USAID's $46M IT Services Contract Awarded to DEVTECH SYSTEMS INC Under Full and Open Competition
Contract Overview
Contract Amount: $46,274,538 ($46.3M)
Contractor: Devtech Systems Inc
Awarding Agency: Agency for International Development
Start Date: 2023-10-23
End Date: 2028-10-22
Contract Duration: 1,826 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THIS RRS IS FOR A NEW ACQUISITION WITH A ZERO DOLLAR $0.00 VALUE FOR THE ADVISE FOLLOW ON CONTRACT EFFORT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20547
Plain-Language Summary
Agency for International Development obligated $46.3 million to DEVTECH SYSTEMS INC for work described as: THIS RRS IS FOR A NEW ACQUISITION WITH A ZERO DOLLAR $0.00 VALUE FOR THE ADVISE FOLLOW ON CONTRACT EFFORT. Key points: 1. Contract awarded to DEVTECH SYSTEMS INC for IT services. 2. Full and open competition was utilized for this acquisition. 3. The contract has a zero dollar initial value, indicating potential for future task orders. 4. The sector is IT, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract has a $0.00 initial value, making a direct pricing assessment difficult. The actual value will depend on future delivery orders and their associated costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the zero dollar initial value means price discovery for the overall effort is deferred to subsequent delivery orders.
Taxpayer Impact: The initial zero dollar value suggests no immediate taxpayer impact, but future delivery orders will represent actual spending.
Public Impact
Taxpayers will fund IT services essential for Agency for International Development operations. The zero dollar initial value may lead to uncertainty regarding the total program cost. Competition ensures potential for cost savings on future task orders.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Zero dollar initial contract value creates uncertainty about total spending.
- Lack of initial value makes it difficult to assess overall cost-effectiveness.
- Small business participation is not indicated.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration of 5 years.
- Services are critical for agency operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. The benchmark for IT services contracts can vary widely based on scope and complexity.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the 'ss' field is false. Further analysis would be needed to determine if small business set-asides were considered or if the prime contractor intends to subcontract to small businesses.
Oversight & Accountability
The contract is subject to standard federal oversight mechanisms. The zero dollar initial value warrants close monitoring of subsequent delivery orders to ensure fair pricing and effective use of funds.
Related Government Programs
- Other Computer Related Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Uncertainty of total contract value due to zero dollar initial award.
- Potential for scope creep or unmanaged costs in future delivery orders.
- Lack of explicit small business participation.
- Broad NAICS code may obscure specific service costs.
Tags
other-computer-related-services, agency-for-international-development, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $46.3 million to DEVTECH SYSTEMS INC. THIS RRS IS FOR A NEW ACQUISITION WITH A ZERO DOLLAR $0.00 VALUE FOR THE ADVISE FOLLOW ON CONTRACT EFFORT.
Who is the contractor on this award?
The obligated recipient is DEVTECH SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $46.3 million.
What is the period of performance?
Start: 2023-10-23. End: 2028-10-22.
What is the anticipated total value of this contract once all delivery orders are issued?
The anticipated total value is currently unknown as the contract has a zero dollar initial value. The final cost will be determined by the sum of all awarded delivery orders over the contract's five-year period. Agencies typically estimate a ceiling value, but without that information, it's impossible to project the total taxpayer investment.
What are the specific IT services to be provided under this contract?
The contract is categorized under NAICS code 541519, 'Other Computer Related Services'. This broad category can encompass a wide range of IT support, including IT management consulting, computer facilities management, and IT support services. Specific details would be found in the contract's statement of work, which is not provided in the data.
How will the agency ensure cost-effectiveness for future delivery orders given the initial zero dollar value?
The agency will likely rely on the competitive nature of the full and open competition to drive cost-effectiveness for future delivery orders. Each order should be evaluated based on its own merits, potentially using pre-negotiated rates or competitive bidding for larger task orders. Robust oversight and performance monitoring will be crucial to ensure value for taxpayer money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2300 WILSON BLVD STE 350-A, ARLINGTON, VA, 22201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $112,956,398
Exercised Options: $49,657,868
Current Obligation: $46,274,538
Actual Outlays: $24,856,970
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA23D003U
IDV Type: FSS
Timeline
Start Date: 2023-10-23
Current End Date: 2028-10-22
Potential End Date: 2028-10-22 00:00:00
Last Modified: 2025-08-21
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