Education Department's $47.9M IT Infrastructure Contract Awarded to PPS Infotech LLC Under Full and Open Competition

Contract Overview

Contract Amount: $47,937,281 ($47.9M)

Contractor: PPS Infotech LLC

Awarding Agency: Department of Education

Start Date: 2009-02-12

End Date: 2014-04-30

Contract Duration: 1,903 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: OPERATIONS AND MAINTENANCE OF THE ENTERPRISE INFORMATION TECHNOLOGY INFRASTRUCTURE (EITI) FOR ITA, ESB, SA, PORTALS AND OTHER RELATED CAPABILITIES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $47.9 million to PPS INFOTECH LLC for work described as: OPERATIONS AND MAINTENANCE OF THE ENTERPRISE INFORMATION TECHNOLOGY INFRASTRUCTURE (EITI) FOR ITA, ESB, SA, PORTALS AND OTHER RELATED CAPABILITIES. Key points: 1. The contract focused on essential IT infrastructure operations and maintenance for various Education Department components. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract was over 1900 days, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was awarded by the Department of Education, highlighting its role in supporting federal education technology. 6. The contract value of approximately $47.9 million over its term suggests significant investment in IT stability. 7. The contract was not set aside for small businesses, indicating it was open to all qualified bidders.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable IT infrastructure O&M contracts from the same period and agency. The total award amount of $47.9 million over its duration suggests a substantial investment. However, without detailed performance metrics or a breakdown of services provided, it's difficult to definitively assess value for money. The pricing would need to be compared against industry standards for similar IT infrastructure support services to determine if it was competitive.

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,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this IT infrastructure support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario. The multiple bids received indicate that the government had options, increasing the likelihood of securing services at a reasonable price.

Public Impact

Federal employees within the Department of Education's ITA, ESB, SA, and Portal divisions benefited from reliable IT infrastructure. The contract ensured the continuous operation and maintenance of critical IT systems, supporting the department's mission. Services delivered included the upkeep of enterprise information technology infrastructure, crucial for daily operations. The geographic impact is primarily within the District of Columbia, where the Department of Education is headquartered. Workforce implications include the potential for IT professionals employed by PPS Infotech LLC to support federal systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies were mandated.
Ensuring consistent service quality and performance over the contract's extended duration.
Managing the transition of services if a new contract is awarded upon completion.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract duration suggests a stable and predictable IT support environment for the agency.
The number of bidders (9) points to market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure operations and maintenance. The IT services market is vast and highly competitive, with numerous companies offering specialized support. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT support functions. Comparable spending benchmarks for IT O&M at federal agencies can vary significantly based on the size and complexity of the IT environment, but contracts in the tens of millions of dollars for multi-year infrastructure support are common.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' field being false. Therefore, PPS Infotech LLC, the awardee, is likely a larger entity or was not specifically targeted for small business participation. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a small business set-aside means that opportunities for small businesses to participate in this specific contract were limited to potential subcontracting roles, if any were established by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. Accountability measures would be defined in the contract's performance work statement (PWS), outlining deliverables and service level agreements. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected within the contract's execution.

Related Government Programs

Federal Civilian IT Modernization Programs
Department of Education IT Services
Enterprise Information Technology Infrastructure Support
IT Operations and Maintenance Contracts
Computer Related Services Contracts

Risk Flags

Potential for outdated technology due to contract award date.
Scope creep risk over the contract's extended duration.
Ensuring continued alignment with evolving cybersecurity standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $47.9 million to PPS INFOTECH LLC. OPERATIONS AND MAINTENANCE OF THE ENTERPRISE INFORMATION TECHNOLOGY INFRASTRUCTURE (EITI) FOR ITA, ESB, SA, PORTALS AND OTHER RELATED CAPABILITIES.

Who is the contractor on this award?

The obligated recipient is PPS INFOTECH LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $47.9 million.

What is the period of performance?

Start: 2009-02-12. End: 2014-04-30.

What was the specific nature of the 'other related capabilities' mentioned in the contract description?

