HUD Awards $10.3M Salesforce Support Services Bridge Contract to Pyramid Systems, Inc
Contract Overview
Contract Amount: $10,346,529 ($10.3M)
Contractor: Pyramid Systems, Inc.
Awarding Agency: General Services Administration
Start Date: 2024-04-01
End Date: 2025-09-30
Contract Duration: 547 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HUD SALESFORCE SUPPORT SERVICES BRIDGE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
General Services Administration obligated $10.3 million to PYRAMID SYSTEMS, INC. for work described as: HUD SALESFORCE SUPPORT SERVICES BRIDGE Key points: 1. Contract value of $10.3M for Salesforce support services. 2. Awarded via full and open competition. 3. Potential risk associated with bridge contracts extending service continuity. 4. IT services sector, specifically custom computer programming.
Value Assessment
Rating: fair
The contract value of $10.3M for 17 months of Salesforce support appears reasonable given the specialized nature of the services. Benchmarking against similar IT support contracts is difficult without more granular data on service scope and SLAs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.
Public Impact
Ensures continuity of critical Salesforce operations for HUD. Supports the agency's digital infrastructure and constituent services. Potential for improved system performance and user experience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Bridge contract nature may indicate prior planning gaps.
- Reliance on a single vendor for critical support.
- Potential for scope creep in extended support.
Positive Signals
- Awarded through full and open competition.
- Supports essential agency functions.
- Clear contract duration and defined services.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across federal agencies, supporting a wide range of digital operations and modernization efforts.
Small Business Impact
While awarded through full and open competition, there is no explicit indication of small business participation in this specific delivery order. Future solicitations should consider opportunities for small business prime contractors or subcontractors.
Oversight & Accountability
The General Services Administration (GSA) managed this award, indicating adherence to federal procurement regulations. Oversight will be crucial to ensure service delivery meets HUD's requirements and stays within budget.
Related Government Programs
- Custom Computer Programming Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Bridge contract may indicate planning issues.
- Potential for cost overruns if scope is not managed.
- Lack of specific small business participation noted.
- Dependence on a single vendor for critical IT function.
Tags
custom-computer-programming-services, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $10.3 million to PYRAMID SYSTEMS, INC.. HUD SALESFORCE SUPPORT SERVICES BRIDGE
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 $10.3 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-09-30.
What is the specific scope of 'Salesforce Support Services' and how does it align with HUD's strategic IT goals?
The scope of 'Salesforce Support Services' likely encompasses maintenance, configuration, customization, and user support for HUD's Salesforce platform. This alignment is crucial for ensuring the technology effectively supports HUD's mission, such as managing housing programs, tracking applications, and improving constituent engagement. Understanding this alignment helps assess the strategic value beyond mere operational continuity.
What are the risks associated with a 'bridge contract' for essential IT services, and how are they mitigated?
Bridge contracts, while ensuring service continuity, can pose risks such as higher costs due to urgency, potential for vendor lock-in, and a lack of competitive pressure for innovation. Mitigation strategies include strict oversight of performance and costs, clearly defined transition plans to a future contract, and ensuring the bridge period is as short as possible to facilitate a new competitive procurement.
How does the pricing of this contract compare to industry benchmarks for similar Salesforce support services?
A precise comparison is challenging without detailed service level agreements (SLAs) and specific support functions. However, the per-unit cost (if calculable) can be benchmarked against industry rates for Salesforce administrators, developers, and consultants. The $10.3M over 17 months suggests an average monthly cost of approximately $600k, which needs to be evaluated against the complexity and criticality of HUD's Salesforce implementation.
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 › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFPA24Q0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $11,467,423
Exercised Options: $11,445,451
Current Obligation: $10,346,529
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA19D00LJ
IDV Type: FSS
Timeline
Start Date: 2024-04-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-01-13
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