USDA Farm Loan Program IT Modernization contract awarded to Attainx Inc. for over $52M

Contract Overview

Contract Amount: $52,110,464 ($52.1M)

Contractor: Attainx Inc.

Awarding Agency: General Services Administration

Start Date: 2023-05-03

End Date: 2024-08-02

Contract Duration: 457 days

Daily Burn Rate: $114.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA FARM LOAN PROGRAM MAINTENANCE AND MODERNIZATION FLPMM

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84138

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $52.1 million to ATTAINX INC. for work described as: USDA FARM LOAN PROGRAM MAINTENANCE AND MODERNIZATION FLPMM Key points: 1. Contract focuses on modernizing critical IT systems for the Farm Loan Program, aiming for improved efficiency and service delivery. 2. The award was made under full and open competition after exclusion of sources, indicating a competitive bidding process. 3. A firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns. 4. The contract duration of 457 days indicates a substantial project timeline for modernization efforts. 5. The primary service category is Computer Systems Design Services, aligning with IT modernization goals. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $52.1 million for IT modernization services appears reasonable given the scope of modernizing a federal loan program's systems. Benchmarking against similar large-scale IT modernization projects within federal agencies suggests that this level of investment is typical for comprehensive system overhauls. The firm-fixed-price structure also provides cost certainty for the government, although it places the cost risk on the contractor. Further analysis would require comparing specific deliverables and project complexity to other contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, possibly due to specific requirements or prior performance. The number of bids received (8) indicates a moderate level of competition. This suggests that while the field was not entirely unrestricted, multiple capable vendors were able to participate, likely contributing to a competitive price discovery process.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a reasonably competitive price, avoiding the potential overpricing associated with sole-source or highly restricted procurements.

Public Impact

Farmers and agricultural producers who rely on USDA loan programs will benefit from potentially more efficient and reliable IT systems. The contract delivers essential IT modernization services, crucial for the operational effectiveness of the Farm Loan Program. The primary geographic impact is national, as the Farm Loan Program serves agricultural communities across the United States. The contract supports the IT workforce, likely involving skilled professionals in computer systems design and modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on broader market access.
The specific nature of the IT modernization required for the Farm Loan Program is not detailed, posing a risk if requirements are not clearly defined.
The reliance on a single delivery order under a potential IDIQ could concentrate risk if the IDIQ vehicle itself has limitations or if this is the primary modernization effort.

Positive Signals

The award was made under a competitive process, suggesting a selection of a qualified vendor.
The firm-fixed-price contract type shifts cost risk to the contractor, which is generally favorable for the government.
The contract addresses a critical need for IT modernization within a key agricultural support program.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and modernization. The federal IT market is vast, with agencies consistently investing in upgrading legacy systems to improve efficiency, security, and service delivery. The USDA's Farm Loan Program modernization is a significant undertaking within this context, aiming to enhance the operational backbone of a vital agricultural support function. Comparable spending benchmarks for large-scale federal IT modernization projects often run into tens or hundreds of millions of dollars, depending on the complexity and scope.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Attainx Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This means that the direct impact on the small business ecosystem through this specific contract award is likely minimal, unless Attainx Inc. voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) as the awarding agency, specifically its Federal Acquisition Service. The contract is a delivery order, implying oversight of its execution against the terms of the parent IDIQ contract. Accountability measures are embedded in the firm-fixed-price structure, requiring the contractor to meet defined deliverables. Transparency is facilitated by the public nature of contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would typically apply if fraud, waste, or abuse is suspected.

Related Government Programs

USDA Farm Service Agency IT Modernization
Federal Loan Program IT Systems
GSA IT Schedule Contracts
Computer Systems Design Services Contracts
Government IT Modernization Initiatives

Risk Flags

Potential for scope creep in IT modernization projects.
Risk of cybersecurity vulnerabilities during system transition.
Dependency on contractor performance for critical program functions.
Complexity of integrating modernized systems with legacy infrastructure.
Adequacy of competition level due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $52.1 million to ATTAINX INC.. USDA FARM LOAN PROGRAM MAINTENANCE AND MODERNIZATION FLPMM

Who is the contractor on this award?

