State Department's $12.8M IT infrastructure contract to CSRA LLC shows fair value with 4 bidders
Contract Overview
Contract Amount: $12,799,363 ($12.8M)
Contractor: Csra LLC
Awarding Agency: Department of State
Start Date: 2008-02-01
End Date: 2016-08-17
Contract Duration: 3,120 days
Daily Burn Rate: $4.1K/day
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ENM GTS - DELIVERY ORDER UNDER USAID PRIME 3.2 - ASSIST WITH MANAGEMENT AND OPERATION OF IT INFRASTRUCTURE (BELTSVILLE)
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $12.8 million to CSRA LLC for work described as: ENM GTS - DELIVERY ORDER UNDER USAID PRIME 3.2 - ASSIST WITH MANAGEMENT AND OPERATION OF IT INFRASTRUCTURE (BELTSVILLE) Key points: 1. The contract provided IT infrastructure management and operations, indicating a need for specialized support. 2. With four bidders, the competition level suggests a moderately competitive market for these services. 3. The contract duration of over 8 years (3120 days) points to a long-term need and potential for sustained service. 4. The Time and Materials pricing structure can pose risks if not closely managed, potentially leading to cost overruns. 5. The contract was awarded to CSRA LLC, a significant player in the federal IT services sector. 6. The North American Industry Classification System (NAICS) code 541519 suggests a broad category of IT services. 7. The contract's performance period spanned from 2008 to 2016, reflecting past IT support requirements.
Value Assessment
Rating: fair
The total value of $12.8 million over more than 8 years suggests a moderate annual spend for IT infrastructure support. Benchmarking against similar contracts for IT operations and maintenance services indicates that this pricing falls within a reasonable range, though specific performance metrics and the exact scope of services would be needed for a more precise valuation. The Time and Materials (T&M) pricing model, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. The number of bids received (4) suggests a degree of market interest, which can help in achieving competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under a full and open solicitation, indicating that all responsible sources were permitted to submit offers. Four bids were received, suggesting a reasonable level of competition for these IT infrastructure services. A moderate number of bidders generally allows for price discovery and encourages contractors to offer competitive terms, though a higher number of bidders could potentially drive prices down further.
Taxpayer Impact: The full and open competition with four bidders likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award, as it allowed market forces to influence pricing.
Public Impact
The primary beneficiaries of this contract were the Department of State, receiving essential IT infrastructure support. The services delivered included the management and operation of IT infrastructure, ensuring continuity and reliability of critical systems. The contract was geographically focused on Beltsville, Maryland, indicating a specific operational site requirement. The contract supported the IT workforce by engaging a contractor to perform these specialized functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) pricing structure carries inherent risk of cost escalation if not rigorously monitored and controlled.
- The long contract duration (over 8 years) could potentially lead to vendor lock-in or reduced agility in adopting newer technologies if not managed proactively.
- The broad NAICS code (541519) might encompass a wide range of services, making it difficult to ascertain if the most specialized and cost-effective solutions were procured without detailed scope analysis.
Positive Signals
- The contract was awarded through full and open competition, indicating a robust process for selecting the best value.
- Receiving four bids suggests sufficient market interest and a competitive environment that likely benefited pricing.
- The contract was performed by CSRA LLC, a known entity in the federal IT services space, implying a level of established capability.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on IT infrastructure management and operations. The federal IT services market is substantial, with agencies consistently seeking support for maintaining and modernizing their complex systems. Comparable spending benchmarks for IT operations and maintenance can vary widely based on the scope, complexity, and criticality of the infrastructure supported. The broad NAICS code 541519 covers a range of computer-related services, indicating this contract was for general IT support rather than highly specialized niche services.
Small Business Impact
There is no indication that this contract included small business set-asides, as the 'ss' field is false. Similarly, the 'sb' field being false suggests no explicit requirement for subcontracting to small businesses was mandated within this specific award. This means the primary contractor, CSRA LLC, likely performed the majority of the work with its own resources or subcontracted based on its own business decisions, potentially limiting direct opportunities for small businesses within this particular contract's framework.
Oversight & Accountability
Oversight for this contract would have been primarily managed by the Department of State contracting officers and program managers responsible for the IT infrastructure at the Beltsville location. As a delivery order under a prime contract, the oversight mechanisms would align with the terms of the parent contract. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and parties involved. Specific performance oversight details are typically internal to the agency.
