Department of Education awards $40.7M contract to Briefcase Systems Development Inc. for student loan data system support

Contract Overview

Contract Amount: $40,690,644 ($40.7M)

Contractor: Briefcase Systems Development Inc

Awarding Agency: Department of Education

Start Date: 2020-03-29

End Date: 2022-09-28

Contract Duration: 913 days

Daily Burn Rate: $44.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS CONTRACT IS FOR THE CONTINUED OPERATIONS AND MAINTENANCE FOR NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) AND FOR THE CONTINUED SUPPORT OF FSA'S NEXTGEN INITIATIVES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $40.7 million to BRIEFCASE SYSTEMS DEVELOPMENT INC for work described as: THIS CONTRACT IS FOR THE CONTINUED OPERATIONS AND MAINTENANCE FOR NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) AND FOR THE CONTINUED SUPPORT OF FSA'S NEXTGEN INITIATIVES. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on critical student loan data operations and future system enhancements. 3. Duration of 913 days suggests a need for sustained, specialized support. 4. Firm Fixed Price contract type aims to control costs but may reduce flexibility. 5. No small business set-aside indicates potential for large prime contractor involvement. 6. Geographic location in Washington D.C. may imply proximity to agency operations.

Value Assessment

Rating: fair

The contract's value of approximately $40.7 million over 913 days, averaging around $44,568 per day, needs careful benchmarking against similar IT operations and maintenance contracts. Without comparative data on the complexity and scope of the NSLDS and NextGen initiatives, assessing value for money is challenging. The firm fixed-price structure provides cost certainty but could lead to overpayment if the contractor's actual costs are significantly lower than anticipated. Further analysis would require understanding the specific deliverables and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The justification for a sole-source award would need to be thoroughly reviewed to understand why full and open competition was not feasible or advantageous for the Department of Education. The lack of competition means taxpayers did not benefit from potential cost savings or a wider range of technical solutions that a competitive process might have yielded.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not achieve the best possible price due to the absence of competitive pressure.

Public Impact

Students and educational institutions benefit from the reliable operation of the National Student Loan Data System (NSLDS). The contract supports the continued operation and maintenance of critical financial aid IT infrastructure. Enhancements to FSA's NextGen initiatives aim to improve the student financial aid process. The primary geographic impact is national, given the scope of federal student loan data. Workforce implications include the need for specialized IT personnel for system operations and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may reduce incentives for contractor efficiency and innovation.
Dependence on a single contractor for critical IT infrastructure poses a potential risk.
The firm fixed-price nature might not fully account for potential scope changes or unforeseen technical challenges.

Positive Signals

Contract ensures continuity of essential operations for the NSLDS.
Focus on NextGen initiatives suggests a commitment to modernizing student financial aid systems.
Firm Fixed Price contract provides budget certainty for the agency.
The contractor, Briefcase Systems Development Inc., is tasked with maintaining critical data systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The total federal spending on IT services is substantial, with a considerable portion allocated to operations, maintenance, and system development. Contracts like this are crucial for agencies managing large, complex data systems such as those related to student financial aid. Benchmarking would involve comparing the contract's value and duration against other federal contracts for similar IT support services, considering factors like system criticality and user base size.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false) and did not involve small business participation (sb: false). This suggests that the prime contractor is likely a larger entity, and there may be limited opportunities for small businesses to participate as subcontractors unless specifically required by the prime. The absence of a small business set-aside means the primary focus was on selecting the most capable vendor, rather than specifically promoting small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. Accountability measures are usually embedded within the contract's performance work statement, including service level agreements and deliverable requirements. Transparency is often facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to the contract were initiated.

Related Government Programs

Federal Student Aid (FSA) IT Modernization Efforts
National Student Loan Data System (NSLDS) Operations
IT Operations and Maintenance Contracts
Computer Systems Design Services
Sole-Source IT Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Dependence on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $40.7 million to BRIEFCASE SYSTEMS DEVELOPMENT INC. THIS CONTRACT IS FOR THE CONTINUED OPERATIONS AND MAINTENANCE FOR NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) AND FOR THE CONTINUED SUPPORT OF FSA'S NEXTGEN INITIATIVES.

