Vistronix LLC contract for IT support services valued at over $24.5M, awarded by the Department of Agriculture

Contract Overview

Contract Amount: $24,555,300 ($24.6M)

Contractor: Vistronix, LLC

Awarding Agency: Department of Agriculture

Start Date: 2008-12-20

End Date: 2010-01-12

Contract Duration: 388 days

Daily Burn Rate: $63.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORT SERVICES FOR IT SYSTEMS MAINTENANCE OF NRCS BUSINESS APPLICATIONS (THROUGH 2ND QTR FY-09), WIAVER #: 1716; IA#: NRCS 09-0231

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.6 million to VISTRONIX, LLC for work described as: SUPPORT SERVICES FOR IT SYSTEMS MAINTENANCE OF NRCS BUSINESS APPLICATIONS (THROUGH 2ND QTR FY-09), WIAVER #: 1716; IA#: NRCS 09-0231 Key points: 1. The contract value of $24.5M over approximately 1.3 years suggests a significant investment in IT system maintenance. 2. Awarded under 'Full and Open Competition After Exclusion of Sources,' the procurement process warrants further examination for its competitive nature. 3. The 'Other Computer Related Services' NAICS code indicates a broad scope of IT support, potentially encompassing various maintenance and operational tasks. 4. The contract's duration of 388 days is relatively short for a large IT support services contract, raising questions about long-term planning. 5. The fixed-price contract type aims to control costs, but the final value may depend on the scope of services delivered. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

The contract value of $24.5M for approximately 1.3 years of IT support services appears substantial. Benchmarking against similar contracts for IT system maintenance for federal agencies of this size would be necessary to definitively assess value for money. The fixed-price contract type suggests an attempt to manage costs, but without detailed service level agreements and performance metrics, it's difficult to ascertain if the price reflects optimal value. The per-unit cost is not readily calculable without a breakdown of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, specific sources were excluded, which could limit the breadth of competition. The number of bidders is not specified, making it difficult to assess the intensity of competition. A limited competition might lead to less aggressive pricing compared to a truly full and open process with maximum bidder participation.

Taxpayer Impact: The exclusion of certain sources, even if justified, could potentially result in a higher price for taxpayers than if all capable vendors had been allowed to bid.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's Office of the Chief Financial Officer, which will receive IT support services. The services delivered are crucial for the maintenance of NRCS business applications, ensuring operational continuity. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications may include the employment of IT professionals by Vistronix, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may have impacted price discovery.
The fixed-price contract type could incentivize cost-cutting that might affect service quality if not carefully monitored.
The duration of the contract is relatively short for a large IT support services engagement, raising questions about long-term strategy.

Positive Signals

The contract is awarded to Vistronix, LLC, suggesting they possess the necessary qualifications and capabilities.
The fixed-price contract type provides cost certainty for the government.
The contract is for essential IT system maintenance, indicating a focus on operational stability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services and system maintenance. The IT services market for the federal government is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of that broader spending, supporting critical business applications for the Department of Agriculture. Comparable spending benchmarks would involve analyzing IT maintenance contracts across various federal agencies with similar operational needs.

Small Business Impact

The contract data indicates that this was not a small business set-aside (sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was likely on obtaining the best value from the available pool of contractors, regardless of size.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially contracting officer's representatives (CORs) to monitor performance, ensure compliance with terms, and approve payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected within the contract's execution.

Related Government Programs

IT System Maintenance Contracts
Computer Systems Design and Related Services
Federal IT Support Services
Department of Agriculture IT Spending

Risk Flags

Limited Competition
Potential for Suboptimal Price Discovery
Short Contract Duration for Large Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.6 million to VISTRONIX, LLC. SUPPORT SERVICES FOR IT SYSTEMS MAINTENANCE OF NRCS BUSINESS APPLICATIONS (THROUGH 2ND QTR FY-09), WIAVER #: 1716; IA#: NRCS 09-0231

Who is the contractor on this award?

The obligated recipient is VISTRONIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2008-12-20. End: 2010-01-12.

What is the track record of Vistronix, LLC in performing similar IT support services for federal agencies?

Assessing Vistronix, LLC's track record would involve reviewing their past performance on federal contracts, particularly those involving IT system maintenance and support for business applications. This includes examining contract awards, completion history, any reported performance issues or disputes, and client feedback if available through sources like the Contractor Performance Assessment Reporting System (CPARS). A history of successful, on-time, and within-budget delivery of similar services would indicate a lower performance risk. Conversely, a pattern of issues could signal potential problems for this current contract. Without specific past performance data for Vistronix on comparable contracts, it is difficult to provide a definitive assessment of their reliability for this specific engagement.

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

The contract value of $24.5M for approximately 1.3 years of IT support services for NRCS business applications is substantial. To benchmark its value, one would compare it to contracts for similar IT maintenance and support services awarded by agencies of comparable size and complexity, such as other large cabinet-level departments or independent agencies. Key comparison points would include the scope of services (e.g., help desk, network maintenance, application support, cybersecurity), the duration of the contract, and the pricing structures (e.g., fixed-price, time-and-materials). If similar contracts for comparable services are consistently awarded at lower price points or for longer durations with similar funding, it might suggest this contract's value is on the higher side. Conversely, if the scope is particularly complex or the market rates have increased, the value might be deemed appropriate.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract could include performance risk (contractor failing to deliver services as specified), cost risk (potential for cost overruns if the fixed-price structure is not well-defined or if scope creep occurs), and schedule risk (delays in service delivery impacting NRCS operations). Mitigation strategies would typically involve robust contract oversight by the agency, clear performance metrics and Service Level Agreements (SLAs), regular progress reviews, and a well-defined change management process. The fixed-price nature of the contract itself is a risk mitigation tool for the government against cost overruns, provided the scope is precisely defined. The 'Full and Open Competition After Exclusion of Sources' also introduces a risk related to potentially suboptimal competition, which could be mitigated by ensuring the exclusion criteria were justified and well-documented.

How effective is the 'Full and Open Competition After Exclusion of Sources' procurement method in ensuring fair pricing and optimal vendor selection for IT services?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach. While it aims for open competition, the explicit exclusion of certain sources can limit the competitive landscape. The effectiveness in ensuring fair pricing and optimal vendor selection depends heavily on the justification for the exclusions. If exclusions are based on legitimate technical requirements, security mandates, or prior performance issues, the remaining pool might still yield competitive offers. However, if exclusions are arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices and a less optimal selection of vendors. A thorough review of the justification for exclusion and the number of responsive bids received is crucial to assess the effectiveness in this specific case.

What is the historical spending pattern for IT system maintenance support services within the Department of Agriculture, and how does this contract fit into that pattern?

Analyzing historical spending patterns for IT system maintenance within the Department of Agriculture would involve examining aggregate data over several fiscal years. This would reveal trends in overall IT spending, the proportion allocated to maintenance versus new development, and the typical contract vehicles and award values used. This contract, valued at $24.5M over roughly 1.3 years, represents a significant, albeit potentially short-term, investment. Understanding whether this level of spending is consistent with previous years, or if it represents an increase or decrease, provides context. It helps determine if this contract is part of a sustained effort, a one-time augmentation, or a shift in strategy for supporting NRCS business applications. Comparing its value and duration to historical averages would indicate its relative scale within the department's IT budget.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8401 GREENSBORO DR # 500, MC LEAN, VA, 22102

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $24,555,300

Exercised Options: $24,555,300

Current Obligation: $24,555,300

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AG3144C070017

IDV Type: IDC

Timeline