Commerce Department's $53M Microcomputer Support Services contract awarded to QSS Group, Inc. shows fair value

Contract Overview

Contract Amount: $53,176,235 ($53.2M)

Contractor: QSS Group, Inc.

Awarding Agency: Department of Commerce

Start Date: 2006-05-31

End Date: 2008-10-31

Contract Duration: 884 days

Daily Burn Rate: $60.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MICROCOMPUTER SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $53.2 million to QSS GROUP, INC. for work described as: MICROCOMPUTER SUPPORT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Competition was robust, suggesting effective price discovery and potential for taxpayer savings. 3. The fixed-fee structure provides cost control, though the 'cost plus' element warrants monitoring. 4. Performance period of nearly three years allows for sustained support and evaluation. 5. This contract aligns with broader federal IT modernization and support initiatives. 6. The award to a single entity indicates a focus on specialized capabilities for microcomputer support.

Value Assessment

Rating: fair

The total value of $53.2 million over approximately 2.9 years suggests an average annual spend of around $18.3 million. Benchmarking against similar federal IT support contracts indicates this falls within a reasonable range for comprehensive microcomputer support services. The 'cost plus fixed fee' pricing structure, while allowing for flexibility, requires careful oversight to ensure costs remain controlled and aligned with the fixed fee objectives. Without specific details on the scope of services, a precise value-for-money assessment is challenging, but the overall expenditure appears consistent with industry standards for similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The presence of multiple bidders (3 bids received) suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery, as it incentivizes offerors to submit competitive bids to secure the award. The agency's choice to compete this delivery order implies a belief that multiple vendors could meet the specified needs.

Taxpayer Impact: The robust competition for this delivery order likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is receiving services at a price driven by market forces.

Public Impact

Federal employees within the Department of Commerce benefit from reliable microcomputer support. Services delivered include maintenance, repair, and potentially installation of microcomputer hardware and software. The geographic impact is primarily within the District of Columbia, where the contract is registered. The contract supports the IT infrastructure necessary for the daily operations of various Commerce Department offices. Workforce implications include the potential for IT specialists employed by QSS Group, Inc. to support the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in 'cost plus' contracts if not tightly managed.
Scope creep could increase costs beyond initial projections if not clearly defined and controlled.
Dependence on a single contractor for critical IT support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
The fixed-fee component provides a ceiling for contractor profit, aiding cost control.
A defined performance period allows for structured service delivery and performance monitoring.
The contract duration allows for the development of a strong working relationship and institutional knowledge.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on end-user computing support. The federal IT services market is substantial, with agencies consistently investing in hardware, software, and support to maintain operational capabilities. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and service level agreements, but contracts in the tens of millions are common for comprehensive support of large organizations. This contract represents a typical investment by a federal agency to ensure the functionality of its essential computing infrastructure.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, QSS Group, Inc., is likely a large business. There is no direct information on subcontracting plans or performance related to small businesses within this specific delivery order. The absence of a small business set-aside suggests that the competition was open to all qualified offerors, and the agency did not prioritize small business participation for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Commerce. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Federal IT Support Services
Microcomputer Hardware and Software Maintenance
IT Services for Executive Agencies
Department of Commerce IT Procurement

Risk Flags

Cost Plus contract type requires diligent oversight to manage potential cost overruns.
Lack of specific performance metrics in summary data hinders detailed value assessment.
No small business subcontracting information available in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $53.2 million to QSS GROUP, INC.. MICROCOMPUTER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is QSS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $53.2 million.

What is the period of performance?

Start: 2006-05-31. End: 2008-10-31.

What specific microcomputer hardware and software are covered under this contract, and what is the typical response time for support requests?

The provided data does not specify the exact makes and models of microcomputer hardware or the specific software applications covered. Similarly, the typical response times for support requests are not detailed in the award information. This level of detail is usually found in the Performance Work Statement (PWS) or Statement of Work (SOW) associated with the contract. Such documents would outline the scope of services, including hardware/software inventory, service level agreements (SLAs) for response and resolution times, and any geographical limitations for on-site support. Without access to these underlying documents, a precise understanding of the service parameters is not possible.

How does the 'cost plus fixed fee' pricing structure compare to other contract types for similar IT support services?

The 'cost plus fixed fee' (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, or when there is a high degree of uncertainty regarding the costs involved. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to 'firm-fixed-price' (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For IT support services where requirements can evolve, CPFF can be advantageous. However, FFP contracts are generally preferred when requirements are well-defined, as they provide greater cost certainty for the government. Other types like 'time and materials' (T&M) can also be used, but they often require more intensive monitoring to control costs.

What was the total spending on microcomputer support services by the Department of Commerce in the years preceding this contract award?

The provided data focuses solely on this specific contract (Award ID: 60154, totaling $53,176,234.81). It does not contain historical spending data for microcomputer support services by the Department of Commerce in prior years. To determine historical spending patterns, one would need to query federal procurement databases (like FPDS or USASpending.gov) for all contracts awarded to the Department of Commerce related to 'microcomputer support services' or similar keywords within a relevant timeframe before May 31, 2006. Analyzing such data would reveal trends in spending, identify other contractors, and provide context for the scale and cost of this particular award.

What is the track record of QSS Group, Inc. in performing federal IT support contracts, particularly those of similar size and scope?

The provided data identifies QSS Group, Inc. as the contractor for this $53.2 million microcomputer support services contract. However, it does not offer details on the company's overall track record, past performance ratings on other federal contracts, or specific experience with similar IT support engagements. A comprehensive assessment of QSS Group, Inc.'s track record would require reviewing their performance history on other federal awards, including any past performance evaluations, contract modifications, or disputes. Information on their success with other agencies, the types of IT services they have provided, and their ability to meet deadlines and quality standards would be crucial for a complete understanding of their capabilities.

Were there any significant performance issues or contract disputes associated with this QSS Group, Inc. contract during its period of performance?

The provided summary data for this contract does not include information regarding performance issues, disputes, or contract terminations. The award details indicate a completion date of October 31, 2008, suggesting the contract was fulfilled. To ascertain if there were any significant performance issues or disputes, one would need to consult more detailed contract administration records, such as contract close-out documentation, performance reviews, or any official correspondence related to contract modifications or claims. Such information is typically not available in high-level procurement databases but might be accessible through agency records or Freedom of Information Act (FOIA) requests.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Marketing L.P. (UEI: 079202985)

Address: 4500 FORBES BLVD STE 200, LANHAM, MD, 04

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $395,227,686

Exercised Options: $116,395,435

Current Obligation: $53,176,235

Parent Contract

Parent Award PIID: 50CMAA900059

IDV Type: IDC

Timeline