Interior Department's $48M Cisco Hardware Sustainment contract awarded to Sirius Federal LLC

Contract Overview

Contract Amount: $48,040,066 ($48.0M)

Contractor: Sirius Federal LLC

Awarding Agency: Department of the Interior

Start Date: 2009-03-17

End Date: 2014-09-15

Contract Duration: 2,008 days

Daily Burn Rate: $23.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO HARDWARE SUSTAINMENT.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $48.0 million to SIRIUS FEDERAL LLC for work described as: CISCO HARDWARE SUSTAINMENT. Key points: 1. Value for money appears fair given the 5-year duration and fixed-price nature. 2. Competition dynamics were favorable, with 3 bidders vying for this delivery order. 3. Risk indicators are moderate, with a long performance period and a single award. 4. Performance context shows a sustained need for hardware sustainment over several years. 5. Sector positioning is within IT hardware and sustainment services for federal agencies.

Value Assessment

Rating: fair

The total contract value of approximately $48 million over five years suggests an average annual spend of around $9.6 million. Benchmarking this against similar sustainment contracts for enterprise hardware is challenging without more specific details on the scope of services and equipment covered. However, the firm fixed-price structure provides cost certainty for the government. The award amount relative to the duration indicates a consistent, albeit not exceptionally low, annual expenditure for maintaining critical IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. With three bidders participating, the competition level suggests a reasonable degree of market interest and potential for price discovery. The presence of multiple offers generally supports the government's ability to secure competitive pricing, although the specific price outcomes are not detailed here.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario would have yielded.

Public Impact

Federal agencies, primarily within the Department of the Interior, benefit from uninterrupted access to supported Cisco hardware. Essential IT infrastructure sustainment services are delivered, ensuring operational continuity. The geographic impact is likely nationwide, supporting Interior's distributed operations. Workforce implications are minimal for this specific contract, focusing on hardware support rather than new development or large-scale deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single awardee for sustainment over an extended period carries inherent risk.
Potential for scope creep or unaddressed obsolescence if sustainment plan is not robust.

Positive Signals

Firm fixed-price contract provides cost predictability.
Competitive award process suggests a degree of market validation for the pricing.
Sustainment contracts are crucial for maintaining existing IT infrastructure.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on hardware sustainment and maintenance. The market for IT hardware support services is substantial, with numerous vendors offering specialized maintenance agreements for enterprise-level equipment. The Department of the Interior's spending on such services is typical for large federal agencies managing extensive networks and computing infrastructure. Comparable spending benchmarks would depend on the specific Cisco product lines and the level of support required.

Small Business Impact

There is no indication that this contract included a small business set-aside. Sirius Federal LLC is not identified as a small business. Therefore, the direct impact on small business set-asides is nil. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if Sirius Federal chooses to engage them for specific support functions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract type, requiring Sirius Federal to deliver specified services. Transparency is generally provided through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules for IT hardware and services
Department of Defense (DoD) IT sustainment contracts
Other agency-specific IT hardware maintenance agreements

Risk Flags

Long-term reliance on a single vendor for critical hardware sustainment.
Potential for aging hardware support leading to inefficiencies.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $48.0 million to SIRIUS FEDERAL LLC. CISCO HARDWARE SUSTAINMENT.

Who is the contractor on this award?

The obligated recipient is SIRIUS FEDERAL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $48.0 million.

What is the period of performance?

Start: 2009-03-17. End: 2014-09-15.

What specific Cisco hardware models and quantities were covered under this sustainment contract?

The provided data does not specify the exact Cisco hardware models or quantities included in the sustainment contract. This level of detail is typically found in the contract's statement of work (SOW) or associated exhibits. Understanding the specific hardware is crucial for accurately benchmarking the contract's value and assessing its relevance to current technology standards. Without this information, it's difficult to determine if the contract covered end-of-life equipment or cutting-edge technology, both of which would significantly impact value assessment.

How does the annual cost of this contract compare to industry benchmarks for similar Cisco hardware sustainment?

Directly comparing the annual cost of approximately $9.6 million ($48M / 5 years) to industry benchmarks for Cisco hardware sustainment is challenging without knowing the specific hardware models, their age, the level of support (e.g., 8-hour response, next-business-day replacement), and the quantities involved. Enterprise-level sustainment contracts for high-end networking equipment can vary widely. Generally, sustainment costs can range from 10% to 25% of the original hardware acquisition cost annually. To provide a meaningful benchmark, a detailed breakdown of the supported assets and service levels would be required.

What was the track record of Sirius Federal LLC in performing similar IT sustainment contracts prior to this award?

The provided data does not include information on Sirius Federal LLC's past performance or track record. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Federal agencies typically conduct pre-award responsibility determinations that include evaluating a contractor's past performance. Without access to this information, it is difficult to assess the risk associated with Sirius Federal's ability to successfully execute this $48 million sustainment contract over its five-year period.

Were there any specific performance metrics or service level agreements (SLAs) defined in the contract, and how was compliance measured?

The provided summary data does not detail the specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, sustainment contracts include SLAs related to response times for hardware failures, parts replacement timelines, and potentially uptime guarantees for critical network components. Compliance is usually measured through regular reporting by the contractor and oversight by a government-appointed Contract Officer's Representative (COR). Without these details, it's impossible to evaluate the effectiveness of the service delivery or the contractor's adherence to agreed-upon standards.

What is the historical spending trend for Cisco hardware sustainment within the Department of the Interior?

The provided data only reflects a single contract award for Cisco hardware sustainment totaling $48 million from 2009 to 2014. It does not provide historical spending trends for this category within the Department of the Interior. To understand the trend, one would need to analyze spending data over multiple fiscal years, identifying all contracts related to Cisco hardware sustainment across various bureaus and offices within the Department. This would reveal whether spending has increased, decreased, or remained stable over time, and identify any shifts in procurement strategies or technology adoption.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sirius Computer Solutions, LLC (UEI: 004161712)

Address: 2151 PRIEST BRIDGE DR, CROFTON, MD, 21114

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $52,381,927

Exercised Options: $49,607,385

Current Obligation: $48,040,066

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA18B

IDV Type: GWAC

Timeline