State Department IT Support Contract Awarded to Onpoint Consulting for Over $10 Million
Contract Overview
Contract Amount: $10,257,517 ($10.3M)
Contractor: Onpoint Consulting, Inc.
Awarding Agency: Department of State
Start Date: 2007-09-26
End Date: 2013-10-31
Contract Duration: 2,227 days
Daily Burn Rate: $4.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522
Plain-Language Summary
Department of State obligated $10.3 million to ONPOINT CONSULTING, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Competition was robust, suggesting potential for favorable pricing. 3. Risk indicators are moderate, with a long performance period. 4. Performance context involves essential IT support for the State Department. 5. Sector positioning is within IT services, a critical area for government operations.
Value Assessment
Rating: good
The contract value of approximately $10.26 million over 6 years for IT support services appears to be within a reasonable range when benchmarked against similar long-term IT service contracts. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency. Without specific per-unit cost data for services rendered, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through a competitive delivery order process, indicating that multiple vendors likely competed for this task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. The presence of four bidders suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive environment is beneficial for the government in securing quality services at a fair market price.
Taxpayer Impact: The full and open competition for this IT support contract is advantageous for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition award. The multiple bids received provide a strong basis for price negotiation and ensure that taxpayer funds are used efficiently.
Public Impact
Benefits the Department of State by ensuring the continuity and effectiveness of its IT infrastructure. Delivers essential IT support services, including maintenance, troubleshooting, and potentially system upgrades. Geographic impact is primarily within Washington D.C., where the State Department's main operations are located. Workforce implications include the employment of IT professionals by Onpoint Consulting, contributing to the IT labor market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 6 years) could lead to potential cost overruns if not managed effectively.
- Reliance on labor hours can sometimes incentivize longer task completion times if not properly monitored.
- Scope creep could increase costs if not strictly controlled through change management processes.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contractor has a track record of performance, though specific details require further investigation.
- The nature of IT support services is critical for agency operations, suggesting a focus on reliable service delivery.
Sector Analysis
The IT support services sector is a significant component of the federal contracting landscape, with agencies heavily reliant on technology for operations. Spending in this area often includes help desk support, network management, cybersecurity, and software maintenance. Comparable contracts in this sector can range widely in value depending on the complexity of the systems supported and the duration of the contract. The State Department's need for IT support aligns with the broader trend of federal agencies outsourcing these critical functions.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Onpoint Consulting chooses to engage small businesses for specialized tasks. Without explicit subcontracting plans or goals, the direct benefit to small businesses from this specific award is uncertain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), including service level agreements (SLAs) and key performance indicators (KPIs). Transparency is generally maintained through contract award databases, although detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Professional Services
- IT Operations and Maintenance
- Information Technology Services
- Computer Related Services
Risk Flags
- Long contract duration may increase risk of cost escalation or obsolescence.
- Reliance on labor hours requires diligent monitoring to ensure efficiency.
Tags
it-services, it-support, department-of-state, competitive-delivery-order, large-contract, information-technology, professional-services, district-of-columbia, labor-hours, onpoint-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $10.3 million to ONPOINT CONSULTING, INC.. IT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ONPOINT CONSULTING, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2007-09-26. End: 2013-10-31.
What is the historical spending pattern for IT support services at the Department of State?
Historical spending on IT support services at the Department of State has been substantial, reflecting the agency's global operations and reliance on complex technological systems. While specific figures for prior years require detailed database queries, the trend generally shows consistent investment in maintaining and upgrading IT infrastructure. This particular contract, awarded in 2007 and ending in 2013, represents a significant portion of IT support spending during that period. Analyzing broader spending trends can help contextualize the value and necessity of such contracts, identifying areas of consistent need and potential opportunities for consolidation or efficiency improvements across different IT service categories.
How does Onpoint Consulting's performance on this contract compare to industry benchmarks for IT support?
Assessing Onpoint Consulting's performance against industry benchmarks requires access to detailed performance metrics and customer satisfaction data, which are not fully available in the provided data. However, the fact that the contract was awarded competitively and completed its term suggests a baseline level of satisfactory performance. To conduct a thorough comparison, one would need to examine metrics such as system uptime, response times to service requests, resolution rates, and client feedback surveys. Industry benchmarks for IT support often focus on key performance indicators (KPIs) like Mean Time To Repair (MTTR), first-call resolution rates, and customer satisfaction scores (CSAT). Without these specific data points, a definitive comparison remains qualitative.
What were the primary risks associated with this long-term IT support contract, and how were they mitigated?
Long-term IT support contracts, like this one spanning over six years, inherently carry risks such as technological obsolescence, scope creep, and contractor performance degradation. Technological obsolescence is a risk because IT environments can change rapidly, potentially rendering the contracted services or solutions outdated before the contract ends. Scope creep is another significant risk, where the contract's requirements expand beyond the original agreement without corresponding adjustments in cost or timeline, leading to budget overruns. Contractor performance degradation over time is also a concern. Mitigation strategies typically involve robust contract management, including regular performance reviews, clear change control processes, defined service level agreements (SLAs), and contingency planning for technological shifts. The Department of State would have employed such measures, overseen by contracting officers, to manage these risks.
What is the estimated value of this contract relative to the total IT spending of the Department of State during its performance period?
Estimating the precise value of this contract relative to the Department of State's total IT spending requires detailed historical budget data for the agency, which is not provided. However, with a value of approximately $10.26 million, this contract represents a notable investment in IT support services. The Department of State, being a large federal agency with global operations, likely has a total IT budget in the hundreds of millions or even billions of dollars annually. Therefore, this specific contract, while significant for IT support, would constitute a fraction of the overall IT expenditure. A comprehensive analysis would involve comparing this contract's value against the agency's total IT budget for the fiscal years between 2007 and 2013.
Were there any specific performance challenges or successes reported for Onpoint Consulting during the contract's lifecycle?
The provided data does not contain specific details regarding performance challenges or successes encountered by Onpoint Consulting during the lifecycle of this contract. Typically, such information would be found in contract performance reports, past performance reviews, or potentially in Inspector General reports if significant issues arose. The completion of the contract term and its award through a competitive process suggest that performance was likely adequate to meet the State Department's needs. However, without access to detailed performance evaluations or contract close-out documentation, it is impossible to definitively identify specific successes or challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sapient Corporation (UEI: 790166219)
Address: 1515 N COURT HOUSE RD, ARLINGTON, VA, 08
Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $15,738,287
Exercised Options: $15,543,832
Current Obligation: $10,257,517
Parent Contract
Parent Award PIID: SAQMPD07D0093
IDV Type: IDC
Timeline
Start Date: 2007-09-26
Current End Date: 2013-10-31
Potential End Date: 2013-10-31 00:00:00
Last Modified: 2014-11-26
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