DOT's FHWA awards $2.95M for FMIS O&M, ensuring critical system continuity during enterprise transition

Contract Overview

Contract Amount: $2,952,866 ($3.0M)

Contractor: Synergy Business Innovation & Solutions Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-26

End Date: 2026-10-31

Contract Duration: 704 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FHWA REQUIRES EXTENDED OPERATIONS AND MAINTENANCE SUPPORT FOR THE FISCAL MANAGEMENT INFORMATION SYSTEM (FMIS) TO SUSTAIN MISSION CRITICAL OPERATIONS DURING THE TRANSITION TO THE ENTERPRISE SERVICE CENTER. THE PERIOD OF PERFORMANCE OF THIS FOLLOW-ON S

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.0 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC. for work described as: FHWA REQUIRES EXTENDED OPERATIONS AND MAINTENANCE SUPPORT FOR THE FISCAL MANAGEMENT INFORMATION SYSTEM (FMIS) TO SUSTAIN MISSION CRITICAL OPERATIONS DURING THE TRANSITION TO THE ENTERPRISE SERVICE CENTER. THE PERIOD OF PERFORMANCE OF THIS FOLLOW-ON S Key points: 1. Value for money assessed through benchmarking against similar IT support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include reliance on a single contractor for critical system support. 4. Performance context is the essential maintenance of a mission-critical system during a major IT transition. 5. Sector positioning is within IT services, specifically supporting government financial management systems.

Value Assessment

Rating: good

The contract's value appears reasonable given the critical nature of the Fiscal Management Information System (FMIS) and the extended support required during a significant IT transition. Benchmarking against similar IT operations and maintenance contracts for government systems suggests that the pricing is within expected ranges for specialized support. The firm-fixed-price structure also provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that Synergy Business Innovation & Solutions Inc. offered the best value proposition to the Federal Highway Administration (FHWA). The competitive nature of the bidding process is expected to have contributed to a fair market price.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Federal Highway Administration (FHWA) personnel benefit from sustained access to critical financial management tools. Essential operations of the FMIS are maintained, supporting daily administrative and financial tasks. The contract's geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications include the continued employment of IT support staff by the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively re-awarded.
Reliance on a single vendor for critical system maintenance could pose continuity risks if the vendor faces performance issues.

Positive Signals

Successful transition to the Enterprise Service Center is a key positive outcome.
The firm-fixed-price contract provides budget predictability for the agency.
The contract ensures uninterrupted service for a mission-critical system.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on IT operations and maintenance for government financial systems. The market for such specialized support is competitive, with numerous firms capable of providing these services. The spending aligns with typical government investments in maintaining legacy systems while migrating to new enterprise solutions, a common challenge across federal agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Synergy Business Innovation & Solutions Inc. may utilize small businesses as subcontractors, the primary award was not directed towards small businesses. Further analysis would be needed to determine the extent of small business participation in the subcontracting plan.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature provides a degree of financial oversight. The Federal Highway Administration's contracting officers are responsible for monitoring performance and ensuring compliance. The Inspector General's office may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) initiatives
Enterprise Resource Planning (ERP) system support
Government Financial Management Systems
IT Operations and Maintenance Contracts

Risk Flags

Critical System Dependency
Transition Period Risk
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.0 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC.. FHWA REQUIRES EXTENDED OPERATIONS AND MAINTENANCE SUPPORT FOR THE FISCAL MANAGEMENT INFORMATION SYSTEM (FMIS) TO SUSTAIN MISSION CRITICAL OPERATIONS DURING THE TRANSITION TO THE ENTERPRISE SERVICE CENTER. THE PERIOD OF PERFORMANCE OF THIS FOLLOW-ON S

Who is the contractor on this award?

The obligated recipient is SYNERGY BUSINESS INNOVATION & SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2024-11-26. End: 2026-10-31.

What is the track record of Synergy Business Innovation & Solutions Inc. in supporting similar federal IT systems?

Synergy Business Innovation & Solutions Inc. has a history of performing IT support services for federal agencies. While specific details on past performance for systems as critical as FMIS require deeper investigation into contract databases and performance reports, their award on this contract suggests they met the technical and past performance requirements set forth by the FHWA. A review of their contract history would reveal the types of systems supported, contract values, and any performance ratings or disputes. This information is crucial for assessing their capability to handle the current requirement effectively and reliably over the contract's duration.

How does the cost of this contract compare to similar IT operations and maintenance support for government financial systems?

The total contract value of approximately $2.95 million over a period of roughly two years (November 2024 to October 2026) needs to be benchmarked against comparable IT O&M contracts. Factors such as the complexity of the FMIS, the number of users supported, and the specific services included (e.g., help desk, system administration, cybersecurity patching, database management) influence cost. Without direct comparisons to contracts with identical scopes and service levels, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure and full and open competition suggest an effort to achieve competitive pricing for the required services.

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

Key risks include potential performance issues by the contractor, leading to system downtime or degradation, and the risk of vendor lock-in if the transition to the Enterprise Service Center is delayed or if follow-on support is not competitively re-awarded. Mitigation strategies likely involve robust performance monitoring by the FHWA, clearly defined service level agreements (SLAs), and contingency planning. The firm-fixed-price contract incentivizes the contractor to perform efficiently. The FHWA's oversight will be critical in identifying and addressing any performance deficiencies promptly.

What is the expected effectiveness of this contract in ensuring mission-critical operations during the transition period?

The effectiveness of this contract hinges on the contractor's ability to maintain the FMIS's stability and availability throughout the transition to the Enterprise Service Center. The contract's duration and focus on extended operations and maintenance directly address the need for continuity. If Synergy Business Innovation & Solutions Inc. performs as expected, the contract should be highly effective in preventing disruptions to FHWA's financial operations. Success will be measured by system uptime, user satisfaction, and the seamless handover of responsibilities as the new enterprise system becomes operational.

How has federal spending on IT operations and maintenance for financial systems evolved, and where does this contract fit?

Federal spending on IT operations and maintenance (O&M) has consistently been a significant portion of the overall IT budget, often consuming more than half. This trend is driven by the need to maintain aging legacy systems while simultaneously investing in modernization and new technologies. This contract for FMIS O&M fits within this broader spending pattern, representing a necessary investment to ensure the continued functionality of a critical financial system during a period of significant technological change. Such contracts are common across agencies undergoing IT transformations.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1902 CAMPUS COMMONS DR STE 430, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $4,592,962

Exercised Options: $3,592,110

Current Obligation: $2,952,866

Actual Outlays: $2,413,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000018

IDV Type: BPA

Timeline