Smithsonian Institution awards $39.15M for ERP system maintenance and upgrades to Oakland Consulting Group Inc

Contract Overview

Contract Amount: $39,153,901 ($39.2M)

Contractor: Oakland Consulting Group Inc

Awarding Agency: Smithsonian Institution

Start Date: 2010-06-23

End Date: 2021-07-23

Contract Duration: 4,048 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THIS IS AN AWARD OF CONTRACT NO. F10CC10340 FROM SOLICITATION F09SOL00057 FOR MAINTENANCE AND UPGRADE OF THE SMITHSONIAN INSTITUTION'S ENTERPRISE RESOURCES PLANNING (ERP) SYSTEM, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO). SEE SUPPORTING DOCUMENTS FOR COMPLETE CONTRACT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $39.2 million to OAKLAND CONSULTING GROUP INC for work described as: THIS IS AN AWARD OF CONTRACT NO. F10CC10340 FROM SOLICITATION F09SOL00057 FOR MAINTENANCE AND UPGRADE OF THE SMITHSONIAN INSTITUTION'S ENTERPRISE RESOURCES PLANNING (ERP) SYSTEM, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO). SEE SUPPORTING DOCUMENTS FOR COMPLETE CONTRACT. Key points: 1. The contract focuses on essential maintenance and upgrades for the Smithsonian's Enterprise Resources Planning (ERP) system, crucial for its operational efficiency. 2. Awarded through full and open competition, indicating a robust selection process. 3. The contract duration spans over 10 years, suggesting a long-term need for these services. 4. The primary service category is Computer Systems Design Services, aligning with IT infrastructure needs. 5. The contract was awarded as a Definitive Contract, typically used for services with a clear scope. 6. The vendor, Oakland Consulting Group Inc., is the sole awardee for this specific contract. 7. The contract was not set aside for small businesses, suggesting the scope or nature of services required larger firms.

Value Assessment

Rating: good

The contract value of $39.15 million over approximately 10 years for ERP system maintenance and upgrades appears reasonable given the critical nature of the system and the extended duration. Benchmarking against similar large-scale IT system maintenance contracts for federal agencies would provide a more precise value-for-money assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns.

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,' which implies that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that it was competed openly suggests that the Smithsonian sought the best value and pricing available in the market. The number of bidders is not explicitly stated, but the process itself indicates a competitive environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and higher quality services, ensuring that government funds are used efficiently.

Public Impact

The Smithsonian Institution's Office of the Chief Information Officer (OCIO) is the primary beneficiary, ensuring the stability and functionality of its core ERP system. Services delivered include maintenance and upgrades to the Enterprise Resources Planning (ERP) system, supporting administrative and operational functions. The geographic impact is primarily within the District of Columbia, where the Smithsonian Institution is headquartered. Workforce implications may include the need for specialized IT personnel to support the ERP system, both within the contractor's organization and potentially within the Smithsonian.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT maintenance contracts if not managed rigorously.
Reliance on a single vendor for critical ERP system support over an extended period.
Ensuring continued relevance and upgrade path of the ERP system to meet evolving technological standards.

Positive Signals

Awarded through a full and open competition process, suggesting a competitive selection.
The contract addresses a critical IT infrastructure need for a major cultural institution.
The long contract duration indicates a stable, ongoing requirement and potential for vendor expertise development.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on Computer Systems Design Services. The market for ERP system maintenance and upgrades is substantial within the federal government, with agencies continually investing in modernizing their core business systems. Comparable spending benchmarks for similar ERP system support contracts within large federal agencies would typically range from tens to hundreds of millions of dollars over several years, depending on the system's complexity and user base.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the scope, complexity, or nature of the required ERP system maintenance and upgrades likely favored larger contractors with specialized expertise and resources. There is no explicit mention of subcontracting requirements for small businesses within the provided data, but it is common for larger prime contractors to engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and program managers within the OCIO. Accountability measures would include performance metrics, delivery schedules, and adherence to contract terms. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Smithsonian Institution IT Modernization Projects
Federal Enterprise Resource Planning (ERP) System Support
Government IT Infrastructure Maintenance
Computer Systems Design Services Contracts

Risk Flags

Long-term contract duration may increase risk of technological obsolescence.
Reliance on a single vendor for critical system support.
Potential for cost overruns if labor hours are not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $39.2 million to OAKLAND CONSULTING GROUP INC. THIS IS AN AWARD OF CONTRACT NO. F10CC10340 FROM SOLICITATION F09SOL00057 FOR MAINTENANCE AND UPGRADE OF THE SMITHSONIAN INSTITUTION'S ENTERPRISE RESOURCES PLANNING (ERP) SYSTEM, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO). SEE SUPPORTING DOCUMENTS FOR COMPLETE CONTRACT.

