DOT's $23.8M interim helpdesk contract awarded to Actionet Inc. raises questions on competition and value

Contract Overview

Contract Amount: $23,845,916 ($23.8M)

Contractor: Actionet Inc

Awarding Agency: Department of Transportation

Start Date: 2014-09-25

End Date: 2014-09-30

Contract Duration: 5 days

Daily Burn Rate: $4.8M/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: "THE PURPOSE OF REQUISITION NM-14-02471 IS TO ESTABLISH AN INTERIM HELPDESK CONTRACT POP: 7/31/14 - 12/31/14 COR: WILLATON BURNS CO: ELISA BROWN VENDOR TO BE ESTABLISHED" IGF::CL::IGF

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22180

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $23.8 million to ACTIONET INC for work described as: "THE PURPOSE OF REQUISITION NM-14-02471 IS TO ESTABLISH AN INTERIM HELPDESK CONTRACT POP: 7/31/14 - 12/31/14 COR: WILLATON BURNS CO: ELISA BROWN VENDOR TO BE ESTABLISHED" IGF::CL::IGF Key points: 1. The contract's short duration and interim nature suggest a potential gap-filling need, but the lack of competition is a concern. 2. Pricing appears high relative to the contract's brief period, warranting a closer look at the value delivered. 3. The sole-source award limits opportunities for market-driven pricing and innovation. 4. Performance context is minimal due to the short timeframe, making a robust assessment difficult. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The absence of small business set-aside considerations is noted.

Value Assessment

Rating: questionable

The contract's total value of $23.8 million for a 5-month period (September 25, 2014, to September 30, 2014) appears exceptionally high. The average monthly cost is approximately $4.77 million. Without specific deliverables or a detailed scope of work, it is difficult to benchmark this cost effectively. However, for an interim helpdesk function, this rate suggests a potentially poor value for money, especially given the lack of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis to Actionet Inc. The data does not indicate any justification for this sole-source award, such as a specific emergency or unique capability. The lack of competition means that the government did not explore potential alternative vendors or leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from competitive pricing, potentially leading to a higher cost than if multiple vendors had vied for the contract.

Public Impact

Federal Aviation Administration (FAA) personnel likely benefited from continued IT helpdesk support. Essential IT support services were maintained during the interim period. The geographic impact is primarily within the Department of Transportation's operational areas. Workforce implications are minimal as this appears to be a service contract rather than direct hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for better value.
The high cost per month for an interim service is a significant red flag.
Absence of a clear justification for sole-source award is concerning.
Short contract duration makes performance assessment difficult, potentially masking underlying issues.

Positive Signals

Contract ensured continuity of essential IT helpdesk services.
Actionet Inc. was selected, implying some level of pre-qualification or existing relationship.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically Custom Computer Programming Services (NAICS 541511). The IT services market is vast and highly competitive, with numerous providers capable of offering helpdesk and support services. The value of IT services contracts awarded by the federal government annually runs into the tens of billions of dollars. This particular contract, while substantial in its monthly rate, represents a small fraction of overall federal IT spending and appears to be a short-term, specialized need.

Small Business Impact

The contract data indicates that this was not a small business set-aside (ss: false, sb: false). Therefore, there were no specific provisions to encourage small business participation. The implications for the small business ecosystem are neutral to negative, as opportunities were not specifically directed towards them. Subcontracting opportunities, if any, would depend on Actionet Inc.'s internal policies and the specific terms of the contract, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Contracting Officer's Representative (COR) and the agency's contracting office within the Department of Transportation. The Inspector General's office for the DOT would have jurisdiction to investigate any potential fraud, waste, or abuse. However, the limited duration and sole-source nature of the award may have reduced the typical oversight scrutiny applied to competitively bid contracts.

Related Government Programs

Federal Aviation Administration IT Support Contracts
Department of Transportation IT Services
Interim IT Support Services
Custom Computer Programming Services

Risk Flags

Sole-source award without clear justification
High cost relative to contract duration
Lack of competitive bidding limits price discovery
Short duration hinders performance assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.8 million to ACTIONET INC. "THE PURPOSE OF REQUISITION NM-14-02471 IS TO ESTABLISH AN INTERIM HELPDESK CONTRACT POP: 7/31/14 - 12/31/14 COR: WILLATON BURNS CO: ELISA BROWN VENDOR TO BE ESTABLISHED" IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ACTIONET INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2014-09-25. End: 2014-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of requisition NM-14-02471 to Actionet Inc. Typically, sole-source contracts are awarded when only one responsible source is available, or in cases of urgent and compelling need. Without this justification, it is impossible to assess whether the government appropriately utilized this contracting method. The lack of competition raises concerns about whether the government explored all available options and secured the best possible value for taxpayers. Further investigation into the contract file would be required to understand the rationale behind this decision.

How does the per-month cost of this contract compare to similar interim helpdesk services in the federal market?

The contract's monthly cost of approximately $4.77 million ($23.8 million / 5 months) appears exceptionally high for an interim helpdesk service. Benchmarking this against similar federal contracts is challenging without more specific details on the scope of services, number of users supported, and service level agreements. However, typical federal IT helpdesk contracts, even for large agencies, often have significantly lower monthly costs per user or per support ticket. The high rate suggests a potential lack of cost-effectiveness, especially given that this was not a competitively bid contract. It is possible that the scope of services was unusually broad or complex, but this is not evident from the provided data.

What are the potential risks associated with awarding a large contract without competition?

Awarding a contract of this magnitude ($23.8 million) without competition carries several significant risks. Firstly, it increases the risk of overpaying, as there is no market pressure to drive down prices. The government may end up paying more than necessary compared to a competitive scenario. Secondly, it limits the government's access to innovative solutions or specialized expertise that other vendors might offer. Thirdly, it can create a perception of favoritism or a lack of transparency, potentially undermining public trust. Finally, without a competitive baseline, it is harder to assess the contractor's performance and ensure accountability effectively.

What was the historical spending pattern for IT helpdesk services at the FAA prior to this contract?

The provided data focuses solely on this specific interim helpdesk contract (NM-14-02471) and does not offer historical spending patterns for IT helpdesk services at the Federal Aviation Administration (FAA) or the Department of Transportation (DOT). To understand historical spending, one would need to access broader federal procurement databases and filter for similar contract vehicles, service types (e.g., helpdesk, IT support, customer service), and the specific agency (FAA/DOT) over several fiscal years. Analyzing past spending would help contextualize the $23.8 million award and determine if it represents an increase, decrease, or a typical expenditure for such services.

What performance metrics were established for this interim helpdesk contract?

The provided data does not specify the performance metrics established for this interim helpdesk contract. For a contract of this value and duration, key performance indicators (KPIs) would typically include metrics such as response times, resolution rates, customer satisfaction scores, and system uptime. The absence of this information makes it difficult to evaluate the effectiveness of the services provided by Actionet Inc. during the contract period. A thorough review of the contract documentation, including the Performance Work Statement (PWS) or Statement of Work (SOW), would be necessary to identify any established performance standards and assess whether they were met.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 PARK TOWER DR STE 1000, VIENNA, VA, 22180

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,845,916

Exercised Options: $23,845,916

Current Obligation: $23,845,916

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10A00109

IDV Type: BPA

Timeline