Department of Education awards $2.5M for enterprise business collaboration O&M to Interactive Process Technology, LLC

Contract Overview

Contract Amount: $2,517,554 ($2.5M)

Contractor: Interactive Process Technology, LLC

Awarding Agency: Department of Education

Start Date: 2024-08-07

End Date: 2027-02-06

Contract Duration: 913 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS AWARD IS TO PROVIDE FSA WITH ENTERPRISE BUSINESS COLLABORATION OPERATIONS AND MAINTENANCE.

Place of Performance

Location: SALEM, ROCKINGHAM County, NEW HAMPSHIRE, 03079

State: New Hampshire Government Spending

Plain-Language Summary

Department of Education obligated $2.5 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: THE PURPOSE OF THIS AWARD IS TO PROVIDE FSA WITH ENTERPRISE BUSINESS COLLABORATION OPERATIONS AND MAINTENANCE. Key points: 1. Contract focuses on essential enterprise business collaboration operations and maintenance. 2. Awarded via full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration of 913 days suggests a medium-term need for these services. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. Services are to be performed in New Hampshire. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: good

The award amount of $2.52 million for enterprise business collaboration operations and maintenance appears reasonable for a nearly three-year contract. Benchmarking against similar IT operations and maintenance contracts would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for cost control in such service contracts. Without specific performance metrics or detailed service breakdowns, a definitive value-for-money judgment is challenging, but the initial price point seems within expected ranges for IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' phrasing implies a potentially narrower field than a pure full and open competition. This could impact the degree of price discovery and innovation achieved.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'full and open' aspect suggests an effort to solicit multiple bids. Taxpayers benefit from a competitive process that aims to secure fair pricing, even with source exclusions. The specific reasons for exclusion would be key to understanding the full impact on taxpayer value.

Public Impact

Federal employees within the Department of Education will benefit from improved enterprise business collaboration tools and support. The services delivered will ensure the continuity and efficiency of critical business operations. The contract's geographic impact is focused on New Hampshire, where the services will be performed. The contract supports the IT workforce, likely involving skilled professionals in computer systems design and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to source exclusion in the competitive process.
Reliance on a single contractor for critical business collaboration operations and maintenance could pose a risk if performance falters.
The specific nature of 'enterprise business collaboration' is broad and could encompass a wide range of IT functions, requiring careful performance monitoring.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under a competitive process, suggesting an effort to obtain fair market value.
The contract duration indicates a stable, ongoing need for these essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The market for enterprise IT operations and maintenance is substantial, driven by government and commercial entities' increasing reliance on digital infrastructure. Comparable spending benchmarks for similar IT support contracts within federal agencies can range widely based on scope and duration. This award represents a modest investment within the broader federal IT spending landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside. The prime contractor, Interactive Process Technology, LLC, is not specified as a small business in the provided data, so its own size status would determine its eligibility for future small business programs or subcontracting goals.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Education's contracting officers and program managers. They will be responsible for monitoring performance against the contract's terms and conditions, ensuring deliverables meet requirements, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or alleged.

Related Government Programs

Federal IT Modernization Programs
Enterprise Resource Planning (ERP) Systems Support
Cloud Computing Services
IT Operations and Maintenance Contracts
Department of Education IT Infrastructure

Risk Flags

Potential for reduced competition due to source exclusion.
Contractor performance risk for critical IT operations.
Scope creep if 'enterprise business collaboration' is not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $2.5 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. THE PURPOSE OF THIS AWARD IS TO PROVIDE FSA WITH ENTERPRISE BUSINESS COLLABORATION OPERATIONS AND MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is INTERACTIVE PROCESS TECHNOLOGY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-08-07. End: 2027-02-06.

What is the specific track record of Interactive Process Technology, LLC with the Department of Education or similar federal agencies?

