Department of Agriculture awards $57.6M IT contract to TANTUS TECHNOLOGIES, INC. for enterprise service desk

Contract Overview

Contract Amount: $57,585,537 ($57.6M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2017-08-18

End Date: 2022-10-15

Contract Duration: 1,884 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF ENTERPRISE SERVICE DESK AND OPERATIONS PER PWS DATED 22 JUNE 2017.

Place of Performance

Location: KANSAS CITY, CLAY County, MISSOURI, 64117

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $57.6 million to TANTUS TECHNOLOGIES, INC. for work described as: IGF::CL::IGF ENTERPRISE SERVICE DESK AND OPERATIONS PER PWS DATED 22 JUNE 2017. Key points: 1. Contract value represents a significant investment in IT support services. 2. Competition was conducted under 'full and open' terms, suggesting broad market engagement. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. Fixed-price contract type aims to control costs and provide budget predictability. 5. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The specific NAICS code (541512) points to a focus on computer systems design services.

Value Assessment

Rating: good

The contract's value of $57.6 million over approximately five years suggests a substantial investment in IT support. Benchmarking against similar enterprise service desk contracts would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control. Without specific performance metrics or comparisons to industry benchmarks for similar services, a definitive value assessment is challenging, but the duration and scope imply a significant operational need.

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.' This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The presence of 6 bidders (no) suggests a reasonably competitive environment, which typically leads to better pricing and service offerings for the government. The exclusion of sources clause might indicate specific requirements that narrowed the field slightly but still allowed for broad competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better value for public funds.

Public Impact

Federal employees within the Department of Agriculture benefit from enhanced IT support services. The contract delivers essential enterprise service desk and operations support. The geographic impact is likely nationwide, supporting USDA operations across various locations. Workforce implications include the potential for job creation or retention within TANTUS TECHNOLOGIES, INC. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service desk becomes deeply integrated.
Reliance on a single vendor for critical IT support could pose risks.
Scope creep could lead to cost overruns if not managed tightly.

Positive Signals

Firm fixed-price contract helps manage cost predictability.
Full and open competition suggests a competitive market was leveraged.
Long-term contract indicates a stable and ongoing need for services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support and computer systems design services. The market for enterprise IT service desk solutions is robust, with numerous providers offering a range of capabilities. Government spending in this area is substantial, driven by the need to maintain complex IT infrastructures and support a large federal workforce. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded to federal agencies for similar support functions.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, as a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to TANTUS TECHNOLOGIES, INC. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the service desk operations.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Agriculture would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Service Management
Help Desk Services
Computer Systems Design
Enterprise IT Operations
Federal IT Support Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single provider for critical IT functions
Risk of scope creep impacting budget
Ensuring consistent service level performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $57.6 million to TANTUS TECHNOLOGIES, INC.. IGF::CL::IGF ENTERPRISE SERVICE DESK AND OPERATIONS PER PWS DATED 22 JUNE 2017.

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, 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 $57.6 million.

What is the period of performance?

Start: 2017-08-18. End: 2022-10-15.

What is the track record of TANTUS TECHNOLOGIES, INC. in delivering similar IT service desk solutions to federal agencies?

TANTUS TECHNOLOGIES, INC. has a history of performing IT services for the federal government. While specific details on their past performance for enterprise service desk operations of this scale require deeper investigation into contract databases and performance reports, their award by the Department of Agriculture for this significant contract suggests they possess the necessary capabilities and experience. Analyzing past performance evaluations, any reported issues, and the successful completion of prior contracts would provide a comprehensive understanding of their track record. It's important to note that contract awards do not always equate to flawless execution, and a review of their performance history is crucial for a complete assessment.

How does the awarded amount of $57.6 million compare to industry benchmarks for similar enterprise service desk contracts?

Benchmarking the $57.6 million award requires comparing it against similar-sized enterprise service desk contracts within the federal government or large commercial enterprises. Factors such as the number of users supported, the scope of services (e.g., 24/7 support, specific software/hardware troubleshooting, cybersecurity incident response), and the contract duration (1884 days, approximately 5.16 years) are critical for a fair comparison. Without access to a comprehensive database of comparable contracts and their specific metrics, it's difficult to definitively state if this amount is high or low. However, for a multi-year, comprehensive enterprise service desk supporting a large agency like the USDA, this figure appears within a plausible range, assuming the scope of work is extensive.

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

Key risks for this contract include potential vendor lock-in, where the agency becomes overly reliant on TANTUS TECHNOLOGIES, INC., making future transitions difficult and costly. Another risk is scope creep, where the services required expand beyond the original PWS, potentially leading to cost overruns despite the firm fixed-price structure. Performance degradation or failure to meet service level agreements (SLAs) is also a risk. Mitigation strategies likely include robust contract management by the USDA, clear definition and monitoring of SLAs, regular performance reviews, and contingency planning for service continuity. The firm fixed-price nature itself acts as a mitigation against uncontrolled cost increases.

How effective is the 'full and open competition' approach in ensuring value for money for this IT service contract?

The 'full and open competition' approach is generally considered effective in ensuring value for money because it maximizes the number of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. With 6 bidders participating, the Department of Agriculture likely benefited from a range of proposals and price points. This competitive pressure incentivizes contractors to offer their best value proposition to win the contract. While 'full and open' is a strong starting point, the ultimate value for money also depends on the clarity of the PWS, the effectiveness of the evaluation process, and ongoing contract management to ensure the contractor meets performance expectations.

What is the historical spending pattern for enterprise service desk and IT operations support within the Department of Agriculture?

Analyzing historical spending patterns for enterprise service desk and IT operations support within the Department of Agriculture would involve examining past contracts for similar services. This contract, awarded in 2017 with an end date in 2022, represents a significant portion of spending over that period. Understanding previous contract values, durations, and incumbent contractors can reveal trends in IT support outsourcing, cost fluctuations, and the agency's evolving needs. A review of prior solicitations and awards for IT support services would illuminate whether this $57.6 million award is consistent with, or a deviation from, historical spending levels and procurement strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: AG-3144-S-17-0016

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1735 N LYNN ST STE 650, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,919,703

Exercised Options: $57,919,703

Current Obligation: $57,585,537

Actual Outlays: $40,286,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200177W

IDV Type: GWAC

Timeline