DOT awards $36M CPFF task order for IT facilities management to Sevatec LLC under FITSS-II contract

Contract Overview

Contract Amount: $36,003,591 ($36.0M)

Contractor: Sevatec LLC

Awarding Agency: Department of Transportation

Start Date: 2014-03-31

End Date: 2021-03-31

Contract Duration: 2,557 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: AWARD A CPFF TASK ODER FOR ASM UNDER THE FITSS-II CONTRACT. IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $36.0 million to SEVATEC LLC for work described as: AWARD A CPFF TASK ODER FOR ASM UNDER THE FITSS-II CONTRACT. IGF::OT::IGF Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk of cost overruns if not managed closely. 3. The duration of the task order (over 7 years) indicates a long-term need for these services. 4. The task order falls under the broader FITSS-II contract, implying it's part of a larger IT services framework. 5. The specific NAICS code (541513) points to a focus on computer facilities management. 6. The award to Sevatec LLC, a known government contractor, suggests a degree of established performance. 7. The contract was not set aside for small businesses, indicating it was competed broadly.

Value Assessment

Rating: fair

The award amount of $36 million over approximately 7 years for IT facilities management services is substantial. Benchmarking this specific task order's value is challenging without more granular data on the scope of services and comparable contracts within the FITSS-II framework or similar large IT vehicles. The CPFF structure requires careful oversight to ensure cost efficiency, as it incentivizes cost incurrence rather than strict cost control. However, the fixed fee component provides some predictability.

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,' which typically means it was broadly advertised, and all responsible sources were permitted to submit offers. The specific mention of 'exclusion of sources' might indicate a prior limited competition or a specific justification for excluding certain entities, but the overall intent is open competition. The number of bidders is not provided, which limits a full assessment of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential solutions and providers.

Public Impact

The Federal Highway Administration (FHWA) within the Department of Transportation is the primary beneficiary, receiving IT facilities management services. The services delivered are related to computer facilities management, crucial for the operational efficiency of the agency. The geographic impact is centered in the District of Columbia, where the agency's operations are likely concentrated. The contract supports IT infrastructure and operations, indirectly impacting the federal workforce reliant on these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not meticulously managed.
Lack of specific details on the number of bidders limits the assessment of competitive pressure.
Long contract duration (over 7 years) increases exposure to potential scope creep or evolving technological needs.
The 'exclusion of sources' clause, while part of an open competition, warrants understanding the specific rationale.

Positive Signals

Awarded under a broad, full and open competition, indicating a wide search for qualified vendors.
Sevatec LLC is an established government contractor, suggesting a level of experience and capability.
The task order is part of the larger FITSS-II contract, which may provide established processes and oversight.
The fixed fee component of the CPFF structure provides some cost predictability.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT facilities management. The federal IT services market is vast and highly competitive, with numerous large and small businesses vying for contracts. This task order, valued at $36 million over its period of performance, represents a significant but not exceptionally large award within the broader context of federal IT spending. Comparable spending benchmarks would typically be found within large IT vehicles like Alliant or IT-70, where similar facilities management or IT support services are procured.

Small Business Impact

The data indicates this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests the competition was open to all eligible large and small businesses. Consequently, there are no direct subcontracting implications mandated by a small business set-aside for this specific award. However, the prime contractor, Sevatec LLC, may still choose to subcontract portions of the work, potentially to small businesses, as part of their overall business strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Highway Administration (FHWA) contracting officers and program managers. As a task order under the FITSS-II contract, there may be overarching program management and oversight from the agency or contract-level oversight body responsible for FITSS-II. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FITSS-II Contract
IT Facilities Management Services
Computer Facilities Management Services
Department of Transportation IT Contracts
Federal Highway Administration IT Support

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-Term Dependency
Limited Competition Transparency (Exclusion of Sources)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $36.0 million to SEVATEC LLC. AWARD A CPFF TASK ODER FOR ASM UNDER THE FITSS-II CONTRACT. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2014-03-31. End: 2021-03-31.

What is the specific scope of 'Computer Facilities Management Services' under this task order?

The provided data indicates the NAICS code is 541513, which covers Computer Facilities Management Services. This typically includes operating and providing technical support for the data processing and other computer-based information activities of others. Services can encompass managing clients' IT infrastructure, including computer systems, servers, and data storage, as well as providing network support, system administration, and potentially help desk services. The exact deliverables and service level agreements (SLAs) would be detailed in the task order's statement of work (SOW), which is not provided here. Given the CPFF structure and long duration, it likely involves comprehensive management of critical IT infrastructure for the Federal Highway Administration.

How does Sevatec LLC's past performance on similar federal contracts compare to the value and scope of this award?

Sevatec LLC is a recognized mid-tier government contractor with a history of performing IT services for various federal agencies. While specific performance metrics for this task order are not detailed, Sevatec has held numerous contracts involving IT support, systems integration, and cybersecurity. The $36 million value over 7 years for facilities management is within the range of significant contracts they have managed. A thorough assessment would require reviewing past performance evaluations (e.g., CPARS) for Sevatec on comparable DOT or other agency contracts to gauge their reliability, quality of service, and adherence to schedule and budget on similar projects.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT facilities management task order?

The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. While the fixed fee is negotiated upfront, the total cost to the government can exceed initial estimates if costs are not carefully controlled. For IT facilities management, this could involve unexpected hardware failures, software issues requiring extensive support, or increased operational demands. Effective oversight by the government is crucial to monitor costs, ensure efficiency, and prevent contractor inefficiencies from driving up the total contract price beyond what is necessary to achieve the required services.

Can we benchmark the 'per-unit cost' for the services provided under this contract?

Benchmarking a 'per-unit cost' for this contract is challenging without a clearly defined, quantifiable unit of service. 'Computer Facilities Management Services' is a broad category. Units could potentially be defined as 'per server managed,' 'per user supported,' or 'per hour of system uptime.' However, the CPFF structure, combined with the complexity of managing diverse IT facilities, makes a simple per-unit comparison difficult. A more appropriate benchmark would involve comparing the total contract value and scope against similar large-scale IT facilities management contracts awarded by other federal agencies, considering factors like the number of users supported, the criticality of the systems managed, and the specific services included.

What does the 'exclusion of sources' in the competition type imply for taxpayer value?

The phrase 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, there might have been specific reasons or criteria that led to the exclusion of certain potential offerors. This could be due to specific technical requirements, past performance issues with certain contractors, or perhaps the contract was originally part of a different vehicle where some sources were already pre-qualified or excluded. If the exclusion was based on legitimate, well-documented technical or capability requirements, it could ensure that only highly qualified vendors competed, potentially leading to better service delivery. However, if the exclusion was arbitrary or poorly justified, it could limit competition and potentially lead to higher costs for taxpayers.

How has federal spending on IT facilities management services evolved, and where does this contract fit in?

Federal spending on IT services, including facilities management, has consistently been a significant portion of agency budgets. Over the years, there has been a trend towards consolidating IT services under larger, more flexible contract vehicles like GWACs (Government-Wide Acquisition Contracts) and IDIQs (Indefinite Delivery/Indefinite Quantity) to achieve economies of scale and streamline procurement. This task order, awarded under the FITSS-II contract (likely an IDIQ or similar framework), aligns with this trend. It represents a specific allocation of funds for essential IT infrastructure support within the Department of Transportation, contributing to the overall federal investment in maintaining and operating its digital backbone.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3112 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $36,003,591

Exercised Options: $36,003,591

Current Obligation: $36,003,591

Actual Outlays: $9,001,413

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFH6112D00032

IDV Type: IDC

Timeline