Federal Student Aid's IT Middleware Maintenance Contract Awarded to PPS Infotech LLC for $26.7M
Contract Overview
Contract Amount: $26,682,453 ($26.7M)
Contractor: PPS Infotech LLC
Awarding Agency: Department of Education
Start Date: 2014-03-01
End Date: 2019-09-15
Contract Duration: 2,024 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR FEDERAL STUDENT AID'S ENTERPRISE IT ARCHITECTURE. THIS IT ENVIRONMENT CONSISTS OF THE MIDDLEWARE LAYER OF IT SYSTEMS AND SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $26.7 million to PPS INFOTECH LLC for work described as: IGF::CT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR FEDERAL STUDENT AID'S ENTERPRISE IT ARCHITECTURE. THIS IT ENVIRONMENT CONSISTS OF THE MIDDLEWARE LAYER OF IT SYSTEMS AND SERVICES. Key points: 1. Contract supports critical IT infrastructure for federal student aid programs. 2. PPS Infotech LLC, a small business, secured the award. 3. The contract was awarded under full and open competition. 4. Spending over 5 years totals $26.7 million, averaging $5.3M annually. 5. The contract type is Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: good
The contract's $26.7M value over five years appears reasonable for enterprise IT operations and maintenance. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded through full and open competition, this method likely fostered competitive pricing. The use of a delivery order under a larger contract structure suggests a streamlined procurement process.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market pricing, maximizing taxpayer value for essential IT services.
Public Impact
Ensures continuity of IT services supporting federal student loan programs. Impacts millions of students and borrowers relying on these systems. Supports the operational integrity of the Department of Education's IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed effectively.
- Reliance on a single vendor for critical IT infrastructure.
- Need for ongoing performance monitoring to ensure service quality.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Supports essential government functions for student aid.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer-related services and enterprise architecture maintenance. Spending benchmarks for similar IT operations and maintenance contracts vary widely based on scope and complexity.
Small Business Impact
PPS Infotech LLC is listed as a small business, indicating the contract may have contributed to small business utilization goals. Further analysis would be needed to confirm the specific small business impact and set-aside status.
Oversight & Accountability
The Department of Education is responsible for oversight. Robust performance metrics and regular reviews are crucial to ensure the contractor meets service level agreements and taxpayer expectations.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on a single provider for critical infrastructure
- Need for continuous performance monitoring
- Ensuring IT modernization and scalability
Tags
other-computer-related-services, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $26.7 million to PPS INFOTECH LLC. IGF::CT::IGF OPERATIONS AND MAINTENANCE SERVICES FOR FEDERAL STUDENT AID'S ENTERPRISE IT ARCHITECTURE. THIS IT ENVIRONMENT CONSISTS OF THE MIDDLEWARE LAYER OF IT SYSTEMS AND SERVICES.
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 $26.7 million.
What is the period of performance?
Start: 2014-03-01. End: 2019-09-15.
What is the specific scope of 'middleware layer' services covered by this contract?
The contract specifies 'operations and maintenance services for Federal Student Aid's enterprise IT architecture,' focusing on the middleware layer. This typically includes managing, maintaining, and updating the software and systems that connect different applications and services, ensuring seamless data flow and functionality across the IT environment.
Are there any identified risks associated with the long-term reliance on PPS Infotech for this critical IT function?
Potential risks include vendor lock-in, where switching providers becomes costly and complex. Over-reliance could also lead to complacency in service delivery or innovation. Continuous performance monitoring, clear exit strategies, and contingency planning are essential to mitigate these risks.
How effectively does this contract ensure the modernization and scalability of the IT environment?
The contract's focus on operations and maintenance suggests it primarily addresses current needs. Its effectiveness in driving modernization and scalability depends on specific clauses for upgrades, technology refresh, and adapting to future demands. Without explicit provisions, it might maintain the status quo rather than foster significant advancement.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9201 CORPORATE BLVD, SUITE 400, ROCKVILLE, MD, 20850
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,411,128
Exercised Options: $26,682,453
Current Obligation: $26,682,453
Actual Outlays: $879,901
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0372L
IDV Type: FSS
Timeline
Start Date: 2014-03-01
Current End Date: 2019-09-15
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2019-08-30
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