EPA's $25M IT Operations & Maintenance Contract Awarded to Blue Canopy Group for 2450 Days

Contract Overview

Contract Amount: $25,150,444 ($25.2M)

Contractor: Blue Canopy Group, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2015-03-16

End Date: 2021-11-29

Contract Duration: 2,450 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF EPA OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $25.2 million to BLUE CANOPY GROUP, LLC for work described as: IGF::OT::IGF EPA OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (2450 days) indicates a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. The agency's reliance on a single award for these services warrants scrutiny of performance and cost-effectiveness. 6. The contract's focus on computer systems design services aligns with critical agency IT functions.

Value Assessment

Rating: fair

The total award amount of $25,150,444.3 over approximately 2450 days suggests an average annual spend of roughly $3.7 million. Benchmarking this against similar IT operations and maintenance contracts is challenging without more granular data on the specific services provided. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not managed diligently. The number of bids received (3) is on the lower side for a full and open competition, which might indicate less aggressive pricing than a more competitive scenario.

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, but specific sources were excluded for reasons not detailed here. Three bids were received, which is a moderate level of competition. While competition existed, a higher number of bidders could potentially drive prices down further and encourage more innovative solutions. The limited number of bidders might suggest barriers to entry or a specialized market.

Taxpayer Impact: The existence of competition, even with only three bidders, is beneficial for taxpayers as it provides a basis for price negotiation. However, the limited number of offers means taxpayers may not have realized the full potential cost savings that a more robustly contested procurement could have yielded.

Public Impact

The Environmental Protection Agency (EPA) benefits from enhanced IT operations and maintenance, ensuring the smooth functioning of its critical systems. Services delivered include computer systems design, crucial for maintaining and upgrading the agency's technological infrastructure. The geographic impact is primarily within the EPA's operational locations, supporting its national mission. Workforce implications include the potential for IT professionals employed by Blue Canopy Group to support EPA's digital environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to unpredictable costs if not closely monitored.
A limited number of bidders (3) in a full and open competition may indicate a lack of broader market interest or potential barriers to entry.
The contract duration of 2450 days requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, indicating an attempt to leverage market capabilities.
The contract addresses essential IT operations and maintenance, crucial for agency functionality.
The specific NAICS code (541512) points to a focus on core IT service capabilities.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a wide range of companies, from large system integrators to specialized software developers. Federal spending in IT services is substantial, with agencies constantly seeking to modernize infrastructure, enhance cybersecurity, and improve data management. The market size for IT support services for government agencies is significant, driven by the need for reliable and secure systems. This contract represents a portion of the EPA's overall IT budget, supporting its mission-critical functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses stemming from a set-aside. The prime contractor, Blue Canopy Group, LLC, is likely a mid-to-large-sized business given the contract value. Analysis of their subcontracting plans would be necessary to determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. The contract's duration and value necessitate regular performance reviews, milestone tracking, and financial audits. Transparency is facilitated through contract award databases like FPDS. While no specific Inspector General (IG) jurisdiction is mentioned, the EPA's Office of Inspector General (OIG) would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

EPA IT Support Services
Computer Systems Design Services
Federal IT Operations and Maintenance
Information Technology Professional Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition (3 bidders) may impact price discovery.
Long contract duration requires sustained oversight.
Need to verify contractor's past performance and capacity.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $25.2 million to BLUE CANOPY GROUP, LLC. IGF::OT::IGF EPA OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BLUE CANOPY GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2015-03-16. End: 2021-11-29.

What is the track record of Blue Canopy Group, LLC with the EPA and other federal agencies?

Blue Canopy Group, LLC has a history of federal contracting, including work with the EPA. Analyzing their past performance on similar contracts is crucial. This involves reviewing past performance evaluations, any documented issues or successes, and their overall financial stability. A contractor's ability to consistently meet performance requirements, manage costs effectively, and adhere to schedules on previous engagements provides a strong indicator of their reliability for future work. Examining their contract history across different agencies can reveal patterns in their service delivery and client satisfaction, offering a comprehensive view of their capabilities and trustworthiness.

How does the awarded price compare to market rates for similar IT operations and maintenance services?

Benchmarking the awarded price against market rates requires detailed analysis of the specific services rendered under the Time and Materials (T&M) contract. Factors such as labor categories, hourly rates, and estimated hours are key. Comparing these to industry surveys and government cost databases (e.g., GSA schedules, commercial IT service pricing) can reveal if the EPA secured competitive pricing. The limited number of bidders (3) in this full and open competition might suggest that the market rates were not aggressively challenged, potentially leading to a price that is fair but not necessarily the lowest achievable. Further investigation into the specific labor categories and their associated rates would be needed for a precise comparison.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risk with a T&M contract, especially one valued at $25 million over 2450 days, is cost escalation. Without strict controls and diligent oversight, the contractor may incur higher labor hours or use more expensive materials than initially anticipated, driving the total cost beyond initial estimates. This necessitates robust monitoring by the EPA to ensure that all hours and materials are reasonable, allocable, and necessary for the work performed. Another risk is scope creep, where the project expands beyond its original intent without a corresponding increase in oversight or contract modification, further inflating costs. Ensuring clear task definitions and performance metrics is vital to mitigate these risks.

How effective has the EPA been in managing its IT operations and maintenance contracts historically?

Assessing the EPA's historical effectiveness in managing IT operations and maintenance contracts requires a review of past contract performance data, audit reports from the EPA OIG, and any GAO reports related to EPA IT procurements. Key indicators include on-time delivery rates, budget adherence, and the number of contract disputes or modifications. Agencies that demonstrate strong contract management practices typically have well-defined requirements, effective oversight mechanisms, and proactive risk mitigation strategies. Understanding the EPA's track record in these areas provides context for evaluating the current contract's potential for success and identifying any systemic challenges that may need to be addressed.

What is the historical spending trend for IT operations and maintenance at the EPA?

Analyzing historical spending trends for IT operations and maintenance at the EPA would involve examining budget allocations and actual expenditures over several fiscal years. This data can reveal whether spending in this category has been increasing, decreasing, or remaining relatively stable. Significant year-over-year increases might signal growing IT needs or potentially inefficient spending, while consistent spending could indicate a stable operational environment. Comparing this contract's value ($25.15M) to the historical average or total IT budget provides context on its relative significance. Understanding these trends helps in forecasting future needs and identifying potential areas for cost optimization or investment.

What specific IT systems or services does this contract primarily support within the EPA?

The contract's NAICS code, 541512 (Computer Systems Design Services), suggests a broad scope encompassing the design, development, integration, and maintenance of computer systems. For the EPA, this could translate to supporting a wide array of critical IT infrastructure, including agency-wide networks, data centers, cloud services, cybersecurity systems, and specialized environmental data management platforms. The 'Operations and Maintenance Support Services' designation implies a focus on ensuring the ongoing functionality, reliability, and security of these systems. Without more specific details in the contract award, it's difficult to pinpoint exact systems, but it likely covers the backbone IT services essential for the EPA's mission execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 11091 SUNSET HILLS ROAD, SUITE #777, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,660,694

Exercised Options: $25,660,694

Current Obligation: $25,150,444

Actual Outlays: $788,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200120W

IDV Type: GWAC

Timeline