GSA awards $35M+ IT services contract to Pyramid Systems, Inc. for HUD OCIO refactoring

Contract Overview

Contract Amount: $35,064,637 ($35.1M)

Contractor: Pyramid Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-03-30

End Date: 2022-03-29

Contract Duration: 729 days

Daily Burn Rate: $48.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: HUD OCIO REFACTORING AND IMPLEMENTATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $35.1 million to PYRAMID SYSTEMS, INC. for work described as: HUD OCIO REFACTORING AND IMPLEMENTATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of over $35 million indicates a significant investment in IT modernization. 3. Focus on custom computer programming services (NAICS 541511) points to complex software development needs. 4. The contract duration of 729 days (2 years) allows for substantial project completion. 5. Awarded as a Delivery Order, likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 6. The contract was not set aside for small businesses, indicating larger prime contractors were eligible and potentially awarded.

Value Assessment

Rating: good

The contract value of $35,064,637.08 for custom computer programming services appears reasonable given the two-year duration and the complexity implied by 'refactoring and implementation.' Benchmarking against similar large-scale IT modernization projects would provide a more precise value-for-money assessment. Without specific performance metrics or comparison to similar contracts, it's difficult to definitively assess if the pricing is optimal, but the competitive award process suggests a degree of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement strategy. This means that all responsible sources were permitted to submit a bid. The presence of 3 bids (no: 3) indicates a moderate level of competition for this specific award. While more than one bidder participated, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price reductions and encouraging innovative solutions from multiple vendors, leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD) Office of the Chief Information Officer (OCIO), which will receive modernized IT systems. Services delivered include custom computer programming, likely involving software development, integration, and potentially system re-architecture. The geographic impact is primarily within the District of Columbia (st: DC, sn: DISTRICT OF COLUMBIA), where HUD's OCIO is likely located or operates. Workforce implications may include the need for skilled IT professionals, including programmers, analysts, and project managers, employed by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'refactoring and implementation' is not clearly defined, leading to cost overruns.
Dependence on a single contractor for critical IT infrastructure modernization could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee complex IT development and integration.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair procurement process.
The contract specifies custom computer programming, suggesting a tailored solution to meet specific HUD needs.
The two-year duration allows for focused effort on the refactoring and implementation project.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The market for IT services supporting federal agencies is substantial, with significant spending on software development, system integration, and IT modernization. Contracts like this are crucial for agencies to maintain and upgrade their technological infrastructure to meet evolving operational demands and security requirements. Comparable spending benchmarks would involve analyzing other large IT development contracts awarded by agencies like GSA or HUD.

Small Business Impact

This contract was not awarded as a small business set-aside (ss: false, sb: false). This indicates that the procurement was open to businesses of all sizes, and the prime contractor, Pyramid Systems, Inc., is likely a larger entity. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting requirements that can benefit small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) Federal Acquisition Service (FAS), which awarded the contract. The specific agency benefiting from the services, HUD OCIO, would also have program-level oversight. Accountability measures would be defined within the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated by the public nature of contract awards, though detailed performance data may not always be publicly available. Inspector General jurisdiction would likely extend to both GSA and HUD, depending on the nature of any potential issues.

Related Government Programs

HUD IT Modernization Initiatives
GSA IT Services Contracts
Custom Software Development Services
Federal IT Refactoring Projects
Cloud Migration Services (potential component)

Risk Flags

Potential for technical debt if refactoring is not comprehensive.
Risk of integration issues with other HUD systems.
Dependency on contractor expertise for critical system components.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.1 million to PYRAMID SYSTEMS, INC.. HUD OCIO REFACTORING AND IMPLEMENTATION

Who is the contractor on this award?

The obligated recipient is PYRAMID SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2020-03-30. End: 2022-03-29.

What is the track record of Pyramid Systems, Inc. in delivering similar IT modernization projects for federal agencies?

Pyramid Systems, Inc. has a history of working with federal agencies on IT projects. A review of their contract history reveals engagements with various departments, including defense and civilian agencies. Specific to IT modernization and refactoring, their past performance would need to be evaluated against the scope and complexity of this HUD OCIO contract. Key indicators would include successful project completion, adherence to budget and schedule, and client satisfaction ratings from previous similar endeavors. Analyzing their portfolio for projects involving custom programming, system integration, and large-scale IT transformations would provide a clearer picture of their capabilities and reliability in this domain.

How does the awarded amount compare to the estimated cost or budget for this HUD OCIO refactoring project?

The awarded amount for this contract is $35,064,637.08. Without access to the government's original cost estimates or the agency's allocated budget for the HUD OCIO refactoring and implementation project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bids suggests that the pricing was competitive within the market. If the awarded amount was significantly lower than the independent government cost estimate (IGCE), it could indicate strong competition and good value. Conversely, if it was close to or exceeded the IGCE, further scrutiny of the pricing and scope might be warranted.

What are the primary risks associated with the 'refactoring and implementation' of HUD's IT systems under this contract?

The primary risks associated with 'refactoring and implementation' of IT systems often include technical complexity, potential for scope creep, integration challenges with existing infrastructure, and user adoption issues. Refactoring involves significant code changes and architectural redesign, which can introduce unforeseen bugs or performance degradation if not managed meticulously. Implementation requires seamless integration into the operational environment. Scope creep is a risk if the requirements are not clearly defined or if new functionalities are added mid-project. Ensuring adequate testing, robust project management, clear communication channels, and strong government oversight are critical to mitigating these risks.

What specific performance metrics or KPIs are likely being used to measure the success of this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided data, contracts for IT refactoring and implementation typically include metrics focused on system performance, reliability, security, and user satisfaction. Examples could include system uptime percentages, response times for critical functions, reduction in bug reports post-refactoring, successful data migration rates, adherence to security protocols (e.g., number of vulnerabilities identified and remediated), and timely delivery of project milestones. User feedback surveys and the successful decommissioning of legacy systems would also likely serve as important indicators of success.

How has federal spending on custom computer programming services (NAICS 541511) trended in recent years, and how does this contract fit within that trend?

Federal spending on custom computer programming services (NAICS 541511) has generally seen a consistent upward trend over the past decade, driven by agencies' needs for digital transformation, modernization of legacy systems, and development of new IT capabilities. This $35 million contract awarded to Pyramid Systems, Inc. for HUD OCIO refactoring aligns with this broader trend. It represents a significant investment by HUD, facilitated by GSA, to update its core IT infrastructure. Such contracts are crucial for agencies to maintain operational efficiency, enhance cybersecurity, and deliver better services to the public in an increasingly digital environment.

Industry Classification

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

Solicitation ID: ID11200005

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pyramid Systems Inc.

Address: 2677 PROSPERITY AVE, FAIRFAX, VA, 22031

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

Financial Breakdown

Contract Ceiling: $73,742,970

Exercised Options: $40,841,306

Current Obligation: $35,064,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00LJ

IDV Type: FSS

Timeline