The obligated recipient is ATTAINX INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52.1 million.

What is the period of performance?

Start: 2023-05-03. End: 2024-08-02.

What is the track record of Attainx Inc. in performing similar large-scale federal IT modernization contracts?

Attainx Inc. has a track record with federal contracts, primarily in IT services. While specific details on past large-scale modernization projects comparable to the USDA Farm Loan Program's scope require deeper investigation into their contract history, their presence in the federal IT landscape suggests experience. Analyzing their past performance ratings, contract values, and the complexity of systems they have managed would provide a clearer picture of their capability. It's important to review any past performance issues or successes to gauge their reliability for this significant modernization effort. Federal procurement databases and past performance reviews are key resources for this assessment.

How does the awarded value of $52.1 million compare to similar federal IT modernization projects for loan programs?

The $52.1 million award for the USDA Farm Loan Program Maintenance and Modernization (FLPMM) appears to be within the typical range for substantial federal IT modernization efforts, especially those involving complex financial or loan program systems. Large-scale projects aimed at overhauling legacy infrastructure, enhancing user interfaces, improving data management, and ensuring cybersecurity often require significant investment. For instance, modernization of other federal financial systems or large agency-wide IT overhauls can easily reach or exceed this figure. Without specific details on the scope of modernization (e.g., cloud migration, application re-architecture, data analytics integration), a precise comparison is difficult, but the amount is not an outlier for such critical government IT infrastructure upgrades.

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

Key risks include potential scope creep, contractor underperformance, cybersecurity vulnerabilities during the modernization process, and integration challenges with existing systems. The firm-fixed-price contract type mitigates financial risk for the government by capping costs, but it places pressure on the contractor to manage performance. Mitigation strategies likely involve robust project management, clear performance metrics, regular progress reviews, and stringent cybersecurity protocols. The 'exclusion of sources' in the competition method could also be a risk if it limits the pool of highly qualified vendors or leads to unforeseen issues. The government's oversight and the contractor's adherence to the contract's technical requirements are crucial for mitigating these risks.

How effective is the chosen procurement method ('full and open competition after exclusion of sources') in ensuring value for taxpayers?

This procurement method aims to balance competition with specific requirements. 'Full and open competition' is generally the best approach for maximizing value by allowing all responsible sources to compete. However, the 'exclusion of sources' clause indicates that certain vendors were not permitted to bid, possibly due to pre-qualification criteria, past performance issues, or specific technical needs. While this can ensure that bidders are highly qualified, it may limit the number of competitors, potentially reducing downward price pressure compared to truly unrestricted full and open competition. The value for taxpayers depends on whether the excluded sources were essential for robust price discovery and whether the remaining competition was sufficient to drive a competitive outcome.

What is the historical spending pattern for IT modernization within the USDA Farm Loan Program or similar USDA initiatives?

Analyzing historical spending on IT modernization within the USDA Farm Loan Program specifically would require access to detailed historical contract data. Generally, federal agencies like the USDA face ongoing needs to update aging IT infrastructure to maintain operational efficiency, security, and compliance. Spending on such initiatives can fluctuate year-to-year based on budget allocations, strategic priorities, and the lifecycle of existing systems. Without specific historical data for FLPMM, it's difficult to establish a precise pattern. However, it's common for agencies to allocate significant portions of their IT budgets towards modernization efforts, often involving multi-year investments as seen with this contract.

What are the potential implications of this contract on the future modernization of other federal loan programs?

The success of this contract could serve as a model or a cautionary tale for future IT modernization efforts across other federal loan programs. If Attainx Inc. successfully delivers on the modernization goals, it could validate the chosen approach, technologies, and project management methodologies, encouraging similar investments elsewhere. Conversely, any significant challenges or failures could lead to increased scrutiny and potentially different procurement strategies for other programs. The insights gained from this project regarding cost, timeline, vendor performance, and user adoption will be valuable for planning and executing IT modernization in related government functions.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFNA23R0004

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13873 PARK CENTER RD STE 55N, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $106,707,655

Exercised Options: $68,360,996

Current Obligation: $52,110,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0128

IDV Type: GWAC

Timeline