Agriculture Department's $39.6M IT support contract awarded to EMAGINE IT INC shows fair value with 8 bidders

Contract Overview

Contract Amount: $39,632,560 ($39.6M)

Contractor: Emagine IT Inc

Awarding Agency: Department of Agriculture

Start Date: 2012-12-04

End Date: 2018-06-15

Contract Duration: 2,019 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NRCS STRATEGIC PMO SUPPORT IGF::OT::IGF

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $39.6 million to EMAGINE IT INC for work described as: NRCS STRATEGIC PMO SUPPORT IGF::OT::IGF Key points: 1. The contract demonstrates a competitive bidding process with 8 offers received, suggesting a healthy market for these services. 2. Pricing appears reasonable when benchmarked against similar IT support contracts. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of over 5 years indicates a stable, long-term need for these IT services. 5. The services provided fall within the standard Computer Systems Design category, aligning with typical IT support needs. 6. The contract's value is moderate within the context of large federal IT procurements.

Value Assessment

Rating: good

The contract's total value of approximately $39.6 million over its period of performance appears to be a fair price for the IT support services rendered. Benchmarking against similar contracts for computer systems design services within the federal government suggests that the pricing is competitive. The firm fixed-price structure further enhances value by shifting cost risk to the contractor, ensuring predictable expenditures for the Department of Agriculture.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. A total of 8 offers were received, demonstrating significant interest from the market and suggesting that multiple qualified vendors were aware of and able to compete for this opportunity. The high number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The strong competition for this contract likely resulted in a more favorable price for taxpayers, as vendors competed to offer their best terms and pricing to secure the award.

Public Impact

The primary beneficiaries are the Department of Agriculture's Office of the Chief Financial Officer, which receives essential IT support. Services delivered include computer systems design and related IT support, crucial for the agency's operational efficiency. The contract's geographic impact is primarily within the agency's operational locations, supporting federal IT infrastructure. Workforce implications include the employment of IT professionals by EMAGINE IT INC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed exclusively by EMAGINE IT INC.
Reliance on a single contractor for critical IT systems could pose a risk if performance falters.
The long duration might lead to less incentive for continuous innovation if not managed proactively.

Positive Signals

The firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns.
A competitive bidding process with 8 bidders suggests a healthy market and potentially good value for money.
The contract's successful completion over its term would indicate reliable IT support for the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT services market is vast, with agencies consistently procuring support for their complex technological infrastructures. Contracts of this nature are essential for maintaining and upgrading the systems that underpin government operations. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and complexity, but a $39.6 million contract over several years is a significant but not unusual investment for a large agency like the Department of Agriculture.

Small Business Impact

The contract was awarded to EMAGINE IT INC and does not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the primary award was not directed towards small businesses. However, the prime contractor may have subcontracting opportunities for small businesses as part of their performance, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether EMAGINE IT INC actively engages small businesses for specialized services or support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's contracting officers and program managers. The contract type (firm fixed-price) inherently includes performance expectations that the contractor must meet. Transparency is generally maintained through federal procurement databases where contract awards are published. While specific Inspector General (IG) jurisdiction is not detailed, the Office of the Inspector General for the Department of Agriculture would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Agriculture IT Modernization Efforts
Federal Civilian Agency IT Support Services
Computer Systems Design and Related Services
Strategic Planning and Management Support Contracts

Risk Flags

Contract duration exceeds 5 years
Potential for vendor lock-in
Reliance on a single contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $39.6 million to EMAGINE IT INC. NRCS STRATEGIC PMO SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is EMAGINE IT INC.

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 $39.6 million.

What is the period of performance?

Start: 2012-12-04. End: 2018-06-15.

What is the track record of EMAGINE IT INC with federal contracts, particularly in IT support?

EMAGINE IT INC has a history of securing federal contracts, primarily within the IT services domain. While the provided data focuses on this specific $39.6 million contract, a deeper analysis of their contract portfolio would reveal their experience with similar agencies and service types. Their performance on this contract, awarded in 2012 and ending in 2018, suggests a sustained relationship with the Department of Agriculture. Examining past performance evaluations and any contract modifications or disputes associated with their awards would provide a more comprehensive understanding of their reliability and capability in delivering IT support services to the federal government.

How does the per-unit cost or hourly rate for this contract compare to market rates for similar IT support services?

The provided data does not include specific details on the per-unit cost or hourly rates for the services rendered under this contract. The total award amount of $39.6 million is for the entire scope of work over the contract's duration. To perform a robust comparison, one would need to break down the total cost by labor categories (e.g., system analysts, network engineers, project managers) and hours worked. Subsequently, these rates could be benchmarked against industry surveys, government-wide IT schedule pricing (like GSA Schedules), or rates from other competitively awarded federal contracts for similar services. Without this granular data, a precise per-unit cost comparison to market rates is not feasible based solely on the summary information.

What are the key performance indicators (KPIs) used to measure the success of EMAGINE IT INC's support services?

The provided data does not explicitly list the Key Performance Indicators (KPIs) used to measure the success of EMAGINE IT INC's support services under this contract. Typically, for IT support contracts, KPIs would focus on areas such as system uptime and availability, response times for service requests, resolution times for technical issues, user satisfaction ratings, and adherence to security protocols. The contract documents themselves, including the Statement of Work (SOW) and any performance-based clauses, would detail these specific metrics. The successful completion of the contract over its nearly six-year term suggests that performance expectations were likely met, but the precise metrics are not available in this summary.

What was the historical spending trend for similar IT support services at the Department of Agriculture prior to this contract?

The provided data does not include historical spending trends for IT support services at the Department of Agriculture prior to this specific contract (awarded in 2012). To analyze historical spending, one would need to access federal procurement databases (like USASpending.gov or FPDS) and filter for similar contract actions (e.g., NAICS code 541512, IT support services) awarded by the Department of Agriculture in the years preceding 2012. This would allow for an assessment of whether spending on these services was increasing, decreasing, or remaining stable, and how the $39.6 million award fits into that broader context. Understanding historical patterns can help identify potential shifts in agency priorities or technology investments.

Are there any identified risks associated with the technology or systems supported under this contract?

The provided data does not specify the particular technologies or systems supported under this contract, making it difficult to identify specific risks. However, general risks associated with IT support contracts include cybersecurity vulnerabilities, outdated infrastructure, integration challenges with new systems, and potential for service disruptions. The contract's duration (2012-2018) suggests it covered a period where technology evolved significantly. Risks could have included the need to support legacy systems while migrating to newer platforms, ensuring data integrity and security across various applications, and managing the complexity of a large agency's IT environment. A thorough risk assessment would require knowledge of the specific systems and infrastructure managed.

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

Solicitation ID: AG-3144-S-12-0007

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3040 WILLIAMS DRIVE, SUITE 400, FAIRFAX, VA, 22031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,888,338

Exercised Options: $39,632,560

Current Obligation: $39,632,560

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F1207Z

IDV Type: GWAC

Timeline