The contract description mentions 'OPERATIONS AND MAINTENANCE OF THE ENTERPRISE INFORMATION TECHNOLOGY INFRASTRUCTURE (EITI) FOR ITA, ESB, SA, PORTALS AND OTHER RELATED CAPABILITIES.' The 'other related capabilities' likely refer to additional IT services or systems that fall under the umbrella of enterprise IT infrastructure but are not explicitly named. This could include network management, cybersecurity support, data center operations, cloud services integration, or specialized application support that is integral to the overall functioning of the department's IT environment. Without further details from the contract's Statement of Work (SOW) or Performance Work Statement (PWS), the exact scope remains general. However, given the context of EITI, these capabilities would be directly tied to maintaining the operational integrity and availability of the department's core IT assets.

How does the $47.9 million award compare to typical IT O&M spending for a federal agency of similar size?

Comparing the $47.9 million award to typical IT Operations and Maintenance (O&M) spending for a federal agency of similar size requires context on the agency's IT footprint and complexity. The Department of Education, while not the largest federal agency, manages significant IT systems to support its educational missions. For a multi-year contract (1903 days, approximately 5.2 years), this award averages around $9.2 million per year. This figure is within the expected range for comprehensive IT infrastructure O&M for a federal department. Larger agencies might spend hundreds of millions annually on IT O&M, while smaller ones might spend less. The key factors influencing this cost include the number of users, the criticality of systems, the scope of services (e.g., network, servers, storage, end-user support, cybersecurity), and the level of service required.

What are the potential risks associated with a long-duration IT infrastructure contract like this?

Long-duration IT infrastructure contracts, such as this one spanning over 1900 days, carry several potential risks. One primary risk is technological obsolescence; IT environments can change rapidly, and a contract designed for the technology landscape at its inception might not adequately address future needs or emerging threats. Another risk is vendor lock-in, where the agency becomes heavily reliant on the contractor's specific solutions, making transitions difficult and potentially costly. Performance degradation over time is also a concern, as contractor motivation or capability might wane without continuous competitive pressure. Furthermore, managing scope creep and ensuring that the contractor remains aligned with evolving agency requirements over several years can be challenging. Finally, the initial pricing might not remain competitive throughout the contract's life if market rates decrease.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific type of competitive procurement process. 'Full and Open Competition' means that the solicitation was made available to all responsible prospective contractors, and any responsible source could submit an offer. The 'After Exclusion of Sources' part suggests that at some point, certain sources might have been excluded, but the final award was made under a fully competitive process where all eligible entities could participate. This typically happens when a previous contract or specific circumstances might have initially limited the pool, but the agency then decided to open it up broadly. For taxpayers, this designation is generally positive as it implies that the government sought the best possible offer by allowing a wide range of vendors to compete, which should drive down prices and improve service quality.

How might the contractor's track record influence the success of this contract?

The contractor's track record is a critical factor in the success of any federal contract, including this IT infrastructure O&M award. A proven history of successfully delivering similar IT services, meeting performance metrics, and managing complex projects within budget and schedule provides confidence in their ability to execute this contract effectively. Conversely, a history of poor performance, contract disputes, or financial instability could signal higher risks for the Department of Education. Agencies typically evaluate past performance as part of the source selection process. For PPS Infotech LLC, demonstrating a strong track record in managing large-scale IT infrastructure for government clients would be a significant positive indicator, suggesting a lower likelihood of performance issues, cost overruns, or schedule delays.

What are the implications of the contract being awarded in 2009 for current IT practices?

An IT contract awarded in 2009 has significant implications when viewed through the lens of current IT practices. The technology landscape has evolved dramatically since then, with the rise of cloud computing, agile methodologies, DevOps, and advanced cybersecurity threats. A contract established in 2009 might reflect older infrastructure paradigms, potentially less emphasis on cloud-native solutions, and cybersecurity protocols that may not align with today's stringent requirements. While the contract was for operations and maintenance, the underlying systems and approaches may have been designed years prior. This could mean the Department of Education was operating with IT infrastructure that was already several years old at the time of award, and its continued maintenance under this contract might have presented challenges in adapting to modern IT demands or security best practices without significant modifications or supplemental efforts.

Industry Classification

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

Offers Received: 9

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 15204 OMEGA DR STE 210, ROCKVILLE, MD, 20850

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,157,313

Exercised Options: $48,223,155

Current Obligation: $47,937,281

Contract Characteristics

Cost or Pricing Data: NO

Timeline