Education Dept. Spends $27.2M on EAI/ITA Maintenance, Awarded Competitively to PPS Infotech LLC
Contract Overview
Contract Amount: $27,183,698 ($27.2M)
Contractor: PPS Infotech LLC
Awarding Agency: Department of Education
Start Date: 2003-12-23
End Date: 2008-01-11
Contract Duration: 1,480 days
Daily Burn Rate: $18.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: EAI/ITA MAINTENANCE SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Education obligated $27.2 million to PPS INFOTECH LLC for work described as: EAI/ITA MAINTENANCE SERVICES Key points: 1. Significant contract value of $27.2 million over 5 years. 2. Awarded via competitive delivery order, indicating some price discovery. 3. Risk of vendor lock-in for specialized IT maintenance services. 4. Sector: Information Technology, specifically IT services and support.
Value Assessment
Rating: fair
The contract value of $27.2 million over nearly 5 years suggests a substantial investment. Benchmarking against similar IT maintenance contracts is difficult without more granular data on service scope and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order, suggesting multiple vendors had the opportunity to bid. This method generally promotes better pricing than sole-source awards, though the final price is influenced by the specific requirements and competition intensity.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a reasonable cost, though the total expenditure remains significant.
Public Impact
Ensures continued operation of critical EAI/ITA systems for the Department of Education. Supports the agency's IT infrastructure, impacting educational data and services. Potential for long-term reliance on PPS Infotech LLC for ongoing maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creeps or performance incentives are not well-defined.
- Dependency on a single vendor for critical IT maintenance.
Positive Signals
- Competitive award process likely secured a reasonable price.
- Fixed Price Incentive contract type can align vendor and government interests.
Sector Analysis
This contract falls within the IT services sector, which is characterized by rapid technological advancements and a wide range of specialized service providers. Spending benchmarks vary greatly depending on the specific IT functions and complexity.
Small Business Impact
The data indicates this was a competitive delivery order, but does not specify if small businesses participated or benefited. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Education, implying internal agency oversight. The competitive nature of the award suggests a degree of accountability in the procurement process.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for vendor lock-in.
- Long contract duration (nearly 5 years).
- Reliance on specific IT architecture (EAI/ITA).
- Lack of detailed performance metrics in provided data.
Tags
other-computer-related-services, department-of-education, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $27.2 million to PPS INFOTECH LLC. EAI/ITA MAINTENANCE 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 $27.2 million.
What is the period of performance?
Start: 2003-12-23. End: 2008-01-11.
What specific EAI/ITA systems are covered by this maintenance contract, and what is their criticality to the Department of Education's mission?
The contract covers EAI/ITA maintenance services, likely referring to Enterprise Application Integration and Information Technology Architecture systems. These are crucial for managing and processing educational data, supporting agency operations, and delivering services to students and institutions. Understanding the specific systems' criticality helps assess the true value and risk associated with ensuring their continuous functionality.
How effectively did the competitive delivery order process ensure optimal pricing and value for these IT maintenance services?
A competitive delivery order generally promotes better price discovery than a sole-source award. However, the effectiveness in securing optimal pricing depends on the number of bidders, the clarity of the requirements, and the negotiation leverage. Without knowing the bid details or performance against budget, it's difficult to definitively assess the value achieved beyond the competitive nature of the award.
What are the potential risks associated with the long-term maintenance of these specific EAI/ITA systems by PPS Infotech LLC?
Long-term maintenance by a single vendor carries risks of vendor lock-in, potentially leading to higher costs in future renewals if competition diminishes. There's also a risk of knowledge transfer gaps if vendor personnel change frequently. Ensuring robust performance metrics and clear exit strategies in the contract can mitigate these risks.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 102 DALEVIEW CT, LUTHERVILLE TIMONIUM, MD, 02
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $27,183,698
Exercised Options: $27,183,698
Current Obligation: $27,183,698
Parent Contract
Parent Award PIID: GS35F0372L
IDV Type: FSS
Timeline
Start Date: 2003-12-23
Current End Date: 2008-01-11
Potential End Date: 2009-02-11 00:00:00
Last Modified: 2010-02-22
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