Summit Consulting LLC awarded $6.3M for IT services to DFC, highlighting a competitive procurement

Contract Overview

Contract Amount: $6,309,722 ($6.3M)

Contractor: Summit Consulting LLC

Awarding Agency: U.S. International Development Finance Corporation

Start Date: 2024-09-12

End Date: 2026-09-16

Contract Duration: 734 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CHIPS REVIEW AND ADMINISTRATION FOLLOW ON

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20527

State: District of Columbia Government Spending

Plain-Language Summary

U.S. International Development Finance Corporation obligated $6.3 million to SUMMIT CONSULTING LLC for work described as: CHIPS REVIEW AND ADMINISTRATION FOLLOW ON Key points: 1. The contract value of $6.3 million for IT services represents a significant investment in supporting the agency's technological infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to favorable pricing and a wide range of qualified vendors. 3. The contract duration of approximately two years indicates a need for sustained IT support and project continuity. 4. The North American Industry Classification System (NAICS) code 541519 for Other Computer Related Services points to a broad scope of IT support. 5. The delivery order award mechanism suggests this contract is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing framework. 6. The contract's focus on IT services aligns with the increasing digitalization and technological reliance of federal agencies.

Value Assessment

Rating: good

Benchmarking this $6.3 million contract against similar IT service contracts requires access to a broader dataset of comparable procurements. However, the award to Summit Consulting LLC under full and open competition suggests that the pricing was deemed competitive by the U.S. International Development Finance Corporation (DFC). The contract's labor hours pricing model allows for flexibility in resource allocation, which can be cost-effective if managed efficiently. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A higher number of bidders typically leads to more competitive pricing and a greater likelihood of selecting a vendor that offers the best value. The DFC's decision to use full and open competition suggests confidence in the market's ability to provide suitable IT services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to vendor rivalry. This process also ensures that the government explores a wide range of solutions, increasing the chances of obtaining high-quality services at a reasonable cost.

Public Impact

The U.S. International Development Finance Corporation (DFC) is the primary beneficiary, receiving essential IT support services. The services delivered are expected to enhance the DFC's operational efficiency and technological capabilities. The contract is geographically focused on the District of Columbia, where the DFC is headquartered. The contract supports IT professionals and potentially other roles within Summit Consulting LLC, contributing to the IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Computer Related Services' are not clearly defined.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
The labor hours pricing model can lead to cost overruns if not meticulously managed and monitored.

Positive Signals

Awarded under full and open competition, suggesting a competitive and fair selection process.
The contract duration of over two years provides stability and allows for project continuity.
Summit Consulting LLC's selection indicates they met the agency's technical and performance requirements.

Sector Analysis

The IT services sector is a vast and dynamic market, with federal spending on these services consistently high. Agencies like the DFC rely heavily on IT to manage operations, data, and communications. This contract, falling under NAICS code 541519 (Other Computer Related Services), likely encompasses a range of IT support, consulting, and potentially system integration activities. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded to similar-sized agencies or those with comparable missions, looking at contract values, durations, and service scopes.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, there are no direct subcontracting implications specifically for small businesses mandated by this award. However, Summit Consulting LLC, as a prime contractor, may choose to engage small businesses for specialized services or as part of their overall business strategy. The absence of a set-aside means the primary focus was on competition among all eligible responsible sources, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. International Development Finance Corporation's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS-NG. While no specific Inspector General jurisdiction is mentioned for this particular award, the DFC's Office of Inspector General would have oversight authority over agency programs and contracts to detect and prevent waste, fraud, and abuse.

Related Government Programs

IT Professional Services
IT Services (Non-IT Schedule)
Information Technology Consulting
Computer Systems Design Services

Risk Flags

Potential for undefined scope within 'Other Computer Related Services'.
Labor hours pricing model requires diligent oversight to control costs.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

U.S. International Development Finance Corporation awarded $6.3 million to SUMMIT CONSULTING LLC. CHIPS REVIEW AND ADMINISTRATION FOLLOW ON

Who is the contractor on this award?

The obligated recipient is SUMMIT CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: U.S. International Development Finance Corporation (U.S. International Development Finance Corporation).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-09-12. End: 2026-09-16.

What is Summit Consulting LLC's past performance record with the federal government, particularly on similar IT service contracts?

Assessing Summit Consulting LLC's past performance requires a detailed review of their contract history within federal databases such as the Federal Procurement Data System (FPDS-NG) and potentially CPARS (Contractor Performance Assessment Reporting System). While this specific award indicates they were selected, it doesn't detail their track record. Generally, agencies evaluate past performance as a key factor in source selection. A strong record typically involves successful delivery of services on time, within budget, and to the satisfaction of the requiring agency, with minimal disputes or performance issues. Without access to CPARS data or a more comprehensive FPDS-NG analysis, it's difficult to provide a definitive assessment of their track record beyond their ability to win this DFC contract.

How does the $6.3 million contract value compare to the typical IT service spending of the U.S. International Development Finance Corporation?

To compare the $6.3 million contract value to the DFC's typical IT spending, one would need to analyze historical DFC procurement data over several fiscal years. This analysis would involve identifying all IT service contracts awarded by the DFC, summing their values, and calculating an average or median annual spending. If the DFC's annual IT budget is significantly larger or smaller than $6.3 million, this contract could be considered a major investment or a routine expenditure. For instance, if the DFC typically spends $10-15 million annually on IT services, this $6.3 million contract represents a substantial portion of their IT budget for the contract's duration. Conversely, if their annual IT spending is in the hundreds of millions, this contract would be a smaller, more focused procurement.

What are the primary risks associated with this 'Other Computer Related Services' contract, and how are they being mitigated?

The primary risks associated with a broad 'Other Computer Related Services' contract (NAICS 541519) often include scope definition ambiguity, potential for cost overruns due to the labor hours pricing model, and reliance on the contractor's expertise. Mitigation strategies typically involve robust contract management, clear statement of work (SOW) development, regular performance reviews, and potentially establishing fixed-price CLINs (Contract Line Item Numbers) for well-defined tasks within the larger contract. The DFC's contracting officers would be responsible for closely monitoring the SOW, ensuring deliverables align with agency needs, and managing the labor hours to prevent excessive spending. The competitive award process itself also acts as a risk mitigation by selecting a vendor deemed capable and offering a fair price.

What specific IT services are encompassed by NAICS code 541519, and how do they align with the DFC's mission?

NAICS code 541519, 'Other Computer Related Services,' is a broad category that includes services such as IT consulting, systems integration, IT support, and potentially custom software development that doesn't fit into more specific categories. For the U.S. International Development Finance Corporation (DFC), which facilitates private investment in emerging markets to promote development, these services likely support the agency's internal IT infrastructure, data management systems, cybersecurity efforts, and potentially platforms used for managing investment portfolios and communications. Ensuring robust and secure IT systems is crucial for the DFC to effectively execute its mission of driving economic growth and development through strategic investments.

What does the 'Delivery Order' award type signify in the context of this contract?

The 'Delivery Order' award type typically signifies that this contract is a task order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract, a government-wide acquisition contract (GWAC), or another type of multiple-award contract. This means the DFC likely already had a contract vehicle in place that allowed for the issuance of multiple delivery orders for IT services. The 'Delivery Order' specifies the exact services, quantities, and prices for this particular instance of work. This approach allows agencies to procure services more efficiently and rapidly than through a full, new procurement process each time a need arises, while still maintaining some level of competition or pre-qualification through the underlying IDIQ contract.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 777 6TH ST NW, WASHINGTON, DC, 20001

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,633,796

Exercised Options: $8,633,796

Current Obligation: $6,309,722

Actual Outlays: $2,843,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00L1

IDV Type: FSS

Timeline