NRCS IT Support Services contract awarded to Vistronix, LLC for over $21.4 million

Contract Overview

Contract Amount: $21,479,427 ($21.5M)

Contractor: Vistronix, LLC

Awarding Agency: Department of Agriculture

Start Date: 2011-07-29

End Date: 2012-09-27

Contract Duration: 426 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NRCS IT SUPPORT SERVICES

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $21.5 million to VISTRONIX, LLC for work described as: NRCS IT SUPPORT SERVICES Key points: 1. Contract value of $21.4M for IT support services over a 15-month period. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of IT services. 5. The contract was a delivery order under a larger contract vehicle. 6. The contractor, Vistronix, LLC, has a track record with federal contracts. 7. The contract duration was approximately 14 months, suggesting a need for specific, short-term support. 8. The contract was awarded to a single vendor, Vistronix, LLC.

Value Assessment

Rating: fair

The contract value of over $21.4 million for 15 months of IT support services appears to be within a reasonable range for federal IT contracts of this scope. However, without specific details on the services rendered and the labor mix, a precise value-for-money assessment is challenging. Benchmarking against similar IT support contracts would provide a clearer picture of whether the pricing was competitive. The firm fixed-price nature of the contract suggests that the government aimed to control costs by transferring risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the solicitation was broadly advertised and multiple bids were considered. The presence of 9 bidders suggests a healthy level of competition for this IT support services contract. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders typically results in better pricing for taxpayers by encouraging vendors to offer their most cost-effective solutions.

Public Impact

The primary beneficiaries are the Department of Agriculture's Natural Resources Conservation Service (NRCS) IT operations, ensuring continuity and support. Services delivered include IT support, likely encompassing help desk, system maintenance, and potentially network support. The geographic impact is likely focused on NRCS facilities, though the exact locations are not specified. Workforce implications include the employment of IT professionals by Vistronix, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Risk of scope creep if the initial requirements were not precisely defined.
Dependence on a single contractor for critical IT support functions.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency and cost control.
Full and open competition indicates a robust selection process.
The contract was a delivery order, suggesting it was part of a pre-competed vehicle, potentially streamlining acquisition.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT support services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common as agencies outsource specialized IT functions to leverage external expertise and manage costs. Benchmarking against similar IT support contracts within the federal government would reveal if the $21.4 million award is typical for the scope and duration.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award, as the 'sb' field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary focus was on securing IT support services through the most competitive means available, rather than specifically targeting small business prime contractors or subcontractors for this particular delivery order.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Agriculture. Performance metrics and deliverables would be monitored to ensure compliance with the contract terms. Transparency is generally maintained through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Operations and Support
Cloud Computing Services
Cybersecurity Services
Software Development Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor performance issues impacting critical IT operations.
Dependence on a single vendor for essential IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21.5 million to VISTRONIX, LLC. NRCS IT SUPPORT SERVICES

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 $21.5 million.

What is the period of performance?

Start: 2011-07-29. End: 2012-09-27.

What specific IT support services were included in this $21.4 million contract?

The provided data indicates the NAICS code is 541519, 'Other Computer Related Services.' This broad classification suggests the services could encompass a wide range of IT support, potentially including help desk operations, network administration, system maintenance, hardware/software troubleshooting, and IT infrastructure management. Without the full contract statement of work, the precise nature and scope of services are not detailed. However, given the value and duration, it likely involved comprehensive support for a significant portion of the NRCS's IT environment.

How does the $21.4 million contract value compare to similar IT support contracts awarded by the Department of Agriculture?

Comparing this $21.4 million contract to similar IT support contracts within the Department of Agriculture requires access to a broader dataset of federal procurements. However, for a 15-month period, this value suggests a substantial scope of work. Federal IT support contracts can range from a few hundred thousand dollars for specialized tasks to tens or hundreds of millions for large-scale, multi-year enterprise-wide support. The firm fixed-price nature and the competitive award suggest an effort to achieve value, but a direct comparison with contracts for identical services and durations would be necessary for a definitive assessment of its market competitiveness.

What is the track record of Vistronix, LLC in performing federal IT support contracts?

Vistronix, LLC has a history of receiving federal contracts, including those related to IT services. Analyzing their past performance on similar contracts would be crucial for assessing their reliability and capability in fulfilling this $21.4 million award. Key indicators would include on-time delivery, adherence to budget, quality of service, and any past performance issues or disputes. A review of their contract history, including contract close-outs and any performance evaluations, would provide insight into their track record.

What are the potential risks associated with a firm fixed-price IT support contract of this magnitude?

A primary risk with firm fixed-price (FFP) contracts is that if the contractor underestimates the effort or encounters unforeseen complexities, they may incur losses. Conversely, if the government's requirements change significantly, modifications to the FFP contract can be costly and complex. For IT support, risks include potential for scope creep if requirements are not clearly defined, vendor lock-in if the contractor develops proprietary solutions, and the possibility of the contractor cutting corners on quality to maintain profitability if oversight is insufficient. However, FFP also offers the benefit of cost certainty for the government.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process impact the final contract price?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation indicates that the solicitation was widely advertised, and all responsible sources were permitted to submit offers. The fact that 9 bids were received suggests a competitive environment. In such scenarios, vendors are incentivized to offer competitive pricing to win the contract. This process generally leads to better price discovery and can result in a lower final contract price for the government compared to sole-source or limited competition awards, as multiple vendors vie for the business.

What is the historical spending pattern for NRCS IT support services?

To determine historical spending patterns for NRCS IT support services, one would need to analyze contract data over several fiscal years. This would involve identifying all contracts awarded by NRCS for IT support (using relevant NAICS codes and contract descriptions) and aggregating their values. Understanding these patterns can reveal trends in IT spending, identify key vendors, and highlight any significant increases or decreases in investment in IT support, which can inform future budgeting and procurement strategies.

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: 9

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: $21,479,427

Exercised Options: $21,479,427

Current Obligation: $21,479,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: AG3144C070017

IDV Type: IDC

Timeline