost overruns. Mitigation strategies typically involve robust contract management by the FTC, including clear performance metrics, regular reviews, and defined change control processes. The firm-fixed-price structure helps mitigate cost overrun risks, provided the scope is well-defined. The agency should also maintain contingency plans and potentially foster relationships with other IT vendors to avoid complete dependence on 1901 Group, LLC.

How effective is the FTC's IT infrastructure management likely to be under this contract?

The effectiveness will largely depend on the contractor's performance against the Service Level Agreements (SLAs) outlined in the contract and the FTC's oversight. Given the competitive award process and the contractor's likely experience, a good level of effectiveness is expected. The contract's duration allows for long-term planning and optimization of IT systems. However, continuous monitoring of key performance indicators (KPIs) by the FTC is essential to ensure that the infrastructure remains reliable, secure, and aligned with the agency's mission objectives.

What are the historical spending patterns for IT infrastructure support at the FTC?

Analyzing historical spending patterns for IT infrastructure support at the FTC would involve examining previous contracts for similar services. This includes the total amount spent annually, the number and types of contracts awarded (e.g., sole-source vs. competitive), and the primary contractors. Understanding these patterns can reveal trends in IT investment, identify potential areas of cost savings or overspending, and assess whether the current contract represents a continuation, increase, or decrease in IT support expenditure relative to past needs and budgets.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,916,146

Exercised Options: $51,817,852

Current Obligation: $51,817,852

Actual Outlays: $46,713,600

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,968,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 29FTC118A0008

IDV Type: BPA

Timeline