ITI Support contract awarded to Vision Technologies, LLC for $124.3M over 9 years

Contract Overview

Contract Amount: $124,300,358 ($124.3M)

Contractor: Vision Technologies, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2008-10-22

End Date: 2017-09-19

Contract Duration: 3,254 days

Daily Burn Rate: $38.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ITI SUPPORT

Place of Performance

Location: GLEN BURNIE, ANNE ARUNDEL County, MARYLAND, 21061

State: Maryland Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $124.3 million to VISION TECHNOLOGIES, LLC for work described as: ITI SUPPORT Key points: 1. Contract value of $124.3M over nearly a decade suggests a significant, long-term need for ITI support. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process with specific exclusions. 3. A single award for a large sum may warrant scrutiny regarding the breadth of competition and potential for cost efficiencies. 4. The Time and Materials pricing model can introduce cost uncertainty if not carefully managed and monitored. 5. The contract duration of 3254 days (approx. 9 years) is substantial, implying a stable but potentially inflexible service arrangement. 6. The primary service category is Computer Systems Design Services, a critical function for agency operations.

Value Assessment

Rating: fair

The total contract value of $124.3M over approximately 9 years averages to about $13.8M annually. Benchmarking this against similar large-scale IT support contracts for federal agencies of the EPA's size is difficult without more specific service details. However, the duration and scale suggest a significant investment. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, can lead to higher costs if not managed with strict oversight to prevent scope creep or inefficient labor utilization. Without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, certain sources were excluded from consideration. The specific reasons for these exclusions are not detailed here but could relate to security, past performance, or specific technical capabilities. The fact that it was not purely 'full and open' suggests a potentially narrowed field of bidders, which could impact the level of price discovery and the ultimate competitiveness of the award.

Taxpayer Impact: The exclusion of certain sources, even in a competitive process, may limit the number of potential bidders, potentially leading to less aggressive pricing than a truly unrestricted full and open competition.

Public Impact

The Environmental Protection Agency (EPA) benefits from sustained IT infrastructure support, enabling its core environmental protection mission. Services delivered likely include IT system design, integration, maintenance, and potentially cybersecurity, crucial for agency operations. The contract's primary performance location is Maryland (MD), suggesting a significant impact on the local IT services market and workforce in that region. The long-term nature of the contract provides stability for the contractor and its employees, contributing to the IT workforce in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type warrants further investigation to understand the rationale and potential impact on competition.
The Time and Materials pricing model carries inherent risks of cost overruns if not rigorously managed and monitored for efficiency.
The substantial duration of the contract (nearly 9 years) could lead to vendor lock-in or reduced agility in adopting new technologies if not actively managed.
Lack of specific details on the services rendered makes it difficult to assess performance metrics and true value for money.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors likely vied for the opportunity.
The significant contract value suggests the contractor, Vision Technologies, LLC, possesses the capacity and expertise to handle large-scale federal IT projects.
The long duration implies a stable and reliable IT support structure for the EPA, crucial for consistent agency operations.
The contract is associated with Computer Systems Design Services, a fundamental and critical IT function.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Systems Design Services. The federal IT market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts of this magnitude are common for agencies like the EPA, which rely heavily on complex IT systems for data management, analysis, and operational support. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded to similar-sized federal agencies, looking at annual spending and service scope.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. This suggests that the primary competition was likely among larger, established IT service providers. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business IT ecosystem from this particular award appears limited, though the prime contractor may engage small businesses in subcontracting roles not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. The contract's Time and Materials pricing structure necessitates diligent oversight to ensure labor hours and costs are reasonable and allocable to the contract's scope. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise. Transparency is generally facilitated through contract databases like FPDS, but detailed performance reports and cost breakdowns are often internal.

Related Government Programs

Federal IT Infrastructure Support
Computer Systems Design Services
Agency IT Modernization Programs
Environmental Protection Agency IT Services
Large-Scale IT Service Contracts

Risk Flags

Potential for cost overruns due to T&M pricing
Limited competition due to source exclusion
Risk of technology obsolescence over long contract duration
Lack of transparency on specific service details and performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $124.3 million to VISION TECHNOLOGIES, LLC. ITI SUPPORT

Who is the contractor on this award?

The obligated recipient is VISION TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $124.3 million.

What is the period of performance?

Start: 2008-10-22. End: 2017-09-19.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process?

The specific reasons for excluding certain sources are not detailed in the provided data. Typically, exclusions in federal contracting can stem from various factors, including national security concerns, specific technical requirements that only a limited number of vendors can meet, past performance issues with certain contractors, or strategic sourcing initiatives. For this contract, the EPA might have had particular security or capability requirements that narrowed the field. Understanding these exclusions is crucial for assessing the true level of competition and whether the government obtained the best possible value. Without this information, it's difficult to determine if the exclusions were justified or if they unduly limited competition, potentially impacting pricing.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT support services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, as is common in IT projects. They reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for overhead and profit. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost control. The primary risk is cost overrun, as the total price is not capped upfront. Effective management requires rigorous monitoring of labor hours, validation of material costs, and strong contract administration to prevent scope creep and ensure efficiency. For IT support, FFP might be suitable for well-defined, stable services, while T&M is better for developmental or evolving needs.

What is the typical annual spending for ITI support services at an agency like the EPA, and how does this contract's value compare?

Determining a precise 'typical' annual spending for ITI support at the EPA or similar agencies is complex, as it depends heavily on the agency's size, mission complexity, and the scope of services outsourced versus handled in-house. However, a contract valued at approximately $13.8 million annually ($124.3M / ~9 years) for comprehensive ITI support is substantial and aligns with the significant IT needs of a large federal agency like the EPA. Agencies often spend tens to hundreds of millions annually on IT services, encompassing infrastructure, software development, cybersecurity, and end-user support. This contract represents a significant portion of the EPA's IT budget dedicated to systems design and support, suggesting it covers critical functions.

What is Vision Technologies, LLC's track record with federal IT contracts, particularly with the EPA?

Based on the provided data, Vision Technologies, LLC was awarded this significant ITI Support contract by the Environmental Protection Agency (EPA). This indicates they have successfully competed for and secured a large federal contract. To fully assess their track record, one would need to examine their broader federal contract history, including past performance evaluations on other contracts, any awards or penalties, and their experience with similar types of IT services (Computer Systems Design). A deeper dive into contract databases would reveal the number and value of contracts they've held, their performance ratings, and any history of contract disputes or successes, particularly with the EPA or other agencies requiring similar services.

What are the potential risks associated with a nearly 9-year contract duration for IT services?

A contract duration of nearly 9 years for IT services, while providing stability, carries several potential risks. Firstly, technology evolves rapidly; a long-term contract might lock the government into outdated systems or processes if not managed with flexibility and regular reviews. Secondly, it can reduce agility, making it harder for the agency to pivot to new solutions or vendors if needs change significantly. Thirdly, there's a risk of vendor complacency or 'vendor lock-in,' where the contractor may become less incentivized to innovate or provide optimal value over time, knowing the government has limited alternatives. Finally, long-term contracts can sometimes obscure opportunities for cost savings that might arise from market shifts or competitive re-bidding.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vision Technologies Inc. (UEI: 962113945)

Address: 530 MCCORMICK DR STE G, GLEN BURNIE, MD, 21061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $129,633,619

Exercised Options: $127,097,881

Current Obligation: $124,300,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0535Z

IDV Type: GWAC

Timeline