ITC awards $16.7M IT contract to TCG INC for computer systems design services

Contract Overview

Contract Amount: $16,676,574 ($16.7M)

Contractor: TCG Inc

Awarding Agency: International Trade Commission

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SOFTWARE & DEVELOPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20436

State: District of Columbia Government Spending

Plain-Language Summary

International Trade Commission obligated $16.7 million to TCG INC for work described as: IT SOFTWARE & DEVELOPMENT Key points: 1. Contract value of $16.7M for computer systems design services. 2. TCG INC selected for a 4-year contract. 3. Services to be performed in Washington D.C. 4. Contract type is a delivery order under a larger IDIQ. 5. Full and open competition after exclusion of sources. 6. Focus on IT software and development sector.

Value Assessment

Rating: good

The contract value of $16.7 million for computer systems design services appears reasonable given the 4-year duration. Benchmarking against similar IT services contracts awarded by federal agencies suggests that pricing for labor hours in this domain typically falls within a competitive range. Without specific details on the scope of work and the labor mix, a precise value-for-money assessment is challenging, but the overall award size does not immediately raise red flags.

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 considered. The specific exclusion of sources suggests a pre-existing framework or a specific set of qualified vendors were initially identified. The level of competition, while not explicitly detailed by the number of bidders, is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally leads to better pricing for taxpayers by encouraging vendors to offer their best terms.

Public Impact

The International Trade Commission (ITC) benefits from enhanced computer systems design services. Improved IT infrastructure and software development capabilities for the agency. Services are geographically concentrated in Washington D.C. Potential impact on the IT workforce in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Dependence on TCG INC for critical IT systems could pose a risk if performance falters.

Positive Signals

Award to TCG INC suggests a positive track record or competitive offering.
Long-term contract (4 years) indicates a stable need and potential for sustained service quality.
Full and open competition generally leads to better value.

Sector Analysis

This contract falls within the IT Software and Development sector, a significant area of federal spending. The market for computer systems design services is robust, with numerous companies offering specialized expertise. The ITC's need for these services aligns with broader government efforts to modernize IT infrastructure and enhance digital capabilities. Comparable spending benchmarks for similar IT services contracts often range from several million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this particular contract may be limited unless TCG INC engages in subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the International Trade Commission's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Software and Development Services
Computer Systems Design Services
Federal IT Modernization Programs
Agency-Specific IT Support Contracts

Risk Flags

Potential for performance issues if contractor capabilities are overestimated.
Risk of cost overruns if project scope is not tightly controlled.
Dependency on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

International Trade Commission awarded $16.7 million to TCG INC. IT SOFTWARE & DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is TCG INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What is TCG INC's past performance record with the federal government, particularly in computer systems design services?

Assessing TCG INC's past performance requires a review of their contract history within federal databases. Key indicators include on-time delivery, adherence to budget, quality of work, and customer satisfaction ratings from previous government engagements. A positive track record in similar IT projects, especially those involving complex system design and development, would bolster confidence in their ability to execute this current contract successfully. Conversely, a history of performance issues, contract disputes, or negative past performance reviews would raise concerns about potential risks.

How does the awarded amount of $16.7 million compare to similar IT services contracts for computer systems design?

The $16.7 million award for computer systems design services over four years, averaging approximately $4.175 million annually, appears to be within a reasonable range for federal IT contracts of this nature. Benchmarking against similar contracts awarded by agencies like the General Services Administration (GSA) or other departments for comparable services (e.g., system integration, software development, IT consulting) would provide a more precise comparison. Factors such as the specific labor categories, skill levels required, and the complexity of the systems being designed significantly influence pricing. Without detailed scope of work, a definitive value-for-money statement is difficult, but the overall figure does not appear exceptionally high or low in the context of federal IT spending.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential technical challenges in system design and development, integration issues with existing ITC infrastructure, and contractor performance variability. There's also a risk of scope creep if requirements are not meticulously managed. Mitigation strategies likely involve robust project management by the ITC, clearly defined performance metrics and milestones within the contract, regular progress reviews with TCG INC, and contingency planning for unforeseen technical hurdles. The contract's structure, including delivery orders and defined performance periods, also aids in managing risk by allowing for adjustments and oversight.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring competitive pricing for the government?

The 'full and open competition after exclusion of sources' approach aims to balance broad competition with efficiency. It allows for a wide range of potential bidders initially but may narrow the field based on specific qualifications or pre-existing contract vehicles. This can lead to competitive pricing by ensuring multiple capable vendors vie for the contract. However, the 'exclusion of sources' element means that not all potential vendors might be considered, which could theoretically limit the breadth of competition and potentially impact price discovery if the excluded sources represent significant market players. The effectiveness hinges on the justification for exclusions and the number of responsive bidders ultimately participating.

What is the historical spending trend for computer systems design services at the International Trade Commission?

Analyzing historical spending trends for computer systems design services at the ITC would involve examining contract data over several fiscal years. This would reveal whether the current $16.7 million award represents an increase, decrease, or stable level of investment in these services. Understanding past spending patterns helps in contextualizing the current award size, identifying any significant shifts in IT strategy or resource allocation, and assessing the long-term commitment to IT infrastructure development. A consistent or growing investment might indicate a strategic focus on enhancing IT capabilities, while a sharp decrease could signal a shift in priorities or a move towards different service models.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 34300022R0001

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7348 GEORGIA AVENUE NW, WASHINGTON, DC, 20012

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,941,168

Exercised Options: $16,676,574

Current Obligation: $16,676,574

Actual Outlays: $15,423,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200178W

IDV Type: GWAC

Timeline