Education Department awards $15.8M IT services contract to PPS Infotech LLC under full and open competition

Contract Overview

Contract Amount: $15,822,971 ($15.8M)

Contractor: PPS Infotech LLC

Awarding Agency: Department of Education

Start Date: 2025-01-01

End Date: 2026-06-30

Contract Duration: 545 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PAS LIMITED SOURCE BRIDGE TASK ORDER

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Education obligated $15.8 million to PPS INFOTECH LLC for work described as: PAS LIMITED SOURCE BRIDGE TASK ORDER Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support. 2. The firm fixed-price contract type suggests predictable costs for the government. 3. A single award indicates a focused engagement with one primary vendor. 4. The contract duration spans over a year, suggesting a sustained need for services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is managed by the Department of Education, highlighting its role in supporting educational technology infrastructure.

Value Assessment

Rating: good

Benchmarking the value of this $15.8 million contract requires more detailed cost breakdowns and service level agreements. However, as a firm fixed-price contract, it offers cost certainty. Comparing the per-unit cost of services to similar IT support contracts within the federal government or private sector would provide a clearer picture of value for money. The duration of the contract suggests a significant investment in ongoing IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it resulted in a single award indicates that PPS Infotech LLC was selected as the most advantageous offer. The level of competition is a positive sign for price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for public funds, preventing potential overpricing and ensuring efficient use of resources.

Public Impact

The Department of Education benefits from enhanced IT services, potentially improving the efficiency and effectiveness of its operations. Federal employees within the Department of Education will likely experience improved IT support, leading to increased productivity. The contract supports the delivery of critical IT infrastructure and services necessary for the department's mission. The geographic impact is primarily within Maryland, where the contractor is located, but the services support a national agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single vendor could pose risks if the vendor experiences performance issues or financial instability.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost predictability for the government.
Contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Education's IT spending, contributing to the overall digital transformation and operational efficiency goals within the agency. Comparable spending benchmarks would involve looking at other federal contracts for similar IT support services across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus is on larger, established vendors capable of meeting the contract's requirements.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Education's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through federal contract databases like FPDS, where award details are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Information Technology Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor
Evolving cybersecurity threats
Complexity of IT service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $15.8 million to PPS INFOTECH LLC. PAS LIMITED SOURCE BRIDGE TASK ORDER

Who is the contractor on this award?

The obligated recipient is PPS INFOTECH LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-06-30.

What is the track record of PPS Infotech LLC in performing similar federal IT services contracts?

Assessing the track record of PPS Infotech LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. A history of successful, on-time, and within-budget delivery of comparable IT services would indicate a lower performance risk. Conversely, a pattern of negative performance reviews, contract disputes, or terminations would raise concerns about their capability to fulfill the current award effectively. Without specific past performance data readily available in this summary, a deeper dive into their contract history is necessary for a comprehensive assessment.

How does the estimated value of this contract compare to similar IT services contracts awarded by the Department of Education or other federal agencies?

To benchmark the value, we would compare the $15.8 million total value over its 545-day duration against similar IT services contracts. This involves looking at contracts with comparable scope, complexity, and service level agreements. For instance, contracts for IT support, system integration, or managed IT services awarded to other agencies or even within the Department of Education itself can serve as benchmarks. Factors like the number of users supported, the criticality of the systems, and the specific technologies involved influence pricing. A higher per-user cost or a significantly higher total contract value compared to similar contracts might suggest a potential overpayment or a scope that is more extensive than average.

What are the primary IT services this contract will provide, and how critical are they to the Department of Education's mission?

The NAICS code 541519, 'Other Computer Related Services,' suggests a broad range of IT support. This could encompass help desk support, network management, system maintenance, software installation and updates, cybersecurity monitoring, and potentially IT consulting. The criticality of these services to the Department of Education's mission is likely high, as modern government operations are heavily reliant on robust and secure IT infrastructure. Disruptions in IT services could impede administrative functions, data management, and the delivery of educational programs and resources. Therefore, ensuring the continuity and effectiveness of these services is paramount.

What is the historical spending pattern of the Department of Education on IT services, and how does this contract fit within that trend?

Analyzing historical spending on IT services by the Department of Education would reveal trends in their technology investments. This involves examining annual IT budgets and contract awards over several fiscal years. Understanding whether this $15.8 million award represents an increase, decrease, or steady level of spending provides context. For example, if the department has been consistently spending in this range for similar services, it suggests a stable operational need. If spending has increased significantly, it might indicate new initiatives or a growing reliance on external IT support. Conversely, a decrease could signal efforts to bring services in-house or a reduction in IT scope.

Are there any specific performance risks associated with PPS Infotech LLC or the nature of the services being procured?

Performance risks can arise from various factors. For PPS Infotech LLC, risks might include their financial stability, the availability of skilled personnel, and their past performance record, as discussed previously. The nature of 'Other Computer Related Services' can also introduce risks, such as the complexity of integrating new systems, the evolving threat landscape in cybersecurity, or the potential for scope creep if requirements are not clearly defined. The firm fixed-price contract type, while beneficial for cost control, can also pose a risk if unforeseen technical challenges arise, potentially straining the vendor's resources and impacting delivery if not managed proactively.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18104 TRUFFLE LN, BOYDS, MD, 20841

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,822,971

Exercised Options: $15,822,971

Current Obligation: $15,822,971

Actual Outlays: $9,989,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D000E

IDV Type: FSS

Timeline