Commerce Dept. awards $77.2M for IT support, with 6 bidders in full and open competition

Contract Overview

Contract Amount: $77,243,560 ($77.2M)

Contractor: SBD Alliant, LLC

Awarding Agency: Department of Commerce

Start Date: 2013-02-05

End Date: 2022-02-23

Contract Duration: 3,305 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: IGF::OT::IGF GEOGRAPHY SUPPORT SERVICES AWARD

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $77.2 million to SBD ALLIANT, LLC for work described as: IGF::OT::IGF GEOGRAPHY SUPPORT SERVICES AWARD Key points: 1. The contract value of $77.2 million over its period of performance suggests a significant investment in IT infrastructure support. 2. Full and open competition with six bidders indicates a healthy market for these services, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient service delivery. 4. The contract duration of approximately 9 years (3305 days) points to a long-term need for these IT services. 5. The contractor, SBD Alliant, LLC, has secured a substantial award, indicating a strong position in the federal IT services market. 6. The IT services procured fall under Computer Systems Design Services, a critical area for agency operations.

Value Assessment

Rating: good

The contract value of $77.2 million over nearly nine years averages to approximately $8.6 million annually. Benchmarking this against similar large-scale IT support contracts for federal agencies requires detailed analysis of scope and service levels. However, the presence of six bidders in a full and open competition suggests that the pricing is likely competitive within the market for these specialized services. The fixed-price contract type further supports value for money by aligning contractor incentives with efficient delivery.

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, with six bidders participating. This level of competition is generally considered robust and suggests that multiple capable vendors were able to bid on the requirement. A higher number of bidders typically leads to better price discovery and can result in more favorable pricing for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential IT support services.

Public Impact

The U.S. Census Bureau benefits from enhanced IT infrastructure and support, crucial for its data collection and dissemination functions. Essential IT services, including computer systems design, are delivered to support the agency's operational needs. The primary geographic impact is within Maryland, where the contract is managed and likely where services are primarily delivered. The contract supports a workforce skilled in IT systems design and support, contributing to the federal IT sector's employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential for scope creep or evolving technology needs not fully captured in initial pricing.
Reliance on a single contractor for nearly nine years may reduce flexibility in adopting new technologies or service providers.
Fixed-price contracts can sometimes incentivize contractors to cut corners if not adequately monitored, though performance metrics should mitigate this.

Positive Signals

Full and open competition with six bidders suggests a competitive market and likely fair pricing.
The fixed-price contract type transfers risk to the contractor, encouraging efficient performance.
The contractor, SBD Alliant, LLC, has secured a significant award, indicating established capability and trust.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from software development to hardware maintenance and network management. This contract for Computer Systems Design Services falls within the broader IT services market, which is characterized by intense competition and rapid technological advancement. Federal agencies are significant consumers of these services, relying on them to maintain and modernize their operations. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded to other agencies of similar size and mission.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. While SBD Alliant, LLC may be a small business itself, the contract was not set aside for small businesses. This means that larger businesses were eligible to compete and potentially win. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, but there is no explicit requirement indicated in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Census Bureau's contracting officers and program managers. The fixed-price contract type necessitates monitoring of performance against defined requirements to ensure value for money. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Infrastructure
Census Bureau Operations Support
Large IT Contracts

Risk Flags

Long-term contract duration may require careful monitoring for scope creep and technological relevance.
Fixed-price contract type necessitates strong performance monitoring to ensure quality is maintained.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $77.2 million to SBD ALLIANT, LLC. IGF::OT::IGF GEOGRAPHY SUPPORT SERVICES AWARD

Who is the contractor on this award?

The obligated recipient is SBD ALLIANT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $77.2 million.

What is the period of performance?

Start: 2013-02-05. End: 2022-02-23.

What is the track record of SBD Alliant, LLC in performing similar federal IT support contracts?

Assessing the track record of SBD Alliant, LLC requires a review of their past performance on federal contracts, particularly those involving computer systems design services and IT support. Information on past performance can often be found in federal procurement databases and through sources like the Contractor Performance Assessment Reporting System (CPARS). A review would look for consistent on-time delivery, adherence to budget, quality of service, and positive past performance evaluations. For this specific contract, the award itself indicates a level of trust and capability, but a deeper dive into their history would reveal any potential risks or strengths related to their ability to execute this nearly decade-long engagement successfully.

How does the per-unit cost or annual cost of this contract compare to similar IT support contracts awarded by other federal agencies?

Directly comparing the per-unit cost or annual cost of this $77.2 million contract (averaging ~$8.6 million/year) to similar contracts requires detailed knowledge of the specific services rendered, the scope of work, and the service level agreements (SLAs) in place. Federal IT support contracts can vary widely in complexity, from basic help desk functions to advanced systems design and integration. A robust comparison would involve identifying contracts with comparable objectives, such as IT infrastructure support for large statistical agencies or data collection bodies. Factors like geographic location, security requirements, and the specific technologies supported also influence pricing. Without access to detailed scope-of-work documents for multiple contracts, a precise benchmark is challenging, but the competitive nature of this award suggests it is likely within a reasonable market range.

What are the primary risks associated with a fixed-price contract of this duration (nearly 9 years)?

The primary risks associated with a fixed-price contract of this duration (3305 days) revolve around potential changes in technology, evolving agency requirements, and contractor performance over an extended period. For the government, there's a risk that the fixed price may become uncompetitive if market rates decrease or if the scope of work needs significant adjustments that are costly to negotiate. For the contractor, the risk lies in accurately estimating costs over such a long term, especially with potential inflation or unforeseen technical challenges. Technological obsolescence is a significant concern; the systems and services procured today might be outdated long before the contract ends. Effective contract management, including regular reviews and potential modification clauses for significant changes, is crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for money for IT services of this scale?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, especially for IT services of this scale. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of six bidders in this case suggests that the market is sufficiently robust to support such competition. This competitive pressure incentivizes contractors to offer their best pricing and performance to win the award. While effective, value for money also depends on a well-defined Statement of Work (SOW) and robust evaluation criteria to ensure the lowest price isn't chosen at the expense of critical performance factors.

What are the historical spending patterns for IT support services at the U.S. Census Bureau or similar agencies?

Historical spending patterns for IT support services at the U.S. Census Bureau and similar large federal agencies typically show a consistent and often increasing demand. Agencies like the Census Bureau rely heavily on robust IT infrastructure to manage vast amounts of data, conduct surveys, and disseminate information. Spending in this area is usually driven by the need to maintain legacy systems, upgrade to newer technologies, ensure cybersecurity, and support a growing digital footprint. Contracts for IT support are often long-term due to the complexity and critical nature of these systems. Analyzing past awards for IT services at the Census Bureau would likely reveal a pattern of significant, multi-year contracts, reflecting the ongoing investment required to keep their technological capabilities current and operational.

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

Offers Received: 6

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS ROAD STE 870, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,984,206

Exercised Options: $77,243,560

Current Obligation: $77,243,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0656Z

IDV Type: GWAC

Timeline