Related Government Programs
- IT Infrastructure Support Services
- IT Operations and Maintenance
- Managed IT Services
- Federal IT Contracts
- Department of State IT Spending
Risk Flags
- Time and Materials Pricing Risk
- Long-Term Contract Duration
- Broad NAICS Code Scope
Tags
it-services, department-of-state, virginia, delivery-order, time-and-materials, full-and-open-competition, it-infrastructure, computer-related-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $12.8 million to CSRA LLC. ENM GTS - DELIVERY ORDER UNDER USAID PRIME 3.2 - ASSIST WITH MANAGEMENT AND OPERATION OF IT INFRASTRUCTURE (BELTSVILLE)
Who is the contractor on this award?
The obligated recipient is CSRA LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2008-02-01. End: 2016-08-17.
What was the specific scope of IT infrastructure managed under this contract?
The contract, "ENM GTS - DELIVERY ORDER UNDER USAID PRIME 3.2 - ASSIST WITH MANAGEMENT AND OPERATION OF IT INFRASTRUCTURE (BELTSVILLE)", indicates a focus on the management and operation of IT infrastructure. While the specific details of the infrastructure are not provided in the summary data, typical services under such a contract would include network management, server administration, data center operations, cybersecurity support, help desk services, and potentially the maintenance of hardware and software systems. The location specified as Beltsville suggests these services were likely for a particular facility or set of facilities operated by the Department of State or an associated agency.
How does the per-year cost of this contract compare to industry benchmarks for similar IT infrastructure services?
The total contract value was approximately $12.8 million over a period of 3120 days, which is roughly 8.5 years. This equates to an average annual spend of approximately $1.5 million. Benchmarking this figure requires detailed comparison with industry data for IT infrastructure management and operations, considering factors like the size and complexity of the infrastructure, the specific services rendered (e.g., network, servers, security, help desk), and the geographic location. Generally, federal IT infrastructure support costs can range significantly, but an average annual spend of $1.5 million for a dedicated operational site might be considered moderate, assuming a substantial scope of services. Without more granular data on the scope and service levels, a precise comparison is challenging, but it does not appear to be an outlier based on the limited information.
What were the key performance indicators (KPIs) used to evaluate CSRA LLC's performance under this contract?
The provided data does not include specific Key Performance Indicators (KPIs) that were used to evaluate CSRA LLC's performance. Typically, for IT infrastructure management contracts, KPIs would focus on metrics such as system uptime and availability, response times for service requests and incidents, resolution times for issues, security compliance rates, and user satisfaction. The Department of State would have established these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor met the required service levels. The success of the contract would be measured against these predefined metrics, and any deviations could lead to contract modifications or penalties.
What is the historical spending trend for similar IT infrastructure support services at the Department of State?
Analyzing the historical spending trend for similar IT infrastructure support services at the Department of State requires access to comprehensive historical contract data. This specific contract (valued at $12.8M over 8.5 years) represents a portion of the department's overall IT expenditure. To understand trends, one would need to examine spending patterns over multiple fiscal years, identify recurring needs for infrastructure management, and track whether spending has increased, decreased, or remained stable. Factors influencing these trends include technological advancements, evolving security threats, agency growth or consolidation, and shifts in IT strategy (e.g., cloud migration). This single contract provides a snapshot but not a trend.
Were there any significant contract modifications or disputes associated with this delivery order?
The provided summary data does not contain information regarding specific contract modifications or disputes related to this delivery order. Contract modifications are common and can adjust scope, schedule, or price. Disputes can arise from disagreements over contract terms, performance, or payments. To determine if significant modifications or disputes occurred, one would need to consult the contract's official file or modification history, which is typically maintained by the contracting agency. The absence of readily available information on disputes does not necessarily mean none occurred, but it suggests no major, publicly documented conflicts.
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
Contractor Details
Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,986,693
Exercised Options: $12,799,363
Current Obligation: $12,799,363
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4381G
IDV Type: FSS
Timeline
Start Date: 2008-02-01
Current End Date: 2016-08-17
Potential End Date: 2016-08-17 00:00:00
Last Modified: 2016-08-17
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