Who is the contractor on this award?

The obligated recipient is BRIEFCASE SYSTEMS DEVELOPMENT INC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $40.7 million.

What is the period of performance?

Start: 2020-03-29. End: 2022-09-28.

What is the track record of Briefcase Systems Development Inc. with the Department of Education and similar federal contracts?

A thorough review of Briefcase Systems Development Inc.'s contract history with the Department of Education and other federal agencies is necessary to assess their performance and reliability. This includes examining past performance evaluations, any contract disputes or terminations, and their experience with large-scale IT operations and maintenance. Understanding their prior success in delivering similar services, particularly for critical data systems, would provide crucial context for evaluating the current award. Data on their financial stability and capacity to handle a contract of this magnitude would also be important. Without specific historical performance data, it is difficult to definitively assess their track record beyond the information provided in this single contract award.

How does the daily cost of this contract compare to industry benchmarks for similar IT operations and maintenance services?

The daily cost for this contract is approximately $44,568 ($40,690,643.84 / 913 days). To benchmark this effectively, we would need to compare it against industry data for IT operations and maintenance services for large-scale, critical government systems. Factors such as the complexity of the NSLDS, the scope of NextGen initiatives, security requirements, and the level of support needed would influence comparable costs. Industry reports on IT service pricing, data from similar federal contracts (especially those competed), and analyses from government accountability offices could provide relevant benchmarks. A higher daily rate might be justified by specialized expertise or unique system requirements, while a lower rate could indicate efficiency or a less complex scope.

What are the specific risks associated with a sole-source award for critical IT infrastructure like the NSLDS?

Sole-source awards for critical IT infrastructure present several risks. Primarily, the absence of competition can lead to higher costs for taxpayers, as the government may not secure the most competitive pricing. It can also reduce the incentive for the contractor to innovate or operate with maximum efficiency, as there is no direct competitive pressure. Furthermore, reliance on a single vendor can create vendor lock-in, making it difficult and costly to switch providers in the future. There's also a potential risk if the sole-source contractor experiences financial difficulties or fails to meet performance expectations, as finding and transitioning to an alternative provider can be a lengthy and complex process, potentially disrupting essential services.

What is the expected impact of the 'NextGen initiatives' on the student loan system and its users?

The 'NextGen initiatives' mentioned in the contract description likely aim to modernize and improve the functionality, user experience, and efficiency of the student financial aid systems managed by the Department of Education. This could involve updating legacy systems, integrating new technologies, enhancing data analytics capabilities, and streamlining processes for students, loan servicers, and educational institutions. The expected impact could include a more intuitive interface for borrowers, faster processing of aid applications and loan disbursements, improved communication, better tools for managing student debt, and enhanced data security and integrity. The specific goals and outcomes of these initiatives would be detailed in the contract's statement of work.

How has federal spending on IT operations and maintenance for student financial aid systems evolved over the past five years?

Analyzing the historical spending trends for IT operations and maintenance related to federal student financial aid systems over the past five years would provide valuable context. This would involve examining aggregate spending data for programs like NSLDS and FSA initiatives, identifying any significant increases or decreases, and understanding the drivers behind these changes. Factors such as system upgrades, new legislative requirements, shifts in technology, or changes in student participation could influence spending patterns. Comparing current spending levels to historical averages can help determine if the $40.7 million award is consistent with past investment or represents a notable shift in resource allocation for these critical systems.

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

The performance metrics and Service Level Agreements (SLAs) are critical components of this contract, defining the expected standards of service and the contractor's obligations. While not detailed in the provided summary, these would typically outline specific, measurable, achievable, relevant, and time-bound (SMART) goals for system uptime, response times for issue resolution, data accuracy, security compliance, and the successful delivery of new functionalities related to the NextGen initiatives. Adherence to these SLAs would likely be tied to contractor payment and overall performance evaluation. Understanding these metrics is essential for assessing whether Briefcase Systems Development Inc. is meeting the government's requirements and delivering adequate value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 731 PARRISH FARM LN, GREAT FALLS, VA, 22066

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,654,259

Exercised Options: $40,690,644

Current Obligation: $40,690,644

Actual Outlays: $40,690,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline