Smithsonian's $7.8M IT support contract awarded to Technology Trends Group, LLC, with no competition

Contract Overview

Contract Amount: $7,793,193 ($7.8M)

Contractor: Technology Trends Group, LLC

Awarding Agency: Smithsonian Institution

Start Date: 2019-09-20

End Date: 2025-09-30

Contract Duration: 2,202 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT PROGRAM&PROJECT MANAGEMENT SUPPORT FOR NMAAHC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20013

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $7.8 million to TECHNOLOGY TRENDS GROUP, LLC for work described as: IT PROGRAM&PROJECT MANAGEMENT SUPPORT FOR NMAAHC Key points: 1. The contract value of $7.8 million over approximately six years suggests a significant investment in IT program and project management. 2. The sole-source award indicates a lack of competitive bidding, potentially impacting price efficiency. 3. The contract's duration of over 2200 days points to a long-term need for these IT services. 4. The services fall under 'Other Computer Related Services,' a broad category that requires specific performance metrics for evaluation. 5. The absence of small business set-aside flags raises questions about opportunities for smaller firms in this contract. 6. The firm fixed-price contract type aims to control costs, but the lack of competition might undermine this objective.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source IT support contracts from similar institutions. The $7.8 million price tag over nearly six years averages over $1.3 million annually. While IT support is crucial, the lack of competition means there's no market validation of whether this price represents good value for money. A comparison to IT project management support contracts awarded competitively by other federal agencies of similar size and scope would be necessary to assess pricing fairness and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded directly to Technology Trends Group, LLC without a broad solicitation. The sole-source nature means there were no other bidders considered, which limits the government's ability to explore alternative solutions or negotiate the best possible price. This approach is typically justified when only one source can provide the required services, but it bypasses the price discovery benefits inherent in a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The lack of competition means funds could potentially be higher than if multiple vendors had vied for the contract.

Public Impact

The National Museum of African American History and Culture (NMAAHC) is the primary beneficiary, receiving essential IT program and project management support. The services delivered are critical for the museum's operational efficiency, digital infrastructure, and project execution. The contract's impact is primarily concentrated within the District of Columbia, where the Smithsonian Institution is headquartered. The contract supports IT professionals and project managers, potentially impacting the workforce within the technology services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
Sole-source awards can limit innovation by not exploring solutions from a wider range of vendors.
The long contract duration without competitive re-evaluation could lead to complacency or outdated service delivery.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract is awarded to a single entity, potentially ensuring continuity and specialized knowledge transfer.
The services are crucial for the operational success of a significant cultural institution.

Sector Analysis

The IT services sector is highly competitive, with numerous firms offering program and project management support. Federal agencies often procure these services through various contract vehicles, including competitive solicitations and sole-source awards when justified. The market size for IT consulting and support services for government agencies is substantial, running into billions of dollars annually. This contract fits within the broader IT services category, specifically focusing on project management, which is essential for the successful execution of complex technology initiatives within institutions like the Smithsonian.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate. This means that the primary contract value is likely to go to Technology Trends Group, LLC, without direct benefit or mandated inclusion of the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Smithsonian Institution's contracting and program management offices. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award, as the justification and selection process are not publicly scrutinized through a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Smithsonian Institution IT Services
Federal IT Program Management Support
Other Computer Related Services Contracts
Sole Source IT Procurements
Museum Technology Support

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $7.8 million to TECHNOLOGY TRENDS GROUP, LLC. IT PROGRAM&PROJECT MANAGEMENT SUPPORT FOR NMAAHC

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY TRENDS GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2019-09-20. End: 2025-09-30.

What is the track record of Technology Trends Group, LLC with the federal government, particularly with the Smithsonian Institution?

Information regarding Technology Trends Group, LLC's specific track record with the federal government, and particularly the Smithsonian Institution, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS to review past awards, performance evaluations, and any reported issues. Understanding their history of delivering IT program and project management support, their past performance ratings, and the types of contracts they have held would be crucial for assessing their capability and reliability in fulfilling this current $7.8 million award.

How does the annual cost of this contract compare to similar IT support contracts awarded competitively by other federal agencies?

The annual cost of this contract, averaging over $1.3 million ($7.8M / ~6 years), is difficult to benchmark without comparative data. To assess value, one would need to identify similar IT program and project management support contracts awarded competitively by federal agencies of comparable size and mission scope (e.g., other large museums, research institutions, or federal agencies with significant IT infrastructure needs). Analyzing the scope of services, deliverables, and pricing structures of those competitive contracts would reveal whether Technology Trends Group, LLC's pricing is in line with market rates or if the sole-source nature has led to a premium.

What are the specific risks associated with a sole-source award for IT program and project management support?

The primary risks associated with a sole-source award for IT program and project management support include a lack of price competition, potentially leading to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate or provide superior service, as there are no competing vendors to attract future business. Furthermore, the government may not be exposed to the best available technologies or methodologies if alternative vendors are not considered. This can also limit the government's ability to pivot to more cost-effective or efficient solutions if market offerings change.

What is the justification for awarding this contract on a sole-source basis to Technology Trends Group, LLC?

The provided data does not include the specific justification for this sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs, or specific follow-on requirements where switching contractors would be impractical or excessively costly. A formal justification document (e.g., a Justification and Approval for Other Than Full and Open Competition) would normally be required and should outline the rationale in detail.

What are the historical spending patterns for IT program and project management support at the Smithsonian Institution?

Historical spending patterns for IT program and project management support at the Smithsonian Institution are not detailed in the provided data. To analyze this, one would need to examine past contract awards and expenditures by the Smithsonian for similar services over several fiscal years. This would involve looking at the total amount spent on IT support, the number of contracts awarded, the types of services procured, and the distribution between competitive and sole-source awards. Understanding these patterns could reveal trends in IT investment, reliance on specific contractors, and the typical procurement strategies employed by the institution.

What performance metrics or deliverables are expected under this contract, and how will they be measured?

The provided data does not specify the performance metrics or deliverables for this contract. A comprehensive contract would include a detailed Statement of Work (SOW) outlining the specific tasks, objectives, and expected outcomes. Performance would typically be measured against these requirements, potentially including project milestones, system uptime, response times for support requests, adherence to budget, and successful project completion. The contract type (Firm Fixed Price) suggests that the contractor is responsible for delivering the agreed-upon scope of work for a set price, with performance being a key factor in contract closeout and future considerations.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 N 15TH ST STE 300, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,793,193

Exercised Options: $7,793,193

Current Obligation: $7,793,193

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline