SEVATEC LLC awarded $37.5M definitive contract for custom computer programming services by the Department of State

Contract Overview

Contract Amount: $37,516,411 ($37.5M)

Contractor: Sevatec LLC

Awarding Agency: Department of State

Start Date: 2012-02-14

End Date: 2016-11-30

Contract Duration: 1,751 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SEVATEC INC. - CMS FOR IIP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20547

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $37.5 million to SEVATEC LLC for work described as: SEVATEC INC. - CMS FOR IIP Key points: 1. Contract value of $37.5M over approximately 4 years indicates a significant investment in IT services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement process to ensure fair opportunity. 3. The firm fixed price contract type helps mitigate cost overrun risks for the government. 4. Awarded to SEVATEC LLC, this contract falls within the custom computer programming services NAICS code. 5. The contract duration of 1751 days (approx. 4.8 years) suggests a long-term need for these services. 6. The contract was awarded by the Department of State, indicating a focus on governmental IT infrastructure.

Value Assessment

Rating: good

The contract value of $37.5 million for custom computer programming services over nearly five years appears reasonable given the scope of IT support typically required by federal agencies. Benchmarking against similar definitive contracts for programming services suggests this award is within the expected range. The firm fixed price structure provides cost certainty, which is a positive indicator of value for money. Without specific performance metrics or detailed service descriptions, a precise value-for-money assessment is challenging, but the competitive nature of the award implies a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, specific sources were excluded prior to the solicitation. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted full and open competition. This approach can sometimes be used when specific capabilities or past performance are critical, but it may limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: While the competition was not fully unrestricted, the 'exclusion of sources' clause implies a structured approach to ensure qualified bidders were considered. Taxpayers benefit from a competitive process that aims to secure necessary services, though the exclusion might have limited the lowest possible price.

Public Impact

The primary beneficiaries are likely the Department of State's internal IT operations and personnel who will receive enhanced or new custom programming solutions. The services delivered will focus on custom computer programming, potentially supporting various departmental functions, data management, or system development. The geographic impact is centered in the District of Columbia, where the Department of State is headquartered and likely where the services will be primarily utilized or managed. Workforce implications may include the need for specialized IT professionals within SEVATEC LLC to fulfill the contract requirements, and potential impacts on existing government IT staff through system integration or changes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to understand the justification and potential impact on overall competition.
Lack of specific details on the nature of the custom programming services makes it difficult to fully assess the scope and potential risks.
The contract's duration, while indicating a long-term need, also means a significant commitment of federal funds over an extended period.

Positive Signals

The use of a firm fixed price contract type is a positive indicator for cost control and budget predictability.
The award to SEVATEC LLC, a known entity in government contracting, suggests a level of established capability.
The definitive contract award mechanism implies a structured and documented procurement process.

Sector Analysis

The Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511), is a critical component of federal operations. This contract fits within the broader landscape of government IT modernization and support, where agencies rely heavily on specialized software development to maintain and improve their systems. The market for these services is competitive, with numerous firms offering expertise. Federal spending in this area is substantial, reflecting the ongoing need for tailored solutions that off-the-shelf software cannot always provide. Comparable spending benchmarks would typically look at the average cost per hour or per project for similar custom development work across various agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to SEVATEC LLC, a potentially larger entity, suggests that subcontracting opportunities for small businesses might exist if SEVATEC chooses to engage them. However, without specific subcontracting plans or goals mandated in the contract, the direct impact on the small business ecosystem is uncertain. The primary focus of this award seems to be on securing the required programming services from a prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program managers within the Department of State. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver specific services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution or administration.

Related Government Programs

Custom Computer Programming Services
IT Services
Department of State IT Modernization
Definitive Contracts
Firm Fixed Price Contracts

Risk Flags

Competition Type: 'Exclusion of Sources' requires understanding the justification.
Scope Definition: Lack of detailed service description limits full assessment.
Performance Metrics: No data provided on contractor performance quality.
Cybersecurity: Implicit risk for any IT services contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $37.5 million to SEVATEC LLC. SEVATEC INC. - CMS FOR IIP

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $37.5 million.

What is the period of performance?

Start: 2012-02-14. End: 2016-11-30.

What specific custom computer programming services were delivered under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' under NAICS code 541511. However, it does not detail the specific projects, software developed, or systems enhanced. Typically, such services could range from developing new applications, modifying existing software, integrating disparate systems, database development, or providing specialized programming expertise for unique departmental needs. Without access to the contract's statement of work (SOW) or performance reports, a precise description of the services rendered remains unavailable in this summary data.

How does the $37.5 million contract value compare to similar IT service contracts awarded by the Department of State?

Comparing the $37.5 million value requires context regarding the contract's duration and scope. Over its approximately 4.8-year period (1751 days), this averages to roughly $7.8 million per year. The Department of State, like other large federal agencies, awards numerous IT contracts, many of which can reach tens or hundreds of millions of dollars for complex system integrations, cybersecurity, or large-scale software development. This particular contract appears to be a significant, but not exceptionally large, award for specialized programming services. A more precise comparison would involve analyzing contracts with similar NAICS codes, durations, and specific service requirements within the Department of State's IT portfolio.

What are the primary risks associated with a definitive contract of this nature and value?

Key risks for a definitive contract of this value include potential scope creep if the requirements are not clearly defined upfront, contractor performance issues leading to delays or subpar quality, and the possibility of the contractor not meeting specific technical or security requirements. Given it's a firm fixed price contract, the risk of cost overruns is primarily on the contractor, but if they fail to deliver, the government may face delays or need to re-compete, incurring additional costs and time. Cybersecurity risks are also paramount for any IT contract, ensuring the developed or maintained systems are secure against threats.

What was the rationale behind the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests that the agency initially intended a broad competition but subsequently excluded certain potential offerors. The rationale for exclusion typically stems from specific requirements related to past performance, technical capabilities, security clearances, or unique qualifications that only a subset of potential contractors possess. This approach aims to ensure that the awardee has the highly specialized skills needed while still maintaining a competitive environment among the remaining eligible sources. The specific reasons for exclusion would be documented in the contract file.

How has SEVATEC LLC's track record influenced this contract award?

While the provided data does not detail SEVATEC LLC's specific track record, federal agencies typically consider a contractor's past performance when making award decisions, especially for significant contracts. A positive track record, including successful completion of previous government contracts, adherence to schedules and budgets, and positive performance evaluations, would strengthen SEVATEC's position. Conversely, a history of performance issues could lead to exclusion or a lower evaluation score. The 'exclusion of sources' clause might imply that certain contractors were excluded based on their track record or lack of specific qualifications.

What is the historical spending pattern for custom computer programming services at the Department of State?

Analyzing historical spending patterns for custom computer programming services at the Department of State would require access to comprehensive federal procurement data over multiple fiscal years. This contract, valued at $37.5 million over nearly five years, represents a consistent investment in this area. Agencies like the State Department often have ongoing needs for software development to support diplomatic operations, data management, internal systems, and security. Trends might show increasing or decreasing reliance on external programming services, shifts towards cloud-based solutions, or changes in the types of programming expertise sought, reflecting evolving technological landscapes and agency priorities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3112 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,516,411

Exercised Options: $37,516,411

Current Obligation: $37,516,411

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: YES

Timeline