Interior Department's $105M IT support contract awarded to SBD Alliant, LLC, raises value and competition questions

Contract Overview

Contract Amount: $105,398,355 ($105.4M)

Contractor: SBD Alliant, LLC

Awarding Agency: Department of the Interior

Start Date: 2016-09-23

End Date: 2022-03-22

Contract Duration: 2,006 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF TEST&EVALUATION SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $105.4 million to SBD ALLIANT, LLC for work described as: IGF::CT::IGF TEST&EVALUATION SUPPORT Key points: 1. The contract's value appears high relative to the services provided, suggesting potential for cost savings. 2. Limited competition dynamics may have influenced pricing, as only one bid was received. 3. The contract's duration and delivery order structure present moderate performance and oversight risks. 4. Performance context is limited due to the broad nature of 'Test & Evaluation Support'. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The use of Time and Materials pricing introduces cost escalation risks. 7. The contract's significant duration (nearly 6 years) warrants close monitoring for continued relevance and efficiency.

Value Assessment

Rating: fair

Benchmarking this contract against similar IT support services is challenging due to the broad 'Test & Evaluation Support' description. However, the Time and Materials pricing structure, coupled with a single bidder, raises concerns about achieving optimal value for money. The total obligated amount of over $105 million for nearly six years suggests a substantial investment that requires rigorous justification and ongoing scrutiny to ensure it aligns with market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is an unusual designation that suggests some limitations were placed on the bidding process. Despite being advertised as full and open, only one bid was received from SBD Alliant, LLC. This lack of robust competition limits the government's ability to leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most competitive pricing, potentially leading to higher overall costs for the services rendered.

Public Impact

The Department of the Interior benefits from IT support services crucial for its operations. Services delivered include computer systems design and test and evaluation support. The contract's geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment opportunities for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to Time and Materials pricing.
Potential for vendor lock-in given the long contract duration and limited competition.
Ambiguity in 'Test & Evaluation Support' could lead to scope creep or misaligned deliverables.
Lack of multiple bidders raises concerns about the initial pricing and overall value.

Positive Signals

The contract is with a known entity (SBD Alliant, LLC), potentially indicating a degree of familiarity and established working relationship.
The award was made under a broad category, suggesting it addresses a recognized need within the agency.
The contract duration, while long, allows for continuity of essential services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related support. The market for IT support services is highly competitive, with numerous firms offering a wide range of capabilities. However, specialized areas like 'Test & Evaluation Support' can sometimes see fewer specialized providers. The government's IT spending is substantial, and contracts of this magnitude are common, but the specific nature of the services and the limited competition warrant attention.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the awardee is not explicitly identified as a small business, and the contract was not set aside for small businesses. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary benefits of this contract may not flow to the small business ecosystem, and opportunities for small business subcontracting might be limited.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Interior's contracting officers and program managers responsible for monitoring performance, deliverables, and expenditures. Transparency is facilitated through contract databases, but the specific details of performance reviews and accountability measures are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services Contracts
Computer Systems Design Services
Test and Evaluation Support
Department of the Interior IT Spending
Alliant Contract Vehicles

Risk Flags

Limited competition may lead to higher costs.
Time and Materials pricing increases cost overrun risk.
Broad service description lacks specificity for performance evaluation.
Contract duration is lengthy, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $105.4 million to SBD ALLIANT, LLC. IGF::CT::IGF TEST&EVALUATION SUPPORT

Who is the contractor on this award?

The obligated recipient is SBD ALLIANT, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $105.4 million.

What is the period of performance?

Start: 2016-09-23. End: 2022-03-22.

What is the track record of SBD Alliant, LLC with the Department of the Interior and other federal agencies?

SBD Alliant, LLC, has a history of receiving federal contracts, including significant awards from the Department of the Interior. Analyzing their past performance, including contract values, types of services rendered, and any reported issues or successes, is crucial for understanding their reliability and capability. A review of their contract history across various agencies would provide a broader perspective on their experience and ability to deliver complex IT solutions. This includes examining past performance evaluations and any contract modifications or disputes to gauge their overall track record.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar IT support services?

Time and Materials (T&M) contracts, like the one awarded to SBD Alliant, LLC, offer flexibility but carry a higher risk of cost overruns compared to fixed-price contracts. In a T&M arrangement, the government pays for the direct labor hours at specified hourly rates and the actual cost of materials. This can be advantageous when the scope of work is not well-defined or is expected to change. However, it lacks the cost certainty of fixed-price contracts, where the contractor assumes more risk for cost overruns. For IT support services where requirements are stable, fixed-price contracts often yield better value for the government by incentivizing efficiency and cost control from the contractor.

What are the specific 'Test & Evaluation Support' services being provided under this contract?

The designation 'Test & Evaluation Support' is broad and can encompass a wide range of activities within the IT domain. This could include developing test plans, executing various types of testing (e.g., functional, performance, security), analyzing test results, providing feedback on system development, and supporting the overall quality assurance process for IT systems. Without more specific details on the deliverables and objectives, it is difficult to precisely benchmark the value or assess the effectiveness of the services. Clarification on the specific systems being tested and the expected outcomes would be necessary for a more thorough analysis.

What factors led to only one bid being submitted for this 'Full and Open Competition After Exclusion of Sources' contract?

The designation 'Full and Open Competition After Exclusion of Sources' is unusual and suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, or perhaps the solicitation was structured in a way that inadvertently limited participation. The submission of only one bid could stem from several factors: the complexity or specialized nature of the required services, restrictive requirements in the solicitation, insufficient market research by the agency to identify potential bidders, or the contract's value and duration not being attractive enough to warrant multiple bids. Understanding the specific exclusion criteria or solicitation details is key to fully assessing this.

What is the historical spending trend for 'Test & Evaluation Support' within the Department of the Interior?

Analyzing historical spending trends for 'Test & Evaluation Support' within the Department of the Interior is essential to contextualize the $105 million awarded to SBD Alliant, LLC. If spending in this category has been consistently high or has recently increased, it might indicate a growing need for these services. Conversely, if this contract represents a significant deviation from past spending patterns, it warrants further investigation into the drivers behind the increased investment. Comparing this contract's value and duration to previous similar contracts can reveal whether this award is an anomaly or part of a sustained trend in the agency's IT support procurement.

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

Solicitation ID: D16PS00367

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS ROAD STE 870, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,251,658

Exercised Options: $123,333,290

Current Obligation: $105,398,355

Actual Outlays: $52,785,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0656Z

IDV Type: GWAC

Timeline