Who is the contractor on this award?

The obligated recipient is OAKLAND CONSULTING GROUP INC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2010-06-23. End: 2021-07-23.

What is the track record of Oakland Consulting Group Inc. with federal contracts, particularly for ERP systems?

Oakland Consulting Group Inc. has a history of federal contracting, with this award representing a significant investment by the Smithsonian Institution. A deeper dive into their contract history would reveal their performance on similar IT projects, including ERP system maintenance, upgrades, and custom development. Analyzing past performance ratings, any contract disputes, and the types of agencies they have served would provide a clearer picture of their capabilities and reliability. Their experience with systems of similar scale and complexity to the Smithsonian's ERP is a key factor in assessing their suitability for this long-term engagement.

How does the $39.15 million contract value compare to similar ERP system maintenance contracts in the federal sector?

The $39.15 million contract value over approximately 10 years for ERP system maintenance and upgrades places this award in the mid-to-large range for federal IT support contracts. Comparable contracts for large federal agencies can range from tens of millions to over a hundred million dollars, depending on the system's scope, the number of users, and the specific services required (e.g., custom development, cloud migration, ongoing support). The value here seems aligned with supporting a critical enterprise system for a major institution over an extended period. A precise comparison would require analyzing contracts with similar service descriptions (NAICS 541512) and durations across agencies of comparable size and complexity.

What are the primary risks associated with a long-term (10+ year) contract for ERP system maintenance?

The primary risks associated with a long-term ERP system maintenance contract include technological obsolescence, where the system or its supporting technologies become outdated before the contract ends. Vendor lock-in is another significant risk, making it difficult and costly to switch providers if performance issues arise or better solutions emerge. Scope creep, where the project's requirements expand beyond the original agreement, can lead to cost overruns and delays. Furthermore, ensuring the vendor maintains adequate staffing levels with the necessary expertise throughout the contract's duration is crucial. Finally, the Smithsonian must actively manage the contract to ensure the vendor remains innovative and doesn't simply maintain the status quo, potentially hindering future modernization efforts.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method is generally effective in ensuring value for taxpayers because it aims to solicit offers from the widest possible range of qualified vendors. By allowing all responsible sources to compete, it fosters a competitive environment that typically drives down prices and encourages innovation. This process helps prevent sole-source awards, which can be more expensive. However, the effectiveness is contingent on the clarity of the solicitation, the fairness of the evaluation criteria, and the actual number and quality of bids received. If the exclusion of certain sources was justified and the remaining pool was still competitive, it can yield good value.

What are the potential implications of this contract on the Smithsonian's IT workforce and operational efficiency?

This contract's implications for the Smithsonian's IT workforce are likely to involve collaboration between internal staff and the contractor's team. The Smithsonian's IT personnel may focus on system oversight, strategic planning, and user support, while Oakland Consulting Group handles the technical maintenance and upgrades. This division of labor can enhance operational efficiency by leveraging specialized expertise. However, it also necessitates clear communication channels and defined roles to avoid confusion or duplication of effort. The successful maintenance and upgrade of the ERP system are critical for the operational efficiency of many Smithsonian departments, impacting everything from financial management to resource allocation.

What is the historical spending trend for ERP system support at the Smithsonian Institution?

The provided data focuses on a single, long-term contract award. To understand historical spending trends for ERP system support at the Smithsonian Institution, one would need to analyze procurement data over several preceding years. This would involve identifying all contracts related to ERP maintenance, upgrades, and related services, noting their values, durations, and awarded vendors. Trends might reveal an increasing reliance on external contractors, shifts in technology focus (e.g., from on-premise to cloud-based solutions), or fluctuations in spending based on system lifecycle stages or institutional priorities. Without this broader historical context, it's difficult to assess if the current $39.15 million award represents an increase, decrease, or stable level of investment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 9501 SHERIDAN ST STE 200, LANHAM, MD, 20706

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,153,901

Exercised Options: $39,153,901

Current Obligation: $39,153,901

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline