NAC/DAS O&M SUPPORT contract awarded to SATSYIL CORP for over $19.5M, spanning 5 years

Contract Overview

Contract Amount: $19,504,443 ($19.5M)

Contractor: Satsyil Corp

Awarding Agency: National Archives and Records Administration

Start Date: 2021-01-29

End Date: 2026-07-25

Contract Duration: 2,003 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NAC/DAS O&M SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $19.5 million to SATSYIL CORP for work described as: NAC/DAS O&M SUPPORT Key points: 1. Value for money appears fair given the firm-fixed-price structure and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period requiring ongoing oversight. 4. Performance context is within IT services, specifically custom computer programming. 5. Sector positioning is within government IT support services, a common area for federal spending.

Value Assessment

Rating: fair

The contract's value of over $19.5 million for a 5-year period averages approximately $3.9 million annually. Benchmarking against similar IT O&M support contracts is challenging without more specific service details. However, the firm-fixed-price (FFP) award type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. The number of bids received (8) provides some basis for price discovery, but a deeper analysis of the bid spread would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bids received. This indicates a robust competitive environment where multiple vendors had the opportunity to bid. A higher number of bidders generally suggests a healthier market and can lead to more competitive pricing for the government. The agency sought proposals from all responsible sources, maximizing the potential for innovative solutions and cost-effectiveness.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging efficiency from contractors. This approach ensures that the government is not locked into a single provider, allowing for better price discovery and potentially lower overall costs.

Public Impact

The National Archives and Records Administration (NARA) benefits from this contract through the continued operation and maintenance of its IT systems. Essential IT operations and maintenance support services are delivered, ensuring the reliability and availability of critical systems. The primary geographic impact is within Virginia, where the services are likely performed or managed. The contract supports the IT workforce, potentially creating or sustaining jobs in custom computer programming and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) increases the risk of scope creep or performance degradation without diligent oversight.
Reliance on a single award for a critical function like O&M could pose a risk if the contractor underperforms.
Firm-fixed-price contracts can sometimes lead to reduced flexibility if requirements change significantly mid-contract.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor.
Multiple bidders (8) suggest a healthy market and potential for competitive pricing.
Contract supports essential IT operations for a key federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services and IT operations and maintenance (O&M). The market for IT support services for federal agencies is substantial, with significant annual spending across various departments. Comparable spending benchmarks would typically involve analyzing IT O&M contracts awarded by agencies of similar size and mission to NARA, looking at contract values, durations, and service scopes to assess if this award is within the expected range.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. As a result, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into the contractor's subcontracting plan would be necessary to determine any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Archives and Records Administration's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated by the contract's award under full and open competition, with data typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Operations and Maintenance Services
Custom Computer Programming Services
Federal IT Support Contracts
National Archives and Records Administration IT Spending

Risk Flags

Long contract duration requires sustained oversight.
Potential for scope creep in IT O&M over 5 years.
Need to verify contractor's past performance on similar contracts.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $19.5 million to SATSYIL CORP. NAC/DAS O&M SUPPORT

Who is the contractor on this award?

The obligated recipient is SATSYIL CORP.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2021-01-29. End: 2026-07-25.

What is the track record of SATSYIL CORP in performing similar IT O&M support contracts for federal agencies?

A thorough review of SATSYIL CORP's past performance is crucial for assessing their capability to successfully execute this contract. This would involve examining their contract history with federal agencies, specifically looking for experience in IT Operations and Maintenance (O&M) and custom computer programming. Key factors to consider include past performance evaluations, any instances of contract disputes or terminations, and the successful delivery of services on time and within budget for similar-sized and scoped projects. Analyzing their performance on previous contracts awarded by the National Archives and Records Administration (NARA) or other agencies with comparable IT infrastructure needs would provide the most relevant insights into their reliability and expertise.

How does the average annual cost of this contract compare to similar IT O&M support contracts awarded by NARA or other agencies?

The average annual cost of this contract is approximately $3.9 million ($19.5M / 5 years). To benchmark this value, one would need to compare it against IT O&M support contracts of similar scope, complexity, and duration awarded by NARA and other federal agencies. This comparison should consider the specific services included (e.g., software development, system maintenance, help desk support, cybersecurity), the labor categories involved, and the prevailing market rates for such services. Analyzing data from contracts awarded within the last 1-2 years would provide the most relevant comparison. If this contract's annual cost is significantly higher or lower than comparable contracts, it warrants further investigation into the reasons, such as unique requirements, market conditions, or differences in service levels.

What are the primary risks associated with a 5-year firm-fixed-price contract for IT O&M support?

A significant risk with a 5-year firm-fixed-price (FFP) contract for IT O&M support is the potential for scope creep or evolving technological requirements that may not be adequately captured in the initial fixed price. While FFP shifts cost overrun risk to the contractor, it can also incentivize the contractor to minimize effort or cut corners if not managed diligently. Furthermore, over a long period, the technology landscape can change rapidly, potentially making the contracted services or systems outdated. Ensuring robust change management processes and clear performance metrics are in place is critical to mitigate these risks. The agency must maintain strong oversight to ensure the contractor continues to meet evolving needs and maintain service quality throughout the contract's life.

What specific IT systems or services are covered under the NAC/DAS O&M SUPPORT contract?

The provided data indicates the contract is for 'NAC/DAS O&M SUPPORT' and falls under the 'Custom Computer Programming Services' NAICS code (541511). However, it does not detail the specific IT systems or services covered. To understand the scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This document would outline the exact systems (e.g., databases, applications, networks), the maintenance activities (e.g., patching, upgrades, troubleshooting), and the programming services (e.g., bug fixes, enhancements, new feature development) required. Without the SOW/PWS, it's difficult to assess the criticality of the supported systems or the complexity of the services.

How does the number of bidders (8) influence the potential for cost savings for the government on this contract?

Receiving 8 bids for this contract, awarded under full and open competition, generally suggests a healthy level of competition. A larger number of bidders typically increases the likelihood that the government will receive competitive pricing, as contractors vie for the award. This competitive pressure can drive down prices compared to a situation with fewer bidders or a sole-source award. While 8 bidders is a positive sign, the actual cost savings depend on the spread between the bids. If the bids were clustered closely together, it might indicate a stable market price. However, if there was a wide range, it suggests significant differences in contractor cost structures or perceived value, potentially offering substantial savings if the lowest bidder was selected and performed effectively.

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 - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13800 COPPERMINE RD STE 138, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned 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: $34,850,168

Exercised Options: $21,350,168

Current Obligation: $19,504,443

Actual Outlays: $18,191,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D009K

IDV Type: FSS

Timeline