USDA awards $36.5M for IDB Support Services to PHACIL, LLC over 5.6 years

Contract Overview

Contract Amount: $36,467,547 ($36.5M)

Contractor: Phacil, LLC

Awarding Agency: Department of Agriculture

Start Date: 2010-09-15

End Date: 2016-03-31

Contract Duration: 2,024 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IDB SUPPORT SERVICE FOR IO LAB

Place of Performance

Location: BRIDGEWATER, SOMERSET County, NEW JERSEY, 08807

State: New Jersey Government Spending

Plain-Language Summary

Department of Agriculture obligated $36.5 million to PHACIL, LLC for work described as: IDB SUPPORT SERVICE FOR IO LAB Key points: 1. Contract value of $36.5M for IT support services. 2. PHACIL, LLC, a single vendor, secured the award. 3. Risk of vendor lock-in and potential price escalation. 4. IT sector spending on computer systems design services.

Value Assessment

Rating: fair

The contract value of $36.5M over 5.6 years suggests a moderate annual spend. Benchmarking against similar IT support contracts is difficult without more granular data on service scope and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition approach. This method may not have yielded the most competitive pricing.

Taxpayer Impact: The $36.5M expenditure represents taxpayer funds allocated for essential IT support services, with potential for cost savings if competition were broader.

Public Impact

Ensures continuity of critical IT support for the USDA's Office of the Chief Financial Officer. Supports the 'IDB SUPPORT SERVICE FOR IO LAB' initiative. Potential impact on small businesses if subcontracting opportunities are limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Long contract duration (5.6 years) could reduce flexibility.
Vendor performance and service quality are key risks.

Positive Signals

Provides essential IT support services.
Clear contract end date allows for future re-competition.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, driven by the need for modern digital infrastructure and support.

Small Business Impact

The data does not indicate if PHACIL, LLC is a small business, nor does it specify small business subcontracting goals. Further analysis is needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture. Oversight would typically involve contract officers and program managers ensuring service delivery and adherence to terms.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Limited competition.
Potential for vendor lock-in.
Lack of transparency on small business participation.
Long contract duration.
Dependence on a single vendor for critical IT support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $36.5 million to PHACIL, LLC. IDB SUPPORT SERVICE FOR IO LAB

Who is the contractor on this award?

The obligated recipient is PHACIL, 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 $36.5 million.

What is the period of performance?

Start: 2010-09-15. End: 2016-03-31.

What specific IT support services are included under this contract, and how do they align with the USDA's strategic IT goals?

The contract covers 'IDB SUPPORT SERVICE FOR IO LAB,' likely encompassing IT infrastructure management, system maintenance, and potentially specialized support for the IO Lab. Alignment with strategic goals would depend on the specific functions of the IO Lab and the USDA's broader digital transformation objectives. A detailed review of the Statement of Work is necessary for a definitive assessment.

Given the limited competition, what measures were in place to ensure fair pricing and prevent cost overruns?

The 'Full and Open Competition After Exclusion of Sources' suggests a justification for limiting the pool of bidders. To ensure fair pricing, the government likely relied on pre-negotiated rates, market research, or historical cost data. However, the absence of broader competition inherently increases the risk of paying a premium compared to a fully open solicitation.

How will the effectiveness of PHACIL, LLC's support be measured, and what are the key performance indicators (KPIs)?

Effectiveness is typically measured through Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) defined in the contract's Statement of Work. These might include system uptime, response times for support requests, and successful resolution rates. Regular performance reviews by the contracting officer would assess adherence to these metrics.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 N GLEBE RD STE 700, ARLINGTON, VA, 22203

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,384,415

Exercised Options: $36,467,547

Current Obligation: $36,467,547

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0651Z

IDV Type: GWAC

Timeline