FSIS IT Operations & Maintenance contract awarded to Sotera Defense Solutions for over $40.9 million

Contract Overview

Contract Amount: $40,978,965 ($41.0M)

Contractor: Sotera Defense Solutions, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2017-06-20

End Date: 2018-11-30

Contract Duration: 528 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CONTRACTOR TO PERFORM FSIS ENTERPRISE IT OPERATIONS&MAINTENANCE (O&M) SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $41.0 million to SOTERA DEFENSE SOLUTIONS, INC. for work described as: IGF::OT::IGF CONTRACTOR TO PERFORM FSIS ENTERPRISE IT OPERATIONS&MAINTENANCE (O&M) SUPPORT SERVICES. Key points: 1. Contract provides essential IT operations and maintenance support for the Food Safety and Inspection Service. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Sotera Defense Solutions, Inc. is the prime contractor for this IT support services requirement. 4. The contract duration spans approximately 1.75 years, from June 2017 to November 2018. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract was awarded as a Delivery Order, indicating it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of over $40.9 million for 1.75 years of IT operations and maintenance support appears reasonable given the scope of services for a federal agency like FSIS. Benchmarking against similar IT O&M contracts would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control costs by transferring risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this IT support services requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal employees within the Food Safety and Inspection Service benefit from reliable IT infrastructure and support. The contract ensures the continuity of critical IT operations necessary for FSIS's mission. The services delivered are essential for maintaining the agency's digital systems and data management. The primary geographic impact is within the District of Columbia, where the agency is headquartered. The contract supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent contractor's solutions become deeply integrated.
Reliance on a single delivery order under a potentially larger IDIQ could limit flexibility if needs change significantly.
Ensuring adequate performance metrics are in place to guarantee service quality throughout the contract term.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm Fixed Price contract type helps manage cost certainty for the government.
The contract supports essential IT operations, crucial for agency functionality.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The federal government is a significant consumer of these services, with substantial annual spending on IT operations, maintenance, and modernization. Comparable spending benchmarks for IT O&M support across federal agencies can vary widely based on agency size, complexity of systems, and specific service requirements. This contract represents a portion of the government's investment in maintaining its digital infrastructure.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor are there explicit mentions of subcontracting requirements for small businesses in the provided data. The prime contractor, Sotera Defense Solutions, Inc., is a mid-sized to large business. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/technical points of contact within the Food Safety and Inspection Service. Performance monitoring, adherence to service level agreements, and invoice review are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Agriculture would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

FSIS IT Support Services
Department of Agriculture IT Contracts
Computer Systems Design Services
Federal IT Operations and Maintenance

Risk Flags

Potential for performance issues impacting critical agency functions.
Risk of cost overruns if scope is not well-defined under FFP.
Cybersecurity vulnerabilities in supported systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $41.0 million to SOTERA DEFENSE SOLUTIONS, INC.. IGF::OT::IGF CONTRACTOR TO PERFORM FSIS ENTERPRISE IT OPERATIONS&MAINTENANCE (O&M) SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is SOTERA DEFENSE SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2017-06-20. End: 2018-11-30.

What is the track record of Sotera Defense Solutions, Inc. in performing similar IT Operations & Maintenance contracts for federal agencies?

Sotera Defense Solutions, Inc. has a history of performing IT support and related services for various federal agencies. Their experience often includes areas like cybersecurity, network management, and system integration. To fully assess their track record for this specific FSIS contract, a detailed review of past performance evaluations, any contract disputes or awards, and the scope of their previous O&M engagements would be necessary. Examining their performance on similar-sized contracts and within the IT services domain would provide a clearer picture of their capabilities and reliability in delivering these critical services.

How does the awarded value of $40.9 million compare to similar IT O&M contracts for agencies of FSIS's size?

The awarded value of over $40.9 million for approximately 1.75 years of IT O&M support for the Food Safety and Inspection Service (FSIS) needs to be benchmarked against comparable contracts. Agencies of similar size and complexity within the federal government often award IT O&M contracts ranging from tens to hundreds of millions of dollars over multi-year periods. Factors influencing this value include the number of users supported, the criticality of the systems, the scope of services (e.g., help desk, network infrastructure, application support, cybersecurity), and the specific technologies in use. Without direct comparison data for FSIS's specific IT environment and service level agreements, it's challenging to definitively state if this value represents excellent or fair pricing, but it falls within a plausible range for federal IT support.

What are the primary risks associated with this IT O&M contract for FSIS?

Key risks associated with this IT O&M contract include potential service disruptions if the contractor fails to meet performance standards, leading to impacts on FSIS's food safety mission. There's also a risk of cost overruns if the Firm Fixed Price (FFP) structure doesn't adequately account for unforeseen technical challenges or scope creep, although FFP generally shifts cost risk to the contractor. Another risk involves knowledge transfer and continuity, especially if there are frequent personnel changes by the contractor. Cybersecurity vulnerabilities within the supported systems also pose a significant risk, requiring robust security measures from the contractor. Finally, vendor lock-in could be a concern if the implemented solutions are proprietary and difficult to transition away from.

How effective is the Firm Fixed Price (FFP) contract type in ensuring value for money in IT O&M services?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money for IT Operations & Maintenance (O&M) services by placing the primary cost risk on the contractor. This incentivizes the contractor to manage their costs efficiently and deliver services within the agreed-upon price. For predictable O&M tasks, FFP provides cost certainty for the government. However, for IT services where requirements can evolve rapidly or involve significant innovation, FFP might discourage the contractor from proposing more efficient or advanced solutions if they require additional investment beyond the fixed price. In such cases, other contract types like Cost Plus Incentive Fee (CPIF) or Time and Materials (T&M) might be considered, but FFP is often preferred for its cost control benefits when requirements are well-defined.

What is the historical spending trend for IT Operations & Maintenance at the Food Safety and Inspection Service?

To determine the historical spending trend for IT O&M at the Food Safety and Inspection Service (FSIS), one would need to analyze contract data over several preceding fiscal years. This would involve identifying all contracts related to IT O&M, support services, and potentially related infrastructure maintenance awarded by FSIS. By aggregating the values and durations of these contracts, a trend analysis could reveal whether spending has been increasing, decreasing, or remaining relatively stable. Understanding this trend provides context for the current $40.9 million award, indicating if it represents a significant change in investment or a continuation of established spending patterns for essential IT services.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 2551 DULLES VIEW DR STE 700, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $44,708,242

Exercised Options: $40,978,965

Current Obligation: $40,978,965

Actual Outlays: $19,980,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200048W

IDV Type: GWAC

Timeline