DOT's $7.3M IT services contract awarded to Spatial Front Inc. for application transition and maintenance

Contract Overview

Contract Amount: $7,335,427 ($7.3M)

Contractor: Spatial Front Inc

Awarding Agency: Department of Transportation

Start Date: 2023-02-07

End Date: 2027-02-09

Contract Duration: 1,463 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SAFETY SWAT OPERATIONS AND MAINTENANCE SERVICES. THE PRIMARY OBJECTIVE OF THIS TASK ORDER IS TO TRANSITION BETWEEN 15-20 APPLICATIONS THAT ARE CURRENTLY DEVELOPED AND MAINTAINED BY VOLPE TO CONTRACTOR DEVELOPMENT AND OPERATIONS AND MAINTENANCE SUP

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $7.3 million to SPATIAL FRONT INC for work described as: IT SAFETY SWAT OPERATIONS AND MAINTENANCE SERVICES. THE PRIMARY OBJECTIVE OF THIS TASK ORDER IS TO TRANSITION BETWEEN 15-20 APPLICATIONS THAT ARE CURRENTLY DEVELOPED AND MAINTAINED BY VOLPE TO CONTRACTOR DEVELOPMENT AND OPERATIONS AND MAINTENANCE SUP Key points: 1. The contract focuses on transitioning 15-20 applications, indicating a significant scope of work for IT operations and maintenance. 2. Awarded under a BPA Call, suggesting a pre-competed framework was utilized, potentially streamlining the acquisition process. 3. The firm-fixed-price contract type shifts performance risk to the contractor, aligning costs with defined deliverables. 4. With a duration of approximately four years, this represents a substantial, long-term commitment to IT support. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services, a core IT function. 6. The contract's value of $7.3 million positions it as a mid-tier federal IT services award.

Value Assessment

Rating: good

The contract value of $7.3 million for approximately four years of IT application transition and maintenance appears reasonable for the scope of work. Benchmarking against similar custom computer programming services contracts awarded by the Department of Transportation or other agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor is incentivized to manage costs effectively to maintain profitability, which can be beneficial for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 9 bidders, the competition level appears healthy, suggesting that the government received a range of proposals and pricing. This level of competition generally leads to better price discovery and potentially more favorable terms for the government compared to limited or sole-source procurements.

Taxpayer Impact: Full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from a broad base of contractors.

Public Impact

The Federal Motor Carrier Safety Administration (FMCSA) benefits from improved IT application management and transition. Users of the 15-20 applications will experience continued or enhanced operational support and maintenance. The contract supports IT professionals within Spatial Front Inc., potentially creating or sustaining jobs in the IT sector. The services are primarily delivered within Virginia, impacting the local and regional IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition is not managed carefully, impacting future competition.
Reliance on a single contractor for critical application maintenance could pose risks if performance falters.
Ensuring adequate knowledge transfer during the application transition phase is crucial for long-term success.

Positive Signals

Awarded through a competitive process, indicating a potentially strong value proposition.
Firm-fixed-price contract aligns contractor incentives with government objectives for cost control.
Long-term nature of the contract allows for stable support and potential for relationship building.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services and IT operations and maintenance. The federal IT services market is substantial, with agencies consistently investing in application development, modernization, and support. Contracts like this are common as agencies aim to transition legacy systems or manage a portfolio of applications, often leveraging pre-competed vehicles like Blanket Purchase Agreements (BPAs) to expedite procurement. The value is within the typical range for task orders supporting specific IT functions.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Spatial Front Inc., is not explicitly identified as a small business in the provided data. This means that opportunities for small business subcontracting may be limited unless voluntarily pursued by the prime contractor. Further analysis would be needed to determine if subcontracting plans were required or if small businesses are involved in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Motor Carrier Safety Administration (FMCSA) contracting officer and program managers. Performance will be monitored against the terms of the firm-fixed-price task order, with regular reviews and reporting expected. Transparency is facilitated through federal procurement databases where contract awards are published. The specific Inspector General jurisdiction would typically align with the agency awarding the contract, in this case, the Department of Transportation's Office of Inspector General.

Related Government Programs

IT Operations and Maintenance Services
Custom Computer Programming Services
Application Development and Modernization
Federal IT Services
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for service disruption during application transition.
Risk of knowledge loss from incumbent personnel.
Complexity of transitioning multiple applications under one contract.
Ensuring data integrity and security throughout the transition process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.3 million to SPATIAL FRONT INC. IT SAFETY SWAT OPERATIONS AND MAINTENANCE SERVICES. THE PRIMARY OBJECTIVE OF THIS TASK ORDER IS TO TRANSITION BETWEEN 15-20 APPLICATIONS THAT ARE CURRENTLY DEVELOPED AND MAINTAINED BY VOLPE TO CONTRACTOR DEVELOPMENT AND OPERATIONS AND MAINTENANCE SUP

Who is the contractor on this award?

The obligated recipient is SPATIAL FRONT INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2023-02-07. End: 2027-02-09.

What is the track record of Spatial Front Inc. in performing similar IT application transition and maintenance services for federal agencies?

Spatial Front Inc. has a history of performing IT services for federal agencies, including application development, cloud migration, and cybersecurity. Their experience with custom computer programming services (NAICS 541511) suggests they possess the core competencies required for this task order. To fully assess their track record, a deeper dive into past performance evaluations, contract completion success rates, and client feedback on similar projects would be necessary. Examining their portfolio of completed federal IT projects, particularly those involving application transitions and long-term maintenance, would provide further insight into their capabilities and reliability in delivering on such complex IT initiatives.

How does the per-application transition cost compare to industry benchmarks for similar IT services?

The total contract value is $7.3 million over approximately 1463 days (roughly 4 years). If we assume the transition of 15-20 applications occurs within the initial phase of the contract, and conservatively estimate this phase to be one year, the cost per application for the transition could range from $365,000 to $486,000 ($7.3M / 20 applications / 4 years, or $7.3M / 15 applications / 4 years, assuming a linear distribution of cost over the contract duration, which is unlikely). However, a more accurate calculation would require knowing the specific allocation of funds and effort dedicated solely to the transition phase versus ongoing operations and maintenance. Industry benchmarks for application transition and modernization vary widely based on complexity, technology stack, and scope. Without specific details on the applications' complexity and the scope of the transition, a precise benchmark comparison is difficult. Generally, complex enterprise application transitions can cost hundreds of thousands to millions of dollars per application.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this specific task order. However, for IT operations and maintenance services, typical KPIs often include application uptime, response times for issue resolution, system performance metrics, and successful deployment rates for updates. SLAs would define the acceptable thresholds for these KPIs, along with remedies or penalties for non-compliance. Given the firm-fixed-price nature of the contract, the government would likely focus on ensuring that the contractor meets defined performance standards to receive full payment. These details are usually outlined in the detailed statement of work (SOW) within the task order itself.

What is the historical spending pattern for IT application transition and maintenance services by the Federal Motor Carrier Safety Administration (FMCSA)?

Analyzing historical spending patterns for FMCSA's IT application transition and maintenance services would require access to detailed federal procurement data over several fiscal years. This specific task order represents a significant investment ($7.3 million) for application transition and ongoing support. To understand historical trends, one would look at the frequency and value of similar contracts awarded by FMCSA, the types of services procured (e.g., development, maintenance, cloud migration), and the primary contractors involved. This analysis could reveal whether this contract is an anomaly, a continuation of previous efforts, or an expansion of IT service needs within the agency. Understanding past spending can help contextualize the current investment and identify potential areas for cost savings or efficiency improvements in future procurements.

What are the potential risks associated with transitioning 15-20 applications to a new contractor?

Transitioning a significant number of applications (15-20) to a new contractor introduces several potential risks. A primary concern is the disruption of services during the transition period, which could impact the FMCSA's operations. There's also a risk of knowledge loss if the incumbent contractor's personnel are not adequately retained or if documentation is insufficient. Technical risks include compatibility issues with existing infrastructure, data migration errors, and security vulnerabilities introduced during the handover. Furthermore, the contractor may underestimate the complexity of the applications, leading to cost overruns or schedule delays, despite the firm-fixed-price structure. Ensuring a smooth knowledge transfer and robust testing protocols are critical to mitigating these risks.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6550 ROCK SPRING DR, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $7,335,427

Exercised Options: $7,335,427

Current Obligation: $7,335,427

Actual Outlays: $5,959,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ319A000015

IDV Type: BPA

Timeline