DOT awards $12M IT support contract to TANTUS TECHNOLOGIES, INC. for 3 years

Contract Overview

Contract Amount: $11,987,408 ($12.0M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-09-29

End Date: 2026-09-29

Contract Duration: 1,096 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OCTO IT TIER II SUPPORT SERVICES

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 $12.0 million to TANTUS TECHNOLOGIES, INC. for work described as: OCTO IT TIER II SUPPORT SERVICES Key points: 1. Contract awarded via BPA Call, indicating potential for streamlined procurement. 2. Full and open competition suggests a competitive bidding process. 3. The contract duration of 1096 days (3 years) provides a stable period for service delivery. 4. Labor hours pricing model allows for flexibility in resource allocation. 5. The National Highway Traffic Safety Administration (NHTSA) is the primary beneficiary. 6. Service category is 'Other Computer Related Services', indicating a broad IT support scope.

Value Assessment

Rating: good

The contract value of $11.99 million over three years averages to approximately $4 million annually. Without specific benchmarks for 'OCTO IT TIER II SUPPORT SERVICES', a direct value-for-money assessment is challenging. However, the use of a BPA Call and full and open competition suggests that pricing was likely evaluated against market standards. Further analysis would require comparison with similar IT support contracts within the federal government and specific details on the labor rates and hours utilized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders indicates a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and potentially leads to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The National Highway Traffic Safety Administration (NHTSA) will benefit from enhanced IT support services. Services delivered include Tier II IT support, crucial for the agency's operational continuity. The geographic impact is primarily within the District of Columbia, where the contract is managed. The contract supports IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'Tier II support' is not clearly defined.
Reliance on labor hours can lead to cost overruns if not closely monitored.
Vendor lock-in risk if transition planning is inadequate at contract end.

Positive Signals

Awarded through a competitive process, suggesting fair pricing.
Long-term contract (3 years) provides stability for service delivery.
BPA Call mechanism can indicate efficient procurement practices.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services. The federal IT services market is substantial, with agencies consistently investing in support, maintenance, and modernization. This contract for Tier II support services is a common requirement across government, ensuring the smooth operation of critical IT infrastructure. Benchmarking would involve comparing the contract's total value and duration against similar IT support contracts awarded by other federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless TANTUS TECHNOLOGIES, INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's contracting officers and program managers. The National Highway Traffic Safety Administration (NHTSA) will likely have internal processes to monitor performance and ensure compliance. Transparency is facilitated by public contract databases, but detailed performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

OCTO IT Support Services
Federal IT Services Contracts
Department of Transportation IT Procurement
National Highway Traffic Safety Administration Operations

Risk Flags

Potential for cost overruns due to labor hours pricing model.
Need for clear definition of 'Tier II support' to avoid scope creep.
Reliance on contractor performance requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.0 million to TANTUS TECHNOLOGIES, INC.. OCTO IT TIER II SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-29.

What is the historical spending pattern for IT Tier II support services at NHTSA?

Analyzing historical spending for IT Tier II support at NHTSA would provide crucial context for this $11.99 million award. Without specific historical data, it's difficult to determine if this contract represents an increase, decrease, or stable level of investment in these services. Previous contracts, their values, durations, and awarded vendors would reveal trends in IT support needs and procurement strategies. For instance, if NHTSA previously spent an average of $3 million annually on similar services, this $4 million annual average might indicate an expanded scope, increased service levels, or simply a rise in market rates. Conversely, if prior spending was higher, this award could suggest cost-saving measures or a shift in service delivery models. Understanding this history is key to assessing whether the current award is aligned with the agency's long-term IT strategy and budget.

How does the per-contractor cost compare to similar IT support contracts within the federal government?

Benchmarking the per-contractor cost for this $11.99 million contract against similar federal IT support services is essential for evaluating value for money. While the total contract value is known, the effective hourly rates or cost per service unit are not provided. To conduct a meaningful comparison, one would need to identify contracts with comparable scopes (e.g., Tier II IT support), agencies of similar size and mission, and contract vehicles (e.g., GSA Schedules, IDIQs). Factors such as geographic location, labor mix (e.g., mix of senior and junior technicians), and specific service level agreements (SLAs) significantly influence pricing. If comparable contracts show lower average hourly rates or total costs for similar support levels, it might indicate that this contract is priced above market, or conversely, if rates are higher, it could reflect specialized skills or higher operational costs in the DC area. Without this comparative data, assessing the cost-effectiveness remains speculative.

What are the specific performance metrics and Service Level Agreements (SLAs) associated with this contract?

The specific performance metrics and Service Level Agreements (SLAs) are critical for assessing the effectiveness and accountability of this IT Tier II Support Services contract. While the contract value and duration are known, the quality and timeliness of the services delivered are paramount. Key metrics might include response times for issue resolution, uptime percentages for supported systems, customer satisfaction ratings, and adherence to security protocols. Robust SLAs would define clear expectations and establish remedies or penalties for non-performance. Without access to these details, it is challenging to determine if TANTUS TECHNOLOGIES, INC. is meeting the government's needs effectively or if the contract is delivering the intended value. A review of these SLAs would be necessary to gauge the contractor's accountability and the overall success of the service provision.

What is TANTUS TECHNOLOGIES, INC.'s track record with similar federal IT support contracts?

TANTUS TECHNOLOGIES, INC.'s track record with similar federal IT support contracts is a key indicator of their capability and reliability. Researching their past performance, particularly on contracts involving IT Tier II support or similar service scopes, would provide valuable insights. This includes examining contract history for on-time delivery, adherence to budget, quality of service, and any past performance issues or awards. Understanding their experience with agencies of comparable size and complexity to NHTSA can help predict their ability to meet the demands of this contract. Positive past performance on similar contracts suggests a lower risk of performance issues, while a history of problems might raise concerns about the contractor's ability to deliver effectively. Accessing past performance evaluations or contract award databases would be necessary for a thorough assessment.

What is the potential risk associated with the labor hours pricing model for this contract?

The labor hours pricing model, while offering flexibility, carries inherent risks related to cost control and potential overruns. For this $11.99 million contract, the government pays for the actual hours worked by the contractor's personnel at pre-negotiated rates. The primary risk is that without stringent oversight and clear task definitions, the contractor may bill for more hours than necessary, leading to costs exceeding the anticipated budget or value. This necessitates robust monitoring by the government to ensure efficient work practices and accurate timekeeping. Factors like scope creep, inefficient task execution, or unexpected complexities can inflate billable hours. To mitigate this risk, the government must implement strong project management, regular progress reviews, and potentially establish not-to-exceed (NTE) limits for specific tasks or the overall contract to maintain cost discipline.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tantus Technologies Inc.

Address: 1735 N LYNN ST STE 820, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $22,627,139

Exercised Options: $11,987,408

Current Obligation: $11,987,408

Actual Outlays: $9,414,601

Parent Contract

Parent Award PIID: 693JJ319A000019

IDV Type: BPA

Timeline