A thorough review of Interactive Process Technology, LLC's past performance with the Department of Education and other federal agencies is crucial. This involves examining their history of delivering similar IT services, including operations and maintenance for enterprise business collaboration tools. Key performance indicators (KPIs) from previous contracts, such as on-time delivery, quality of service, and adherence to budget, should be assessed. Any past performance evaluations, contract terminations, or significant disputes would be critical risk indicators. Understanding their experience with firm-fixed-price contracts and the specific technologies involved in enterprise collaboration is also important for gauging their capability to successfully execute this award.

How does the $2.52 million contract value compare to similar enterprise business collaboration O&M contracts awarded by the Department of Education or other agencies?

Benchmarking this $2.52 million contract against similar awards requires identifying contracts with comparable scope (enterprise business collaboration O&M), duration (913 days), and service complexity. The Department of Education, along with agencies like GSA or HHS, often procures similar IT support services. A comparative analysis would involve looking at the average cost per day or per user for similar services. Factors such as the specific technologies supported (e.g., Microsoft 365, custom platforms), the level of support required (e.g., 24/7 vs. business hours), and the geographic location of service delivery can influence pricing. Without access to detailed comparative data, it's difficult to definitively state if this award represents superior or inferior value, but the amount appears within a plausible range for a multi-year IT support contract.

What are the primary risks associated with this contract, considering the 'exclusion of sources' procurement method?

The primary risk associated with the 'exclusion of sources' procurement method is the potential for reduced competition, which could lead to suboptimal pricing or less innovation compared to a fully open competition. If the excluded sources were highly capable or offered competitive pricing, their absence might mean the government did not secure the absolute best value. Another risk is that the reasons for exclusion might not have been fully justified, potentially limiting the pool of qualified vendors unnecessarily. Furthermore, understanding why sources were excluded is important; if it was due to highly specialized requirements, the risk shifts to whether the selected contractor can adequately meet those niche needs over the contract's duration.

How effective are the oversight mechanisms in place for this contract to ensure performance and accountability?

The effectiveness of oversight for this contract hinges on the Department of Education's established processes for contract management. Standard oversight mechanisms include the appointment of a Contracting Officer's Representative (COR) responsible for day-to-day performance monitoring, regular progress meetings with the contractor, and review of performance metrics and deliverables. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to successful completion of defined tasks. However, the true effectiveness depends on the diligence of the COR, the clarity of the contract's performance work statement (PWS), and the agency's ability to identify and address any performance deficiencies promptly. Robust reporting requirements and clear remedies for non-performance are also key.

What is the historical spending pattern for enterprise business collaboration operations and maintenance within the Department of Education?

Analyzing historical spending patterns for enterprise business collaboration operations and maintenance within the Department of Education is essential for context. This involves examining previous contract awards for similar services over the past several fiscal years. Key questions include: Was this service previously contracted out? If so, to whom and at what cost? Has spending in this area increased or decreased over time? Are there trends in contract duration or type (e.g., fixed-price vs. cost-plus)? Understanding these patterns helps determine if the current $2.52 million award is consistent with historical investment levels, represents a significant increase or decrease, and whether the Department is consolidating or diversifying its IT support vendors.

What specific technologies or platforms are encompassed by 'enterprise business collaboration operations and maintenance' in this contract?

The term 'enterprise business collaboration operations and maintenance' is broad and can encompass a variety of technologies and platforms critical for internal communication and workflow management. This typically includes email systems (e.g., Microsoft Exchange, Google Workspace), instant messaging and presence tools (e.g., Microsoft Teams, Slack), video conferencing solutions (e.g., Zoom, Webex), document sharing and co-authoring platforms (e.g., SharePoint, OneDrive, Google Drive), and potentially project management or workflow automation software. The specific platforms supported under this contract would be detailed in the Performance Work Statement (PWS). Understanding these specifics is vital for assessing the contractor's technical capabilities and the true scope of the O&M effort.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 91003124Q0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Interactive Process Technology LLC

Address: 1500 DISTRICT AVE STE 1037, BURLINGTON, MA, 01803

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,110,135

Exercised Options: $2,707,254

Current Obligation: $2,517,554

Actual Outlays: $1,928,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0031

IDV Type: GWAC

Timeline